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
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 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.
- 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.
- In the past 5 years STZ always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of STZ (5.12%) is comparable to the rest of the industry.
- STZ has a Return On Equity (14.39%) which is in line with its industry peers.
- Looking at the Return On Invested Capital, with a value of 12.66%, STZ is in the better half of the industry, outperforming 71.88% of the companies in the same industry.
- 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
- STZ has a Profit Margin of 11.83%. This is in the better half of the industry: STZ outperforms 75.00% of its industry peers.
- STZ has a better Operating Margin (33.76%) than 100.00% of its industry peers.
- STZ's Operating Margin has improved in the last couple of years.
- STZ has a Gross Margin of 52.60%. This is in the better half of the industry: STZ outperforms 62.50% of its industry peers.
- 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 | 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.
- STZ has less shares outstanding than it did 5 years ago.
- STZ has a worse debt/assets ratio than last year.
2.2 Solvency
- STZ has an Altman-Z score of 2.99. This is not the best score and indicates that STZ is in the grey zone with still 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.
- STZ has a debt to FCF ratio of 6.05. This is a slightly negative value and a sign of low solvency as STZ would need 6.05 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 6.05, STZ is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
- A Debt/Equity ratio of 1.38 is on the high side and indicates that STZ has dependencies on debt financing.
- STZ has a worse Debt to Equity ratio (1.38) 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
WACC7.08%
2.3 Liquidity
- A Current Ratio of 1.34 indicates that STZ should not have too much problems paying its short term obligations.
- STZ has a Current ratio (1.34) which is comparable to the rest of the industry.
- STZ has a Quick Ratio of 1.34. 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 0.70 is in line compared to the rest of the industry. STZ outperforms 43.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
- STZ shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.42%.
- The Earnings Per Share has been growing by 8.57% on average over the past years. This is quite good.
- STZ shows a decrease in Revenue. In the last year, the revenue decreased by -7.86%.
- The Revenue has been growing slightly by 4.12% on average over the past years.
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
- STZ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.39% yearly.
- Based on estimates for the next years, STZ will show a decrease in Revenue. The Revenue will decrease by -0.10% on average per year.
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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- STZ is valuated correctly with a Price/Earnings ratio of 12.50.
- 84.38% of the companies in the same industry are more expensive than STZ, based on the Price/Earnings ratio.
- 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.
- 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 25.57, STZ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.5 | ||
| Fwd PE | 12.56 |
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.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of STZ indicates a rather cheap valuation: STZ is cheaper than 84.38% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.48 | ||
| EV/EBITDA | 10.35 |
4.3 Compensation for Growth
- STZ has a very decent profitability rating, which 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
- With a Yearly Dividend Yield of 2.64%, STZ has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.66, STZ pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, STZ pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
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.
- STZ has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)6.29%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
- STZ pays out 64.83% of its income as dividend. 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.