CONSTELLATION BRANDS INC-A (STZ) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:STZ - US21036P1084 - Common Stock
149.55 USD
+1.04 (+0.7%)
149.85 USD
+0.3 (+0.2%)
Taking everything into account, STZ scores 5 out of 10 in our fundamental rating. STZ was compared to 34 industry peers in the Beverages industry. While STZ has a great profitability rating, there are some minor concerns on its financial health. STZ is valued quite cheap, 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
With a decent Return On Assets value of 5.71%, STZ is doing good in the industry, outperforming 61.76% of the companies in the same industry.
Looking at the Return On Equity, with a value of 16.30%, STZ is in the better half of the industry, outperforming 61.76% of the companies in the same industry.
STZ's Return On Invested Capital of 13.29% is fine compared to the rest of the industry. STZ outperforms 79.41% 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 11.55%.
The last Return On Invested Capital (13.29%) for STZ is above the 3 year average (12.24%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.71% | ||
| ROE | 16.3% | ||
| ROIC | 13.29% |
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
With an excellent Profit Margin value of 12.70%, STZ belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
The Operating Margin of STZ (33.05%) is better than 100.00% of its industry peers.
STZ's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 51.93%, STZ is in the better half of the industry, outperforming 64.71% of the companies in the same industry.
STZ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.05% | ||
| PM (TTM) | 12.7% | ||
| GM | 51.93% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so STZ 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 2.93 indicates that STZ is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of STZ (2.93) is better than 61.76% of its industry peers.
The Debt to FCF ratio of STZ is 5.71, which is a neutral value as it means it would take STZ, 5.71 years of fcf income to pay off all of its debts.
STZ has a Debt to FCF ratio of 5.71. This is in the better half of the industry: STZ outperforms 70.59% of its industry peers.
A Debt/Equity ratio of 1.34 is on the high side and indicates that STZ has dependencies on debt financing.
STZ's Debt to Equity ratio of 1.34 is on the low side compared to the rest of the industry. STZ is outperformed by 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 5.71 | ||
| Altman-Z | 2.93 |
ROIC/WACC1.92
WACC6.93%
2.3 Liquidity
STZ has a Current Ratio of 1.08. This is a normal value and indicates that STZ is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of STZ (1.08) is worse than 61.76% of its industry peers.
STZ has a Quick Ratio of 1.08. 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 0.54. This is in the lower half of the industry: STZ underperforms 67.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
The earnings per share for STZ have decreased by -4.57% 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 -5.56%.
The Revenue has been growing slightly by 4.12% on average over the past years.
EPS 1Y (TTM)-4.57%
EPS 3Y10.52%
EPS 5Y8.57%
EPS Q2Q%-15.97%
Revenue 1Y (TTM)-5.56%
Revenue growth 3Y4.99%
Revenue growth 5Y4.12%
Sales Q2Q%-15%
3.2 Future
The Earnings Per Share is expected to grow by 2.65% 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 0.10% yearly.
EPS Next Y-15.58%
EPS Next 2Y-4.62%
EPS Next 3Y-1.54%
EPS Next 5Y2.65%
Revenue Next Year-10.91%
Revenue Next 2Y-5.45%
Revenue Next 3Y-2.8%
Revenue Next 5Y0.1%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 reasonably with a Price/Earnings ratio of 11.75.
85.29% of the companies in the same industry are more expensive than STZ, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.76, STZ is valued rather cheaply.
A Price/Forward Earnings ratio of 11.94 indicates a reasonable valuation of STZ.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STZ indicates a rather cheap valuation: STZ is cheaper than 82.35% of the companies listed in the same industry.
STZ is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.75 | ||
| Fwd PE | 11.94 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STZ indicates a somewhat cheap valuation: STZ is cheaper than 70.59% of the companies listed in the same industry.
82.35% 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 | 14.08 | ||
| EV/EBITDA | 9.98 |
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)1.37
EPS Next 2Y-4.62%
EPS Next 3Y-1.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.96%, STZ has a reasonable but not impressive dividend return.
STZ's Dividend Yield is a higher than the industry average which is at 3.06.
STZ's Dividend Yield is a higher than the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
5.2 History
On average, the dividend of STZ grows each year by 6.29%, which is quite nice.
STZ has been paying a dividend for at least 10 years, so it has 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
STZ pays out 59.24% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of STZ is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP59.24%
EPS Next 2Y-4.62%
EPS Next 3Y-1.54%
149.55
+1.04 (+0.7%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners76.45%
Inst Owner Change-4.04%
Ins Owners0.1%
Ins Owner Change0.03%
Market Cap26.03B
Revenue(TTM)9.62B
Net Income(TTM)1.22B
Analysts73.33
Price Target176.85 (18.25%)
Short Float %7.14%
Short Ratio3.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
Yearly Dividend4.05
Dividend Growth(5Y)6.29%
DP59.24%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.34%
Min EPS beat(2)-3.57%
Max EPS beat(2)6.26%
EPS beat(4)2
Avg EPS beat(4)3.52%
Min EPS beat(4)-3.57%
Max EPS beat(4)14.31%
EPS beat(8)6
Avg EPS beat(8)4.2%
EPS beat(12)9
Avg EPS beat(12)4.1%
EPS beat(16)13
Avg EPS beat(16)5.56%
Revenue beat(2)0
Avg Revenue beat(2)-1.3%
Min Revenue beat(2)-2.48%
Max Revenue beat(2)-0.12%
Revenue beat(4)1
Avg Revenue beat(4)-1.43%
Min Revenue beat(4)-3.72%
Max Revenue beat(4)0.61%
Revenue beat(8)2
Avg Revenue beat(8)-1.25%
Revenue beat(12)4
Avg Revenue beat(12)-0.9%
Revenue beat(16)8
Avg Revenue beat(16)0.36%
PT rev (1m)-0.76%
PT rev (3m)-16.68%
EPS NQ rev (1m)-0.49%
EPS NQ rev (3m)-12.23%
EPS NY rev (1m)-0.12%
EPS NY rev (3m)-9.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.26%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-3.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.75 | ||
| Fwd PE | 11.94 | ||
| P/S | 2.7 | ||
| P/FCF | 14.08 | ||
| P/OCF | 9.4 | ||
| P/B | 3.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.98 |
EPS(TTM)12.73
EY8.51%
EPS(NY)12.53
Fwd EY8.38%
FCF(TTM)10.62
FCFY7.1%
OCF(TTM)15.91
OCFY10.64%
SpS55.3
BVpS43.1
TBVpS-1.22
PEG (NY)N/A
PEG (5Y)1.37
Graham Number111.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.71% | ||
| ROE | 16.3% | ||
| ROCE | 16.95% | ||
| ROIC | 13.29% | ||
| ROICexc | 13.34% | ||
| ROICexgc | 22.51% | ||
| OM | 33.05% | ||
| PM (TTM) | 12.7% | ||
| GM | 51.93% | ||
| FCFM | 19.2% |
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-Score8
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 5.71 | ||
| Debt/EBITDA | 2.78 | ||
| Cap/Depr | 212.82% | ||
| Cap/Sales | 9.57% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.64% | ||
| Profit Quality | 151.15% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 2.93 |
F-Score8
WACC6.93%
ROIC/WACC1.92
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)-4.57%
EPS 3Y10.52%
EPS 5Y8.57%
EPS Q2Q%-15.97%
EPS Next Y-15.58%
EPS Next 2Y-4.62%
EPS Next 3Y-1.54%
EPS Next 5Y2.65%
Revenue 1Y (TTM)-5.56%
Revenue growth 3Y4.99%
Revenue growth 5Y4.12%
Sales Q2Q%-15%
Revenue Next Year-10.91%
Revenue Next 2Y-5.45%
Revenue Next 3Y-2.8%
Revenue Next 5Y0.1%
EBIT growth 1Y-8.73%
EBIT growth 3Y5.43%
EBIT growth 5Y6.27%
EBIT Next Year-2.92%
EBIT Next 3Y1.99%
EBIT Next 5Y1.94%
FCF growth 1Y19.84%
FCF growth 3Y4.91%
FCF growth 5Y1.21%
OCF growth 1Y1.64%
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.
Can you provide the valuation status for CONSTELLATION BRANDS INC-A?
ChartMill assigns a valuation rating of 7 / 10 to CONSTELLATION BRANDS INC-A (STZ). This can be considered as Undervalued.
How profitable is CONSTELLATION BRANDS INC-A (STZ) stock?
CONSTELLATION BRANDS INC-A (STZ) has a profitability rating of 7 / 10.
Can you provide the expected EPS growth for STZ stock?
The Earnings per Share (EPS) of CONSTELLATION BRANDS INC-A (STZ) is expected to decline by -15.58% in the next year.
Is the dividend of CONSTELLATION BRANDS INC-A sustainable?
The dividend rating of CONSTELLATION BRANDS INC-A (STZ) is 6 / 10 and the dividend payout ratio is 59.24%.