CONSTELLATION BRANDS INC-A (STZ) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:STZ - US21036P1084 - Common Stock
151.37 USD
-0.45 (-0.3%)
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. STZ has only an average score on both its financial health and profitability. STZ is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year STZ was profitable.
STZ had a positive operating cash flow in the past year.
In multiple years STZ reported negative net income over the last 5 years.
Each year in the past 5 years STZ had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 5.12%, STZ perfoms like the industry average, outperforming 57.58% of the companies in the same industry.
STZ has a Return On Equity of 14.39%. This is comparable to the rest of the industry: STZ outperforms 54.55% of its industry peers.
STZ has a Return On Invested Capital of 12.66%. This is in the better half of the industry: STZ outperforms 72.73% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for STZ is in line with the industry average of 11.45%.
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 Rank | Sector 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%
1.3 Margins
STZ's Profit Margin of 11.83% is fine compared to the rest of the industry. STZ outperforms 75.76% 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 has a better Gross Margin (52.60%) 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 | 33.76% | ||
| 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%
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.
STZ has less shares outstanding than it did 1 year ago.
STZ has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, STZ has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.97 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 2.97. 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 6.05, which is on the high side as it means it would take STZ, 6.05 years of fcf income to pay off 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 60.61% 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.
STZ's Debt to Equity ratio of 1.38 is on the low side compared to the rest of the industry. STZ is outperformed by 78.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | 6.05 | ||
| Altman-Z | 2.97 |
ROIC/WACC1.81
WACC6.98%
2.3 Liquidity
A Current Ratio of 1.34 indicates that STZ should not have too much problems paying its short term obligations.
STZ has a Current ratio (1.34) which is comparable to the rest of the industry.
A Quick Ratio of 0.70 indicates that STZ may have some problems paying its short term obligations.
STZ has a Quick ratio of 0.70. This is comparable to the rest of the industry: STZ outperforms 45.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
The earnings per share for STZ have decreased by -6.42% in the last year.
The Earnings Per Share has been growing by 8.57% on average over the past years. This is quite good.
The Revenue has decreased by -7.86% in the past year.
STZ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.12% yearly.
EPS 1Y (TTM)-6.42%
EPS 3Y10.52%
EPS 5Y8.57%
EPS Q2Q%-5.85%
Revenue 1Y (TTM)-7.86%
Revenue growth 3Y4.99%
Revenue growth 5Y4.12%
Sales Q2Q%-9.78%
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 2.39% on average per year.
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
STZ is valuated correctly with a Price/Earnings ratio of 12.07.
Based on the Price/Earnings ratio, STZ is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.25. STZ is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 12.09, the valuation of STZ can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STZ indicates a rather cheap valuation: STZ is cheaper than 84.85% 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 (23.98), we can say STZ is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.07 | ||
| Fwd PE | 12.09 |
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 | 14.95 | ||
| EV/EBITDA | 10.21 |
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)1.41
EPS Next 2Y-4.65%
EPS Next 3Y-1.61%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.78%, STZ has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.77, STZ pays a bit more dividend than its industry peers.
STZ's Dividend Yield is a higher than the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
5.2 History
On average, the dividend of STZ grows each year by 6.29%, which is quite nice.
STZ has paid a dividend for at least 10 years, which is a reliable track record.
STZ has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)6.29%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
64.83% of the earnings are spent on dividend by STZ. 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 2Y-4.65%
EPS Next 3Y-1.61%
NYSE:STZ (1/13/2026, 9:54:02 AM)
151.37
-0.45 (-0.3%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners76.58%
Inst Owner Change0.06%
Ins Owners0.1%
Ins Owner Change0%
Market Cap26.34B
Revenue(TTM)9.38B
Net Income(TTM)1.11B
Analysts71.72
Price Target176.34 (16.5%)
Short Float %7%
Short Ratio4.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
Yearly Dividend4.05
Dividend Growth(5Y)6.29%
DP64.83%
Div Incr Years9
Div Non Decr Years9
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.47%
Min EPS beat(2)6.26%
Max EPS beat(2)14.67%
EPS beat(4)3
Avg EPS beat(4)7.92%
Min EPS beat(4)-3.57%
Max EPS beat(4)14.67%
EPS beat(8)6
Avg EPS beat(8)5.38%
EPS beat(12)10
Avg EPS beat(12)5.59%
EPS beat(16)13
Avg EPS beat(16)5.74%
Revenue beat(2)1
Avg Revenue beat(2)0.76%
Min Revenue beat(2)-0.12%
Max Revenue beat(2)1.64%
Revenue beat(4)2
Avg Revenue beat(4)-0.09%
Min Revenue beat(4)-2.48%
Max Revenue beat(4)1.64%
Revenue beat(8)3
Avg Revenue beat(8)-0.57%
Revenue beat(12)4
Avg Revenue beat(12)-0.84%
Revenue beat(16)8
Avg Revenue beat(16)0.43%
PT rev (1m)-0.29%
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 | 12.07 | ||
| Fwd PE | 12.09 | ||
| P/S | 2.81 | ||
| P/FCF | 14.95 | ||
| P/OCF | 9.75 | ||
| P/B | 3.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.21 |
EPS(TTM)12.54
EY8.28%
EPS(NY)12.52
Fwd EY8.27%
FCF(TTM)10.13
FCFY6.69%
OCF(TTM)15.52
OCFY10.25%
SpS53.91
BVpS44.3
TBVpS-0.07
PEG (NY)N/A
PEG (5Y)1.41
Graham Number111.81
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.97 |
F-Score7
WACC6.98%
ROIC/WACC1.81
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)-7.86%
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-9.11%
EBIT growth 3Y5.43%
EBIT growth 5Y6.27%
EBIT Next Year-2.95%
EBIT Next 3Y1.93%
EBIT Next 5Y1.46%
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 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 6 / 10 to CONSTELLATION BRANDS INC-A (STZ). This can be considered as Fairly Valued.
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.