CONSTELLATION BRANDS INC-A (STZ) Stock Fundamental Analysis
NYSE:STZ • US21036P1084
156.41 USD
+1.77 (+1.14%)
At close: Feb 20, 2026
156 USD
-0.41 (-0.26%)
After Hours: 2/20/2026, 8:06:20 PM
Taking everything into account, STZ scores 5 out of 10 in our fundamental rating. STZ was compared to 33 industry peers in the Beverages industry. STZ has only an average score on both its financial health and profitability. 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.
- In multiple years STZ reported negative net income over the last 5 years.
- In the past 5 years STZ always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 5.12%, STZ is in line with its industry, outperforming 54.55% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 14.39%, STZ is in line with its industry, outperforming 54.55% of the companies in the same industry.
- STZ has a Return On Invested Capital of 12.66%. This is in the better half of the industry: STZ outperforms 72.73% 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 11.46%.
- The last Return On Invested Capital (12.66%) for STZ is above the 3 year average (12.24%), which is a sign of increasing profitability.
| 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 78.79% of its industry peers.
- Looking at the Operating Margin, with a value of 33.76%, STZ belongs to the top 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.
- STZ's Gross Margin of 52.60% is fine compared to the rest of the industry. STZ outperforms 63.64% 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
- STZ has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- STZ has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, STZ has less shares outstanding
- STZ has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.00 indicates that STZ is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.00, STZ is in the better half of the industry, outperforming 60.61% of the companies in the same 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.
- STZ has a better Debt to FCF ratio (6.05) than 60.61% of its industry peers.
- 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 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | 6.05 | ||
| Altman-Z | 3 |
ROIC/WACC1.82
WACC6.95%
2.3 Liquidity
- A Current Ratio of 1.34 indicates that STZ should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.34, STZ is in line with its industry, outperforming 51.52% of the companies in the same 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 has a Quick ratio of 0.70. This is comparable to the rest of the industry: STZ outperforms 48.48% of 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.
- 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.
- Looking at the last year, STZ shows a decrease in Revenue. The Revenue has decreased by -7.86% in the last year.
- Measured over the past years, STZ shows a small growth in Revenue. The Revenue has been growing by 4.12% on average per year.
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 2.03% on average per year.
- STZ is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.15% yearly.
EPS Next Y-14.87%
EPS Next 2Y-4.77%
EPS Next 3Y-1.66%
EPS Next 5Y2.03%
Revenue Next Year-10.88%
Revenue Next 2Y-5.44%
Revenue Next 3Y-2.93%
Revenue Next 5Y-0.15%
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.
- 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
- The Price/Earnings ratio is 12.47, which indicates a correct valuation of STZ.
- STZ's Price/Earnings ratio is rather cheap when compared to the industry. STZ is cheaper than 81.82% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 26.99, STZ is valued rather cheaply.
- STZ is valuated correctly with a Price/Forward Earnings ratio of 12.53.
- 81.82% of the companies in the same industry are more expensive than STZ, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 28.06. STZ is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.47 | ||
| Fwd PE | 12.53 |
4.2 Price Multiples
- 72.73% of the companies in the same industry are more expensive than STZ, based on the Enterprise Value to EBITDA ratio.
- STZ's Price/Free Cash Flow ratio is rather cheap when compared to the industry. STZ is cheaper than 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.39 | ||
| EV/EBITDA | 10.41 |
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-4.77%
EPS Next 3Y-1.66%
5. Dividend
5.1 Amount
- STZ has a Yearly Dividend Yield of 2.64%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.74, 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 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
5.2 History
- The dividend of STZ is nicely growing with an annual growth rate of 6.29%!
- STZ has been paying a dividend for at least 10 years, so it has 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
- 64.83% of the earnings are spent on dividend by STZ. This is not a sustainable payout ratio.
- STZ's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP64.83%
EPS Next 2Y-4.77%
EPS Next 3Y-1.66%
156.41
+1.77 (+1.14%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)01-07 2026-01-07/amc
Earnings (Next)04-07 2026-04-07/amc
Inst Owners76.58%
Inst Owner Change2.39%
Ins Owners0.1%
Ins Owner Change0%
Market Cap27.12B
Revenue(TTM)9.38B
Net Income(TTM)1.11B
Analysts71.43
Price Target177.23 (13.31%)
Short Float %6.51%
Short Ratio3.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
Yearly Dividend4.05
Dividend Growth(5Y)6.29%
DP64.83%
Div Incr Years9
Div Non Decr Years9
Ex-Date01-29 2026-01-29 (1.02)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.62%
Min EPS beat(2)6.26%
Max EPS beat(2)14.99%
EPS beat(4)3
Avg EPS beat(4)8%
Min EPS beat(4)-3.57%
Max EPS beat(4)14.99%
EPS beat(8)6
Avg EPS beat(8)5.42%
EPS beat(12)10
Avg EPS beat(12)5.61%
EPS beat(16)13
Avg EPS beat(16)5.76%
Revenue beat(2)1
Avg Revenue beat(2)0.9%
Min Revenue beat(2)-0.12%
Max Revenue beat(2)1.92%
Revenue beat(4)2
Avg Revenue beat(4)-0.02%
Min Revenue beat(4)-2.48%
Max Revenue beat(4)1.92%
Revenue beat(8)3
Avg Revenue beat(8)-0.53%
Revenue beat(12)4
Avg Revenue beat(12)-0.82%
Revenue beat(16)8
Avg Revenue beat(16)0.45%
PT rev (1m)-1.06%
PT rev (3m)-0.27%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)-14.93%
EPS NY rev (1m)0.09%
EPS NY rev (3m)0.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.47 | ||
| Fwd PE | 12.53 | ||
| P/S | 2.89 | ||
| P/FCF | 15.39 | ||
| P/OCF | 10.04 | ||
| P/B | 3.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.41 |
EPS(TTM)12.54
EY8.02%
EPS(NY)12.49
Fwd EY7.98%
FCF(TTM)10.16
FCFY6.5%
OCF(TTM)15.58
OCFY9.96%
SpS54.11
BVpS44.47
TBVpS-0.07
PEG (NY)N/A
PEG (5Y)1.46
Graham Number112.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.12% | ||
| ROE | 14.39% | ||
| ROCE | 16.24% | ||
| ROIC | 12.66% | ||
| ROICexc | 12.76% | ||
| ROICexgc | 20.96% | ||
| OM | 33.76% | ||
| PM (TTM) | 11.83% | ||
| GM | 52.6% | ||
| FCFM | 18.78% |
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%
ROICexgc growth 3Y11.53%
ROICexgc 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-Score7
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | 6.05 | ||
| Debt/EBITDA | 2.98 | ||
| Cap/Depr | 227.4% | ||
| Cap/Sales | 10% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.43% | ||
| Profit Quality | 158.81% | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 3 |
F-Score7
WACC6.95%
ROIC/WACC1.82
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)-6.42%
EPS 3Y10.52%
EPS 5Y8.57%
EPS Q2Q%-5.85%
EPS Next Y-14.87%
EPS Next 2Y-4.77%
EPS Next 3Y-1.66%
EPS Next 5Y2.03%
Revenue 1Y (TTM)-7.86%
Revenue growth 3Y4.99%
Revenue growth 5Y4.12%
Sales Q2Q%-9.78%
Revenue Next Year-10.88%
Revenue Next 2Y-5.44%
Revenue Next 3Y-2.93%
Revenue Next 5Y-0.15%
EBIT growth 1Y-9.11%
EBIT growth 3Y5.43%
EBIT growth 5Y6.27%
EBIT Next Year-2.84%
EBIT Next 3Y1.88%
EBIT Next 5Y1.72%
FCF growth 1Y12.99%
FCF growth 3Y4.91%
FCF growth 5Y1.21%
OCF growth 1Y-4.33%
OCF growth 3Y5.23%
OCF growth 5Y4.32%
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 -14.87% in the next year.