Constellation Brands
Market Cap
US$37.2b
Last Updated
2019/10/21 23:34 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.
Snowflake
Fundamentals
Fair value with moderate growth potential.
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
Market Performance
7 Day Return
0.8%
STZ
0.3%
US Beverage
1.0%
US Market
1 Year Return
-11.2%
STZ
15.8%
US Beverage
8.0%
US Market
Return vs Industry: STZ underperformed the US Beverage industry which returned 15.8% over the past year.
Return vs Market: STZ underperformed the US Market which returned 8% over the past year.
Shareholder returns
| STZ | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.8% | 0.3% | 1.0% |
| 30 Day | -5.1% | 0.04% | -0.07% |
| 90 Day | -3.8% | 0.7% | -1.0% |
| 1 Year | -9.8%-11.2% | 18.8%15.8% | 10.4%8.0% |
| 3 Year | 19.2%14.7% | 31.8%21.6% | 46.2%36.7% |
| 5 Year | 132.3%120.4% | 58.4%38.4% | 64.3%46.2% |
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
Is Constellation Brands (NYSE:STZ) A Risky Investment?2 weeks ago | Simply Wall St
How Good Is Constellation Brands, Inc. (NYSE:STZ), When It Comes To ROE?1 month ago | Simply Wall St
The Constellation Brands (NYSE:STZ) Share Price Has Gained 133%, So Why Not Pay It Some Attention?Valuation
Is Constellation Brands undervalued compared to its fair value and its price relative to the market?
28.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: STZ ($194.58) is trading below our estimate of fair value ($273.16)
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 poor value based on its PE Ratio (48.1x) compared to the Beverage industry average (29x).
PE vs Market: STZ is poor value based on its PE Ratio (48.1x) compared to the US market (17.6x).
Price to Earnings Growth Ratio
PEG Ratio: STZ is good value based on its PEG Ratio (0.7x)
Price to Book Ratio
PB vs Industry: STZ is good value based on its PB Ratio (3.3x) compared to the US Beverage industry average (4.4x).
Next Steps
Future Growth
How is Constellation Brands forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?
68.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: STZ's forecast earnings growth (68.8% per year) is above the savings rate (2.7%).
Earnings vs Market: STZ's earnings (68.8% per year) are forecast to grow faster than the US market (14.5% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: STZ's revenue (1.8% per year) is forecast to grow slower than the US market (7.2% per year).
High Growth Revenue: STZ's revenue (1.8% 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 (15.7%).
Next Steps
Past Performance
How has Constellation Brands performed over the past 5 years?
25.8%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: STZ's earnings have grown significantly by 25.8% 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 (-76.6%) over the past year, making it difficult to compare to the Beverage industry average (-1.9%).
Return on Equity
High ROE: STZ's Return on Equity (6.9%) is considered low.
Return on Assets
ROA vs Industry: STZ's Return on Assets is below or equal to the Beverage industry average last year.
Return on Capital Employed
ROCE Improving: STZ's Return on Capital Employed has declined over the past 3 years.
Next Steps
Financial Health
How is Constellation Brands's financial position?
Financial Position Analysis
Short Term Liabilities: STZ's short term assets ($3.5B) exceeds its short term liabilities ($2.2B)
Long Term Liabilities: STZ's short term assets (3.5B) do not cover its long term liabilities (13.7B)
Debt to Equity History and Analysis
Debt Level: STZ's debt to equity ratio (110.5%) is considered high
Reducing Debt: STZ's debt to equity ratio has reduced from 131.2% to 110.5% over the past 5 years.
Debt Coverage: STZ's debt is not well covered by operating cash flow (18%).
Interest Coverage: STZ's interest payments on its debt are well covered by EBIT (6.3x coverage).
Balance Sheet
Inventory Level: STZ has a high level of physical assets or inventory.
Debt Coverage by Assets: STZ's debt is not covered by short term assets (assets are 0.3x debt).
Next Steps
Dividend
What is Constellation Brands's current dividend yield, its reliability and sustainability?
1.54%
Current Dividend Yield
Upcoming Dividend Payment
Purchase Constellation Brands before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: STZ's dividend (1.54%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: STZ's dividend (1.54%) is low compared to the top 25% of dividend payers in the US market (3.68%).
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 5 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (73.7%), STZ's dividend 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 (31.8% payout ratio).
Next Steps
Management
What is the CEO of Constellation Brands's salary, the management and board of directors tenure and is there insider trading?
2.8yrs
Average management tenure
CEO
Bill Newlands (60yo)
0.6yrs
Tenure
US$7,854,942
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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.
Compensation vs Earnings: Bill's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Management Age and Tenure
2.8yrs
Average Tenure
56yo
Average Age
Experienced Management: STZ's management team is considered experienced (2.8 years average tenure).
Board Age and Tenure
2.3yrs
Average Tenure
60yo
Average Age
Experienced Board: STZ's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Shares | 4,275 |
| Max Price | US$194.70 |
| Entity | Individual |
| Shares | 850 |
| Max Price | US$197.18 |
| Entity | Individual |
| Shares | 3,071 |
| Max Price | US$190.08 |
| Entity | Individual |
| Shares | 1,500 |
| Max Price | US$174.72 |
Ownership Breakdown
Management Team
Richard Sands (68yo)
Executive Vice Chairman of the Board
- Tenure: 0.6yrs
- Compensation: US$7.98m
Rob Sands (60yo)
Executive Chairman
- Tenure: 0.6yrs
- Compensation: US$10.31m
Francis Hetterich (56yo)
Executive VP & President of Beer Division
- Tenure: 16.3yrs
- Compensation: US$5.48m
Bill Newlands (60yo)
President
- Tenure: 0.6yrs
- Compensation: US$7.85m
Chris Stenzel (51yo)
President of Wine & Spirits Division
- Tenure: 2.8yrs
- Compensation: US$6.02m
Robert Hanson (56yo)
Executive VP and President of Wine & Spirits
- Tenure: 0.3yrs
- Compensation: US$396.83k
David Klein (55yo)
Executive VP & CFO
- Tenure: 4.3yrs
- Compensation: US$7.02m
James Bourdeau (54yo)
Executive VP
- Tenure: 5.1yrs
Patty Yahn-Urlaub
Vice President of Investor Relations
- Tenure: 12.5yrs
Ricardo Bartra
Senior VP & Chief Technology Officer
- Tenure: 1.3yrs
Board Members
Richard Sands (68yo)
Executive Vice Chairman of the Board
- Tenure: 0.6yrs
- Compensation: US$7.98m
Rob Sands (60yo)
Executive Chairman
- Tenure: 0.6yrs
- Compensation: US$10.31m
Jerry Fowden (62yo)
Non-Executive Director
- Tenure: 9.4yrs
- Compensation: US$257.43k
James Locke (77yo)
Lead Director
- Tenure: 0yrs
- Compensation: US$257.43k
Dan McCarthy (55yo)
Director
- Tenure: 4.3yrs
- Compensation: US$242.43k
Bill Newlands (60yo)
President
- Tenure: 0.6yrs
- Compensation: US$7.85m
Jennifer Daniels (55yo)
Director
- Tenure: 1.1yrs
- Compensation: US$167.62k
Judy Schmeling (59yo)
Director
- Tenure: 6.7yrs
- Compensation: US$426.89k
Ernesto M. Hernández (61yo)
Director
- Tenure: 5.3yrs
- Compensation: US$242.43k
Susan Johnson (53yo)
Director
- Tenure: 2.3yrs
- Compensation: US$242.43k
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$37.229b
- Shares outstanding: 190.81m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| STZ.B | NYSE (New York Stock Exchange) | Class B Common Stock | US | USD | Feb 1973 | |
| STZ | NYSE (New York Stock Exchange) | Yes | Class A Common Stock | US | USD | Jul 1986 |
| CB1A | DB (Deutsche Boerse AG) | Yes | Class A Common Stock | DE | EUR | Jul 1986 |
| STZ * | BMV (Bolsa Mexicana de Valores) | Yes | Class A Common Stock | MX | MXN | Jul 1986 |
| STZ | SWX (SIX Swiss Exchange) | Yes | Class A Common Stock | CH | CHF | Jul 1986 |
| STZB34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REP 0.25 COM USD0.01 CLASS A | BR | BRL | May 2019 |
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 | 2019/10/21 23:34 |
| End of Day Share Price | 2019/10/21 00:00 |
| Earnings | 2019/08/31 |
| Annual Earnings | 2019/02/28 |
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.