CONSTELLATION BRANDS INC-A (STZ) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:STZ - US21036P1084 - Common Stock
151.82 USD
+4.82 (+3.28%)
152.08 USD
+0.26 (+0.17%)
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 valuation in line with the averages, 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.
In the past 5 years STZ always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.12%, STZ is in line with its industry, outperforming 57.58% of the companies in the same industry.
With a Return On Equity value of 14.39%, STZ perfoms like the industry average, 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.
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 (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
With a decent Profit Margin value of 11.83%, STZ is doing good in the industry, outperforming 75.76% of the companies in the same industry.
STZ's Operating Margin of 33.76% 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.
STZ has a better Gross Margin (52.60%) 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 | 33.76% | ||
| 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.
The number of shares outstanding for STZ has been reduced compared to 1 year ago.
Compared to 5 years ago, STZ has less shares outstanding
STZ has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.93 indicates that STZ is not a great score, but indicates only limited risk for bankruptcy at the moment.
STZ's Altman-Z score of 2.93 is fine compared to the rest of the industry. STZ outperforms 60.61% of its industry peers.
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.
With a decent Debt to FCF ratio value of 6.05, STZ is doing good in the industry, outperforming 60.61% of the companies in the same industry.
STZ has a Debt/Equity ratio of 1.38. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of STZ (1.38) is worse than 78.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | 6.05 | ||
| Altman-Z | 2.93 |
ROIC/WACC1.81
WACC6.98%
2.3 Liquidity
STZ has a Current Ratio of 1.34. This is a normal value and indicates that STZ is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.34, STZ perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
A Quick Ratio of 0.70 indicates that STZ may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.70, STZ is in line with its industry, outperforming 45.45% of the companies in the same 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%.
The Earnings Per Share has been growing by 8.57% on average over the past years. This is quite good.
The Revenue has decreased by -7.86% in the past 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.
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
Based on the Price/Earnings ratio of 12.11, the valuation of STZ can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of STZ indicates a rather cheap valuation: STZ is cheaper than 81.82% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of STZ to the average of the S&P500 Index (27.19), we can say STZ is valued rather cheaply.
A Price/Forward Earnings ratio of 12.13 indicates a correct valuation of STZ.
Based on the Price/Forward Earnings ratio, STZ is valued cheaply inside the industry as 84.85% of the companies are valued more expensively.
STZ is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.11 | ||
| Fwd PE | 12.13 |
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 cheaper than 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.99 | ||
| EV/EBITDA | 9.98 |
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)1.41
EPS Next 2Y-4.65%
EPS Next 3Y-1.61%
5. Dividend
5.1 Amount
STZ has a Yearly Dividend Yield of 2.78%. Purely for dividend investing, there may be better candidates out there.
STZ's Dividend Yield is a higher than the industry average which is at 1.77.
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 | 2.78% |
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
64.83% of the earnings are spent on dividend by STZ. 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%
151.82
+4.82 (+3.28%)
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 Cap26.42B
Revenue(TTM)9.38B
Net Income(TTM)1.11B
Analysts71.72
Price Target176.34 (16.15%)
Short Float %7%
Short Ratio4.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
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)10.47%
Min EPS beat(2)6.26%
Max EPS beat(2)14.67%
EPS beat(4)3
Avg EPS beat(4)7.92%
Min EPS beat(4)-3.57%
Max EPS beat(4)14.67%
EPS beat(8)6
Avg EPS beat(8)5.38%
EPS beat(12)10
Avg EPS beat(12)5.59%
EPS beat(16)13
Avg EPS beat(16)5.74%
Revenue beat(2)1
Avg Revenue beat(2)0.76%
Min Revenue beat(2)-0.12%
Max Revenue beat(2)1.64%
Revenue beat(4)2
Avg Revenue beat(4)-0.09%
Min Revenue beat(4)-2.48%
Max Revenue beat(4)1.64%
Revenue beat(8)3
Avg Revenue beat(8)-0.57%
Revenue beat(12)4
Avg Revenue beat(12)-0.84%
Revenue beat(16)8
Avg Revenue beat(16)0.43%
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 | 12.11 | ||
| Fwd PE | 12.13 | ||
| P/S | 2.82 | ||
| P/FCF | 14.99 | ||
| P/OCF | 9.78 | ||
| P/B | 3.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.98 |
EPS(TTM)12.54
EY8.26%
EPS(NY)12.52
Fwd EY8.25%
FCF(TTM)10.13
FCFY6.67%
OCF(TTM)15.52
OCFY10.22%
SpS53.91
BVpS44.3
TBVpS-0.07
PEG (NY)N/A
PEG (5Y)1.41
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 | 2.93 |
F-Score7
WACC6.98%
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-11.01%
Revenue Next 2Y-5.52%
Revenue Next 3Y-2.85%
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 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.