Constellation Brands
Market Cap
US$43.3b
Last Updated
2021/04/11 22:03 UTC
Data Sources
Company Financials +
Executive Summary
Constellation Brands, Inc., together with its subsidiaries, produces, imports, and markets beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. More Details
Rewards
Risk Analysis
Snowflake Analysis
Good value with adequate balance sheet.
Similar Companies
Share Price & News
How has Constellation Brands's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: STZ is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: STZ's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
-2.4%
STZ
1.3%
US Beverage
2.1%
US Market
1 Year Return
34.8%
STZ
17.0%
US Beverage
56.3%
US Market
Return vs Industry: STZ exceeded the US Beverage industry which returned 17% over the past year.
Return vs Market: STZ underperformed the US Market which returned 56.3% over the past year.
Shareholder returns
| STZ | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.4% | 1.3% | 2.1% |
| 30 Day | -2.3% | 4.8% | 2.4% |
| 90 Day | -1.2% | 1.8% | 6.1% |
| 1 Year | 37.1%34.8% | 20.1%17.0% | 59.1%56.3% |
| 3 Year | 4.9%0.1% | 35.0%24.7% | 65.7%55.1% |
| 5 Year | 52.9%43.0% | 50.3%31.2% | 122.3%97.6% |
Long-Term Price Volatility Vs. Market
How volatile is Constellation Brands's share price compared to the market and industry in the last 5 years?
Simply Wall St News
5 days ago | Simply Wall St
How Many Constellation Brands, Inc. (NYSE:STZ) Shares Have Insiders Sold, In The Last Year?2 weeks ago | Simply Wall St
Does Constellation Brands' (NYSE:STZ) Share Price Gain of 96% Match Its Business Performance?1 month ago | Simply Wall St
The Trends At Constellation Brands (NYSE:STZ) That You Should Know AboutValuation
Is Constellation Brands undervalued compared to its fair value and its price relative to the market?
10.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: STZ ($224.15) is trading below our estimate of fair value ($251.11)
Significantly Below Fair Value: STZ is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: STZ is good value based on its PE Ratio (19.1x) compared to the US Beverage industry average (28.6x).
PE vs Market: STZ is good value based on its PE Ratio (19.1x) compared to the US market (22.3x).
Price to Earnings Growth Ratio
PEG Ratio: STZ is poor value based on its PEG Ratio (3.6x)
Price to Book Ratio
PB vs Industry: STZ is good value based on its PB Ratio (2.8x) compared to the US Beverage industry average (6.7x).
Future Growth
How is Constellation Brands forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
5.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: STZ's forecast earnings growth (5.3% per year) is above the savings rate (2%).
Earnings vs Market: STZ's earnings (5.3% per year) are forecast to grow slower than the US market (18.6% per year).
High Growth Earnings: STZ's earnings are forecast to grow, but not significantly.
Revenue vs Market: STZ's revenue (3.8% per year) is forecast to grow slower than the US market (9.9% per year).
High Growth Revenue: STZ's revenue (3.8% 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 (16.6%).
Past Performance
How has Constellation Brands performed over the past 5 years?
-1.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: STZ has high quality earnings.
Growing Profit Margin: STZ became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: STZ's earnings have declined by 1.5% per year over the past 5 years.
Accelerating Growth: STZ has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: STZ has become profitable in the last year, making it difficult to compare its past year earnings growth to the Beverage industry (6.2%).
Return on Equity
High ROE: STZ's Return on Equity (14.6%) is considered low.
Financial Health
How is Constellation Brands's financial position?
Financial Position Analysis
Short Term Liabilities: STZ's short term assets ($3.0B) exceed its short term liabilities ($1.3B).
Long Term Liabilities: STZ's short term assets ($3.0B) do not cover its long term liabilities ($11.9B).
Debt to Equity History and Analysis
Debt Level: STZ's debt to equity ratio (74.9%) is considered high.
Reducing Debt: STZ's debt to equity ratio has reduced from 120.9% to 74.9% over the past 5 years.
Debt Coverage: STZ's debt is well covered by operating cash flow (26.9%).
Interest Coverage: STZ's interest payments on its debt are well covered by EBIT (7.3x coverage).
Balance Sheet
Dividend
What is Constellation Brands's current dividend yield, its reliability and sustainability?
1.34%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: STZ's dividend (1.34%) is higher than the bottom 25% of dividend payers in the US market (1.26%).
High Dividend: STZ's dividend (1.34%) is low compared to the top 25% of dividend payers in the US market (3.5%).
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 6 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (25.6%), STZ's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: STZ's dividends in 3 years are forecast to be well covered by earnings (25.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.5yrs
Average management tenure
CEO
Bill Newlands (61 yo)
2.08yrs
Tenure
US$9,392,650
Compensation
Mr. William A. Newlands, also known as Bill, has been the President of Constellation Brands, Inc. since February 12, 2018 and has been its Chief Executive Officer and Director since March 1, 2019. Mr. Newl...
CEO Compensation Analysis
Compensation vs Market: Bill's total compensation ($USD9.39M) is about average for companies of similar size in the US market ($USD10.98M).
Compensation vs Earnings: Bill's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: STZ's management team is considered experienced (2.5 years average tenure).
Board Members
Experienced Board: STZ's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.
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 company bio, 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$43.293b
- Shares outstanding: 193.30m
- 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
Biography
Constellation Brands, Inc., together with its subsidiaries, produces, imports, and markets beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. It provides beer primarily u...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/11 22:03 |
| End of Day Share Price | 2021/04/09 00:00 |
| Earnings | 2021/02/28 |
| Annual Earnings | 2021/02/28 |
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.