CONSTELLATION BRANDS INC-A (STZ)

US21036P1084 - Common Stock

263.5  +0.67 (+0.25%)

After market: 263.5 0 (0%)

Fundamental Rating

5

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. Both the profitability and the financial health of STZ get a neutral evaluation. Nothing too spectacular is happening here. STZ is quite expensive at the moment. It does show a decent growth rate.



6

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.
In multiple years STZ reported negative net income over the last 5 years.
Each year in the past 5 years STZ had a positive operating cash flow.

1.2 Ratios

STZ has a Return On Assets (6.72%) which is comparable to the rest of the industry.
STZ's Return On Equity of 17.73% is in line compared to the rest of the industry. STZ outperforms 51.52% of its industry peers.
STZ has a Return On Invested Capital (11.29%) which is comparable to the rest of the industry.
STZ had an Average Return On Invested Capital over the past 3 years of 10.49%. This is below the industry average of 12.49%.
The 3 year average ROIC (10.49%) for STZ is below the current ROIC(11.29%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 6.72%
ROE 17.73%
ROIC 11.29%
ROA(3y)2.09%
ROA(5y)2.72%
ROE(3y)5.51%
ROE(5y)6.23%
ROIC(3y)10.49%
ROIC(5y)9.65%

1.3 Margins

Looking at the Profit Margin, with a value of 17.34%, STZ belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
In the last couple of years the Profit Margin of STZ has declined.
With an excellent Operating Margin value of 32.69%, STZ belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
STZ's Operating Margin has been stable in the last couple of years.
STZ's Gross Margin of 50.37% is fine compared to the rest 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 RankSector Rank
OM 32.69%
PM (TTM) 17.34%
GM 50.37%
OM growth 3Y-0.41%
OM growth 5Y0.34%
PM growth 3Y-9.24%
PM growth 5Y-16.35%
GM growth 3Y-1.01%
GM growth 5Y0.04%

4

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 remains at a similar level compared to 1 year ago.
The number of shares outstanding for STZ has been reduced compared to 5 years ago.
Compared to 1 year ago, STZ has an improved debt to assets ratio.

2.2 Solvency

STZ has an Altman-Z score of 3.37. This indicates that STZ is financially healthy and has little risk of bankruptcy at the moment.
STZ's Altman-Z score of 3.37 is in line compared to the rest of the industry. STZ outperforms 57.58% of its industry peers.
The Debt to FCF ratio of STZ is 7.86, which is on the high side as it means it would take STZ, 7.86 years of fcf income to pay off all of its debts.
STZ has a Debt to FCF ratio of 7.86. This is comparable to the rest of the industry: STZ outperforms 48.48% of its industry peers.
STZ has a Debt/Equity ratio of 1.12. This is a high value indicating a heavy dependency on external financing.
STZ's Debt to Equity ratio of 1.12 is on the low side compared to the rest of the industry. STZ is outperformed by 72.73% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.12
Debt/FCF 7.86
Altman-Z 3.37
ROIC/WACC1.48
WACC7.64%

2.3 Liquidity

A Current Ratio of 1.19 indicates that STZ should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.19, STZ is in line with its industry, outperforming 42.42% of the companies in the same industry.
STZ has a Quick Ratio of 1.19. This is a bad value and indicates that STZ is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.53, STZ is doing worse than 66.67% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.19
Quick Ratio 0.53

5

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 13.35% over the past year.
STZ shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.38% yearly.
STZ shows a small growth in Revenue. In the last year, the Revenue has grown by 5.39%.
STZ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.18% yearly.
EPS 1Y (TTM)13.35%
EPS 3Y6.55%
EPS 5Y5.38%
EPS Q2Q%14.14%
Revenue 1Y (TTM)5.39%
Revenue growth 3Y4.96%
Revenue growth 5Y4.18%
Sales Q2Q%7.08%

3.2 Future

The Earnings Per Share is expected to grow by 11.05% on average over the next years. This is quite good.
STZ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.53% yearly.
EPS Next Y14.45%
EPS Next 2Y12.59%
EPS Next 3Y12%
EPS Next 5Y11.05%
Revenue Next Year6.88%
Revenue Next 2Y6.83%
Revenue Next 3Y6.84%
Revenue Next 5Y6.53%

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.

3

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 21.85, STZ is valued on the expensive side.
STZ's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 28.63. STZ is valued slightly cheaper when compared to this.
STZ is valuated rather expensively with a Price/Forward Earnings ratio of 19.09.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STZ indicates a somewhat cheap valuation: STZ is cheaper than 63.64% of the companies listed in the same industry.
STZ's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.22.
Industry RankSector Rank
PE 21.85
Fwd PE 19.09

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STZ is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of STZ is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 31.8
EV/EBITDA 16.12

4.3 Compensation for Growth

STZ's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
STZ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.51
PEG (5Y)4.06
EPS Next 2Y12.59%
EPS Next 3Y12%

5

5. Dividend

5.1 Amount

STZ has a Yearly Dividend Yield of 1.54%. Purely for dividend investing, there may be better candidates out there.
STZ's Dividend Yield is comparable with the industry average which is at 2.90.
STZ's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
Industry RankSector Rank
Dividend Yield 1.54%

5.2 History

The dividend of STZ has a limited annual growth rate of 4.06%.
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)4.06%
Div Incr Years8
Div Non Decr Years8

5.3 Sustainability

37.85% of the earnings are spent on dividend by STZ. This is a low number and sustainable payout ratio.
STZ's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP37.85%
EPS Next 2Y12.59%
EPS Next 3Y12%

CONSTELLATION BRANDS INC-A

NYSE:STZ (6/21/2024, 7:26:03 PM)

After market: 263.5 0 (0%)

263.5

+0.67 (+0.25%)

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 Cap48.05B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.54%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 21.85
Fwd PE 19.09
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)1.51
PEG (5Y)4.06
Profitability
Industry RankSector Rank
ROA 6.72%
ROE 17.73%
ROCE
ROIC
ROICexc
ROICexgc
OM 32.69%
PM (TTM) 17.34%
GM 50.37%
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 RankSector Rank
Debt/Equity 1.12
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.19
Quick Ratio 0.53
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)
High Growth Momentum
Growth
EPS 1Y (TTM)13.35%
EPS 3Y6.55%
EPS 5Y
EPS Q2Q%
EPS Next Y14.45%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.39%
Revenue growth 3Y4.96%
Revenue growth 5Y
Sales 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