CONSTELLATION BRANDS INC-A (STZ) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:STZ - US21036P1084 - Common Stock
156.64 USD
-2.11 (-1.33%)
156.014 USD
-0.63 (-0.4%)
Overall STZ gets a fundamental rating of 5 out of 10. We evaluated STZ against 33 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 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.
- STZ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- STZ's Return On Assets of 5.12% is in line compared to the rest of the industry. STZ outperforms 57.58% of its industry peers.
- Looking at the Return On Equity, with a value of 14.39%, STZ is in line with its industry, outperforming 54.55% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 12.66%, STZ is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
- 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
- Looking at the Profit Margin, with a value of 11.83%, STZ is in the better half of the industry, outperforming 75.76% of the companies in the same industry.
- With an excellent Operating Margin value of 33.76%, STZ belongs to the best 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's Gross Margin of 52.60% is fine compared to the rest of the industry. STZ outperforms 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), STZ 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.
- Compared to 1 year ago, STZ has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.02 indicates that STZ is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.02, STZ is in the better half of the industry, outperforming 60.61% of the companies in the same industry.
- 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.
- The Debt to FCF ratio of STZ (6.05) is better than 60.61% of its industry peers.
- 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 | 3.02 |
ROIC/WACC1.81
WACC7.01%
2.3 Liquidity
- A Current Ratio of 1.34 indicates that STZ should not have too much problems paying its short term obligations.
- The Current ratio of STZ (1.34) is comparable to the rest of the industry.
- STZ has a Quick Ratio of 1.34. This is a bad value and indicates that STZ is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of STZ (0.70) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
- STZ shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.42%.
- STZ shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.57% yearly.
- Looking at the last year, STZ shows a decrease in Revenue. The Revenue has decreased by -7.86% in the last year.
- Measured over the past years, STZ shows a small growth in Revenue. The Revenue has been growing by 4.12% on average per year.
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-10.89%
Revenue Next 2Y-5.44%
Revenue Next 3Y-2.93%
Revenue Next 5Y-0.1%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- A Price/Earnings ratio of 12.49 indicates a correct valuation of STZ.
- STZ's Price/Earnings ratio is rather cheap when compared to the industry. STZ is cheaper than 81.82% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.47. STZ is valued rather cheaply when compared to this.
- STZ is valuated correctly with a Price/Forward Earnings ratio of 12.51.
- 84.85% of the companies in the same industry are more expensive than STZ, based on the Price/Forward Earnings ratio.
- STZ's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.49 | ||
| Fwd PE | 12.51 |
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 | 15.47 | ||
| EV/EBITDA | 10.55 |
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)1.46
EPS Next 2Y-4.65%
EPS Next 3Y-1.61%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.61%, 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 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
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
- STZ pays out 64.83% of its income as dividend. This is not a sustainable payout ratio.
- STZ's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP64.83%
EPS Next 2Y-4.65%
EPS Next 3Y-1.61%
156.64
-2.11 (-1.33%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)01-07 2026-01-07/amc
Earnings (Next)04-07 2026-04-07/amc
Inst Owners76.58%
Inst Owner Change0.06%
Ins Owners0.1%
Ins Owner Change0%
Market Cap27.26B
Revenue(TTM)9.38B
Net Income(TTM)1.11B
Analysts71.72
Price Target179.13 (14.36%)
Short Float %7%
Short Ratio4.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
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)10.62%
Min EPS beat(2)6.26%
Max EPS beat(2)14.99%
EPS beat(4)3
Avg EPS beat(4)8%
Min EPS beat(4)-3.57%
Max EPS beat(4)14.99%
EPS beat(8)6
Avg EPS beat(8)5.42%
EPS beat(12)10
Avg EPS beat(12)5.61%
EPS beat(16)13
Avg EPS beat(16)5.76%
Revenue beat(2)1
Avg Revenue beat(2)0.9%
Min Revenue beat(2)-0.12%
Max Revenue beat(2)1.92%
Revenue beat(4)2
Avg Revenue beat(4)-0.02%
Min Revenue beat(4)-2.48%
Max Revenue beat(4)1.92%
Revenue beat(8)3
Avg Revenue beat(8)-0.53%
Revenue beat(12)4
Avg Revenue beat(12)-0.82%
Revenue beat(16)8
Avg Revenue beat(16)0.45%
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 | 12.49 | ||
| Fwd PE | 12.51 | ||
| P/S | 2.91 | ||
| P/FCF | 15.47 | ||
| P/OCF | 10.09 | ||
| P/B | 3.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.55 |
EPS(TTM)12.54
EY8.01%
EPS(NY)12.52
Fwd EY7.99%
FCF(TTM)10.13
FCFY6.46%
OCF(TTM)15.52
OCFY9.91%
SpS53.91
BVpS44.3
TBVpS-0.07
PEG (NY)N/A
PEG (5Y)1.46
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 | 3.02 |
F-Score7
WACC7.01%
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-10.89%
Revenue Next 2Y-5.44%
Revenue Next 3Y-2.93%
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 5 / 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.