CONSTELLATION BRANDS INC-A (STZ) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:STZ - US21036P1084 - Common Stock
137.96 USD
-2.17 (-1.55%)
138.04 USD
+0.08 (+0.06%)
Overall STZ gets a fundamental rating of 5 out of 10. We evaluated STZ against 32 industry peers in the Beverages industry. STZ has an average financial health and profitability rating. STZ is valued quite cheap, 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.
In the past 5 years STZ always reported a positive cash flow from operatings.
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 56.25% of its industry peers.
STZ's Return On Invested Capital of 13.29% is fine compared to the rest of the industry. STZ outperforms 78.13% 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 11.65%.
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
With a decent Profit Margin value of 12.70%, STZ is doing good in the industry, outperforming 78.13% of the companies in the same industry.
STZ's Operating Margin of 33.05% is amongst the best of the industry. STZ outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of STZ has grown nicely.
The Gross Margin of STZ (51.93%) is better than 62.50% of its industry peers.
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 | 33.05% | ||
| 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
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
An Altman-Z score of 2.85 indicates that STZ is not a great score, but indicates only limited risk for bankruptcy at the moment.
STZ's Altman-Z score of 2.85 is in line compared to the rest of the industry. STZ outperforms 59.38% 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.
STZ's Debt to FCF ratio of 5.71 is fine compared to the rest of the industry. STZ outperforms 68.75% 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.
The Debt to Equity ratio of STZ (1.34) is worse than 78.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 5.71 | ||
| Altman-Z | 2.85 |
ROIC/WACC1.94
WACC6.86%
2.3 Liquidity
A Current Ratio of 1.08 indicates that STZ should not have too much problems paying its short term obligations.
STZ has a worse Current ratio (1.08) than 65.63% of its industry peers.
STZ has a Quick Ratio of 1.08. 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 of 0.54. This is in the lower half of the industry: STZ underperforms 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
The earnings per share for STZ have decreased by -4.57% in the last year.
The Earnings Per Share has been growing by 8.57% on average over the past years. This is quite good.
STZ shows a decrease in Revenue. In the last year, the revenue decreased by -5.56%.
The Revenue has been growing slightly by 4.12% on average over the past years.
EPS 1Y (TTM)-4.57%
EPS 3Y10.52%
EPS 5Y8.57%
EPS Q2Q%-15.97%
Revenue 1Y (TTM)-5.56%
Revenue growth 3Y4.99%
Revenue growth 5Y4.12%
Sales Q2Q%-15%
3.2 Future
The Earnings Per Share is expected to grow by 2.65% on average over the next years.
The Revenue is expected to grow by 0.10% on average over the next years.
EPS Next Y-15.73%
EPS Next 2Y-4.65%
EPS Next 3Y-1.61%
EPS Next 5Y2.65%
Revenue Next Year-11.01%
Revenue Next 2Y-5.52%
Revenue Next 3Y-2.85%
Revenue Next 5Y0.1%
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
With a Price/Earnings ratio of 10.84, the valuation of STZ can be described as very reasonable.
STZ's Price/Earnings ratio is rather cheap when compared to the industry. STZ is cheaper than 84.38% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.51. STZ is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 11.02, which indicates a very decent valuation of STZ.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STZ indicates a rather cheap valuation: STZ is cheaper than 87.50% of the companies listed in the same industry.
STZ is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.84 | ||
| Fwd PE | 11.02 |
4.2 Price Multiples
71.88% of the companies in the same industry are more expensive than STZ, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, STZ is valued cheaper than 84.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.99 | ||
| EV/EBITDA | 9.47 |
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)1.27
EPS Next 2Y-4.65%
EPS Next 3Y-1.61%
5. Dividend
5.1 Amount
STZ has a Yearly Dividend Yield of 2.90%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.69, STZ pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, STZ pays a bit more dividend than the S&P500 average.
| 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 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 pays out 59.24% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of STZ is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP59.24%
EPS Next 2Y-4.65%
EPS Next 3Y-1.61%
137.96
-2.17 (-1.55%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners76.45%
Inst Owner Change-4.04%
Ins Owners0.1%
Ins Owner Change0.03%
Market Cap24.01B
Revenue(TTM)9.62B
Net Income(TTM)1.22B
Analysts73.33
Price Target176.34 (27.82%)
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)-7.04%
EPS NQ rev (1m)-0.3%
EPS NQ rev (3m)-3.67%
EPS NY rev (1m)-0.3%
EPS NY rev (3m)-0.61%
Revenue NQ rev (1m)-0.36%
Revenue NQ rev (3m)-0.41%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.84 | ||
| Fwd PE | 11.02 | ||
| P/S | 2.49 | ||
| P/FCF | 12.99 | ||
| P/OCF | 8.67 | ||
| P/B | 3.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.47 |
EPS(TTM)12.73
EY9.23%
EPS(NY)12.52
Fwd EY9.07%
FCF(TTM)10.62
FCFY7.7%
OCF(TTM)15.91
OCFY11.53%
SpS55.3
BVpS43.1
TBVpS-1.22
PEG (NY)N/A
PEG (5Y)1.27
Graham Number111.1
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 | 2.85 |
F-Score8
WACC6.86%
ROIC/WACC1.94
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)-4.57%
EPS 3Y10.52%
EPS 5Y8.57%
EPS Q2Q%-15.97%
EPS Next Y-15.73%
EPS Next 2Y-4.65%
EPS Next 3Y-1.61%
EPS Next 5Y2.65%
Revenue 1Y (TTM)-5.56%
Revenue growth 3Y4.99%
Revenue growth 5Y4.12%
Sales Q2Q%-15%
Revenue Next Year-11.01%
Revenue Next 2Y-5.52%
Revenue Next 3Y-2.85%
Revenue Next 5Y0.1%
EBIT growth 1Y-8.73%
EBIT growth 3Y5.43%
EBIT growth 5Y6.27%
EBIT Next Year-2.95%
EBIT Next 3Y1.93%
EBIT Next 5Y1.94%
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.