CONSTELLATION BRANDS INC-A (STZ) Stock Fundamental Analysis
USA - NYSE:STZ - US21036P1084 - Common Stock
129.16 USD
-0.53 (-0.41%)
128.8 USD
-0.36 (-0.28%)
We assign a fundamental rating of 5 out of 10 to STZ. STZ was compared to 33 industry peers in the Beverages industry. While STZ has a great profitability rating, there are some minor concerns on its financial health. STZ is cheap, but on the other hand it scores bad on growth.
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's Return On Assets of 5.71% is fine compared to the rest of the industry. STZ outperforms 60.61% of its industry peers.
STZ's Return On Equity of 16.30% is fine compared to the rest of the industry. STZ outperforms 60.61% of its industry peers.
STZ's Return On Invested Capital of 13.29% is fine compared to the rest 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 10.84%.
The last Return On Invested Capital (13.29%) for STZ is above the 3 year average (12.24%), which is a sign of increasing profitability.
| 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 an excellent Profit Margin value of 12.70%, STZ belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
With an excellent Operating Margin value of 33.05%, STZ belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
STZ's Operating Margin has improved in the last couple of years.
STZ has a better Gross Margin (51.93%) 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 | 33.05% | ||
| 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
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.
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 2.79 indicates that STZ is not a great score, but indicates only limited risk for bankruptcy at the moment.
STZ has a Altman-Z score (2.79) which is in line with 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.
With a decent Debt to FCF ratio value of 5.71, STZ is doing good in the industry, outperforming 69.70% of the companies in the same industry.
STZ has a Debt/Equity ratio of 1.34. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.34, STZ is not doing good in the industry: 78.79% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 5.71 | ||
| Altman-Z | 2.79 |
ROIC/WACC1.97
WACC6.73%
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 66.67% of its industry peers.
A Quick Ratio of 0.54 indicates that STZ may have some problems paying its short term obligations.
STZ's Quick ratio of 0.54 is on the low side compared to the rest of the industry. STZ is outperformed by 69.70% 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.
Measured over the past years, STZ shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.57% on average per year.
STZ shows a decrease in Revenue. In the last year, the revenue decreased by -5.56%.
STZ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.12% yearly.
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
STZ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.65% yearly.
The Revenue is expected to grow by 0.10% on average over the next years.
EPS Next Y-15.48%
EPS Next 2Y-4.5%
EPS Next 3Y-1.5%
EPS Next 5Y2.65%
Revenue Next Year-10.88%
Revenue Next 2Y-5.4%
Revenue Next 3Y-2.71%
Revenue Next 5Y0.1%
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.
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 10.15, the valuation of STZ can be described as very reasonable.
Based on the Price/Earnings ratio, STZ is valued cheaper than 84.85% of the companies in the same industry.
STZ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.89.
A Price/Forward Earnings ratio of 10.28 indicates a reasonable valuation of STZ.
81.82% of the companies in the same industry are more expensive than STZ, based on the Price/Forward Earnings ratio.
STZ is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.15 | ||
| Fwd PE | 10.28 |
4.2 Price Multiples
72.73% 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 cheaply inside the industry as 81.82% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.23 | ||
| EV/EBITDA | 9.11 |
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)1.18
EPS Next 2Y-4.5%
EPS Next 3Y-1.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.19%, STZ has a reasonable but not impressive dividend return.
In the last 3 months the price of STZ has falen by -23.22%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.11, STZ pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, STZ pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
5.2 History
The dividend of STZ is nicely growing with an annual growth rate of 6.29%!
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
59.24% of the earnings are spent on dividend by STZ. 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.
DP59.24%
EPS Next 2Y-4.5%
EPS Next 3Y-1.5%
129.16
-0.53 (-0.41%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners77.93%
Inst Owner Change-0.6%
Ins Owners0.1%
Ins Owner Change0.02%
Market Cap22.61B
Revenue(TTM)9.62B
Net Income(TTM)1.22B
Analysts73.33
Price Target178.21 (37.98%)
Short Float %6.89%
Short Ratio3.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
Yearly Dividend4.05
Dividend Growth(5Y)6.29%
DP59.24%
Div Incr Years9
Div Non Decr Years9
Ex-Date
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)-3.22%
PT rev (3m)-16.65%
EPS NQ rev (1m)-3.1%
EPS NQ rev (3m)-11.96%
EPS NY rev (1m)-0.32%
EPS NY rev (3m)-8.91%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-3.47%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-3.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.15 | ||
| Fwd PE | 10.28 | ||
| P/S | 2.35 | ||
| P/FCF | 12.23 | ||
| P/OCF | 8.16 | ||
| P/B | 3.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.11 |
EPS(TTM)12.73
EY9.86%
EPS(NY)12.56
Fwd EY9.72%
FCF(TTM)10.56
FCFY8.17%
OCF(TTM)15.82
OCFY12.25%
SpS54.98
BVpS42.85
TBVpS-1.21
PEG (NY)N/A
PEG (5Y)1.18
Graham Number110.79
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 | 2.79 |
F-Score8
WACC6.73%
ROIC/WACC1.97
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-15.48%
EPS Next 2Y-4.5%
EPS Next 3Y-1.5%
EPS Next 5Y2.65%
Revenue 1Y (TTM)-5.56%
Revenue growth 3Y4.99%
Revenue growth 5Y4.12%
Sales Q2Q%-15%
Revenue Next Year-10.88%
Revenue Next 2Y-5.4%
Revenue Next 3Y-2.71%
Revenue Next 5Y0.1%
EBIT growth 1Y-8.73%
EBIT growth 3Y5.43%
EBIT growth 5Y6.27%
EBIT Next Year-2.01%
EBIT Next 3Y1.87%
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.
Can you provide the valuation status for CONSTELLATION BRANDS INC-A?
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 7 / 10.
Can you provide the expected EPS growth for STZ stock?
The Earnings per Share (EPS) of CONSTELLATION BRANDS INC-A (STZ) is expected to decline by -15.48% in the next year.
Is the dividend of CONSTELLATION BRANDS INC-A sustainable?
The dividend rating of CONSTELLATION BRANDS INC-A (STZ) is 6 / 10 and the dividend payout ratio is 59.24%.