CONSTELLATION BRANDS INC-A (STZ) Stock Fundamental Analysis
NYSE:STZ - New York Stock Exchange, Inc. - US21036P1084 - Common Stock - Currency: USD
Overall STZ gets a fundamental rating of 5 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year STZ was profitable.
STZ had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: STZ reported negative net income in multiple years.
Each year in the past 5 years STZ had a positive operating cash flow.
1.2 Ratios
STZ has a worse Return On Assets (3.01%) than 68.97% of its industry peers.
STZ has a Return On Equity (8.78%) which is comparable to the rest of the industry.
The Return On Invested Capital of STZ (13.42%) is better than 72.41% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for STZ is below the industry average of 13.25%.
The last Return On Invested Capital (13.42%) for STZ is above the 3 year average (10.51%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.01% | ||
| ROE | 8.78% | ||
| ROIC | 13.42% |
ROA(3y)2.09%
ROA(5y)2.72%
ROE(3y)5.51%
ROE(5y)6.23%
ROIC(3y)10.51%
ROIC(5y)9.67%
1.3 Margins
STZ has a worse Profit Margin (6.74%) than 62.07% of its industry peers.
In the last couple of years the Profit Margin of STZ has declined.
STZ has a better Operating Margin (34.03%) than 100.00% of its industry peers.
STZ's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 51.49%, STZ is doing good in the industry, outperforming 62.07% 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 | 34.03% | ||
| PM (TTM) | 6.74% | ||
| GM | 51.49% |
OM growth 3Y-0.41%
OM growth 5Y0.34%
PM growth 3Y-9.24%
PM growth 5Y-16.35%
GM growth 3Y-1.01%
GM growth 5Y0.04%
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.
STZ has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, STZ has less shares outstanding
Compared to 1 year ago, STZ has an improved debt to assets ratio.
2.2 Solvency
STZ has an Altman-Z score of 3.09. This indicates that STZ is financially healthy and has little risk of bankruptcy at the moment.
STZ has a Altman-Z score (3.09) which is comparable to the rest of the industry.
STZ has a debt to FCF ratio of 6.80. This is a slightly negative value and a sign of low solvency as STZ would need 6.80 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.80, STZ is in the better half of the industry, outperforming 62.07% of the companies in the same industry.
A Debt/Equity ratio of 1.42 is on the high side and indicates that STZ has dependencies on debt financing.
The Debt to Equity ratio of STZ (1.42) is worse than 72.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.42 | ||
| Debt/FCF | 6.8 | ||
| Altman-Z | 3.09 |
ROIC/WACC1.81
WACC7.42%
2.3 Liquidity
A Current Ratio of 1.10 indicates that STZ should not have too much problems paying its short term obligations.
STZ has a Current ratio (1.10) which is comparable to the rest of the industry.
A Quick Ratio of 0.46 indicates that STZ may have some problems paying its short term obligations.
STZ has a worse Quick ratio (0.46) than 75.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.46 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.75% over the past year.
Measured over the past 5 years, STZ shows a small growth in Earnings Per Share. The EPS has been growing by 5.38% on average per year.
Looking at the last year, STZ shows a small growth in Revenue. The Revenue has grown by 3.70% in the last year.
The Revenue has been growing slightly by 4.18% on average over the past years.
EPS 1Y (TTM)13.75%
EPS 3Y6.55%
EPS 5Y5.38%
EPS Q2Q%1.88%
Revenue 1Y (TTM)3.7%
Revenue growth 3Y4.96%
Revenue growth 5Y4.18%
Sales Q2Q%-0.29%
3.2 Future
Based on estimates for the next years, STZ will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.52% on average per year.
STZ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.85% yearly.
EPS Next Y13%
EPS Next 2Y10.45%
EPS Next 3Y9.89%
EPS Next 5Y11.52%
Revenue Next Year2.79%
Revenue Next 2Y3.46%
Revenue Next 3Y4.11%
Revenue Next 5Y5.85%
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 accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.49, STZ is valued correctly.
Based on the Price/Earnings ratio, STZ is valued cheaper than 86.21% of the companies in the same industry.
STZ is valuated cheaply when we compare the Price/Earnings ratio to 28.46, which is the current average of the S&P500 Index.
STZ is valuated correctly with a Price/Forward Earnings ratio of 12.29.
STZ's Price/Forward Earnings ratio is rather cheap when compared to the industry. STZ is cheaper than 86.21% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 92.56. STZ is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.49 | ||
| Fwd PE | 12.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STZ is valued a bit cheaper than the industry average as 72.41% of the companies are valued more expensively.
STZ's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. STZ is cheaper than 75.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.28 | ||
| EV/EBITDA | 11.1 |
4.3 Compensation for Growth
STZ's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.04
PEG (5Y)2.51
EPS Next 2Y10.45%
EPS Next 3Y9.89%
5. Dividend
5.1 Amount
STZ has a Yearly Dividend Yield of 2.19%.
The stock price of STZ dropped by -22.33% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.20, STZ has a dividend in line with its industry peers.
STZ's Dividend Yield is comparable with the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.19% |
5.2 History
The dividend of STZ has a limited annual growth rate of 4.06%.
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)4.06%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
STZ pays out 104.04% of its income as dividend. This is not a sustainable payout ratio.
STZ's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP104.04%
EPS Next 2Y10.45%
EPS Next 3Y9.89%
CONSTELLATION BRANDS INC-A
NYSE:STZ (1/31/2025, 8:04:01 PM)
After market: 181 +0.2 (+0.11%)180.8
-3.52 (-1.91%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners82.37%
Inst Owner Change-0.7%
Ins Owners0.11%
Ins Owner Change-0.35%
Market Cap32.82B
Analysts80
Price Target249.24 (37.85%)
Short Float %1.92%
Short Ratio1.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.19% |
Yearly Dividend3.57
Dividend Growth(5Y)4.06%
DP104.04%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.94%
Min EPS beat(2)-2.92%
Max EPS beat(2)4.79%
EPS beat(4)3
Avg EPS beat(4)2.85%
Min EPS beat(4)-2.92%
Max EPS beat(4)7.4%
EPS beat(8)7
Avg EPS beat(8)4.42%
EPS beat(12)10
Avg EPS beat(12)5.02%
EPS beat(16)12
Avg EPS beat(16)4.49%
Revenue beat(2)0
Avg Revenue beat(2)-2%
Min Revenue beat(2)-3.72%
Max Revenue beat(2)-0.28%
Revenue beat(4)1
Avg Revenue beat(4)-1.05%
Min Revenue beat(4)-3.72%
Max Revenue beat(4)1.1%
Revenue beat(8)2
Avg Revenue beat(8)-1.21%
Revenue beat(12)6
Avg Revenue beat(12)0.61%
Revenue beat(16)9
Avg Revenue beat(16)0.79%
PT rev (1m)-15.49%
PT rev (3m)-16.17%
EPS NQ rev (1m)-6.41%
EPS NQ rev (3m)-7.19%
EPS NY rev (1m)-1.6%
EPS NY rev (3m)-1.58%
Revenue NQ rev (1m)-3.93%
Revenue NQ rev (3m)-5.56%
Revenue NY rev (1m)-1.65%
Revenue NY rev (3m)-1.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.49 | ||
| Fwd PE | 12.29 | ||
| P/S | 3.22 | ||
| P/FCF | 19.28 | ||
| P/OCF | 10.97 | ||
| P/B | 4.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.1 |
EPS(TTM)13.4
EY7.41%
EPS(NY)14.71
Fwd EY8.14%
FCF(TTM)9.38
FCFY5.19%
OCF(TTM)16.47
OCFY9.11%
SpS56.1
BVpS43.06
TBVpS-2.82
PEG (NY)1.04
PEG (5Y)2.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.01% | ||
| ROE | 8.78% | ||
| ROCE | 17.76% | ||
| ROIC | 13.42% | ||
| ROICexc | 13.46% | ||
| ROICexgc | 22.81% | ||
| OM | 34.03% | ||
| PM (TTM) | 6.74% | ||
| GM | 51.49% | ||
| FCFM | 16.71% |
ROA(3y)2.09%
ROA(5y)2.72%
ROE(3y)5.51%
ROE(5y)6.23%
ROIC(3y)10.51%
ROIC(5y)9.67%
ROICexc(3y)10.59%
ROICexc(5y)9.75%
ROICexgc(3y)19.84%
ROICexgc(5y)17.72%
ROCE(3y)13.65%
ROCE(5y)12.46%
ROICexcg growth 3Y12.46%
ROICexcg growth 5Y10.13%
ROICexc growth 3Y8.59%
ROICexc growth 5Y8.1%
OM growth 3Y-0.41%
OM growth 5Y0.34%
PM growth 3Y-9.24%
PM growth 5Y-16.35%
GM growth 3Y-1.01%
GM growth 5Y0.04%
F-Score7
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.42 | ||
| Debt/FCF | 6.8 | ||
| Debt/EBITDA | 2.83 | ||
| Cap/Depr | 288.17% | ||
| Cap/Sales | 12.65% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.44% | ||
| Profit Quality | 248% | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.46 | ||
| Altman-Z | 3.09 |
F-Score7
WACC7.42%
ROIC/WACC1.81
Cap/Depr(3y)284.81%
Cap/Depr(5y)272.44%
Cap/Sales(3y)11.78%
Cap/Sales(5y)10.82%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)13.75%
EPS 3Y6.55%
EPS 5Y5.38%
EPS Q2Q%1.88%
EPS Next Y13%
EPS Next 2Y10.45%
EPS Next 3Y9.89%
EPS Next 5Y11.52%
Revenue 1Y (TTM)3.7%
Revenue growth 3Y4.96%
Revenue growth 5Y4.18%
Sales Q2Q%-0.29%
Revenue Next Year2.79%
Revenue Next 2Y3.46%
Revenue Next 3Y4.11%
Revenue Next 5Y5.85%
EBIT growth 1Y10.02%
EBIT growth 3Y4.54%
EBIT growth 5Y4.54%
EBIT Next Year23.12%
EBIT Next 3Y11.44%
EBIT Next 5Y10.41%
FCF growth 1Y19.02%
FCF growth 3Y-8.03%
FCF growth 5Y2.13%
OCF growth 1Y17.66%
OCF growth 3Y-0.32%
OCF growth 5Y4.36%