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STZ

Constellation BrandsNYSE:STZ Stock Report

Market Cap

US$40.8b

7D

1.0%

1Y

24.4%

Updated

25 Oct, 2021

Data

Company Financials +
STZ fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance0/6
Financial Health4/6
Dividends3/6

STZ Overview

Constellation Brands, Inc., together with its subsidiaries, produces, imports, markets, and sells beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy.

Constellation Brands Competitors

Duckhorn Portfolio

NYSE:NAPA

US$2.2b

Vintage Wine Estates

NasdaqGM:VWE

US$593.7m

Willamette Valley Vineyards

NasdaqCM:WVVI

US$72.0m

Iconic Brands

OTCPK:ICNB

US$47.5m

Price History & Performance

Summary of all time highs, changes and price drops for Constellation Brands
Historical stock prices
Current Share PriceUS$217.69
52 Week HighUS$160.63
52 Week LowUS$244.75
Beta1.16
1 Month Change2.39%
3 Month Change-3.83%
1 Year Change24.42%
3 Year Change7.37%
5 Year Change30.26%
Change since IPO39,084.17%

Recent News & Updates

Oct 15

The Success Of Constellation Brands In Focusing On The Beer Industry

Despite the fact that the overall US beer sales volume decreased as a result of the pandemic, Constellation Brands maintained its revenue’s strong uptrend track record. Despite a strong top line and growing EBITDA, it suffered losses from its unconsolidated investment particularly on its Canopy. However, the Canopy segment has seen a significant rise in revenue. This stock is trading cheaply at 56.6x earnings and 21.1x forward earnings.

Oct 06
Constellation Brands (NYSE:STZ) is Looking Undervalued Despite an Earnings Miss

Constellation Brands (NYSE:STZ) is Looking Undervalued Despite an Earnings Miss

After a new all-time high, Constellation Brands, Inc. (NYSE: STZ) spent an uneventful few months drifting downwards. Yet, the company is keeping above the critical support at US$210 despite a slight miss on the earnings today. In this article, we'll reflect on those results and take a look at the company's intrinsic value.

Sep 26
Is It Time To Consider Buying Constellation Brands, Inc. (NYSE:STZ)?

Is It Time To Consider Buying Constellation Brands, Inc. (NYSE:STZ)?

Constellation Brands, Inc. ( NYSE:STZ ) saw significant share price movement during recent months on the NYSE, rising...

Aug 17
Constellation Brands (NYSE:STZ) Seems To Use Debt Quite Sensibly

Constellation Brands (NYSE:STZ) Seems To Use Debt Quite Sensibly

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Aug 09

Constellation Brands Undervalued, As It Continues To Gain Share

Constellation Brands posted better than expected FQ1 results, as weaker beer shipments were offset by healthy margins and stronger depletions. Operating leverage in the beer business may be challenging in the near term given cost headwinds, increasing promotional expense, and the need to add more capacity. Constellation's beer portfolio continues to outgrow the broader category as brands like Modelo Especial and Pacifico gain share, but Corona seltzer's share has stalled recently in a fast-growing category. If Constellation can generate 6% long-term revenue growth and 8% FCF growth, the shares look attractively undervalued today.

Shareholder Returns

STZUS BeverageUS Market
7D1.0%0.4%1.9%
1Y24.4%12.5%33.4%

Return vs Industry: STZ exceeded the US Beverage industry which returned 11.1% over the past year.

Return vs Market: STZ underperformed the US Market which returned 30.3% over the past year.

Price Volatility

Is STZ's price volatile compared to industry and market?
STZ volatility
STZ Beta1.16
Industry Beta0.74
Market Beta1

Stable Share Price: STZ is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: STZ's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19459,300Bill Newlandshttps://www.cbrands.com

Constellation Brands, Inc., together with its subsidiaries, produces, imports, markets, and sells beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. It provides beer primarily under the Corona Extra, Corona Premier, Corona Familiar, Corona Light, Corona Refresca, Corona Hard Seltzer, Modelo Especial, Modelo Negra, Modelo Chelada, Pacifico, and Victoria brands. The company offers wine under the 7 Moons, Cook’s California Champagne, Cooper & Thief, Crafters Union, Kim Crawford, Meiomi, Mount Veeder, Ruffino, SIMI, The Dreaming Tree, Charles Smith, Prisoner, Robert Mondavi, and Schrader; and spirits under the Casa Noble, High West, Mi CAMPO, Nelson’s Green Brier, and SVEDKA brands.

Constellation Brands Fundamentals Summary

How do Constellation Brands's earnings and revenue compare to its market cap?
STZ fundamental statistics
Market CapUS$40.80b
Earnings (TTM)US$757.20m
Revenue (TTM)US$8.79b

53.9x

P/E Ratio

4.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
STZ income statement (TTM)
RevenueUS$8.79b
Cost of RevenueUS$4.10b
Gross ProfitUS$4.69b
ExpensesUS$3.93b
EarningsUS$757.20m

Last Reported Earnings

Aug 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)4.04
Gross Margin53.37%
Net Profit Margin8.62%
Debt/Equity Ratio91.6%

How did STZ perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

77%

Payout Ratio

Does STZ pay a reliable dividends?

See STZ dividend history and benchmarks
When do you need to buy STZ by to receive an upcoming dividend?
Constellation Brands dividend dates
Ex Dividend DateNov 04 2021
Dividend Pay DateNov 19 2021
Days until Ex dividend9 days
Days until Dividend pay date24 days

Does STZ pay a reliable dividends?

See STZ dividend history and benchmarks

Valuation

Is Constellation Brands undervalued compared to its fair value and its price relative to the market?

44.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: STZ ($217.69) is trading below our estimate of fair value ($394.33)

Significantly Below Fair Value: STZ is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: STZ is poor value based on its PE Ratio (53.9x) compared to the US Beverage industry average (34.6x).

PE vs Market: STZ is poor value based on its PE Ratio (53.9x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: STZ is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: STZ is good value based on its PB Ratio (3.6x) compared to the US Beverage industry average (4.6x).


Future Growth

How is Constellation Brands forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

30.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STZ's forecast earnings growth (30.1% per year) is above the savings rate (2%).

Earnings vs Market: STZ's earnings (30.1% per year) are forecast to grow faster than the US market (14.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: STZ's revenue (6.5% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: STZ's revenue (6.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: STZ's Return on Equity is forecast to be low in 3 years time (18.7%).


Past Performance

How has Constellation Brands performed over the past 5 years?

-9.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STZ has a large one-off loss of $802.7M impacting its August 31 2021 financial results.

Growing Profit Margin: STZ's current net profit margins (8.6%) are lower than last year (13.5%).


Past Earnings Growth Analysis

Earnings Trend: STZ's earnings have declined by 9.8% per year over the past 5 years.

Accelerating Growth: STZ's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: STZ had negative earnings growth (-30.7%) over the past year, making it difficult to compare to the Beverage industry average (20.8%).


Return on Equity

High ROE: STZ's Return on Equity (6.9%) is considered low.


Financial Health

How is Constellation Brands's financial position?


Financial Position Analysis

Short Term Liabilities: STZ's short term assets ($2.9B) exceed its short term liabilities ($2.2B).

Long Term Liabilities: STZ's short term assets ($2.9B) do not cover its long term liabilities ($11.6B).


Debt to Equity History and Analysis

Debt Level: STZ's debt to equity ratio (91.6%) is considered high.

Reducing Debt: STZ's debt to equity ratio has reduced from 112.1% to 91.6% over the past 5 years.

Debt Coverage: STZ's debt is well covered by operating cash flow (27.4%).

Interest Coverage: STZ's interest payments on its debt are well covered by EBIT (8x coverage).


Balance Sheet


Dividend

What is Constellation Brands's current dividend yield, its reliability and sustainability?

1.40%

Current Dividend Yield


Upcoming Dividend Payment

TodayOct 26 2021Ex Dividend DateNov 04 2021Dividend Pay DateNov 19 202115 days from Ex DividendBuy in the next 9 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: STZ's dividend (1.4%) is higher than the bottom 25% of dividend payers in the US market (1.28%).

High Dividend: STZ's dividend (1.4%) is low compared to the top 25% of dividend payers in the US market (3.48%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, STZ has been paying a dividend for less than 10 years.

Growing Dividend: STZ's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (77%), STZ's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: STZ's dividends in 3 years are forecast to be well covered by earnings (28% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.2yrs

Average management tenure


CEO

Bill Newlands (62 yo)

2.58yrs

Tenure

US$11,727,855

Compensation

Mr. William A. Newlands, also known as Bill, has been the President of Constellation Brands, Inc. since February 12, 2018 and has been its Chief Executive Officer and Director since March 1, 2019. Mr. Newl...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD11.73M) is about average for companies of similar size in the US market ($USD11.15M).

Compensation vs Earnings: Bill's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: STZ's management team is seasoned and experienced (5.2 years average tenure).


Board Members

Experienced Board: STZ's board of directors are considered experienced (3.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Constellation Brands, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Constellation Brands, Inc.
  • Ticker: STZ
  • Exchange: NYSE
  • Founded: 1945
  • Industry: Distillers and Vintners
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$40.798b
  • Shares outstanding: 187.49m
  • Website: https://www.cbrands.com

Number of Employees


Location

  • Constellation Brands, Inc.
  • Building 100
  • 207 High Point Drive
  • Victor
  • New York
  • 14564
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/25 23:10
End of Day Share Price2021/10/25 00:00
Earnings2021/08/31
Annual Earnings2021/02/28


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.