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Constellation Brands

NYSE:STZ
Snowflake Description

Proven track record and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
STZ
NYSE
$33B
Market Cap
  1. Home
  2. US
  3. Food, Beverage & Tobacco
Company description

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. The last earnings update was 40 days ago. More info.


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STZ Share Price and Events
7 Day Returns
1.2%
NYSE:STZ
1.1%
US Beverage
1.2%
US Market
1 Year Returns
-20.3%
NYSE:STZ
2.4%
US Beverage
0.9%
US Market
STZ Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Constellation Brands (STZ) 1.2% 6.6% -8.3% -20.3% 24.4% 115.7%
US Beverage 1.1% 5.8% -1.1% 2.4% 14.7% 42.3%
US Market 1.2% 6.6% 1.2% 0.9% 44.3% 41.3%
1 Year Return vs Industry and Market
  • STZ underperformed the Beverage industry which returned 2.4% over the past year.
  • STZ underperformed the Market in United States of America which returned 0.9% over the past year.
Price Volatility
STZ
Industry
5yr Volatility vs Market

STZ Value

 Is Constellation Brands undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Constellation Brands to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Constellation Brands.

NYSE:STZ Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 21 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:STZ
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 7.3%
Beverage Unlevered Beta Simply Wall St/ S&P Global 0.58
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.577 (1 + (1- 21%) (40.86%))
0.763
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 7.27%)
8.55%

Discounted Cash Flow Calculation for NYSE:STZ using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Constellation Brands is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:STZ DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 1,241.09 1,462.31 1,863.87 1,947.50 2,170.50
Source Analyst x10 Analyst x8 Analyst x7 Analyst x2 Analyst x2
Present Value
Discounted (@ 8.55%)
1,143.38 1,241.12 1,457.38 1,402.89 1,440.43
Present value of next 5 years cash flows $6,685.19
NYSE:STZ DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $2,170.50 × (1 + 2.73%) ÷ (8.55% – 2.73%)
$38,338.28
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $38,338.28 ÷ (1 + 8.55%)5
$25,442.72
NYSE:STZ Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $6,685.19 + $25,442.72
$32,127.91
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $32,127.91 / 189.86
$169.21
NYSE:STZ Discount to Share Price
Calculation Result
Value per share (USD) From above. $169.21
Current discount Discount to share price of $174.91
= -1 x ($174.91 - $169.21) / $169.21
-3.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Constellation Brands is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Constellation Brands's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Constellation Brands's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:STZ PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-11-30) in USD $16.32
NYSE:STZ Share Price ** NYSE (2019-02-15) in USD $174.91
United States of America Beverage Industry PE Ratio Median Figure of 16 Publicly-Listed Beverage Companies 25.09x
United States of America Market PE Ratio Median Figure of 3,045 Publicly-Listed Companies 16.97x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Constellation Brands.

NYSE:STZ PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:STZ Share Price ÷ EPS (both in USD)

= 174.91 ÷ 16.32

10.72x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Constellation Brands is good value based on earnings compared to the US Beverage industry average.
  • Constellation Brands is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Constellation Brands's expected growth come at a high price?
Raw Data
NYSE:STZ PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.72x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts
-6.6%per year
United States of America Beverage Industry PEG Ratio Median Figure of 11 Publicly-Listed Beverage Companies 2.42x
United States of America Market PEG Ratio Median Figure of 2,115 Publicly-Listed Companies 1.36x

*Line of best fit is calculated by linear regression .

NYSE:STZ PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.72x ÷ -6.6%

-1.62x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Constellation Brands earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Constellation Brands's assets?
Raw Data
NYSE:STZ PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-11-30) in USD $59.29
NYSE:STZ Share Price * NYSE (2019-02-15) in USD $174.91
United States of America Beverage Industry PB Ratio Median Figure of 28 Publicly-Listed Beverage Companies 5.8x
United States of America Market PB Ratio Median Figure of 5,122 Publicly-Listed Companies 1.82x
NYSE:STZ PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:STZ Share Price ÷ Book Value per Share (both in USD)

= 174.91 ÷ 59.29

2.95x

* Primary Listing of Constellation Brands.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Constellation Brands is good value based on assets compared to the US Beverage industry average.
X
Value checks
We assess Constellation Brands's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Beverage industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Beverage industry average (and greater than 0)? (1 check)
  5. Constellation Brands has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

STZ Future Performance

 How is Constellation Brands expected to perform in the next 1 to 3 years based on estimates from 21 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-6.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Constellation Brands expected to grow at an attractive rate?
  • Constellation Brands's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Constellation Brands's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • Constellation Brands's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:STZ Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:STZ Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts -6.6%
NYSE:STZ Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 21 Analysts 5.3%
United States of America Beverage Industry Earnings Growth Rate Market Cap Weighted Average 19%
United States of America Beverage Industry Revenue Growth Rate Market Cap Weighted Average 4.5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:STZ Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:STZ Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-02-28 9,793 1
2022-02-28 9,611 2
2021-02-28 9,022 2,644 2,228 17
2020-02-29 8,535 2,421 1,967 21
2019-02-28 8,068 2,324 2,310 21
NYSE:STZ Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-11-30 8,086 2,437 3,122
2018-08-31 7,915 2,167 3,312
2018-05-31 7,704 2,054 2,664
2018-02-28 7,585 1,931 2,319
2017-11-30 7,446 1,749 1,845
2017-08-31 7,455 1,754 1,758
2017-05-31 7,388 1,732 1,615
2017-02-28 7,332 1,696 1,535
2016-11-30 7,247 1,738 1,327
2016-08-31 7,077 1,656 1,191
2016-05-31 6,789 1,554 1,135
2016-02-29 6,548 1,414 1,055

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Constellation Brands's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Constellation Brands's revenue is expected to grow by 5.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:STZ Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below

All data from Constellation Brands Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:STZ Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-02-28
2022-02-28
2021-02-28 11.39 12.39 10.54 4.00
2020-02-29 10.09 11.24 9.40 8.00
2019-02-28 12.20 13.11 10.35 6.00
NYSE:STZ Past Financials Data
Date (Data in USD Millions) EPS *
2018-11-30 16.32
2018-08-31 17.19
2018-05-31 13.74
2018-02-28 11.90
2017-11-30 9.45
2017-08-31 8.94
2017-05-31 8.16
2017-02-28 7.70
2016-11-30 6.62
2016-08-31 5.98
2016-05-31 5.73
2016-02-29 5.36

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Constellation Brands is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Constellation Brands's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Constellation Brands has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

STZ Past Performance

  How has Constellation Brands performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Constellation Brands's growth in the last year to its industry (Beverage).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Constellation Brands's year on year earnings growth rate has been positive over the past 5 years.
  • Constellation Brands's 1-year earnings growth exceeds its 5-year average (69.2% vs 18.1%)
  • Constellation Brands's earnings growth has exceeded the US Beverage industry average in the past year (69.2% vs 26.9%).
Earnings and Revenue History
Constellation Brands's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Constellation Brands Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:STZ Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-11-30 8,085.50 3,122.40 1,428.80
2018-08-31 7,914.80 3,312.10 1,459.20
2018-05-31 7,703.60 2,664.20 1,439.90
2018-02-28 7,585.00 2,318.90 1,378.10
2017-11-30 7,446.30 1,844.90 1,388.60
2017-08-31 7,454.90 1,758.00 1,316.20
2017-05-31 7,388.20 1,615.30 1,317.40
2017-02-28 7,331.50 1,535.10 1,290.60
2016-11-30 7,246.70 1,326.50 1,291.40
2016-08-31 7,076.70 1,191.10 1,225.60
2016-05-31 6,788.90 1,134.60 1,149.00
2016-02-29 6,548.40 1,054.90 1,124.30
2015-11-30 6,361.40 1,026.10 1,089.60
2015-08-31 6,262.60 977.80 1,067.80
2015-05-31 6,133.30 871.20 1,072.70
2015-02-28 6,028.00 839.30 1,045.40
2014-11-30 5,963.00 781.90 1,020.40
2014-08-31 5,864.60 770.70 997.60
2014-05-31 5,720.30 2,096.90 952.20
2014-02-28 4,867.70 1,943.10 843.00
2013-11-30 4,272.40 1,867.60 761.20
2013-08-31 3,596.00 1,766.10 664.40
2013-05-31 2,834.70 368.70 577.40
2013-02-28 2,796.10 387.80 555.90
2012-11-30 2,728.30 409.10 546.70
2012-08-31 2,662.10 404.40 537.10
2012-05-31 2,653.80 442.50 521.40
2012-02-29 2,654.30 445.00 523.30

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Constellation Brands has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • Constellation Brands used its assets more efficiently than the US Beverage industry average last year based on Return on Assets.
  • Constellation Brands's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Constellation Brands's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Beverage industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Constellation Brands has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

STZ Health

 How is Constellation Brands's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Constellation Brands's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Constellation Brands is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Constellation Brands's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Constellation Brands's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Constellation Brands Company Filings, last reported 2 months ago.

NYSE:STZ Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-11-30 11,520.00 13,569.60 130.60
2018-08-31 11,535.20 9,923.60 208.80
2018-05-31 10,565.80 10,107.00 210.00
2018-02-28 8,062.70 10,186.70 90.30
2017-11-30 8,009.10 9,350.20 154.50
2017-08-31 7,945.30 8,947.40 126.30
2017-05-31 7,397.80 9,211.60 199.60
2017-02-28 6,884.80 9,238.40 177.70
2016-11-30 6,997.70 8,632.20 197.30
2016-08-31 7,174.10 8,033.50 177.70
2016-05-31 6,988.60 8,315.40 168.10
2016-02-29 6,691.80 8,088.80 83.80
2015-11-30 6,596.70 7,416.60 493.50
2015-08-31 6,165.00 7,441.30 332.70
2015-05-31 6,051.90 7,338.60 134.00
2015-02-28 5,881.30 7,319.70 113.40
2014-11-30 5,635.00 7,326.40 71.40
2014-08-31 5,487.40 7,201.70 108.40
2014-05-31 5,287.00 7,208.50 382.40
2014-02-28 4,981.30 7,053.40 67.40
2013-11-30 4,789.80 7,175.70 69.60
2013-08-31 4,510.40 7,339.70 120.90
2013-05-31 2,997.40 5,114.50 613.30
2013-02-28 2,860.30 3,352.50 334.80
2012-11-30 2,775.30 4,051.30 204.30
2012-08-31 2,618.10 4,045.20 182.00
2012-05-31 2,299.80 3,470.50 71.40
2012-02-29 2,676.00 3,175.20 85.80
  • Constellation Brands's level of debt (117.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (149.7% vs 117.8% today).
  • Debt is not well covered by operating cash flow (18%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 7.9x coverage).
X
Financial health checks
We assess Constellation Brands's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Constellation Brands has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

STZ Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.69%
Current annual income from Constellation Brands dividends. Estimated to be 1.8% next year.
If you bought $2,000 of Constellation Brands shares you are expected to receive $34 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Constellation Brands's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).
  • Constellation Brands's dividend is below the markets top 25% of dividend payers in United States of America (3.59%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:STZ Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below
United States of America Beverage Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 2.9%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1998 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:STZ Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-02-28
2022-02-28 4.16 1.00
2021-02-28 3.44 12.00
2020-02-29 3.12 18.00
2019-02-28 2.92 17.00
NYSE:STZ Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-01-09 2.960 1.767
2018-10-04 2.960 1.536
2018-06-29 2.960 1.391
2018-04-23 2.960 1.314
2018-03-29 2.960 1.301
2018-01-05 2.080 0.946
2017-10-05 2.080 0.957
2017-06-29 2.080 1.051
2017-04-27 2.080 1.151
2017-04-06 2.080 1.214
2016-10-05 1.600 1.018
2016-04-06 1.600 0.994
2015-10-07 1.240 0.876
2015-04-09 1.240 1.024

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Constellation Brands has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Constellation Brands only paid a dividend in the past 4 years.
Current Payout to shareholders
What portion of Constellation Brands's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.2x coverage).
X
Income/ dividend checks
We assess Constellation Brands's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Constellation Brands afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Constellation Brands has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

STZ Management

 What is the CEO of Constellation Brands's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Rob Sands
COMPENSATION $10,843,537
AGE 59
TENURE AS CEO 11.6 years
CEO Bio

Mr. Robert S. Sands II, also known as Rob, has been the Chief Executive Officer of Constellation Brands, Inc. since July 2007 and also served as President from December 2002 to February 2018. Mr. Sands is responsible for Constellation Brands two divisions, Constellation Wines, Constellation Beers and Spirits. He is Co-Owner at RRA&Z Holdings LLC. He served as the President of Constellation Beers Ltd. He served as the Chief Operating Officer of Constellation Brands, Inc. from December 2002 to July 2007; as Group President from April 2000 through December 2002; as Chief Executive Officer, International from December 1998 through April 2000. He joined Constellation Brands in June 1986 as General Counsel and was responsible for the legal affairs of Constellation Brands in particular its acquisitions. Mr. Sands served as an Executive Vice President from October 1993 to April 2000 and General Counsel from June 1986 to May 2000 at Constellation Brands, Inc. and served as its Vice President from June 1990 to October 1993. In 1998, upon acquisition of Constellation Brands U.K. division that Mr. Sands spearheaded, he was appointed to the role of Chief Executive Officer of Constellation International, with responsibility for oversight of this division from December 1998 to April 2000. From 2000 to 2002, he served as Group President of Canandaigua Wine Company and the U.K. Division. He serves as a Director of Nobilo Holdings. He has over 30 years of experience in a variety of legal, operational, and management roles. He has been a Director of Constellation Brands, Inc. since January 1990. He served as a Member of Upstate New York Regional Advisory Board of The Federal Reserve Bank of New York since December 2008. Mr. Sands received a Bachelor’s Degree, Phi Beta Kappa from Skidmore College in 1981 and holds a Juris Doctorate from Pace University School of Law in 1984.

CEO Compensation
  • Rob's compensation has been consistent with company performance over the past year.
  • Rob's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Constellation Brands management team in years:

4.4
Average Tenure
57
Average Age
  • The tenure for the Constellation Brands management team is about average.
Management Team

Rob Sands

TITLE
CEO & Director
COMPENSATION
$11M
AGE
59
TENURE
11.6 yrs

Bill Newlands

TITLE
President & COO
COMPENSATION
$4M
AGE
59
TENURE
1 yrs

David Klein

TITLE
Executive VP & CFO
COMPENSATION
$4M
AGE
54
TENURE
3.7 yrs

Ricardo Bartra

TITLE
Senior VP & Chief Technology Officer
TENURE
0.7 yrs

Patty Yahn-Urlaub

TITLE
Vice President of Investor Relations
TENURE
11.8 yrs

James Bourdeau

TITLE
Executive VP
AGE
53
TENURE
4.4 yrs

Mike McGrew

TITLE
Senior Vice President of Corporate Communications

Andrey Grumondz

TITLE
Sales Director
TENURE
10.4 yrs

Jim Sabia

TITLE
Executive VP & Chief Marketing Officer
TENURE
0.8 yrs

Tom Kane

TITLE
Executive VP & Chief Human Resources Officer
AGE
57
TENURE
5.8 yrs
Board of Directors Tenure

Average tenure and age of the Constellation Brands board of directors in years:

7.6
Average Tenure
60.5
Average Age
  • The tenure for the Constellation Brands board of directors is about average.
Board of Directors

Richard Sands

TITLE
Chairman of the Board
COMPENSATION
$9M
AGE
67
TENURE
19.4 yrs

Rob Sands

TITLE
CEO & Director
COMPENSATION
$11M
AGE
59
TENURE
29.1 yrs

James Locke

TITLE
Lead Director
COMPENSATION
$260K
AGE
76

Jerry Fowden

TITLE
Director
COMPENSATION
$264K
AGE
61
TENURE
8.8 yrs

Judy Schmeling

TITLE
Director
COMPENSATION
$257K
AGE
58
TENURE
6 yrs

Barry Fromberg

TITLE
Director
COMPENSATION
$258K
AGE
63
TENURE
12.8 yrs

Keith Wandell

TITLE
Director
COMPENSATION
$245K
AGE
68
TENURE
7.6 yrs

Robert Hanson

TITLE
Director
COMPENSATION
$245K
AGE
55
TENURE
6 yrs

Ernesto Hernandez

TITLE
Director
COMPENSATION
$249K
AGE
60
TENURE
4.6 yrs

Dan McCarthy

TITLE
Director
COMPENSATION
$245K
AGE
54
TENURE
3.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
23. Oct 18 Sell Thomas Kane Individual 19. Oct 18 19. Oct 18 -4,419 $223.83 $-989,106
26. Apr 18 Sell Christopher Stenzel Individual 25. Apr 18 25. Apr 18 -7,971 $225.50 $-1,797,430
X
Management checks
We assess Constellation Brands's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Constellation Brands has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

STZ News

Simply Wall St News

Estimating The Fair Value Of Constellation Brands, Inc. (NYSE:STZ)

I am going to run you through how I calculated the intrinsic value of Constellation Brands, Inc. … by projecting its future cash flows and then discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model.

Simply Wall St -

Does Constellation Brands, Inc.'s (NYSE:STZ) Debt Level Pose A Problem?

Investors seeking to preserve capital in a volatile environment might consider large-cap stocks such as Constellation Brands, Inc. … Today we will look at Constellation Brands’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … View our latest analysis for Constellation Brands

Simply Wall St -

Why Constellation Brands, Inc. (NYSE:STZ) Could Have A Place In Your Portfolio

(NYSE:STZ) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … Below, I've touched on some key aspects you should know on a high level

Simply Wall St -

Did Constellation Brands, Inc. (NYSE:STZ) Insiders Sell Shares?

So we'll take a look at whether insiders have been buying or selling shares in Constellation Brands, Inc. … Constellation Brands Insider Transactions Over The Last Year. … All up, insiders sold more shares in Constellation Brands than they bought, over the last year

Simply Wall St -

Should Constellation Brands Inc (NYSE:STZ) Be Part Of Your Dividend Portfolio?

Constellation Brands Inc (NYSE:STZ) has paid a dividend to shareholders in the last few years. … Does Constellation Brands tick all the boxes of a great dividend stock? … Check out our latest analysis for Constellation Brands

Simply Wall St -

Is Constellation Brands Inc's (NYSE:STZ) CEO Salary Justified?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. … How Does Rob Sands's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that Constellation Brands Inc has a market cap of US$37b, and is paying total annual CEO compensation of US$11m

Simply Wall St -

Estimating The Intrinsic Value Of Constellation Brands Inc (NYSE:STZ)

by estimating the company's future cash flows and discounting them to their present value. … discounted cash flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

Constellation Brands Inc (NYSE:STZ): Time For A Financial Health Check

Investors pursuing a solid, dependable stock investment can often be led to Constellation Brands Inc (NYSE:STZ), a large-cap worth US$43.0b. … I will provide an overview of Constellation Brands’s financial liquidity and leverage to give you an idea of Constellation Brands’s position to take advantage of potential acquisitions or comfortably endure future downturns. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis

Simply Wall St -

Should Constellation Brands Inc's (NYSE:STZ) Recent Earnings Worry You?

After reading Constellation Brands Inc's (NYSE:STZ) most recent earnings announcement (31 May 2018), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. … As a long-term investor I tend to focus on earnings trend, rather than a single number at one point in time. … STZ's trailing twelve-month earnings (from 31 May 2018) of US$2.66b has

Simply Wall St -

Should You Be Tempted To Buy Constellation Brands Inc (NYSE:STZ) At Its Current PE Ratio?

This analysis is intended to introduce important early concepts to people who are starting to invest. … and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … View our latest analysis for Constellation Brands

Simply Wall St -

STZ Company Info

Map
Description

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. The company sells wine across various categories, including table wine, sparkling wine, and dessert wine. It provides beer primarily under the Corona Extra, Corona Light, Modelo Especial, Modelo Negra, Modelo Chelada, Pacifico, and Victoria brands, as well as Funky Buddha, Obregon Brewery, and Ballast Point brands. The company offers wine under the 7 Moons, Black Box, Clos du Bois, Estancia, Mount Veeder, The Dreaming Tree, Franciscan Estate, Nobilo, The Prisoner, Kim Crawford, Ravage, The Velvet Devil, Kung Fu Girl, Mark West, Meiomi, Robert Mondavi, Ruffino, and Simi brands, as well as Schrader Cellars and Charles Smith brands; and spirits under the Casa Noble, High West, SVEDKA Vodka, Black Velvet Canadian Whisky, Casa Noble Tequila, and High West Whiskey brands. It provides its products to wholesale distributors, retailers, on-premise locations, and state alcohol beverage control agencies. The company was founded in 1945 and is headquartered in Victor, New York.

Details
Name: Constellation Brands, Inc.
STZ
Exchange: NYSE
Founded: 1945
$33,209,237,825
189,864,718
Website: http://www.cbrands.com
Address: Constellation Brands, Inc.
Building 100,
207 High Point Drive,
Victor,
New York, 14564,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE STZ Class A Common Stock New York Stock Exchange US USD 01. Jul 1986
DB CB1A Class A Common Stock Deutsche Boerse AG DE EUR 01. Jul 1986
LSE 0REP Class A Common Stock London Stock Exchange GB CHF 01. Jul 1986
SWX STZ Class A Common Stock SIX Swiss Exchange CH CHF 01. Jul 1986
BMV STZ * Class A Common Stock Bolsa Mexicana de Valores MX MXN 01. Jul 1986
NYSE STZ.B Class B Common Stock New York Stock Exchange US USD 28. Feb 1973
Number of employees
Current staff
Staff numbers
9,600
Constellation Brands employees.
Industry
Distillers and Vintners
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/02/18 01:21
End of day share price update: 2019/02/15 00:00
Last estimates confirmation: 2019/02/15
Last earnings filing: 2019/01/09
Last earnings reported: 2018/11/30
Last annual earnings reported: 2018/02/28


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.