CONSTELLATION BRANDS INC-A (STZ)
US21036P1084 - Common Stock
Taking everything into account, STZ scores 5 out of 10 in our fundamental rating. STZ was compared to 32 industry peers in the Beverages industry. STZ has a medium profitability rating, but doesn't score so well on its financial health evaluation. STZ has a decent growth rate and is not valued too expensively.
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.
In multiple years STZ reported negative net income over the last 5 years.
Each year in the past 5 years STZ had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.47%, STZ is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
STZ's Return On Equity of 24.08% is fine compared to the rest of the industry. STZ outperforms 68.75% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.35%, STZ is in line with its industry, outperforming 56.25% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for STZ is below the industry average of 12.59%.
The last Return On Invested Capital (11.35%) for STZ is above the 3 year average (10.49%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.47% | ||
| ROE | 24.08% | ||
| ROIC | 11.35% |
ROA(3y)2.09%
ROA(5y)2.72%
ROE(3y)5.51%
ROE(5y)6.23%
ROIC(3y)10.49%
ROIC(5y)9.65%
1.3 Margins
Looking at the Profit Margin, with a value of 24.42%, STZ belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
In the last couple of years the Profit Margin of STZ has declined.
STZ's Operating Margin of 33.74% is amongst the best of the industry. STZ outperforms 100.00% of its industry peers.
STZ's Operating Margin has been stable in the last couple of years.
STZ has a better Gross Margin (51.08%) 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 | 33.74% | ||
| PM (TTM) | 24.42% | ||
| GM | 51.08% |
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.
Compared to 1 year ago, STZ has about the same amount of shares outstanding.
STZ has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, STZ has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.33 indicates that STZ is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.33, STZ is in line with its industry, outperforming 56.25% of the companies in the same industry.
STZ has a debt to FCF ratio of 8.26. This is a slightly negative value and a sign of low solvency as STZ would need 8.26 years to pay back of all of its debts.
The Debt to FCF ratio of STZ (8.26) is worse than 62.50% of its industry peers.
STZ has a Debt/Equity ratio of 1.12. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of STZ (1.12) is worse than 71.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 8.26 | ||
| Altman-Z | 3.33 |
ROIC/WACC1.49
WACC7.62%
2.3 Liquidity
STZ has a Current Ratio of 1.23. 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 1.23, STZ perfoms like the industry average, outperforming 40.63% of the companies in the same industry.
STZ has a Quick Ratio of 1.23. This is a bad value and indicates that STZ is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.54, STZ is doing worse than 68.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.80% over the past year.
The Earnings Per Share has been growing slightly by 5.38% on average over the past years.
Looking at the last year, STZ shows a small growth in Revenue. The Revenue has grown by 5.25% in the last year.
STZ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.18% yearly.
EPS 1Y (TTM)16.8%
EPS 3Y6.55%
EPS 5Y5.38%
EPS Q2Q%22.68%
Revenue 1Y (TTM)5.25%
Revenue growth 3Y4.96%
Revenue growth 5Y4.18%
Sales Q2Q%5.84%
3.2 Future
STZ is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.75% yearly.
STZ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.39% yearly.
EPS Next Y14.45%
EPS Next 2Y12.59%
EPS Next 3Y11.4%
EPS Next 5Y9.75%
Revenue Next Year6.88%
Revenue Next 2Y6.83%
Revenue Next 3Y6.86%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
STZ is valuated rather expensively with a Price/Earnings ratio of 19.93.
Compared to the rest of the industry, the Price/Earnings ratio of STZ indicates a somewhat cheap valuation: STZ is cheaper than 75.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of STZ to the average of the S&P500 Index (24.41), we can say STZ is valued inline with the index average.
With a Price/Forward Earnings ratio of 16.58, STZ is valued correctly.
Based on the Price/Forward Earnings ratio, STZ is valued a bit cheaper than 75.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.59. STZ is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.93 | ||
| Fwd PE | 16.58 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STZ is on the same level as its industry peers.
62.50% 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 | 32.12 | ||
| EV/EBITDA | 14.68 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of STZ may justify a higher PE ratio.
PEG (NY)1.38
PEG (5Y)3.7
EPS Next 2Y12.59%
EPS Next 3Y11.4%
5. Dividend
5.1 Amount
STZ has a Yearly Dividend Yield of 1.63%.
STZ's Dividend Yield is comparable with the industry average which is at 2.83.
Compared to the average S&P500 Dividend Yield of 2.30, STZ is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
5.2 History
The dividend of STZ has a limited annual growth rate of 4.06%.
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)4.06%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
STZ pays out 27.34% of its income as dividend. This is a sustainable payout ratio.
The dividend of STZ is growing, but earnings are growing more, so the dividend growth is sustainable.
DP27.34%
EPS Next 2Y12.59%
EPS Next 3Y11.4%
CONSTELLATION BRANDS INC-A
NYSE:STZ (7/26/2024, 7:04:01 PM)
After market: 253.48 0 (0%)253.48
+4.1 (+1.64%)
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 Cap46.18B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
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)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.93 | ||
| Fwd PE | 16.58 | ||
| 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)1.38
PEG (5Y)3.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.47% | ||
| ROE | 24.08% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 33.74% | ||
| PM (TTM) | 24.42% | ||
| GM | 51.08% | ||
| 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 Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.54 | ||
| 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)16.8%
EPS 3Y6.55%
EPS 5Y
EPS Q2Q%
EPS Next Y14.45%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.25%
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