CONSTELLATION BRANDS INC-A (STZ) Stock Fundamental Analysis
USA - NYSE:STZ - US21036P1084 - Common Stock
129.27 USD
-1.26 (-0.97%)
Overall STZ gets a fundamental rating of 5 out of 10. We evaluated STZ against 33 industry peers in the Beverages industry. STZ has an excellent profitability rating, but there are some minor concerns on its financial health. STZ is cheap, but on the other hand it scores bad on growth.
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
STZ's Return On Assets of 5.71% is fine compared to the rest of the industry. STZ outperforms 60.61% of its industry peers.
STZ has a better Return On Equity (16.30%) than 60.61% of its industry peers.
STZ's Return On Invested Capital of 13.29% is fine compared to the rest 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 10.84%.
The 3 year average ROIC (12.24%) for STZ is below the current ROIC(13.29%), indicating increased profibility in the last year.
| 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 81.82% of the companies in the same industry.
STZ's Operating Margin of 33.05% is amongst the best of the industry. STZ outperforms 100.00% of its industry peers.
STZ's Operating Margin has improved in the last couple of years.
The Gross Margin of STZ (51.93%) is better than 63.64% of its industry peers.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), STZ is creating value.
The number of shares outstanding for STZ has been reduced compared to 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
STZ has an Altman-Z score of 2.79. 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.
With a Altman-Z score value of 2.79, STZ perfoms like the industry average, outperforming 57.58% of the companies in the same industry.
STZ has a debt to FCF ratio of 5.71. This is a neutral value as STZ would need 5.71 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 5.71, STZ is doing good in the industry, outperforming 69.70% of the companies in the same industry.
STZ has a Debt/Equity ratio of 1.34. This is a high value indicating a heavy dependency on external financing.
STZ has a Debt to Equity ratio of 1.34. This is in the lower half of the industry: STZ underperforms 78.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 5.71 | ||
| Altman-Z | 2.79 |
ROIC/WACC1.97
WACC6.74%
2.3 Liquidity
A Current Ratio of 1.08 indicates that STZ should not have too much problems paying its short term obligations.
STZ has a Current ratio of 1.08. This is in the lower half of the industry: STZ underperforms 66.67% 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's Quick ratio of 0.54 is on the low side compared to the rest of the industry. STZ is outperformed by 69.70% 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.
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 -5.56% in the last year.
STZ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.12% yearly.
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
Based on estimates for the next years, STZ will show a small growth in Earnings Per Share. The EPS will grow by 2.65% on average per year.
Based on estimates for the next years, STZ will show a small growth in Revenue. The Revenue will grow by 0.10% on average per year.
EPS Next Y-15.48%
EPS Next 2Y-4.5%
EPS Next 3Y-1.5%
EPS Next 5Y2.65%
Revenue Next Year-10.88%
Revenue Next 2Y-5.4%
Revenue Next 3Y-2.71%
Revenue Next 5Y0.1%
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
With a Price/Earnings ratio of 10.15, the valuation of STZ can be described as very reasonable.
STZ's Price/Earnings ratio is rather cheap when compared to the industry. STZ is cheaper than 84.85% of the companies in the same industry.
STZ is valuated cheaply when we compare the Price/Earnings ratio to 25.47, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.29 indicates a reasonable valuation of STZ.
Based on the Price/Forward Earnings ratio, STZ is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of STZ to the average of the S&P500 Index (35.42), we can say STZ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.15 | ||
| Fwd PE | 10.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STZ is valued a bit cheaper than the industry average as 69.70% of the companies are valued more expensively.
81.82% 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 | 12.24 | ||
| EV/EBITDA | 9.09 |
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)1.19
EPS Next 2Y-4.5%
EPS Next 3Y-1.5%
5. Dividend
5.1 Amount
STZ has a Yearly Dividend Yield of 3.15%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of STZ has falen by -22.88%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
STZ's Dividend Yield is a higher than the industry average which is at 3.05.
STZ's Dividend Yield is a higher than the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
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.
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 59.24% of its income as dividend. This is a bit on the high side, but may be sustainable.
STZ's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP59.24%
EPS Next 2Y-4.5%
EPS Next 3Y-1.5%
NYSE:STZ (11/19/2025, 2:58:27 PM)
129.27
-1.26 (-0.97%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners77.93%
Inst Owner Change-3.91%
Ins Owners0.1%
Ins Owner Change0.03%
Market Cap22.63B
Revenue(TTM)9.62B
Net Income(TTM)1.22B
Analysts73.33
Price Target178.21 (37.86%)
Short Float %7.79%
Short Ratio3.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
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)-3.22%
PT rev (3m)-16.65%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)-11.96%
EPS NY rev (1m)-0.32%
EPS NY rev (3m)-8.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.47%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-3.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.15 | ||
| Fwd PE | 10.29 | ||
| P/S | 2.35 | ||
| P/FCF | 12.24 | ||
| P/OCF | 8.17 | ||
| P/B | 3.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.09 |
EPS(TTM)12.73
EY9.85%
EPS(NY)12.56
Fwd EY9.72%
FCF(TTM)10.56
FCFY8.17%
OCF(TTM)15.82
OCFY12.24%
SpS54.98
BVpS42.85
TBVpS-1.21
PEG (NY)N/A
PEG (5Y)1.19
Graham Number110.79
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 | 2.79 |
F-Score8
WACC6.74%
ROIC/WACC1.97
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-15.48%
EPS Next 2Y-4.5%
EPS Next 3Y-1.5%
EPS Next 5Y2.65%
Revenue 1Y (TTM)-5.56%
Revenue growth 3Y4.99%
Revenue growth 5Y4.12%
Sales Q2Q%-15%
Revenue Next Year-10.88%
Revenue Next 2Y-5.4%
Revenue Next 3Y-2.71%
Revenue Next 5Y0.1%
EBIT growth 1Y-8.73%
EBIT growth 3Y5.43%
EBIT growth 5Y6.27%
EBIT Next Year-2.01%
EBIT Next 3Y1.87%
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 -15.48% 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%.