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CONSTELLATION BRANDS INC-B (STZ.B) Stock Fundamental Analysis

NYSE:STZ.B - New York Stock Exchange, Inc. - US21036P2074 - Common Stock - Currency: USD

310  +0.92 (+0.3%)

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to STZ.B. STZ.B was compared to 32 industry peers in the Beverages industry. STZ.B has a bad profitability rating. Also its financial health evaluation is rather negative. STZ.B is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

STZ.B had positive earnings in the past year.
STZ.B had a positive operating cash flow in the past year.
In multiple years STZ.B reported negative net income over the last 5 years.
Each year in the past 5 years STZ.B had a positive operating cash flow.
STZ.B Yearly Net Income VS EBIT VS OCF VS FCFSTZ.B Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 0 1B 2B 3B

1.2 Ratios

Industry RankSector Rank
ROA 0.43%
ROE 1.11%
ROIC 11.1%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
STZ.B Yearly ROA, ROE, ROICSTZ.B Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 0 5 10 15 20 25

1.3 Margins

In the last couple of years the Operating Margin of STZ.B has grown nicely.
Industry RankSector Rank
OM 33.39%
PM (TTM) 1.11%
GM N/A
OM growth 3Y1.77%
OM growth 5Y2.38%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
STZ.B Yearly Profit, Operating, Gross MarginsSTZ.B Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 0 10 20 30 40 50

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2

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), STZ.B is creating some value.
The number of shares outstanding for STZ.B has been reduced compared to 1 year ago.
STZ.B has a worse debt/assets ratio than last year.
STZ.B Yearly Shares OutstandingSTZ.B Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 50M 100M 150M
STZ.B Yearly Total Debt VS Total AssetsSTZ.B Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 5B 10B 15B 20B 25B

2.2 Solvency

An Altman-Z score of 3.92 indicates that STZ.B is not in any danger for bankruptcy at the moment.
STZ.B has a debt to FCF ratio of 6.35. This is a slightly negative value and a sign of low solvency as STZ.B would need 6.35 years to pay back of all of its debts.
STZ.B has a Debt/Equity ratio of 1.09. This is a high value indicating a heavy dependency on external financing.
Industry RankSector Rank
Debt/Equity 1.09
Debt/FCF 6.35
Altman-Z 3.92
ROIC/WACC1.47
WACC7.57%
STZ.B Yearly LT Debt VS Equity VS FCFSTZ.B Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2B 4B 6B 8B 10B

2.3 Liquidity

A Current Ratio of 1.41 indicates that STZ.B should not have too much problems paying its short term obligations.
STZ.B has a Quick Ratio of 1.41. This is a bad value and indicates that STZ.B is not financially healthy enough and could expect problems in meeting its short term obligations.
Industry RankSector Rank
Current Ratio 1.41
Quick Ratio 0.75
STZ.B Yearly Current Assets VS Current LiabilitesSTZ.B Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 1B 2B 3B

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5

3. Growth

3.1 Past

STZ.B shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.67%, which is quite good.
The Earnings Per Share has been growing by 8.61% on average over the past years. This is quite good.
Looking at the last year, STZ.B shows a small growth in Revenue. The Revenue has grown by 7.43% in the last year.
STZ.B shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.80% yearly.
EPS 1Y (TTM)17.67%
EPS 3Y3.2%
EPS 5Y8.61%
EPS Q2Q%33.19%
Revenue 1Y (TTM)7.43%
Revenue growth 3Y2.81%
Revenue growth 5Y3.8%
Sales Q2Q%11.98%

3.2 Future

Based on estimates for the next years, STZ.B will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.90% on average per year.
The Revenue is expected to grow by 7.21% on average over the next years.
EPS Next Y8.27%
EPS Next 2Y11.78%
EPS Next 3Y12.3%
EPS Next 5Y12.9%
Revenue Next Year9.1%
Revenue Next 2Y7.87%
Revenue Next 3Y7.7%
Revenue Next 5Y7.21%

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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
STZ.B Yearly Revenue VS EstimatesSTZ.B Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2B 4B 6B 8B 10B
STZ.B Yearly EPS VS EstimatesSTZ.B Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 5 10 15

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1

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 27.39, which means the current valuation is very expensive for STZ.B.
STZ.B's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.22.
With a Price/Forward Earnings ratio of 24.32, STZ.B is valued on the expensive side.
STZ.B's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.86.
Industry RankSector Rank
PE 27.39
Fwd PE 24.32
STZ.B Price Earnings VS Forward Price EarningsSTZ.B Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Industry RankSector Rank
P/FCF 32.73
EV/EBITDA 18.94
STZ.B Per share dataSTZ.B EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40 50

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates STZ.B does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as STZ.B's earnings are expected to grow with 12.30% in the coming years.
PEG (NY)3.31
PEG (5Y)3.18
EPS Next 2Y11.78%
EPS Next 3Y12.3%

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0

5. Dividend

5.1 Amount

STZ.B does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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CONSTELLATION BRANDS INC-B

NYSE:STZ.B (11/10/2022, 8:04:01 PM)

310

+0.92 (+0.3%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)10-06 2022-10-06/bmo
Earnings (Next)01-04 2023-01-04
Inst Owners0.01%
Inst Owner Change-54.69%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap56.47B
Analysts80
Price Target359.18 (15.86%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP554.07%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.89%
Min EPS beat(2)0.46%
Max EPS beat(2)19.32%
EPS beat(4)3
Avg EPS beat(4)2.52%
Min EPS beat(4)-19.64%
Max EPS beat(4)19.32%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)7.64%
Min Revenue beat(2)4.98%
Max Revenue beat(2)10.29%
Revenue beat(4)2
Avg Revenue beat(4)-1.45%
Min Revenue beat(4)-12.67%
Max Revenue beat(4)10.29%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 27.39
Fwd PE 24.32
P/S 5.98
P/FCF 32.73
P/OCF 19.93
P/B 6.01
P/tB N/A
EV/EBITDA 18.94
EPS(TTM)11.32
EY3.65%
EPS(NY)12.74
Fwd EY4.11%
FCF(TTM)9.47
FCFY3.06%
OCF(TTM)15.56
OCFY5.02%
SpS51.83
BVpS51.54
TBVpS-6.9
PEG (NY)3.31
PEG (5Y)3.18
Profitability
Industry RankSector Rank
ROA 0.43%
ROE 1.11%
ROCE N/A
ROIC 11.1%
ROICexc 11.18%
ROICexgc 21.46%
OM 33.39%
PM (TTM) 1.11%
GM N/A
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y11.88%
ROICexcg growth 5Y-11.64%
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y1.77%
OM growth 5Y2.38%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.39
Health
Industry RankSector Rank
Debt/Equity 1.09
Debt/FCF 6.35
Debt/EBITDA N/A
Cap/Depr 304.84%
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 1651.1%
Current Ratio 1.41
Quick Ratio 0.75
Altman-Z 3.92
F-Score6
WACC7.57%
ROIC/WACC1.47
Cap/Depr(3y)269.21%
Cap/Depr(5y)286.74%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)17.67%
EPS 3Y3.2%
EPS 5Y8.61%
EPS Q2Q%33.19%
EPS Next Y8.27%
EPS Next 2Y11.78%
EPS Next 3Y12.3%
EPS Next 5Y12.9%
Revenue 1Y (TTM)7.43%
Revenue growth 3Y2.81%
Revenue growth 5Y3.8%
Sales Q2Q%11.98%
Revenue Next Year9.1%
Revenue Next 2Y7.87%
Revenue Next 3Y7.7%
Revenue Next 5Y7.21%
EBIT growth 1Y10.51%
EBIT growth 3Y4.64%
EBIT growth 5Y6.26%
EBIT Next Year20.54%
EBIT Next 3Y13.38%
EBIT Next 5Y11.78%
FCF growth 1Y-10.49%
FCF growth 3Y7.27%
FCF growth 5Y16.31%
OCF growth 1Y9.98%
OCF growth 3Y6.4%
OCF growth 5Y9.79%