CONSTELLATION BRANDS INC-A (STZ) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:STZ • US21036P1084
156.7 USD
+1.95 (+1.26%)
At close: Jan 30, 2026
157.025 USD
+0.33 (+0.21%)
After Hours: 1/30/2026, 8:20:10 PM
We assign a fundamental rating of 5 out of 10 to STZ. STZ was compared to 32 industry peers in the Beverages industry. STZ has only an average score on both its financial health and profitability. 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.
- 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.
- STZ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- STZ's Return On Assets of 5.12% is in line compared to the rest of the industry. STZ outperforms 56.25% of its industry peers.
- The Return On Equity of STZ (14.39%) is comparable to the rest of the industry.
- STZ has a Return On Invested Capital of 12.66%. This is in the better half of the industry: STZ outperforms 71.88% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for STZ is in line with the industry average of 11.62%.
- The 3 year average ROIC (12.24%) for STZ is below the current ROIC(12.66%), indicating increased profibility in the last year.
| 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
- The Profit Margin of STZ (11.83%) is better than 75.00% of its industry peers.
- With an excellent Operating Margin value of 33.76%, STZ belongs to the best 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.
- The Gross Margin of STZ (52.60%) is better than 62.50% 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) just above the Cost of Capital (WACC), STZ is creating some value.
- The number of shares outstanding for STZ has been reduced compared to 1 year ago.
- The number of shares outstanding for STZ has been reduced compared to 5 years ago.
- STZ has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.99 indicates that STZ is not a great score, but indicates only limited risk for bankruptcy at the moment.
- STZ has a Altman-Z score (2.99) which is comparable to the rest of the industry.
- 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 62.50% 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 78.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | 6.05 | ||
| Altman-Z | 2.99 |
ROIC/WACC1.79
WACC7.06%
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.
- STZ has a Current ratio of 1.34. This is comparable to the rest of the industry: STZ outperforms 53.13% of its industry peers.
- A Quick Ratio of 0.70 indicates that STZ may have some problems paying its short term obligations.
- STZ has a Quick ratio (0.70) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
- The earnings per share for STZ have decreased by -6.42% in the last year.
- STZ shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.57% yearly.
- STZ shows a decrease in Revenue. In the last year, the revenue decreased by -7.86%.
- STZ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.12% yearly.
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-14.94%
EPS Next 2Y-4.8%
EPS Next 3Y-1.68%
EPS Next 5Y2.39%
Revenue Next Year-10.88%
Revenue Next 2Y-5.44%
Revenue Next 3Y-2.93%
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.
- 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
- A Price/Earnings ratio of 12.50 indicates a correct valuation of STZ.
- STZ's Price/Earnings ratio is rather cheap when compared to the industry. STZ is cheaper than 84.38% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.30. STZ is valued rather cheaply when compared to this.
- STZ is valuated correctly with a Price/Forward Earnings ratio of 12.56.
- 84.38% of the companies in the same industry are more expensive than STZ, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of STZ to the average of the S&P500 Index (25.57), we can say STZ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.5 | ||
| Fwd PE | 12.56 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, STZ is valued a bit cheaper than the industry average as 71.88% of the companies are valued more expensively.
- STZ's Price/Free Cash Flow ratio is rather cheap when compared to the industry. STZ is cheaper than 84.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.48 | ||
| EV/EBITDA | 10.35 |
4.3 Compensation for Growth
- The decent profitability rating of STZ may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.46
EPS Next 2Y-4.8%
EPS Next 3Y-1.68%
5. Dividend
5.1 Amount
- STZ has a Yearly Dividend Yield of 2.54%.
- Compared to an average industry Dividend Yield of 1.66, STZ pays a bit more dividend than its industry peers.
- STZ's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
5.2 History
- On average, the dividend of STZ grows each year by 6.29%, which is quite nice.
- STZ has paid a dividend for at least 10 years, which is 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.
- The dividend of STZ is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP64.83%
EPS Next 2Y-4.8%
EPS Next 3Y-1.68%
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 -14.94% in the next year.