CONSTELLATION BRANDS INC-A (STZ)
US21036P1084 - Common Stock
Overall STZ gets a fundamental rating of 4 out of 10. We evaluated STZ against 33 industry peers in the Beverages industry. There are concerns on the financial health of STZ while its profitability can be described as average. 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.
In the past year STZ had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: STZ reported negative net income in multiple years.
Each year in the past 5 years STZ had a positive operating cash flow.
1.2 Ratios
STZ's Return On Assets of 6.08% is in line compared to the rest of the industry. STZ outperforms 57.58% of its industry peers.
Looking at the Return On Equity, with a value of 16.15%, STZ is in line with its industry, outperforming 54.55% of the companies in the same industry.
The Return On Invested Capital of STZ (10.81%) is comparable to the rest of the industry.
STZ had an Average Return On Invested Capital over the past 3 years of 9.63%. This is below the industry average of 12.21%.
The last Return On Invested Capital (10.81%) for STZ is above the 3 year average (9.63%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.08% | ||
| ROE | 16.15% | ||
| ROIC | 10.81% |
ROA(3y)2.31%
ROA(5y)3.73%
ROE(3y)4.5%
ROE(5y)8.16%
ROIC(3y)9.63%
ROIC(5y)8.93%
1.3 Margins
Looking at the Profit Margin, with a value of 15.50%, STZ is in the better half of the industry, outperforming 78.79% of the companies in the same industry.
STZ's Operating Margin of 31.51% is amongst the best of the industry. STZ outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of STZ has remained more or less at the same level.
STZ has a Gross Margin of 50.11%. This is in the better half of the industry: STZ outperforms 60.61% of its industry peers.
STZ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.51% | ||
| PM (TTM) | 15.5% | ||
| GM | 50.11% |
OM growth 3Y0%
OM growth 5Y-0.3%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.47%
GM growth 5Y0.07%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so STZ is still creating some value.
STZ has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, STZ has less shares outstanding
Compared to 1 year ago, STZ has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.21 indicates that STZ is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.21, STZ is in line with its industry, outperforming 54.55% of the companies in the same industry.
The Debt to FCF ratio of STZ is 7.59, which is on the high side as it means it would take STZ, 7.59 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 7.59, STZ perfoms like the industry average, outperforming 57.58% of the companies in the same industry.
STZ has a Debt/Equity ratio of 1.19. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of STZ (1.19) is worse than 75.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | 7.59 | ||
| Altman-Z | 3.21 |
ROIC/WACC1.44
WACC7.5%
2.3 Liquidity
STZ has a Current Ratio of 1.20. This is a normal value and indicates that STZ is financially healthy and should not expect problems in meeting its short term obligations.
STZ has a Current ratio of 1.20. This is in the lower half of the industry: STZ underperforms 63.64% of its industry peers.
STZ has a Quick Ratio of 1.20. 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 worse Quick ratio (0.57) than 69.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.88% over the past year.
Measured over the past 5 years, STZ shows a small growth in Earnings Per Share. The EPS has been growing by 4.08% on average per year.
Looking at the last year, STZ shows a small growth in Revenue. The Revenue has grown by 3.65% in the last year.
The Revenue has been growing slightly by 4.51% on average over the past years.
EPS 1Y (TTM)0.88%
EPS 3Y5.23%
EPS 5Y4.08%
EPS growth Q2Q16.72%
Revenue 1Y (TTM)3.65%
Revenue growth 3Y4.25%
Revenue growth 5Y4.51%
Revenue growth Q2Q6.84%
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 10.72% yearly.
Based on estimates for the next years, STZ will show a small growth in Revenue. The Revenue will grow by 6.08% on average per year.
EPS Next Y12.59%
EPS Next 2Y12.94%
EPS Next 3Y13.1%
EPS Next 5Y10.72%
Revenue Next Year6.29%
Revenue Next 2Y6.35%
Revenue Next 3Y6.59%
Revenue Next 5Y6.08%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.53 indicates a rather expensive valuation of STZ.
Based on the Price/Earnings ratio, STZ is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 24.97. STZ is around the same levels.
The Price/Forward Earnings ratio is 17.27, which indicates a rather expensive current valuation of STZ.
STZ's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. STZ is cheaper than 66.67% of the companies in the same industry.
STZ is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.05, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.53 | ||
| Fwd PE | 17.27 |
4.2 Price Multiples
STZ's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. STZ is cheaper than 60.61% of the companies in the same industry.
STZ's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. STZ is cheaper than 69.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.92 | ||
| EV/EBITDA | 15.5 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as STZ's earnings are expected to grow with 13.10% in the coming years.
PEG (NY)1.63
PEG (5Y)5.03
EPS Next 2Y12.94%
EPS Next 3Y13.1%
5. Dividend
5.1 Amount
STZ has a Yearly Dividend Yield of 1.51%.
Compared to an average industry Dividend Yield of 2.49, STZ has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.56, STZ's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
5.2 History
On average, the dividend of STZ grows each year by 8.86%, which is quite nice.
STZ has been paying a dividend for over 5 years, so it has already some track record.
As STZ did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)8.86%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
40.88% of the earnings are spent on dividend by STZ. This is a bit on the high side, but may be sustainable.
The dividend of STZ is growing, but earnings are growing more, so the dividend growth is sustainable.
DP40.88%
EPS Next 2Y12.94%
EPS Next 3Y13.1%
CONSTELLATION BRANDS INC-A
NYSE:STZ (12/8/2023, 7:17:55 PM)
After market: 234.44 0 (0%)234.44
-1.42 (-0.6%)
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 Cap43.06B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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PT rev (1m)
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EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.53 | ||
| Fwd PE | 17.27 | ||
| 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)1.63
PEG (5Y)5.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.08% | ||
| ROE | 16.15% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 31.51% | ||
| PM (TTM) | 15.5% | ||
| GM | 50.11% | ||
| 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 | 1.19 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.57 | ||
| 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)
Growth
EPS 1Y (TTM)0.88%
EPS 3Y5.23%
EPS 5Y
EPS growth Q2Q
EPS Next Y12.59%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.65%
Revenue growth 3Y4.25%
Revenue growth 5Y
Revenue growth 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