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

NYSE:STZ • US21036P1084

Current stock price

152.82 USD
-3.76 (-2.4%)
At close:
152.82 USD
0 (0%)
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

  • 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.
  • STZ had a positive operating cash flow in each 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 2026 0 1B 2B 3B

1.2 Ratios

  • STZ has a better Return On Assets (7.70%) than 60.61% of its industry peers.
  • With a decent Return On Equity value of 20.87%, STZ is doing good in the industry, outperforming 72.73% of the companies in the same industry.
  • STZ has a Return On Invested Capital of 10.15%. This is in the better half of the industry: STZ outperforms 60.61% 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 11.92%.
Industry RankSector Rank
ROA 7.7%
ROE 20.87%
ROIC 10.15%
ROA(3y)4.68%
ROA(5y)2.72%
ROE(3y)12.47%
ROE(5y)7.25%
ROIC(3y)10.62%
ROIC(5y)9.74%
STZ Yearly ROA, ROE, ROICSTZ Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 10 20

1.3 Margins

  • With an excellent Profit Margin value of 18.46%, STZ belongs to the best of the industry, outperforming 84.85% of the companies in the same industry.
  • In the last couple of years the Profit Margin of STZ has declined.
  • Looking at the Operating Margin, with a value of 32.97%, STZ belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
  • STZ's Operating Margin has been stable in the last couple of years.
  • Looking at the Gross Margin, with a value of 52.12%, STZ is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
  • STZ's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 32.97%
PM (TTM) 18.46%
GM 52.12%
OM growth 3Y1.36%
OM growth 5Y-0.36%
PM growth 3YN/A
PM growth 5Y-4.47%
GM growth 3Y0.62%
GM growth 5Y-0.11%
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 2026 0 10 20 30 40 50

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3

2. STZ Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so STZ is still creating some value.
  • STZ has less shares outstanding than it did 1 year ago.
  • STZ has less shares outstanding than it did 5 years ago.
  • The debt/assets ratio for STZ has been reduced compared to a year ago.
STZ Yearly Shares OutstandingSTZ Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 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 2026 5B 10B 15B 20B 25B

2.2 Solvency

  • STZ has a debt to FCF ratio of 5.89. This is a neutral value as STZ would need 5.89 years to pay back of all of its debts.
  • The Debt to FCF ratio of STZ (5.89) is better than 63.64% of its industry peers.
  • A Debt/Equity ratio of 1.23 is on the high side and indicates that STZ has dependencies on debt financing.
  • The Debt to Equity ratio of STZ (1.23) is worse than 72.73% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.23
Debt/FCF 5.89
Altman-Z N/A
ROIC/WACC1.38
WACC7.34%
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 2026 2B 4B 6B 8B 10B

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 Current ratio of 1.08. This is in the lower half of the industry: STZ underperforms 60.61% 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.
  • With a Quick ratio value of 0.55, STZ is not doing good in the industry: 69.70% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.08
Quick Ratio 0.55
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 2026 1B 2B 3B 4B

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4

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%.
  • The Earnings Per Share has been growing slightly by 3.45% on average over the past years.
  • Looking at the last year, STZ shows a very negative growth in Revenue. The Revenue has decreased by -10.48% in the last year.
  • The Revenue has been growing slightly by 1.19% on average over the past years.
EPS 1Y (TTM)-14.23%
EPS 3Y3.54%
EPS 5Y3.45%
EPS Q2Q%-27.76%
Revenue 1Y (TTM)-10.48%
Revenue growth 3Y-1.12%
Revenue growth 5Y1.19%
Sales Q2Q%-11.27%

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 5.69% on average per year.
  • The Revenue is expected to grow by 2.12% on average over the next years.
EPS Next Y5.67%
EPS Next 2Y5.23%
EPS Next 3Y4.13%
EPS Next 5Y5.69%
Revenue Next Year0.2%
Revenue Next 2Y1.06%
Revenue Next 3Y1.46%
Revenue Next 5Y2.12%

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.
  • When comparing the Revenue 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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6

4. STZ Valuation Analysis

4.1 Price/Earnings Ratio

  • STZ is valuated correctly with a Price/Earnings ratio of 12.94.
  • Based on the Price/Earnings ratio, STZ is valued cheaper than 81.82% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of STZ to the average of the S&P500 Index (26.64), we can say STZ is valued rather cheaply.
  • Based on the Price/Forward Earnings ratio of 12.25, 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 81.82% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 21.36. STZ is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 12.94
Fwd PE 12.25
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STZ indicates a somewhat cheap valuation: STZ is cheaper than 75.76% of the companies listed in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of STZ indicates a rather cheap valuation: STZ is cheaper than 84.85% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 14.77
EV/EBITDA 10.69
STZ Per share dataSTZ EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 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)2.28
PEG (5Y)3.76
EPS Next 2Y5.23%
EPS Next 3Y4.13%

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6

5. STZ Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.63%, STZ has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 1.91, STZ pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.80, STZ pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.63%

5.2 History

  • On average, the dividend of STZ grows each year by 6.33%, 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)6.33%
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 42.43% of its income as dividend. 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.
DP42.43%
EPS Next 2Y5.23%
EPS Next 3Y4.13%
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 2026 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 (5/1/2026, 8:04:00 PM)

After market: 152.82 0 (0%)

152.82

-3.76 (-2.4%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Industry Strength1.86
Industry Growth4.97
Earnings (Last)04-08
Earnings (Next)06-29
Inst Owners80.27%
Inst Owner Change0.15%
Ins Owners0.1%
Ins Owner Change0%
Market Cap26.50B
Revenue(TTM)9.14B
Net Income(TTM)1.69B
Analysts72.86
Price Target183.99 (20.4%)
Short Float %4.09%
Short Ratio2.7
Dividend
Industry RankSector Rank
Dividend Yield 2.63%
Yearly Dividend4.07
Dividend Growth(5Y)6.33%
DP42.43%
Div Incr Years10
Div Non Decr Years10
Ex-Date04-29
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.23%
Min EPS beat(2)9.48%
Max EPS beat(2)14.99%
EPS beat(4)3
Avg EPS beat(4)6.79%
Min EPS beat(4)-3.57%
Max EPS beat(4)14.99%
EPS beat(8)6
Avg EPS beat(8)5.68%
EPS beat(12)10
Avg EPS beat(12)5.74%
EPS beat(16)13
Avg EPS beat(16)5.64%
Revenue beat(2)2
Avg Revenue beat(2)1.46%
Min Revenue beat(2)1.01%
Max Revenue beat(2)1.92%
Revenue beat(4)2
Avg Revenue beat(4)0.08%
Min Revenue beat(4)-2.48%
Max Revenue beat(4)1.92%
Revenue beat(8)3
Avg Revenue beat(8)-0.55%
Revenue beat(12)5
Avg Revenue beat(12)-0.58%
Revenue beat(16)8
Avg Revenue beat(16)0.31%
PT rev (1m)3.14%
PT rev (3m)2.72%
EPS NQ rev (1m)-2.16%
EPS NQ rev (3m)-1.61%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.74%
Revenue NQ rev (3m)1.58%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)0.13%
Valuation
Industry RankSector Rank
PE 12.94
Fwd PE 12.25
P/S 2.9
P/FCF 14.77
P/OCF 9.93
P/B 3.28
P/tB 84
EV/EBITDA 10.69
EPS(TTM)11.81
EY7.73%
EPS(NY)12.48
Fwd EY8.17%
FCF(TTM)10.35
FCFY6.77%
OCF(TTM)15.39
OCFY10.07%
SpS52.7
BVpS46.61
TBVpS1.82
PEG (NY)2.28
PEG (5Y)3.76
Graham Number111.288 (-27.18%)
Profitability
Industry RankSector Rank
ROA 7.7%
ROE 20.87%
ROCE 15.69%
ROIC 10.15%
ROICexc 10.21%
ROICexgc 17.03%
OM 32.97%
PM (TTM) 18.46%
GM 52.12%
FCFM 19.63%
ROA(3y)4.68%
ROA(5y)2.72%
ROE(3y)12.47%
ROE(5y)7.25%
ROIC(3y)10.62%
ROIC(5y)9.74%
ROICexc(3y)10.67%
ROICexc(5y)9.79%
ROICexgc(3y)18.73%
ROICexgc(5y)17.55%
ROCE(3y)16.59%
ROCE(5y)15.26%
ROICexgc growth 3Y1.53%
ROICexgc growth 5Y5.9%
ROICexc growth 3Y5.69%
ROICexc growth 5Y6.41%
OM growth 3Y1.36%
OM growth 5Y-0.36%
PM growth 3YN/A
PM growth 5Y-4.47%
GM growth 3Y0.62%
GM growth 5Y-0.11%
F-Score6
Asset Turnover0.42
Health
Industry RankSector Rank
Debt/Equity 1.23
Debt/FCF 5.89
Debt/EBITDA 2.9
Cap/Depr 208.98%
Cap/Sales 9.57%
Interest Coverage 250
Cash Conversion 77.77%
Profit Quality 106.36%
Current Ratio 1.08
Quick Ratio 0.55
Altman-Z N/A
F-Score6
WACC7.34%
ROIC/WACC1.38
Cap/Depr(3y)259.02%
Cap/Depr(5y)267.16%
Cap/Sales(3y)11.4%
Cap/Sales(5y)11.36%
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 3Y4.13%
EPS Next 5Y5.69%
Revenue 1Y (TTM)-10.48%
Revenue growth 3Y-1.12%
Revenue growth 5Y1.19%
Sales Q2Q%-11.27%
Revenue Next Year0.2%
Revenue Next 2Y1.06%
Revenue Next 3Y1.46%
Revenue Next 5Y2.12%
EBIT growth 1Y-13.95%
EBIT growth 3Y0.22%
EBIT growth 5Y0.82%
EBIT Next Year21.16%
EBIT Next 3Y6.77%
EBIT Next 5Y6.13%
FCF growth 1Y-7.44%
FCF growth 3Y1.38%
FCF growth 5Y-1.57%
OCF growth 1Y-15.33%
OCF growth 3Y-1.07%
OCF growth 5Y-1%

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 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.


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 12.94 and the Price/Book (PB) ratio is 3.28.


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.