CONSTELLATION BRANDS INC-A (STZ)
US21036P1084 - Common Stock
STZ gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 32 industry peers in the Beverages industry. There are concerns on the financial health of STZ while its profitability can be described as average. While showing a medium growth rate, STZ is valued expensive at the moment.
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
Looking at the Return On Assets, with a value of 6.72%, STZ is in line with its industry, outperforming 53.13% of the companies in the same industry.
The Return On Equity of STZ (17.73%) is comparable to the rest of the industry.
The Return On Invested Capital of STZ (11.30%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for STZ is below the industry average of 12.50%.
The 3 year average ROIC (10.49%) for STZ is below the current ROIC(11.30%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.72% | ||
| ROE | 17.73% | ||
| ROIC | 11.3% |
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 81.25% of the companies in the same industry.
STZ's Profit Margin has declined in the last couple of years.
STZ has a Operating Margin of 32.72%. This is amongst the best in the industry. STZ outperforms 100.00% of its industry peers.
STZ's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 50.39%, STZ perfoms like the industry average, outperforming 59.38% of the companies in the same industry.
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 | 32.72% | ||
| PM (TTM) | 17.34% | ||
| GM | 50.39% |
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%
2. Health
2.1 Basic Checks
STZ has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, STZ has less shares outstanding
Compared to 5 years ago, STZ has less shares outstanding
The debt/assets ratio for STZ has been reduced compared to a year ago.
2.2 Solvency
STZ has a debt to FCF ratio of 7.86. This is a slightly negative value and a sign of low solvency as STZ would need 7.86 years to pay back of all of its debts.
STZ's Debt to FCF ratio of 7.86 is in line compared to the rest of the industry. STZ outperforms 50.00% of its industry peers.
A Debt/Equity ratio of 1.12 is on the high side and indicates that STZ has dependencies on debt 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 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 7.86 | ||
| Altman-Z | N/A |
ROIC/WACC1.38
WACC8.2%
2.3 Liquidity
A Current Ratio of 1.19 indicates that STZ should not have too much problems paying its short term obligations.
The Current ratio of STZ (1.19) is worse than 62.50% of its industry peers.
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.
STZ has a Quick ratio of 0.53. This is in the lower half of the industry: STZ underperforms 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.35% 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 5.38% on average per year.
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 growth Q2Q14.14%
Revenue 1Y (TTM)5.39%
Revenue growth 3Y4.96%
Revenue growth 5Y4.18%
Revenue growth Q2Q7.08%
3.2 Future
The Earnings Per Share is expected to grow by 9.91% on average over the next years. This is quite good.
Based on estimates for the next years, STZ will show a small growth in Revenue. The Revenue will grow by 6.32% on average per year.
EPS Next Y12.55%
EPS Next 2Y12.43%
EPS Next 3Y10.2%
EPS Next 5Y9.91%
Revenue Next Year6.48%
Revenue Next 2Y6.53%
Revenue Next 3Y6.69%
Revenue Next 5Y6.32%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
STZ is valuated rather expensively with a Price/Earnings ratio of 21.62.
STZ's Price/Earnings ratio is a bit cheaper when compared to the industry. STZ is cheaper than 71.88% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.76, STZ is valued at the same level.
Based on the Price/Forward Earnings ratio of 19.21, the valuation of STZ can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STZ indicates a somewhat cheap valuation: STZ is cheaper than 68.75% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of STZ to the average of the S&P500 Index (21.26), we can say STZ is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.62 | ||
| Fwd PE | 19.21 |
4.2 Price Multiples
STZ's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as STZ.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.54 | ||
| EV/EBITDA | 15.94 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.72
PEG (5Y)4.02
EPS Next 2Y12.43%
EPS Next 3Y10.2%
5. Dividend
5.1 Amount
STZ has a Yearly Dividend Yield of 1.57%.
Compared to an average industry Dividend Yield of 2.49, STZ has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.40, STZ is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
5.2 History
The dividend of STZ has a limited annual growth rate of 4.06%.
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)4.06%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
37.85% of the earnings are spent on dividend by STZ. This is a low number and sustainable payout ratio.
The dividend of STZ is growing, but earnings are growing more, so the dividend growth is sustainable.
DP37.85%
EPS Next 2Y12.43%
EPS Next 3Y10.2%
CONSTELLATION BRANDS INC-A
NYSE:STZ (4/19/2024, 7:18:06 PM)
After market: 260.7 0 (0%)260.7
+2.02 (+0.78%)
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 Cap47.66B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
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)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.62 | ||
| Fwd PE | 19.21 | ||
| 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)1.72
PEG (5Y)4.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.72% | ||
| ROE | 17.73% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 32.72% | ||
| PM (TTM) | 17.34% | ||
| GM | 50.39% | ||
| 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 | 1.12 | ||
| 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)
Growth
EPS 1Y (TTM)13.35%
EPS 3Y6.55%
EPS 5Y
EPS growth Q2Q
EPS Next Y12.55%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.39%
Revenue growth 3Y4.96%
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