CONSTELLATION BRANDS INC-A (STZ) Fundamental Analysis & Valuation

NYSE:STZ • US21036P1084

Current stock price

166.15 USD
+3.08 (+1.89%)
At close:
165.5 USD
-0.65 (-0.39%)
After Hours:

This STZ fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. STZ Profitability Analysis

1.1 Basic Checks

  • STZ had positive earnings in the past year.
  • STZ had a positive operating cash flow in the past year.
  • In the past 5 years STZ reported 4 times negative net income.
  • STZ had a positive operating cash flow in 4 of the past 5 years.
STZ Yearly Net Income VS EBIT VS OCF VS FCFSTZ Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B

1.2 Ratios

  • STZ's Return On Assets of 5.12% is in line compared to the rest of the industry. STZ outperforms 55.88% of its industry peers.
  • STZ has a Return On Equity (14.39%) which is in line with its industry peers.
  • The Return On Invested Capital of STZ (12.66%) is better than 73.53% of its industry peers.
  • STZ had an Average Return On Invested Capital over the past 3 years of 12.24%. This is in line with the industry average of 11.81%.
  • The last Return On Invested Capital (12.66%) for STZ is above the 3 year average (12.24%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 5.12%
ROE 14.39%
ROIC 12.66%
ROA(3y)2.02%
ROA(5y)2.65%
ROE(3y)5.23%
ROE(5y)6.01%
ROIC(3y)12.24%
ROIC(5y)11.12%
STZ Yearly ROA, ROE, ROICSTZ Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20

1.3 Margins

  • STZ has a better Profit Margin (11.83%) than 73.53% of its industry peers.
  • Looking at the Operating Margin, with a value of 33.76%, STZ belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
  • In the last couple of years the Operating Margin of STZ has grown nicely.
  • STZ's Gross Margin of 52.60% is fine compared to the rest of the industry. STZ outperforms 64.71% of its industry peers.
  • STZ's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 33.76%
PM (TTM) 11.83%
GM 52.6%
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%
STZ Yearly Profit, Operating, Gross MarginsSTZ Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20 30 40 50

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4

2. STZ Health Analysis

2.1 Basic Checks

  • STZ has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • There is no outstanding debt for STZ. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
STZ Yearly Shares OutstandingSTZ Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
STZ Yearly Total Debt VS Total AssetsSTZ Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

2.2 Solvency

  • An Altman-Z score of 3.07 indicates that STZ is not in any danger for bankruptcy at the moment.
  • With a decent Altman-Z score value of 3.07, STZ is doing good in the industry, outperforming 61.76% of the companies in the same industry.
  • STZ has a debt to FCF ratio of 6.05. This is a slightly negative value and a sign of low solvency as STZ would need 6.05 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 6.05, STZ is in the better half of the industry, outperforming 61.76% of the companies in the same industry.
  • STZ has a Debt/Equity ratio of 1.38. This is a high value indicating a heavy dependency on external financing.
  • The Debt to Equity ratio of STZ (1.38) is worse than 76.47% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.38
Debt/FCF 6.05
Altman-Z 3.07
ROIC/WACC1.76
WACC7.18%
STZ Yearly LT Debt VS Equity VS FCFSTZ Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.3 Liquidity

  • STZ has a Current Ratio of 1.34. This is a normal value and indicates that STZ is financially healthy and should not expect problems in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 1.34, STZ is in line with its industry, outperforming 50.00% of the companies in the same industry.
  • STZ has a Quick Ratio of 1.34. This is a bad value and indicates that STZ is not financially healthy enough and could expect problems in meeting its short term obligations.
  • STZ has a Quick ratio (0.70) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 1.34
Quick Ratio 0.7
STZ Yearly Current Assets VS Current LiabilitesSTZ Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

2

3. STZ Growth Analysis

3.1 Past

  • STZ shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.23%.
  • Measured over the past 5 years, STZ shows a small growth in Earnings Per Share. The EPS has been growing by 3.45% on average per year.
EPS 1Y (TTM)-14.23%
EPS 3Y3.54%
EPS 5Y3.45%
EPS Q2Q%-27.76%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-11.27%

3.2 Future

  • STZ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.87% yearly.
  • STZ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.74% yearly.
EPS Next Y5.67%
EPS Next 2Y5.23%
EPS Next 3Y6.38%
EPS Next 5Y4.87%
Revenue Next Year0.48%
Revenue Next 2Y1.36%
Revenue Next 3Y2.41%
Revenue Next 5Y2.74%

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 accelerating.
STZ Yearly Revenue VS EstimatesSTZ Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2B 4B 6B 8B 10B
STZ Yearly EPS VS EstimatesSTZ Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5 10 15

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5

4. STZ Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 14.07, the valuation of STZ can be described as correct.
  • Based on the Price/Earnings ratio, STZ is valued a bit cheaper than the industry average as 76.47% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 26.78, STZ is valued a bit cheaper.
  • A Price/Forward Earnings ratio of 13.31 indicates a correct valuation of STZ.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of STZ indicates a somewhat cheap valuation: STZ is cheaper than 76.47% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of STZ to the average of the S&P500 Index (23.54), we can say STZ is valued slightly cheaper.
Industry RankSector Rank
PE 14.07
Fwd PE 13.31
STZ Price Earnings VS Forward Price EarningsSTZ Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, STZ is valued a bit cheaper than 70.59% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, STZ is valued cheaply inside the industry as 82.35% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 16.35
EV/EBITDA 10.88
STZ Per share dataSTZ EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40 50

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates STZ does not grow enough to justify the current Price/Earnings ratio.
  • STZ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.48
PEG (5Y)4.08
EPS Next 2Y5.23%
EPS Next 3Y6.38%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. STZ Dividend Analysis

5.1 Amount

  • STZ has a Yearly Dividend Yield of 2.53%.
  • STZ's Dividend Yield is a higher than the industry average which is at 1.75.
  • Compared to an average S&P500 Dividend Yield of 1.83, STZ pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.53%

5.2 History

  • On average, the dividend of STZ grows each year by 6.29%, which is quite nice.
  • STZ has been paying a dividend for at least 10 years, so it has a reliable track record.
  • STZ has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.29%
Div Incr Years10
Div Non Decr Years10
STZ Yearly Dividends per shareSTZ Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4

5.3 Sustainability

  • STZ pays out 64.83% of its income as dividend. This is not a sustainable payout ratio.
  • The dividend of STZ is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP64.83%
EPS Next 2Y5.23%
EPS Next 3Y6.38%
STZ Yearly Income VS Free CF VS DividendSTZ Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B
STZ Dividend Payout.STZ Dividend Payout, showing the Payout Ratio.STZ Dividend Payout.PayoutRetained Earnings

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STZ Fundamentals: All Metrics, Ratios and Statistics

CONSTELLATION BRANDS INC-A

NYSE:STZ (4/10/2026, 8:04:00 PM)

After market: 165.5 -0.65 (-0.39%)

166.15

+3.08 (+1.89%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)04-08
Earnings (Next)06-29
Inst Owners80.27%
Inst Owner Change0.03%
Ins Owners0.1%
Ins Owner Change0%
Market Cap28.81B
Revenue(TTM)N/A
Net Income(TTM)1.11B
Analysts72.86
Price Target176.49 (6.22%)
Short Float %5.4%
Short Ratio3.52
Dividend
Industry RankSector Rank
Dividend Yield 2.53%
Yearly Dividend4.05
Dividend Growth(5Y)6.29%
DP64.83%
Div Incr Years10
Div Non Decr Years10
Ex-Date04-29
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.62%
Min EPS beat(2)6.26%
Max EPS beat(2)14.99%
EPS beat(4)3
Avg EPS beat(4)8%
Min EPS beat(4)-3.57%
Max EPS beat(4)14.99%
EPS beat(8)6
Avg EPS beat(8)5.42%
EPS beat(12)10
Avg EPS beat(12)5.61%
EPS beat(16)13
Avg EPS beat(16)5.76%
Revenue beat(2)1
Avg Revenue beat(2)0.9%
Min Revenue beat(2)-0.12%
Max Revenue beat(2)1.92%
Revenue beat(4)2
Avg Revenue beat(4)-0.02%
Min Revenue beat(4)-2.48%
Max Revenue beat(4)1.92%
Revenue beat(8)3
Avg Revenue beat(8)-0.53%
Revenue beat(12)4
Avg Revenue beat(12)-0.82%
Revenue beat(16)8
Avg Revenue beat(16)0.45%
PT rev (1m)-0.42%
PT rev (3m)0.08%
EPS NQ rev (1m)1.52%
EPS NQ rev (3m)-13.68%
EPS NY rev (1m)0.04%
EPS NY rev (3m)1.21%
Revenue NQ rev (1m)1.28%
Revenue NQ rev (3m)0.42%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)0.31%
Valuation
Industry RankSector Rank
PE 14.07
Fwd PE 13.31
P/S 3.07
P/FCF 16.35
P/OCF 10.67
P/B 3.74
P/tB N/A
EV/EBITDA 10.88
EPS(TTM)11.81
EY7.11%
EPS(NY)12.48
Fwd EY7.51%
FCF(TTM)10.16
FCFY6.12%
OCF(TTM)15.58
OCFY9.37%
SpS54.11
BVpS44.47
TBVpS-0.07
PEG (NY)2.48
PEG (5Y)4.08
Graham Number108.7
Profitability
Industry RankSector Rank
ROA 5.12%
ROE 14.39%
ROCE 16.24%
ROIC 12.66%
ROICexc 12.76%
ROICexgc 20.96%
OM 33.76%
PM (TTM) 11.83%
GM 52.6%
FCFM 18.78%
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-Score7
Asset Turnover0.43
Health
Industry RankSector Rank
Debt/Equity 1.38
Debt/FCF 6.05
Debt/EBITDA 2.98
Cap/Depr 227.4%
Cap/Sales 10%
Interest Coverage 250
Cash Conversion 75.43%
Profit Quality 158.81%
Current Ratio 1.34
Quick Ratio 0.7
Altman-Z 3.07
F-Score7
WACC7.18%
ROIC/WACC1.76
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)-14.23%
EPS 3Y3.54%
EPS 5Y3.45%
EPS Q2Q%-27.76%
EPS Next Y5.67%
EPS Next 2Y5.23%
EPS Next 3Y6.38%
EPS Next 5Y4.87%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-11.27%
Revenue Next Year0.48%
Revenue Next 2Y1.36%
Revenue Next 3Y2.41%
Revenue Next 5Y2.74%
EBIT growth 1Y-9.11%
EBIT growth 3Y5.43%
EBIT growth 5Y6.27%
EBIT Next Year-2.72%
EBIT Next 3Y1.84%
EBIT Next 5Y1.72%
FCF growth 1Y12.99%
FCF growth 3Y4.91%
FCF growth 5Y1.21%
OCF growth 1Y-4.33%
OCF growth 3Y5.23%
OCF growth 5Y4.32%

CONSTELLATION BRANDS INC-A / STZ Fundamental Analysis FAQ

What is the ChartMill fundamental rating of CONSTELLATION BRANDS INC-A (STZ) stock?

ChartMill assigns a fundamental rating of 4 / 10 to STZ.


What is the valuation status for STZ stock?

ChartMill assigns a valuation rating of 5 / 10 to CONSTELLATION BRANDS INC-A (STZ). This can be considered as Fairly Valued.


Can you provide the profitability details for CONSTELLATION BRANDS INC-A?

CONSTELLATION BRANDS INC-A (STZ) has a profitability rating of 6 / 10.


What is the valuation of CONSTELLATION BRANDS INC-A based on its PE and PB ratios?

The Price/Earnings (PE) ratio for CONSTELLATION BRANDS INC-A (STZ) is 14.07 and the Price/Book (PB) ratio is 3.74.


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 grow by 5.67% in the next year.