CONSTELLATION BRANDS INC-A (STZ) Stock Fundamental Analysis
USA - NYSE:STZ - US21036P1084 - Common Stock
132.92 USD
-0.1 (-0.08%)
133.1 USD
+0.18 (+0.14%)
We assign a fundamental rating of 4 out of 10 to STZ. STZ was compared to 32 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year STZ was profitable.
STZ had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: STZ reported negative net income in multiple years.
In the past 5 years STZ always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of -1.99%, STZ is not doing good in the industry: 71.88% of the companies in the same industry are doing better.
With a Return On Equity value of -6.09%, STZ is not doing good in the industry: 81.25% of the companies in the same industry are doing better.
The Return On Invested Capital of STZ (14.04%) is better than 81.25% 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 10.95%.
The last Return On Invested Capital (14.04%) for STZ is above the 3 year average (12.24%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.99% | ||
| ROE | -6.09% | ||
| ROIC | 14.04% |
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
With an excellent Operating Margin value of 33.29%, STZ belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
STZ's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 51.67%, STZ is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
In the last couple of years the Gross Margin of STZ has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.29% | ||
| PM (TTM) | N/A | ||
| GM | 51.67% |
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
STZ has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
STZ has less shares outstanding than it did 1 year ago.
The number of shares outstanding for STZ has been reduced compared to 5 years ago.
STZ has a worse debt/assets ratio than last year.
2.2 Solvency
STZ has an Altman-Z score of 2.71. This is not the best score and indicates that STZ is in the grey zone with still only limited risk for bankruptcy at the moment.
STZ's Altman-Z score of 2.71 is in line compared to the rest of the industry. STZ outperforms 56.25% of its industry peers.
STZ has a debt to FCF ratio of 5.60. This is a neutral value as STZ would need 5.60 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.60, STZ is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
A Debt/Equity ratio of 1.40 is on the high side and indicates that STZ has dependencies on debt financing.
With a Debt to Equity ratio value of 1.40, STZ is not doing good in the industry: 78.13% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 5.6 | ||
| Altman-Z | 2.71 |
ROIC/WACC2.07
WACC6.8%
2.3 Liquidity
A Current Ratio of 1.07 indicates that STZ should not have too much problems paying its short term obligations.
With a Current ratio value of 1.07, STZ is not doing good in the industry: 65.63% of the companies in the same industry are doing better.
STZ has a Quick Ratio of 1.07. 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's Quick ratio of 0.68 is in line compared to the rest of the industry. STZ outperforms 43.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.50% over the past year.
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.
STZ shows a decrease in Revenue. In the last year, the revenue decreased by -0.46%.
The Revenue has been growing slightly by 4.12% on average over the past years.
EPS 1Y (TTM)5.5%
EPS 3Y10.52%
EPS 5Y8.57%
EPS Q2Q%-9.8%
Revenue 1Y (TTM)-0.46%
Revenue growth 3Y4.99%
Revenue growth 5Y4.12%
Sales Q2Q%-5.52%
3.2 Future
Based on estimates for the next years, STZ will show a small growth in Earnings Per Share. The EPS will grow by 4.84% on average per year.
Based on estimates for the next years, STZ will show a small growth in Revenue. The Revenue will grow by 1.43% on average per year.
EPS Next Y-7.22%
EPS Next 2Y0.29%
EPS Next 3Y1.78%
EPS Next 5Y4.84%
Revenue Next Year-10.66%
Revenue Next 2Y-5.03%
Revenue Next 3Y-2.4%
Revenue Next 5Y1.43%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.90, which indicates a very decent valuation of STZ.
STZ's Price/Earnings ratio is rather cheap when compared to the industry. STZ is cheaper than 90.63% of the companies in the same industry.
STZ is valuated cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.60, the valuation of STZ can be described as reasonable.
93.75% of the companies in the same industry are more expensive than STZ, based on the Price/Forward Earnings ratio.
STZ is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.9 | ||
| Fwd PE | 9.6 |
4.2 Price Multiples
78.13% of the companies in the same industry are more expensive than STZ, based on the Enterprise Value to EBITDA ratio.
STZ's Price/Free Cash Flow ratio is rather cheap when compared to the industry. STZ is cheaper than 84.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.33 | ||
| EV/EBITDA | 9.12 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.16
EPS Next 2Y0.29%
EPS Next 3Y1.78%
5. Dividend
5.1 Amount
STZ has a Yearly Dividend Yield of 2.85%.
Compared to an average industry Dividend Yield of 2.84, STZ pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, STZ has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
5.2 History
The dividend of STZ is nicely growing with an annual growth rate of 6.29%!
STZ has been paying a dividend for at least 10 years, so it has 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
STZ has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of STZ is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-164.75%
EPS Next 2Y0.29%
EPS Next 3Y1.78%
132.92
-0.1 (-0.08%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners78.34%
Inst Owner Change-0.2%
Ins Owners0.1%
Ins Owner Change0.1%
Market Cap23.43B
Analysts74
Price Target189.69 (42.71%)
Short Float %5.73%
Short Ratio3.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
Yearly Dividend4.05
Dividend Growth(5Y)6.29%
DP-164.75%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.37%
Min EPS beat(2)-3.57%
Max EPS beat(2)14.31%
EPS beat(4)2
Avg EPS beat(4)3.15%
Min EPS beat(4)-3.57%
Max EPS beat(4)14.31%
EPS beat(8)6
Avg EPS beat(8)4.55%
EPS beat(12)9
Avg EPS beat(12)4.55%
EPS beat(16)12
Avg EPS beat(16)4.24%
Revenue beat(2)1
Avg Revenue beat(2)-0.93%
Min Revenue beat(2)-2.48%
Max Revenue beat(2)0.61%
Revenue beat(4)1
Avg Revenue beat(4)-1.47%
Min Revenue beat(4)-3.72%
Max Revenue beat(4)0.61%
Revenue beat(8)2
Avg Revenue beat(8)-1.3%
Revenue beat(12)5
Avg Revenue beat(12)-0.49%
Revenue beat(16)9
Avg Revenue beat(16)0.5%
PT rev (1m)-11.28%
PT rev (3m)-13.72%
EPS NQ rev (1m)-14.89%
EPS NQ rev (3m)-16.18%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.7%
Revenue NQ rev (1m)-7.62%
Revenue NQ rev (3m)-8.6%
Revenue NY rev (1m)-3.41%
Revenue NY rev (3m)-4.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.9 | ||
| Fwd PE | 9.6 | ||
| P/S | 2.33 | ||
| P/FCF | 11.33 | ||
| P/OCF | 7.56 | ||
| P/B | 3.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.12 |
EPS(TTM)13.42
EY10.1%
EPS(NY)13.85
Fwd EY10.42%
FCF(TTM)11.73
FCFY8.82%
OCF(TTM)17.58
OCFY13.22%
SpS57.08
BVpS41.21
TBVpS-2.41
PEG (NY)N/A
PEG (5Y)1.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.99% | ||
| ROE | -6.09% | ||
| ROCE | 18.04% | ||
| ROIC | 14.04% | ||
| ROICexc | 14.1% | ||
| ROICexgc | 23.8% | ||
| OM | 33.29% | ||
| PM (TTM) | N/A | ||
| GM | 51.67% | ||
| FCFM | 20.55% |
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%
ROICexcg growth 3Y11.53%
ROICexcg 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-Score5
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 5.6 | ||
| Debt/EBITDA | 2.68 | ||
| Cap/Depr | 234.83% | ||
| Cap/Sales | 10.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.8% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | 2.71 |
F-Score5
WACC6.8%
ROIC/WACC2.07
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)5.5%
EPS 3Y10.52%
EPS 5Y8.57%
EPS Q2Q%-9.8%
EPS Next Y-7.22%
EPS Next 2Y0.29%
EPS Next 3Y1.78%
EPS Next 5Y4.84%
Revenue 1Y (TTM)-0.46%
Revenue growth 3Y4.99%
Revenue growth 5Y4.12%
Sales Q2Q%-5.52%
Revenue Next Year-10.66%
Revenue Next 2Y-5.03%
Revenue Next 3Y-2.4%
Revenue Next 5Y1.43%
EBIT growth 1Y-1.81%
EBIT growth 3Y5.43%
EBIT growth 5Y6.27%
EBIT Next Year3.78%
EBIT Next 3Y4.62%
EBIT Next 5Y5.17%
FCF growth 1Y33.52%
FCF growth 3Y4.91%
FCF growth 5Y1.21%
OCF growth 1Y16.32%
OCF growth 3Y5.23%
OCF growth 5Y4.32%