| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 3/6 |
| Past Performance | 0/6 |
| Financial Health | 4/6 |
| Dividends | 3/6 |
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
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$217.69 |
| 52 Week High | US$160.63 |
| 52 Week Low | US$244.75 |
| Beta | 1.16 |
| 1 Month Change | 2.39% |
| 3 Month Change | -3.83% |
| 1 Year Change | 24.42% |
| 3 Year Change | 7.37% |
| 5 Year Change | 30.26% |
| Change since IPO | 39,084.17% |
Recent News & Updates
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.
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.
Is It Time To Consider Buying Constellation Brands, Inc. (NYSE:STZ)?
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Constellation Brands (NYSE:STZ) Seems To Use Debt Quite Sensibly
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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
| STZ | US Beverage | US Market | |
|---|---|---|---|
| 7D | 1.0% | 0.4% | 1.9% |
| 1Y | 24.4% | 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
| STZ volatility | |
|---|---|
| STZ Beta | 1.16 |
| Industry Beta | 0.74 |
| Market Beta | 1 |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1945 | 9,300 | Bill Newlands | https://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
| STZ fundamental statistics | |
|---|---|
| Market Cap | US$40.80b |
| Earnings (TTM) | US$757.20m |
| Revenue (TTM) | US$8.79b |
53.9x
P/E Ratio4.6x
P/S RatioIs STZ overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| STZ income statement (TTM) | |
|---|---|
| Revenue | US$8.79b |
| Cost of Revenue | US$4.10b |
| Gross Profit | US$4.69b |
| Expenses | US$3.93b |
| Earnings | US$757.20m |
Last Reported Earnings
Aug 31, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 4.04 |
| Gross Margin | 53.37% |
| Net Profit Margin | 8.62% |
| Debt/Equity Ratio | 91.6% |
How did STZ perform over the long term?
See historical performance and comparisonDividends
1.4%
Current Dividend Yield77%
Payout RatioDoes STZ pay a reliable dividends?
See STZ dividend history and benchmarks| Constellation Brands dividend dates | |
|---|---|
| Ex Dividend Date | Nov 04 2021 |
| Dividend Pay Date | Nov 19 2021 |
| Days until Ex dividend | 9 days |
| Days until Dividend pay date | 24 days |
Does STZ pay a reliable dividends?
See STZ dividend history and benchmarksValuation
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
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/10/25 23:10 |
| End of Day Share Price | 2021/10/25 00:00 |
| Earnings | 2021/08/31 |
| 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.