CONSTELLATION BRANDS INC-A (STZ) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:STZ - US21036P1084 - Common Stock
147.747 USD
-0.21 (-0.14%)
Taking everything into account, STZ scores 5 out of 10 in our fundamental rating. STZ was compared to 33 industry peers in the Beverages industry. Both the profitability and the financial health of STZ get a neutral evaluation. Nothing too spectacular is happening here. STZ is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
STZ had positive earnings in the past year.
In the past year STZ had a positive cash flow from operations.
In multiple years STZ reported negative net income over the last 5 years.
STZ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
STZ has a Return On Assets (5.71%) which is in line with its industry peers.
STZ has a Return On Equity of 16.30%. This is comparable to the rest of the industry: STZ outperforms 57.58% of its industry peers.
STZ has a better Return On Invested Capital (13.29%) than 78.79% of its industry peers.
The Average Return On Invested Capital over the past 3 years for STZ is in line with the industry average of 11.47%.
The 3 year average ROIC (12.24%) for STZ is below the current ROIC(13.29%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.71% | ||
| ROE | 16.3% | ||
| ROIC | 13.29% |
ROA(3y)2.02%
ROA(5y)2.65%
ROE(3y)5.23%
ROE(5y)6.01%
ROIC(3y)12.24%
ROIC(5y)11.12%
1.3 Margins
The Profit Margin of STZ (12.70%) is better than 78.79% of its industry peers.
STZ's Operating Margin of 33.05% is amongst the best of the industry. STZ outperforms 100.00% of its industry peers.
STZ's Operating Margin has improved in the last couple of years.
STZ has a better Gross Margin (51.93%) than 63.64% of its industry peers.
STZ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.05% | ||
| PM (TTM) | 12.7% | ||
| GM | 51.93% |
OM growth 3Y0.41%
OM growth 5Y2.07%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.64%
GM growth 5Y0.98%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so STZ is creating value.
Compared to 1 year ago, STZ has less shares outstanding
STZ has less shares outstanding than it did 5 years ago.
The debt/assets ratio for STZ is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.93 indicates that STZ is not a great score, but indicates only limited risk for bankruptcy at the moment.
STZ has a Altman-Z score of 2.93. This is in the better half of the industry: STZ outperforms 60.61% of its industry peers.
The Debt to FCF ratio of STZ is 5.71, which is a neutral value as it means it would take STZ, 5.71 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of STZ (5.71) is better than 69.70% of its industry peers.
A Debt/Equity ratio of 1.34 is on the high side and indicates that STZ has dependencies on debt financing.
STZ has a Debt to Equity ratio of 1.34. This is in the lower half of the industry: STZ underperforms 78.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 5.71 | ||
| Altman-Z | 2.93 |
ROIC/WACC1.92
WACC6.93%
2.3 Liquidity
STZ has a Current Ratio of 1.08. This is a normal value and indicates that STZ is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of STZ (1.08) is worse than 63.64% of its industry peers.
A Quick Ratio of 0.54 indicates that STZ may have some problems paying its short term obligations.
With a Quick ratio value of 0.54, STZ is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
STZ shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.42%.
Measured over the past years, STZ shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.57% on average per year.
Looking at the last year, STZ shows a small growth in Revenue. The Revenue has grown by 2.48% in the last year.
Measured over the past years, STZ shows a small growth in Revenue. The Revenue has been growing by 4.12% on average per year.
EPS 1Y (TTM)-6.42%
EPS 3Y10.52%
EPS 5Y8.57%
EPS Q2Q%-5.85%
Revenue 1Y (TTM)2.48%
Revenue growth 3Y4.99%
Revenue growth 5Y4.12%
Sales Q2Q%-9.78%
3.2 Future
STZ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.39% yearly.
Based on estimates for the next years, STZ will show a decrease in Revenue. The Revenue will decrease by -0.10% on average per year.
EPS Next Y-15.73%
EPS Next 2Y-4.65%
EPS Next 3Y-1.61%
EPS Next 5Y2.39%
Revenue Next Year-11.01%
Revenue Next 2Y-5.52%
Revenue Next 3Y-2.85%
Revenue Next 5Y-0.1%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.78, the valuation of STZ can be described as reasonable.
81.82% of the companies in the same industry are more expensive than STZ, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.00, STZ is valued rather cheaply.
STZ is valuated reasonably with a Price/Forward Earnings ratio of 11.80.
Based on the Price/Forward Earnings ratio, STZ is valued cheaply inside the industry as 84.85% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.70. STZ is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.78 | ||
| Fwd PE | 11.8 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STZ indicates a somewhat cheap valuation: STZ is cheaper than 69.70% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, STZ is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.91 | ||
| EV/EBITDA | 9.96 |
4.3 Compensation for Growth
STZ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.38
EPS Next 2Y-4.65%
EPS Next 3Y-1.61%
5. Dividend
5.1 Amount
STZ has a Yearly Dividend Yield of 2.90%.
STZ's Dividend Yield is a higher than the industry average which is at 1.80.
STZ's Dividend Yield is a higher than the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
5.2 History
The dividend of STZ is nicely growing with an annual growth rate of 6.29%!
STZ has paid a dividend for at least 10 years, which is a reliable track record.
As STZ did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)6.29%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
59.24% of the earnings are spent on dividend by STZ. This is a bit on the high side, but may be sustainable.
STZ's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP59.24%
EPS Next 2Y-4.65%
EPS Next 3Y-1.61%
NYSE:STZ (1/9/2026, 10:00:30 AM)
147.747
-0.21 (-0.14%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners76.58%
Inst Owner Change0%
Ins Owners0.1%
Ins Owner Change0.03%
Market Cap25.71B
Revenue(TTM)10.21B
Net Income(TTM)1.22B
Analysts71.72
Price Target176.34 (19.35%)
Short Float %7%
Short Ratio4.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
Yearly Dividend4.05
Dividend Growth(5Y)6.29%
DP59.24%
Div Incr Years9
Div Non Decr Years9
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.34%
Min EPS beat(2)-3.57%
Max EPS beat(2)6.26%
EPS beat(4)2
Avg EPS beat(4)3.52%
Min EPS beat(4)-3.57%
Max EPS beat(4)14.31%
EPS beat(8)6
Avg EPS beat(8)4.2%
EPS beat(12)9
Avg EPS beat(12)4.1%
EPS beat(16)13
Avg EPS beat(16)5.56%
Revenue beat(2)0
Avg Revenue beat(2)-1.3%
Min Revenue beat(2)-2.48%
Max Revenue beat(2)-0.12%
Revenue beat(4)1
Avg Revenue beat(4)-1.43%
Min Revenue beat(4)-3.72%
Max Revenue beat(4)0.61%
Revenue beat(8)2
Avg Revenue beat(8)-1.25%
Revenue beat(12)4
Avg Revenue beat(12)-0.9%
Revenue beat(16)8
Avg Revenue beat(16)0.36%
PT rev (1m)-0.77%
PT rev (3m)-4.24%
EPS NQ rev (1m)-0.3%
EPS NQ rev (3m)-3.86%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)-0.61%
Revenue NQ rev (1m)-0.36%
Revenue NQ rev (3m)-0.41%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.78 | ||
| Fwd PE | 11.8 | ||
| P/S | 2.67 | ||
| P/FCF | 13.91 | ||
| P/OCF | 9.29 | ||
| P/B | 3.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.96 |
EPS(TTM)12.54
EY8.49%
EPS(NY)12.52
Fwd EY8.47%
FCF(TTM)10.62
FCFY7.19%
OCF(TTM)15.91
OCFY10.77%
SpS55.3
BVpS43.1
TBVpS-1.22
PEG (NY)N/A
PEG (5Y)1.38
Graham Number110.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.71% | ||
| ROE | 16.3% | ||
| ROCE | 16.95% | ||
| ROIC | 13.29% | ||
| ROICexc | 13.34% | ||
| ROICexgc | 22.51% | ||
| OM | 33.05% | ||
| PM (TTM) | 12.7% | ||
| GM | 51.93% | ||
| FCFM | 19.2% |
ROA(3y)2.02%
ROA(5y)2.65%
ROE(3y)5.23%
ROE(5y)6.01%
ROIC(3y)12.24%
ROIC(5y)11.12%
ROICexc(3y)12.3%
ROICexc(5y)11.2%
ROICexgc(3y)22.37%
ROICexgc(5y)20.22%
ROCE(3y)15.97%
ROCE(5y)14.37%
ROICexgc growth 3Y11.53%
ROICexgc growth 5Y13.24%
ROICexc growth 3Y14.12%
ROICexc growth 5Y13.2%
OM growth 3Y0.41%
OM growth 5Y2.07%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.64%
GM growth 5Y0.98%
F-Score8
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 5.71 | ||
| Debt/EBITDA | 2.78 | ||
| Cap/Depr | 212.82% | ||
| Cap/Sales | 9.57% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.64% | ||
| Profit Quality | 151.15% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 2.93 |
F-Score8
WACC6.93%
ROIC/WACC1.92
Cap/Depr(3y)275.65%
Cap/Depr(5y)283.18%
Cap/Sales(3y)11.86%
Cap/Sales(5y)11.45%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-6.42%
EPS 3Y10.52%
EPS 5Y8.57%
EPS Q2Q%-5.85%
EPS Next Y-15.73%
EPS Next 2Y-4.65%
EPS Next 3Y-1.61%
EPS Next 5Y2.39%
Revenue 1Y (TTM)2.48%
Revenue growth 3Y4.99%
Revenue growth 5Y4.12%
Sales Q2Q%-9.78%
Revenue Next Year-11.01%
Revenue Next 2Y-5.52%
Revenue Next 3Y-2.85%
Revenue Next 5Y-0.1%
EBIT growth 1Y-8.73%
EBIT growth 3Y5.43%
EBIT growth 5Y6.27%
EBIT Next Year-2.95%
EBIT Next 3Y1.93%
EBIT Next 5Y1.46%
FCF growth 1Y19.84%
FCF growth 3Y4.91%
FCF growth 5Y1.21%
OCF growth 1Y1.64%
OCF growth 3Y5.23%
OCF growth 5Y4.32%
CONSTELLATION BRANDS INC-A / STZ FAQ
What is the ChartMill fundamental rating of CONSTELLATION BRANDS INC-A (STZ) stock?
ChartMill assigns a fundamental rating of 5 / 10 to STZ.
What is the valuation status for STZ stock?
ChartMill assigns a valuation rating of 7 / 10 to CONSTELLATION BRANDS INC-A (STZ). This can be considered as Undervalued.
How profitable is CONSTELLATION BRANDS INC-A (STZ) stock?
CONSTELLATION BRANDS INC-A (STZ) has a profitability rating of 6 / 10.
What is the financial health of CONSTELLATION BRANDS INC-A (STZ) stock?
The financial health rating of CONSTELLATION BRANDS INC-A (STZ) is 4 / 10.
What is the earnings growth outlook for CONSTELLATION BRANDS INC-A?
The Earnings per Share (EPS) of CONSTELLATION BRANDS INC-A (STZ) is expected to decline by -15.73% in the next year.