CONSTELLATION BRANDS INC-A (STZ) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:STZ - US21036P1084 - Common Stock
138.59 USD
-1.54 (-1.1%)
STZ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 32 industry peers in the Beverages industry. STZ has only an average score on both its financial health and profitability. STZ is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
STZ had positive earnings in the past year.
In the past year STZ had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: STZ reported negative net income in multiple years.
In the past 5 years STZ always reported a positive cash flow from operatings.
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.
STZ has a better Return On Invested Capital (13.29%) than 78.13% 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 11.65%.
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 78.13% of its industry peers.
Looking at the Operating Margin, with a value of 33.05%, STZ belongs to the top 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.
With a decent Gross Margin value of 51.93%, STZ is doing good in the industry, outperforming 62.50% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so STZ is creating value.
The number of shares outstanding for STZ has been reduced compared to 1 year ago.
STZ has less shares outstanding than it did 5 years ago.
STZ has a worse debt/assets ratio than last year.
2.2 Solvency
STZ has an Altman-Z score of 2.87. 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.
STZ has a Altman-Z score (2.87) which is comparable to the rest of the industry.
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.
STZ's Debt to FCF ratio of 5.71 is fine compared to the rest of the industry. STZ outperforms 68.75% of its industry peers.
STZ has a Debt/Equity ratio of 1.34. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of STZ (1.34) is worse than 78.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 5.71 | ||
| Altman-Z | 2.87 |
ROIC/WACC1.94
WACC6.84%
2.3 Liquidity
A Current Ratio of 1.08 indicates that STZ should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.08, STZ is doing worse than 65.63% of the companies in the same industry.
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.
STZ's Quick ratio of 0.54 is on the low side compared to the rest of the industry. STZ is outperformed by 68.75% 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 -4.57%.
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%.
The Revenue has been growing slightly by 4.12% on average over the past years.
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
Based on estimates for the next years, STZ will show a small growth in Earnings Per Share. The EPS will grow by 2.65% on average per year.
The Revenue is expected to grow 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 5Y2.65%
Revenue Next Year-11.01%
Revenue Next 2Y-5.52%
Revenue Next 3Y-2.85%
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.
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
The Price/Earnings ratio is 10.89, which indicates a very decent valuation of STZ.
Based on the Price/Earnings ratio, STZ is valued cheaper than 84.38% 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 26.77.
Based on the Price/Forward Earnings ratio of 11.07, the valuation of STZ can be described as reasonable.
87.50% 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 23.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.89 | ||
| Fwd PE | 11.07 |
4.2 Price Multiples
71.88% of the companies in the same industry are more expensive than STZ, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of STZ indicates a rather cheap valuation: STZ is cheaper than 84.38% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.05 | ||
| EV/EBITDA | 9.58 |
4.3 Compensation for Growth
The decent profitability rating of STZ may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.27
EPS Next 2Y-4.65%
EPS Next 3Y-1.61%
5. Dividend
5.1 Amount
STZ has a Yearly Dividend Yield of 2.90%.
Compared to an average industry Dividend Yield of 1.69, STZ pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, STZ pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
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.
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%
NYSE:STZ (12/31/2025, 1:13:55 PM)
138.59
-1.54 (-1.1%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners76.45%
Inst Owner Change-4.04%
Ins Owners0.1%
Ins Owner Change0.03%
Market Cap24.12B
Revenue(TTM)9.62B
Net Income(TTM)1.22B
Analysts73.33
Price Target176.34 (27.24%)
Short Float %7%
Short Ratio4.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
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)-0.77%
PT rev (3m)-7.04%
EPS NQ rev (1m)-0.3%
EPS NQ rev (3m)-3.67%
EPS NY rev (1m)-0.3%
EPS NY rev (3m)-0.61%
Revenue NQ rev (1m)-0.36%
Revenue NQ rev (3m)-0.41%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.89 | ||
| Fwd PE | 11.07 | ||
| P/S | 2.51 | ||
| P/FCF | 13.05 | ||
| P/OCF | 8.71 | ||
| P/B | 3.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.58 |
EPS(TTM)12.73
EY9.19%
EPS(NY)12.52
Fwd EY9.03%
FCF(TTM)10.62
FCFY7.66%
OCF(TTM)15.91
OCFY11.48%
SpS55.3
BVpS43.1
TBVpS-1.22
PEG (NY)N/A
PEG (5Y)1.27
Graham Number111.1
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 | 2.87 |
F-Score8
WACC6.84%
ROIC/WACC1.94
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-15.73%
EPS Next 2Y-4.65%
EPS Next 3Y-1.61%
EPS Next 5Y2.65%
Revenue 1Y (TTM)-5.56%
Revenue growth 3Y4.99%
Revenue growth 5Y4.12%
Sales Q2Q%-15%
Revenue Next Year-11.01%
Revenue Next 2Y-5.52%
Revenue Next 3Y-2.85%
Revenue Next 5Y0.1%
EBIT growth 1Y-8.73%
EBIT growth 3Y5.43%
EBIT growth 5Y6.27%
EBIT Next Year-2.95%
EBIT Next 3Y1.93%
EBIT Next 5Y1.94%
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 6 / 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 -15.73% 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%.