CONSTELLATION BRANDS INC-A (STZ) Stock Fundamental Analysis
USA - NYSE:STZ - US21036P1084 - Common Stock
134.05 USD
+1.01 (+0.76%)
Overall STZ gets a fundamental rating of 4 out of 10. We evaluated STZ against 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 it does not seem to be growing.
1. Profitability
1.1 Basic Checks
STZ had positive earnings in the past year.
STZ had a positive operating cash flow in the past year.
In multiple years STZ reported negative net income over the last 5 years.
STZ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of STZ (-1.99%) is worse than 71.88% of its industry peers.
STZ has a worse Return On Equity (-6.09%) than 81.25% of its industry peers.
STZ's Return On Invested Capital of 14.04% is amongst the best of the industry. STZ outperforms 81.25% 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 10.95%.
The 3 year average ROIC (12.24%) for STZ is below the current ROIC(14.04%), indicating increased profibility in the last year.
| 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
STZ has a better Operating Margin (33.29%) than 100.00% of its industry peers.
In the last couple of years the Operating Margin of STZ has grown nicely.
STZ has a better Gross Margin (51.67%) 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 | 33.29% | ||
| 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.
Compared to 1 year ago, STZ has less shares outstanding
Compared to 5 years ago, STZ has less shares outstanding
The debt/assets ratio for STZ is higher compared to a year ago.
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.
With a Altman-Z score value of 2.71, STZ perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 5.60, STZ is doing good in the industry, outperforming 68.75% of the companies in the same industry.
STZ has a Debt/Equity ratio of 1.40. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of STZ (1.40) is worse than 78.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 5.6 | ||
| Altman-Z | 2.71 |
ROIC/WACC2.09
WACC6.73%
2.3 Liquidity
STZ has a Current Ratio of 1.07. This is a normal value and indicates that STZ is financially healthy and should not expect problems in meeting its short term obligations.
STZ has a Current ratio of 1.07. This is in the lower half of the industry: STZ underperforms 65.63% of its industry peers.
A Quick Ratio of 0.68 indicates that STZ may have some problems paying its short term obligations.
STZ has a Quick ratio (0.68) which is comparable to the rest of the industry.
| 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.
The Earnings Per Share has been growing by 8.57% on average over the past years. This is quite good.
Looking at the last year, STZ shows a decrease in Revenue. The Revenue has decreased by -0.46% in the last year.
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
STZ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.84% yearly.
STZ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.43% yearly.
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
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
Based on the Price/Earnings ratio of 9.99, the valuation of STZ can be described as reasonable.
90.63% of the companies in the same industry are more expensive than STZ, based on the Price/Earnings ratio.
STZ is valuated cheaply when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.68, the valuation of STZ can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STZ indicates a rather cheap valuation: STZ is cheaper than 93.75% of the companies listed in the same industry.
STZ's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.99 | ||
| Fwd PE | 9.68 |
4.2 Price Multiples
STZ's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. STZ is cheaper than 78.13% of the companies in the same industry.
84.38% of the companies in the same industry are more expensive than STZ, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.43 | ||
| EV/EBITDA | 9.12 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.17
EPS Next 2Y0.29%
EPS Next 3Y1.78%
5. Dividend
5.1 Amount
STZ has a Yearly Dividend Yield of 2.85%. Purely for dividend investing, there may be better candidates out there.
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.
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
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%
NYSE:STZ (9/18/2025, 2:51:10 PM)
134.05
+1.01 (+0.76%)
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 Cap23.63B
Analysts74
Price Target189.69 (41.51%)
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 | 9.99 | ||
| Fwd PE | 9.68 | ||
| P/S | 2.35 | ||
| P/FCF | 11.43 | ||
| P/OCF | 7.63 | ||
| P/B | 3.25 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.12 |
EPS(TTM)13.42
EY10.01%
EPS(NY)13.85
Fwd EY10.33%
FCF(TTM)11.73
FCFY8.75%
OCF(TTM)17.58
OCFY13.11%
SpS57.08
BVpS41.21
TBVpS-2.41
PEG (NY)N/A
PEG (5Y)1.17
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
WACC6.73%
ROIC/WACC2.09
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%