CONSTELLATION BRANDS INC-A (STZ) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:STZ - US21036P1084 - Common Stock
147 USD
-0.96 (-0.65%)
147.31 USD
+0.31 (+0.21%)
STZ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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 has a bad growth rate and is valued cheaply.
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.
Each year in the past 5 years STZ had a positive operating cash flow.
1.2 Ratios
The Return On Assets of STZ (5.71%) is comparable to the rest of the industry.
The Return On Equity of STZ (16.30%) is comparable to the rest of the industry.
With a decent Return On Invested Capital value of 13.29%, STZ is doing good in the industry, outperforming 78.79% of the companies in the same industry.
STZ had an Average Return On Invested Capital over the past 3 years of 12.24%. This is in line with the industry average of 11.47%.
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
STZ's Profit Margin of 12.70% is fine compared to the rest of the industry. STZ outperforms 78.79% of its industry peers.
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 63.64% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), STZ is creating value.
Compared to 1 year ago, STZ has less shares outstanding
STZ has less shares outstanding than it did 5 years ago.
STZ has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.92 indicates that STZ is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of STZ (2.92) is better than 60.61% of its industry peers.
STZ has a debt to FCF ratio of 5.71. This is a neutral value as STZ would need 5.71 years to pay back of all of its debts.
The Debt to FCF ratio of STZ (5.71) is better than 69.70% 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.
Looking at the Debt to Equity ratio, with a value of 1.34, STZ is doing worse than 78.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 5.71 | ||
| Altman-Z | 2.92 |
ROIC/WACC1.92
WACC6.94%
2.3 Liquidity
A Current Ratio of 1.08 indicates that STZ should not have too much problems paying its short term obligations.
With a Current ratio value of 1.08, STZ is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
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.
The Quick ratio of STZ (0.54) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.54 |
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%.
The Earnings Per Share has been growing by 8.57% on average over the past years. This is quite good.
STZ shows a small growth in Revenue. In the last year, the Revenue has grown by 2.48%.
STZ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.12% yearly.
EPS 1Y (TTM)-6.42%
EPS 3Y10.52%
EPS 5Y8.57%
EPS Q2Q%-5.85%
Revenue 1Y (TTM)2.48%
Revenue growth 3Y4.99%
Revenue growth 5Y4.12%
Sales Q2Q%-9.78%
3.2 Future
The Earnings Per Share is expected to grow by 2.39% on average over the next years.
The Revenue is expected to decrease 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 5Y2.39%
Revenue Next Year-11.01%
Revenue Next 2Y-5.52%
Revenue Next 3Y-2.85%
Revenue Next 5Y-0.1%
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 11.72, the valuation of STZ can be described as very reasonable.
81.82% 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 27.19, which is the current average of the S&P500 Index.
STZ is valuated reasonably with a Price/Forward Earnings ratio of 11.74.
STZ's Price/Forward Earnings ratio is rather cheap when compared to the industry. STZ is cheaper than 84.85% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of STZ to the average of the S&P500 Index (23.92), we can say STZ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.72 | ||
| Fwd PE | 11.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STZ is valued a bit cheaper than the industry average as 69.70% of the companies are valued more expensively.
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 | 13.84 | ||
| EV/EBITDA | 9.91 |
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)1.37
EPS Next 2Y-4.65%
EPS Next 3Y-1.61%
5. Dividend
5.1 Amount
STZ has a Yearly Dividend Yield of 2.76%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.77, STZ pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.92, STZ pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
5.2 History
On average, the dividend of STZ grows each year by 6.29%, which is quite nice.
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%
147
-0.96 (-0.65%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners76.58%
Inst Owner Change0.06%
Ins Owners0.1%
Ins Owner Change0%
Market Cap25.58B
Revenue(TTM)10.21B
Net Income(TTM)1.22B
Analysts71.72
Price Target176.34 (19.96%)
Short Float %7%
Short Ratio4.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
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)-0.29%
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 | 11.72 | ||
| Fwd PE | 11.74 | ||
| P/S | 2.66 | ||
| P/FCF | 13.84 | ||
| P/OCF | 9.24 | ||
| P/B | 3.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.91 |
EPS(TTM)12.54
EY8.53%
EPS(NY)12.52
Fwd EY8.52%
FCF(TTM)10.62
FCFY7.22%
OCF(TTM)15.91
OCFY10.82%
SpS55.3
BVpS43.1
TBVpS-1.22
PEG (NY)N/A
PEG (5Y)1.37
Graham Number110.27
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 | 2.92 |
F-Score8
WACC6.94%
ROIC/WACC1.92
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)2.48%
Revenue growth 3Y4.99%
Revenue growth 5Y4.12%
Sales Q2Q%-9.78%
Revenue Next Year-11.01%
Revenue Next 2Y-5.52%
Revenue Next 3Y-2.85%
Revenue Next 5Y-0.1%
EBIT growth 1Y-8.73%
EBIT growth 3Y5.43%
EBIT growth 5Y6.27%
EBIT Next Year-2.95%
EBIT Next 3Y1.93%
EBIT Next 5Y1.46%
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.