CONSTELLATION BRANDS INC-A (STZ)
US21036P1084 - Common Stock
Overall STZ gets a fundamental rating of 5 out of 10. We evaluated STZ against 31 industry peers in the Beverages industry. STZ has an average financial health and profitability rating. STZ has a correct valuation and a medium growth rate.
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.
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 has a Return On Assets of 2.51%. This is in the lower half of the industry: STZ underperforms 74.19% of its industry peers.
The Return On Equity of STZ (7.36%) is worse than 67.74% of its industry peers.
STZ's Return On Invested Capital of 13.24% is fine compared to the rest of the industry. STZ outperforms 67.74% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for STZ is below the industry average of 13.31%.
The last Return On Invested Capital (13.24%) for STZ is above the 3 year average (10.51%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.51% | ||
| ROE | 7.36% | ||
| ROIC | 13.24% |
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
The Profit Margin of STZ (5.69%) is comparable to the rest of the industry.
STZ's Profit Margin has declined in the last couple of years.
The Operating Margin of STZ (34.00%) is better than 100.00% of its industry peers.
In the last couple of years the Operating Margin of STZ has remained more or less at the same level.
Looking at the Gross Margin, with a value of 51.28%, STZ is in the better half of the industry, outperforming 61.29% 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% | ||
| PM (TTM) | 5.69% | ||
| GM | 51.28% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), STZ is creating some value.
STZ has about the same amout of shares outstanding than it did 1 year ago.
STZ has less shares outstanding than it did 5 years ago.
The debt/assets ratio for STZ has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.46 indicates that STZ is not in any danger for bankruptcy at the moment.
STZ has a Altman-Z score of 3.46. This is comparable to the rest of the industry: STZ outperforms 58.06% of its industry peers.
The Debt to FCF ratio of STZ is 7.07, which is on the high side as it means it would take STZ, 7.07 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 7.07, STZ is doing good in the industry, outperforming 61.29% 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 74.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.42 | ||
| Debt/FCF | 7.07 | ||
| Altman-Z | 3.46 |
ROIC/WACC1.73
WACC7.67%
2.3 Liquidity
A Current Ratio of 1.25 indicates that STZ should not have too much problems paying its short term obligations.
STZ has a Current ratio (1.25) which is comparable to the rest of the industry.
A Quick Ratio of 0.53 indicates that STZ may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.53, STZ is doing worse than 70.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
STZ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.81%, which is quite good.
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.
The Revenue has been growing slightly by 4.14% in the past year.
The Revenue has been growing slightly by 4.18% on average over the past years.
EPS 1Y (TTM)16.81%
EPS 3Y6.55%
EPS 5Y5.38%
EPS Q2Q%16.76%
Revenue 1Y (TTM)4.14%
Revenue growth 3Y4.96%
Revenue growth 5Y4.18%
Sales Q2Q%2.89%
3.2 Future
The Earnings Per Share is expected to grow by 9.75% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.39% on average over the next years.
EPS Next Y14.81%
EPS Next 2Y12.73%
EPS Next 3Y11.77%
EPS Next 5Y9.75%
Revenue Next Year4.53%
Revenue Next 2Y5.38%
Revenue Next 3Y5.84%
Revenue Next 5Y6.39%
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
The Price/Earnings ratio is 18.12, which indicates a rather expensive current valuation of STZ.
STZ's Price/Earnings ratio is a bit cheaper when compared to the industry. STZ is cheaper than 77.42% of the companies in the same industry.
STZ's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.56.
STZ is valuated correctly with a Price/Forward Earnings ratio of 15.77.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STZ indicates a rather cheap valuation: STZ is cheaper than 83.87% of the companies listed in the same industry.
STZ's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.12 | ||
| Fwd PE | 15.77 |
4.2 Price Multiples
STZ's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, STZ is valued a bit cheaper than 70.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.75 | ||
| EV/EBITDA | 13.98 |
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)1.22
PEG (5Y)3.37
EPS Next 2Y12.73%
EPS Next 3Y11.77%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.68%, STZ has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.01, STZ has a dividend in line with its industry peers.
STZ's Dividend Yield is slightly below the S&P500 average, which is at 2.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
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.
As STZ did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)4.06%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
STZ pays out 119.90% 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.
DP119.9%
EPS Next 2Y12.73%
EPS Next 3Y11.77%
CONSTELLATION BRANDS INC-A
NYSE:STZ (11/25/2024, 7:50:59 PM)
After market: 239.8 -1.87 (-0.77%)241.67
+2.01 (+0.84%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap43.87B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.12 | ||
| Fwd PE | 15.77 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.22
PEG (5Y)3.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.51% | ||
| ROE | 7.36% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 34% | ||
| PM (TTM) | 5.69% | ||
| GM | 51.28% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.42 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)16.81%
EPS 3Y6.55%
EPS 5Y
EPS Q2Q%
EPS Next Y14.81%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.14%
Revenue growth 3Y4.96%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y