CONSTELLATION BRANDS INC-A (STZ) Stock Fundamental Analysis
NYSE:STZ - US21036P1084 - Common Stock
163.68 USD
-3.94 (-2.35%)
163.68 USD
0 (0%)
STZ gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 32 industry peers in the Beverages industry. STZ has an average financial health and profitability rating. STZ is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
STZ had positive earnings in the past year.
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.
STZ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of STZ (-1.99%) is worse than 71.88% of its industry peers.
With a Return On Equity value of -6.09%, STZ is not doing good in the industry: 81.25% of the companies in the same industry are doing better.
The Return On Invested Capital of STZ (14.04%) is better than 81.25% of its industry peers.
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 11.07%.
The last Return On Invested Capital (14.04%) for STZ is above the 3 year average (12.24%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.99% | ||
| ROE | -6.09% | ||
| ROIC | 14.04% |
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
STZ's Operating Margin of 33.29% is amongst the best of the industry. STZ outperforms 100.00% of its industry peers.
STZ's Operating Margin has improved in the last couple of years.
STZ's Gross Margin of 51.67% is fine compared to the rest of the industry. STZ outperforms 62.50% of its industry peers.
STZ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.29% | ||
| PM (TTM) | N/A | ||
| GM | 51.67% |
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
STZ has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, STZ has less shares outstanding
STZ has less shares outstanding than it did 5 years ago.
The debt/assets ratio for STZ is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.96 indicates that STZ is not a great score, but indicates only limited risk for bankruptcy at the moment.
STZ has a Altman-Z score (2.96) which is comparable to the rest of the industry.
The Debt to FCF ratio of STZ is 5.60, which is a neutral value as it means it would take STZ, 5.60 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.60, STZ is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
A Debt/Equity ratio of 1.40 is on the high side and indicates that STZ has dependencies on debt financing.
With a Debt to Equity ratio value of 1.40, STZ is not doing good in the industry: 78.13% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 5.6 | ||
| Altman-Z | 2.96 |
ROIC/WACC1.96
WACC7.18%
2.3 Liquidity
A Current Ratio of 1.07 indicates that STZ should not have too much problems paying its short term obligations.
STZ has a Current ratio of 1.07. This is in the lower half of the industry: STZ underperforms 65.63% of its industry peers.
STZ has a Quick Ratio of 1.07. This is a bad value and indicates that STZ is not financially healthy enough and could expect problems in meeting its short term obligations.
STZ's Quick ratio of 0.68 is in line compared to the rest of the industry. STZ outperforms 43.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.50% over the past year.
Measured over the past years, STZ shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.57% on average per year.
The Revenue has decreased by -0.46% in the past year.
STZ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.12% yearly.
EPS 1Y (TTM)5.5%
EPS 3Y10.52%
EPS 5Y8.57%
EPS Q2Q%-9.8%
Revenue 1Y (TTM)-0.46%
Revenue growth 3Y4.99%
Revenue growth 5Y4.12%
Sales Q2Q%-5.52%
3.2 Future
The Earnings Per Share is expected to grow by 4.84% on average over the next years.
STZ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.43% yearly.
EPS Next Y-7.22%
EPS Next 2Y0.29%
EPS Next 3Y1.65%
EPS Next 5Y4.84%
Revenue Next Year-7.51%
Revenue Next 2Y-3.24%
Revenue Next 3Y-1.16%
Revenue Next 5Y1.43%
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
STZ is valuated correctly with a Price/Earnings ratio of 12.20.
Based on the Price/Earnings ratio, STZ is valued cheaply inside the industry as 90.63% of the companies are valued more expensively.
STZ is valuated cheaply when we compare the Price/Earnings ratio to 27.24, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.82, which indicates a very decent valuation of STZ.
Based on the Price/Forward Earnings ratio, STZ is valued cheaper than 84.38% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.81, STZ is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.2 | ||
| Fwd PE | 11.82 |
4.2 Price Multiples
71.88% of the companies in the same industry are more expensive than STZ, based on the Enterprise Value to EBITDA ratio.
84.38% of the companies in the same industry are more expensive than STZ, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.96 | ||
| EV/EBITDA | 10.73 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.42
EPS Next 2Y0.29%
EPS Next 3Y1.65%
5. Dividend
5.1 Amount
STZ has a Yearly Dividend Yield of 2.47%.
Compared to an average industry Dividend Yield of 2.73, STZ pays a bit more dividend than its industry peers.
STZ's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
5.2 History
The dividend of STZ is nicely growing with an annual growth rate of 6.29%!
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
The earnings of STZ are negative and hence is the payout ratio. STZ will probably not be able to sustain this dividend level.
The dividend of STZ is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-164.75%
EPS Next 2Y0.29%
EPS Next 3Y1.65%
163.68
-3.94 (-2.35%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners78.34%
Inst Owner Change-0.21%
Ins Owners0.1%
Ins Owner Change0.1%
Market Cap28.86B
Analysts74.67
Price Target213.82 (30.63%)
Short Float %5.24%
Short Ratio3.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
Yearly Dividend4.05
Dividend Growth(5Y)6.29%
DP-164.75%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.37%
Min EPS beat(2)-3.57%
Max EPS beat(2)14.31%
EPS beat(4)2
Avg EPS beat(4)3.15%
Min EPS beat(4)-3.57%
Max EPS beat(4)14.31%
EPS beat(8)6
Avg EPS beat(8)4.55%
EPS beat(12)9
Avg EPS beat(12)4.55%
EPS beat(16)12
Avg EPS beat(16)4.24%
Revenue beat(2)1
Avg Revenue beat(2)-0.93%
Min Revenue beat(2)-2.48%
Max Revenue beat(2)0.61%
Revenue beat(4)1
Avg Revenue beat(4)-1.47%
Min Revenue beat(4)-3.72%
Max Revenue beat(4)0.61%
Revenue beat(8)2
Avg Revenue beat(8)-1.3%
Revenue beat(12)5
Avg Revenue beat(12)-0.49%
Revenue beat(16)9
Avg Revenue beat(16)0.5%
PT rev (1m)0%
PT rev (3m)-2.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.32%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.2 | ||
| Fwd PE | 11.82 | ||
| P/S | 2.87 | ||
| P/FCF | 13.96 | ||
| P/OCF | 9.31 | ||
| P/B | 3.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.73 |
EPS(TTM)13.42
EY8.2%
EPS(NY)13.85
Fwd EY8.46%
FCF(TTM)11.73
FCFY7.16%
OCF(TTM)17.58
OCFY10.74%
SpS57.08
BVpS41.21
TBVpS-2.41
PEG (NY)N/A
PEG (5Y)1.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.99% | ||
| ROE | -6.09% | ||
| ROCE | 18.04% | ||
| ROIC | 14.04% | ||
| ROICexc | 14.1% | ||
| ROICexgc | 23.8% | ||
| OM | 33.29% | ||
| PM (TTM) | N/A | ||
| GM | 51.67% | ||
| FCFM | 20.55% |
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%
ROICexcg growth 3Y11.53%
ROICexcg 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-Score5
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 5.6 | ||
| Debt/EBITDA | 2.68 | ||
| Cap/Depr | 234.83% | ||
| Cap/Sales | 10.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.8% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | 2.96 |
F-Score5
WACC7.18%
ROIC/WACC1.96
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)5.5%
EPS 3Y10.52%
EPS 5Y8.57%
EPS Q2Q%-9.8%
EPS Next Y-7.22%
EPS Next 2Y0.29%
EPS Next 3Y1.65%
EPS Next 5Y4.84%
Revenue 1Y (TTM)-0.46%
Revenue growth 3Y4.99%
Revenue growth 5Y4.12%
Sales Q2Q%-5.52%
Revenue Next Year-7.51%
Revenue Next 2Y-3.24%
Revenue Next 3Y-1.16%
Revenue Next 5Y1.43%
EBIT growth 1Y-1.81%
EBIT growth 3Y5.43%
EBIT growth 5Y6.27%
EBIT Next Year3.78%
EBIT Next 3Y4.62%
EBIT Next 5Y5.17%
FCF growth 1Y33.52%
FCF growth 3Y4.91%
FCF growth 5Y1.21%
OCF growth 1Y16.32%
OCF growth 3Y5.23%
OCF growth 5Y4.32%