Constellation Brands
Market Cap
US$33.1b
Last Updated
2020/06/03 02:16 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.
Rewards
Risk Analysis
Snowflake Analysis
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
Stable Share Price: STZ's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-3.4%
STZ
0.9%
US Beverage
2.4%
US Market
1 Year Return
-7.4%
STZ
-2.3%
US Beverage
9.2%
US Market
Return vs Industry: STZ underperformed the US Beverage industry which returned -1.7% over the past year.
Return vs Market: STZ underperformed the US Market which returned 8.5% over the past year.
Shareholder returns
| STZ | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.4% | 0.9% | 2.4% |
| 30 Day | 5.8% | 5.1% | 10.2% |
| 90 Day | -5.2% | -5.7% | 3.4% |
| 1 Year | -5.9%-7.4% | 0.3%-2.3% | 11.6%9.2% |
| 3 Year | -2.1%-6.1% | 17.8%8.6% | 33.7%24.9% |
| 5 Year | 51.4%42.3% | 46.9%28.9% | 59.7%41.8% |
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
2 weeks ago | Simply Wall St
Are Investors Undervaluing Constellation Brands, Inc. (NYSE:STZ) By 44%?1 month ago | Simply Wall St
Can You Imagine How Constellation Brands' (NYSE:STZ) Shareholders Feel About The 47% Share Price Increase?1 month ago | Simply Wall St
Is Constellation Brands, Inc. (NYSE:STZ) A Good Fit For Your Dividend Portfolio?Valuation
Is Constellation Brands undervalued compared to its fair value and its price relative to the market?
38.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: STZ ($173.23) is trading below our estimate of fair value ($283.01)
Significantly Below Fair Value: STZ is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: STZ is unprofitable, so we can't compare its PE Ratio to the Beverage industry average.
PE vs Market: STZ is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate STZ's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: STZ is good value based on its PB Ratio (2.7x) compared to the US Beverage industry average (3.1x).
Next Steps
Future Growth
How is Constellation Brands forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
88.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: STZ is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).
Earnings vs Market: STZ is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: STZ's is expected to become profitable in the next 3 years.
Revenue vs Market: STZ's revenue (1% per year) is forecast to grow slower than the US market (8.9% per year).
High Growth Revenue: STZ's revenue (1% 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%).
Next Steps
Past Performance
How has Constellation Brands performed over the past 5 years?
12.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: STZ is currently unprofitable.
Growing Profit Margin: STZ is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: STZ is unprofitable, but has reduced losses over the past 5 years at a rate of 12.1% per year.
Accelerating Growth: Unable to compare STZ's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: STZ is unprofitable, making it difficult to compare its past year earnings growth to the Beverage industry (7.9%).
Return on Equity
High ROE: STZ has a negative Return on Equity (0.17%), as it is currently unprofitable.
Next Steps
Financial Health
How is Constellation Brands's financial position?
Financial Position Analysis
Short Term Liabilities: STZ's short term assets ($3.5B) exceed its short term liabilities ($2.3B).
Long Term Liabilities: STZ's short term assets ($3.5B) do not cover its long term liabilities ($12.5B).
Debt to Equity History and Analysis
Debt Level: STZ's debt to equity ratio (97.5%) is considered high.
Reducing Debt: STZ's debt to equity ratio has reduced from 124.4% to 97.5% over the past 5 years.
Debt Coverage: STZ's debt is well covered by operating cash flow (21%).
Interest Coverage: STZ is unprofitable, therefore interest payments are not well covered by earnings.
Balance Sheet
Next Steps
Dividend
What is Constellation Brands's current dividend yield, its reliability and sustainability?
1.73%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: STZ's dividend (1.73%) is higher than the bottom 25% of dividend payers in the US market (1.67%).
High Dividend: STZ's dividend (1.73%) is low compared to the top 25% of dividend payers in the US market (4.48%).
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 5 years.
Current Payout to Shareholders
Dividend Coverage: STZ is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: STZ's dividends in 3 years are forecast to be well covered by earnings (30.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.3yrs
Average management tenure
CEO
Bill Newlands (60yo)
1.25yrs
Tenure
US$7,854,942
Compensation
Mr. William A. Newlands, also known as Bill, has been the President of Constellation Brands, Inc. since February 12, 2018 and has been its Chief Executive Officer and Director since March 1, 2019. Mr. Newl ...
CEO Compensation Analysis
Compensation vs Market: Bill's total compensation ($USD7.85M) is below average for companies of similar size in the US market ($USD11.58M).
Compensation vs Earnings: Bill's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 1.25yrs | US$10.31m | 5.71% $1.9b | |
| President | 1.25yrs | US$7.85m | 0.0099% $3.3m | |
| Executive Vice Chairman of the Board | 1.25yrs | US$7.98m | 3.7% $1.2b | |
| Executive VP & President of Beer Division | 17yrs | US$5.48m | 0.041% $13.7m | |
| Executive VP and President of Wine & Spirits | 1yr | US$396.83k | 0.0021% $685.2k | |
| Executive VP & CFO | 0.42yr | no data | 0.0025% $834.1k | |
| Senior VP & Chief Technology Officer | 2yrs | no data | no data | |
| Vice President of Investor Relations | 13.17yrs | no data | no data | |
| Executive VP | 5.75yrs | no data | 0.0021% $698.4k | |
| Senior VP | 1.33yrs | no data | no data |
1.3yrs
Average Tenure
56yo
Average Age
Experienced Management: STZ's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 1.25yrs | US$10.31m | 5.71% $1.9b | |
| President | 1.25yrs | US$7.85m | 0.0099% $3.3m | |
| Executive Vice Chairman of the Board | 1.25yrs | US$7.98m | 3.7% $1.2b | |
| Independent Non-Executive Director | 10.08yrs | US$257.43k | 0.0091% $3.0m | |
| Independent Lead Director | no data | US$257.43k | 0.021% $6.8m | |
| Independent Director | 4.92yrs | US$242.43k | 0.0011% $370.7k | |
| Independent Director | 1.75yrs | US$167.62k | 0.00019% $62.9k | |
| Independent Director | 7.33yrs | US$426.89k | 0.0020% $652.1k | |
| Independent Director | 5.92yrs | US$242.43k | 0.00096% $317.8k | |
| Independent Director | 2.92yrs | US$242.43k | 0.00048% $158.9k |
2.9yrs
Average Tenure
60yo
Average Age
Experienced Board: STZ's board of directors are not considered experienced ( 2.9 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$33.101b
- Shares outstanding: 191.15m
- 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 |
| CB1A | ETLX (Eurotlx) | Yes | Class A Common Stock | IT | EUR | 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 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, Drylands, SIMI, Charles Smith, Auros, Kim Crawford, Spoken Barrel, Prisoner, Champagne Palmer & Co, Meiomi, Robert Mondavi, Cooper & Thief, Mount Veeder, Schrader, Crafters Union, Nobilo, Cuvée Sauvage, and Ruffino; and spirits under the Casa Noble, High West, Mi CAMPO, Nelson’s Green Brier, SVEDKA, The Real McCoy 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/06/03 02:16 |
| End of Day Share Price | 2020/06/02 00:00 |
| Earnings | 2020/02/29 |
| Annual Earnings | 2020/02/29 |
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.