Is There An Opportunity With Constellation Brands, Inc.'s (NYSE:STZ) 47% Undervaluation?
Jul 26
U.S. Beverage Industry Analysis
UpdatedJul 26, 2024
DataAggregated Company Financials
Companies56
- 7D0.4%
- 3M-0.5%
- 1Y-4.4%
- YTD0.5%
In the last week, the Beverage industry is flat overall, with Celsius Holdings standing out by going down 9.0%. As for the longer term, the industry has declined 4.4% in the last year. Earnings are forecast to grow by 8.4% annually.
Industry Valuation and Performance
Has the U.S. Beverage Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 26 Jul 2024 | US$738.6b | US$214.7b | US$30.7b | 22.9x | 24x | 3.4x |
| Sun, 23 Jun 2024 | US$731.9b | US$213.7b | US$29.8b | 25.1x | 24.6x | 3.4x |
| Tue, 21 May 2024 | US$769.4b | US$215.1b | US$29.8b | 25.4x | 25.8x | 3.6x |
| Thu, 18 Apr 2024 | US$723.9b | US$213.0b | US$29.3b | 24.4x | 24.7x | 3.4x |
| Sat, 16 Mar 2024 | US$740.7b | US$213.1b | US$29.1b | 25.5x | 25.4x | 3.5x |
| Mon, 12 Feb 2024 | US$729.3b | US$211.2b | US$27.9b | 27.9x | 26.1x | 3.5x |
| Wed, 10 Jan 2024 | US$741.4b | US$211.5b | US$27.1b | 29.1x | 27.3x | 3.5x |
| Fri, 08 Dec 2023 | US$724.2b | US$211.1b | US$27.1b | 29x | 26.8x | 3.4x |
| Sun, 05 Nov 2023 | US$717.5b | US$210.9b | US$26.8b | 29.3x | 26.8x | 3.4x |
| Tue, 03 Oct 2023 | US$714.7b | US$207.0b | US$23.6b | 28.9x | 30.3x | 3.5x |
| Thu, 31 Aug 2023 | US$770.1b | US$207.7b | US$23.6b | 32.9x | 32.6x | 3.7x |
| Sat, 29 Jul 2023 | US$879.2b | US$206.9b | US$23.1b | 34.7x | 38x | 4.2x |
| Mon, 26 Jun 2023 | US$769.0b | US$203.2b | US$21.1b | 33.2x | 36.5x | 3.8x |
| Wed, 24 May 2023 | US$766.6b | US$202.5b | US$20.9b | 34.2x | 36.6x | 3.8x |
| Fri, 21 Apr 2023 | US$770.5b | US$199.2b | US$23.1b | 34.3x | 33.4x | 3.9x |
| Sun, 19 Mar 2023 | US$723.9b | US$198.7b | US$23.2b | 33.8x | 31.2x | 3.6x |
| Tue, 14 Feb 2023 | US$739.1b | US$196.9b | US$24.6b | 29x | 30x | 3.8x |
| Thu, 12 Jan 2023 | US$745.9b | US$193.9b | US$25.4b | 30.5x | 29.3x | 3.8x |
| Sat, 10 Dec 2022 | US$765.7b | US$193.3b | US$25.4b | 32.6x | 30.2x | 4x |
| Mon, 07 Nov 2022 | US$737.9b | US$193.2b | US$25.6b | 29.9x | 28.8x | 3.8x |
| Wed, 05 Oct 2022 | US$703.5b | US$188.4b | US$26.3b | 27x | 26.7x | 3.7x |
| Fri, 02 Sep 2022 | US$740.6b | US$188.2b | US$26.4b | 33.2x | 28.1x | 3.9x |
| Sun, 31 Jul 2022 | US$761.3b | US$187.6b | US$26.7b | 34x | 28.5x | 4.1x |
| Tue, 28 Jun 2022 | US$733.8b | US$184.4b | US$27.3b | 29.6x | 26.9x | 4x |
| Thu, 26 May 2022 | US$732.2b | US$183.9b | US$27.2b | 27.2x | 26.9x | 4x |
| Sat, 23 Apr 2022 | US$743.9b | US$179.3b | US$23.8b | 32.1x | 31.3x | 4.1x |
| Mon, 21 Mar 2022 | US$701.3b | US$179.2b | US$23.8b | 31x | 29.4x | 3.9x |
| Wed, 16 Feb 2022 | US$710.4b | US$177.9b | US$22.0b | 32.7x | 32.3x | 4x |
| Fri, 14 Jan 2022 | US$737.3b | US$174.7b | US$21.5b | 33.6x | 34.2x | 4.2x |
| Sun, 12 Dec 2021 | US$702.0b | US$174.5b | US$22.3b | 40.5x | 31.4x | 4x |
| Tue, 09 Nov 2021 | US$694.0b | US$174.8b | US$22.4b | 36.9x | 31x | 4x |
| Thu, 07 Oct 2021 | US$665.3b | US$170.0b | US$22.1b | 31x | 30.1x | 3.9x |
| Sat, 04 Sep 2021 | US$687.5b | US$170.6b | US$22.1b | 31.2x | 31.1x | 4x |
| Mon, 02 Aug 2021 | US$686.3b | US$170.6b | US$22.1b | 32.8x | 31x | 4x |
Price to Earnings Ratio
31x
Current Industry PE
- Investors are pessimistic on the American Beverage industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 24.0x which is lower than its 3-year average PE of 29.5x.
- The industry is trading close to its 3-year average PS ratio of 3.8x.
Past Earnings Growth
- The earnings for companies in the Beverage industry have grown 12% per year over the last three years.
- Revenues for these companies have grown 7.9% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the U.S. Consumer Staples industry?
| US Market | -2.42% | |
| Consumer Staples | -1.09% | |
| Beverage | 0.45% | |
| Distillers and Wine Makers | 1.19% | |
| Brewers | 0.52% | |
| Soft Drinks | 0.37% | |
Industry PE
- Investors are most optimistic about the Soft Drinks industry, which is trading close to its 3-year average PE ratio of 27.6x.
- Analysts are expecting annual earnings growth of 8.9%, which is lower than the prior year's growth of 22.7% per year.
- Investors are most pessimistic about the Brewers industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 2.3x.
Forecasted Growth
- Analysts are most optimistic on the Soft Drinks industry, expecting annual earnings growth of 8.9% over the next 5 years.
- However this is lower than its past earnings growth rate of 23% per year.
- In contrast, the Brewers industry is expected to see its earnings grow by 3.6% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| KO Coca-Cola | US$66.07 | 1.3% +US$3.9b | 5.8% | PE26.7x | |
| PEP PepsiCo | US$171.02 | 0.4% +US$892.8m | -9.3% | PE24.7x | |
| BF.B Brown-Forman | US$45.07 | 3.0% +US$628.6m | -35.5% | PE20.8x | |
| STZ Constellation Brands | US$249.38 | 0.5% +US$204.1m | -7.8% | PE18.4x | |
| TAP Molson Coors Beverage | US$54.01 | 1.8% +US$199.2m | -22.0% | PE10.6x |
