Constellation Brands
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 15 days ago. More info.
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STZ Share Price and Events
7 Day Returns
1 Year Returns
STZ Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Constellation Brands (STZ) | 4.3% | 20.8% | 21.1% | -12.6% | 28.4% | 151.5% |
| US Beverage | 1.7% | 4.3% | 5.2% | 5% | 6.7% | 12.2% |
| US Market | 0.2% | 2.1% | 8.5% | 6.3% | 37.9% | 45.7% |
1 Year Return vs Industry and Market
- STZ underperformed the Beverage industry which returned 5% over the past year.
- STZ underperformed the Market in United States of America which returned 6.3% over the past year.
STZ Value
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.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Constellation Brands.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 17 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 7.8% |
| 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.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Beverage Unlevered Beta | Simply Wall St/ S&P Global | 0.61 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.606 (1 + (1- 21%) (36.27%)) |
0.853 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
0.85 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.853 * 5.96%) |
7.81% |
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 try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 7.81%) |
|
|---|---|---|---|
| 2019 | 1,260.00 | Analyst x11 | 1,168.71 |
| 2020 | 1,312.03 | Analyst x7 | 1,128.80 |
| 2021 | 1,709.49 | Analyst x7 | 1,364.19 |
| 2022 | 1,930.05 | Analyst x4 | 1,428.61 |
| 2023 | 2,109.72 | Est @ 9.31% | 1,448.46 |
| 2024 | 2,264.47 | Est @ 7.34% | 1,442.06 |
| 2025 | 2,399.29 | Est @ 5.95% | 1,417.22 |
| 2026 | 2,518.93 | Est @ 4.99% | 1,380.09 |
| 2027 | 2,627.49 | Est @ 4.31% | 1,335.26 |
| 2028 | 2,728.27 | Est @ 3.84% | 1,286.03 |
| Present value of next 10 years cash flows | $13,399.43 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $2,728.27 × (1 + 2.73%) ÷ (7.81% – 2.73%) |
$55,159.70 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $55,159.70 ÷ (1 + 7.81%)10 |
$26,000.67 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $13,399.43 + $26,000.67 |
$39,400.10 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $39,400.10 / 189.86 |
$207.52 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $207.52 |
| Current discount | Discount to share price of
$198.80
= -1 x ($198.80 - $207.52) / $207.52 |
4.2% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- Constellation Brands's share price is below the future cash flow value, but not at a moderate discount (< 20%).
- Constellation Brands's share price is below the future cash flow value, but not at a substantial discount (< 40%).
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?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-02-28) in USD | $18.03 |
| NYSE:STZ Share Price ** | NYSE (2019-04-18) in USD | $198.8 |
| United States of America Beverage Industry PE Ratio | Median Figure of 16 Publicly-Listed Beverage Companies | 30.61x |
| United States of America Market PE Ratio | Median Figure of 3,081 Publicly-Listed Companies | 18.15x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Constellation Brands.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:STZ Share Price ÷ EPS (both in USD) = 198.8 ÷ 18.03 |
11.03x |
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?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 11.03x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts |
-18.6%per year |
| United States of America Beverage Industry PEG Ratio | Median Figure of 12 Publicly-Listed Beverage Companies | 3.1x |
| United States of America Market PEG Ratio | Median Figure of 2,109 Publicly-Listed Companies | 1.57x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 11.03x ÷ -18.6% |
-0.59x |
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?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-02-28) in USD | $65.81 |
| NYSE:STZ Share Price * | NYSE (2019-04-18) in USD | $198.8 |
| United States of America Beverage Industry PB Ratio | Median Figure of 28 Publicly-Listed Beverage Companies | 6.99x |
| United States of America Market PB Ratio | Median Figure of 5,178 Publicly-Listed Companies | 1.91x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:STZ Share Price ÷ Book Value per Share (both in USD) = 198.8 ÷ 65.81 |
3.02x |
* 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.
Value checks
We assess Constellation Brands's value by looking at:- 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. )
- Is the PE ratio less than the market average, and/ or less than the Beverage industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Beverage industry average (and greater than 0)? (1 check) 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
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!
Earnings growth vs Low Risk Savings
- 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
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:STZ Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts | -18.6% |
| NYSE:STZ Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 17 Analysts | 2.3% |
| United States of America Beverage Industry Earnings Growth Rate | Market Cap Weighted Average | 7.5% |
| United States of America Beverage Industry Revenue Growth Rate | Market Cap Weighted Average | 4.7% |
| 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% |
*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
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 17 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2024-02-29 | 9,238 | 1 | ||
| 2023-02-28 | 9,109 | 2,939 | 2 | |
| 2022-02-28 | 8,673 | 2,674 | 2,185 | 9 |
| 2021-02-28 | 8,076 | 2,394 | 1,886 | 17 |
| 2020-02-29 | 7,748 | 2,191 | 1,665 | 17 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2019-02-28 | 8,116 | 2,246 | 3,436 |
| 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 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 17 Analyst Estimates (S&P Global) | See Below |
All data from Constellation Brands Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2024-02-29 | ||||
| 2023-02-28 | ||||
| 2022-02-28 | 11.58 | 11.99 | 11.17 | 2.00 |
| 2021-02-28 | 9.84 | 10.09 | 9.34 | 6.00 |
| 2020-02-29 | 8.55 | 8.79 | 8.29 | 6.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2019-02-28 | 18.03 |
| 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 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Constellation Brands's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
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
Past Earnings growth analysis
- Constellation Brands has delivered over 20% year on year earnings growth in the past 5 years.
- Constellation Brands's 1-year earnings growth exceeds its 5-year average (48.2% vs 23.7%)
- Constellation Brands's earnings growth has exceeded the US Beverage industry average in the past year (48.2% vs 4.5%).
Earnings and Revenue History
All data from Constellation Brands Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2019-02-28 | 8,116.00 | 3,435.90 | 1,494.00 | |
| 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 |
*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).
Past performance checks
We assess Constellation Brands's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Beverage industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
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.
- 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
Assets
Liabilities and shares
- 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.
All data from Constellation Brands Company Filings, last reported 1 month ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2019-02-28 | 12,837.20 | 13,616.50 | 93.60 |
| 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 |
- Constellation Brands's level of debt (106.1%) 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 (141.5% vs 106.1% today).
- Debt is not well covered by operating cash flow (16.5%, less than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 7.1x coverage).
Financial health checks
We assess Constellation Brands's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Constellation Brands has a total score of 3/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- 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
If you bought
$2,000 of
Constellation Brands
shares you are expected to receive
$30
in your first year as a dividend.
Dividend Amount
- Constellation Brands's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.4%).
- Constellation Brands's dividend is below the markets top 25% of dividend payers in United States of America (3.62%).
Upcoming dividend payment
Purchase Constellation Brands before the 'Buy Limit' to receive their next dividend payment.
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.
| 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 17 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 2009 Stocks | 2.4% |
| 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.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2024-02-29 | ||
| 2023-02-28 | ||
| 2022-02-28 | 3.40 | 9.00 |
| 2021-02-28 | 3.20 | 18.00 |
| 2020-02-29 | 3.00 | 17.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-04-04 | 3.000 | 1.563 |
| 2019-01-09 | 2.960 | 1.749 |
| 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.
Income/ dividend checks
We assess Constellation Brands's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- 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) 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
CEO
| COMPENSATION | $3,763,359 |
| AGE | 59 |
| TENURE AS CEO | 0.1 years |
CEO Bio
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. Newlands has been the Director at Canopy Growth Corporation since November, 2018. He served as Chief Operating Officer of Constellation Brands, Inc. since January 30, 2017 until March 1, 2019 and served as its Executive Vice President since January 2015 until September 16, 2017. Mr. Newlands has been the President of Wine & Spirits Division at Constellation Brands, Inc. since January 26, 2016. He served as Chief Growth Officer of Constellation Brands, Inc. from January 26, 2015 to April 9, 2016. He served as the President of Wine & Spirits Division at Constellation Brands, Inc. He has 30 years of leadership experience with well-respected companies including LVMH and E. & J. Gallo Winery. He served as Senior Vice President and President of North America at Beam, Inc. from October 2011 to May 31, 2014. Mr. Newlands served as the President of North America at Beam Global Spirits & Wine, Inc. since December 2010. He served as the President of Beam Global Spirits & Wine USA of Beam Global Spirits & Wine, Inc. since February 2008. He was a Member of the Beam Global Spirits & Wine, Inc.’s executive leadership team. He was responsible for growing the Beam Global Spirits & Wine, Inc.’s brands and commercial sales and oversaw marketing, commercial activation, sales training and distributor strategies in the United States. He served as the President of U S Commercial Development of Beam Global Spirits & Wine Inc. He served as Senior Vice President of U.S. Commercial Development for Beam Global Spirits & Wine Inc. and Beam, Inc. since February 2008. Mr. Newlands served as the President of U S business of Beam Global Spirits & Wine Inc. He leads a top-five super-premium U.S. wine company with sales approaching three million cases annually and premier brands such as Clos du Bois, the #2 super-premium U.S. wine brand, Geyser Peak, Wild Horse, Buena Vista, William Hill and Gary Farrell. He served as the President of Beam Spirits U.S. from 2008 to 2010. He served as Senior Vice President of Beam Global Spirits & Wine Inc. He served as President of Beam Wine Estates, Inc. of Beam Global Spirits & Wine Inc. since July 2005 until 2007 and also served as its Chief Executive Officer. He was responsible for U.S. regional marketing, commercial activation and the sales training function while working closely and collaborating with Future Brands and distributor partners at Beam Global Spirits & Wine Inc. He served as the President and Chief Executive Officer of Allied Domecq Wines, USA from 2002 to 2005. Mr. Newlands served as the President, Chief Executive Officer and Director at Wine.com from 1999 to 2001 and North American Still and Sparkling Wine Group of Louis Vuitton Moet Hennessy's. He served as Vice President of Marketing of Ernest & Julio Gallo. He served as Marketing Advisor for Louis Vuitton Moet Hennessy's sister properties in Argentina, Spain, Portugal, Brazil and Australia, helping to create uniform positioning for Chandon globally. He served as Managing Director of U.S. and Global Marketing Officer of LVMH Chandon Estates from 1996 to 1999. Mr. Newlands has an MBA from Harvard Business School and graduated from the Wharton School of the University of Pennsylvania with a B.S. in Marketing and Human Relations.
CEO Compensation
- Insufficient data for Bill to compare compensation growth.
- Bill's remuneration is lower than 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:
- The average tenure for the Constellation Brands management team is less than 2 years, this suggests a new team.
Management Team
Rob Sands
Executive Chairman
$11M
59
0.1 yrs
Bill Newlands
President
$4M
59
0.1 yrs
Richard Sands
Executive Vice Chairman of the Board
$9M
67
David Klein
Executive VP & CFO
$4M
54
3.8 yrs
Ricardo Bartra
Senior VP & Chief Technology Officer
0.8 yrs
Patty Yahn-Urlaub
Vice President of Investor Relations
12 yrs
James Bourdeau
Executive VP
53
4.6 yrs
Tiffanie De Liberty
Senior VP
0.2 yrs
Mike McGrew
Senior Vice President of Corporate Communications
0.2 yrs
Andrey Grumondz
Sales Director
10.6 yrs
Board of Directors Tenure
Average tenure and age of the Constellation Brands board of directors in years:
- The tenure for the Constellation Brands board of directors is about average.
Board of Directors
Rob Sands
Executive Chairman
$11M
59
0.1 yrs
Bill Newlands
President
$4M
59
0.1 yrs
Richard Sands
Executive Vice Chairman of the Board
$9M
67
0.1 yrs
James Locke
Lead Director
$260K
76
Jerry Fowden
Director
$264K
61
8.9 yrs
Judy Schmeling
Director
$257K
58
6.2 yrs
Barry Fromberg
Director
$258K
63
13 yrs
Keith Wandell
Director
$245K
68
7.8 yrs
Robert Hanson
Director
$245K
55
6.2 yrs
Ernesto Hernandez
Director
$249K
60
4.8 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 08. Apr 19 | Sell | Thomas Kane | Individual | 05. Apr 19 | 05. Apr 19 | -3,071 | $190.08 | $-583,743 | ||
| 19. Feb 19 | Sell | Barry Fromberg | Individual | 15. Feb 19 | 15. Feb 19 | -1,500 | $174.72 | $-262,076 | ||
| 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 | ||
Management checks
We assess Constellation Brands's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) 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
Should You Buy Constellation Brands, Inc. (NYSE:STZ) For Its Dividend?
A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … (NYSE:STZ) has paid a dividend to shareholders in the last few years. … Let's dig deeper into whether Constellation Brands should have a place in your portfolio.
Simply Wall St - – Full articleDid Constellation Brands, Inc. (NYSE:STZ) Insiders Sell Shares?
So shareholders might well want to know whether insiders have been buying or selling shares in Constellation Brands, Inc. … In the last twelve months, the biggest single sale by an insider was when Christopher Stenzel sold US$1.8m worth of shares at a price of US$225 per share. … Although we don't gain confidence from insider selling, we note that this large sale was at well above current price of US$173.
Simply Wall St - – Full articleIntroducing Constellation Brands (NYSE:STZ), The Stock That Zoomed 101% In The Last Five Years
So while it's never fun to see a share price fall, it's important to look at a longer time horizon. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During five years of share price growth, Constellation Brands achieved compound earnings per share (EPS) growth of 10% per year.
Simply Wall St - – Full articleRead This Before You Buy Constellation Brands, Inc. (NYSE:STZ) Because Of Its P/E Ratio
To keep it practical, we'll show how Constellation Brands, Inc.'s (NYSE:STZ) P/E ratio could help you assess the value on offer. … How Do I Calculate Constellation Brands's Price To Earnings Ratio … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleEstimating 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 - – Full articleDoes 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 - – Full articleWhy 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 - – Full articleDid 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 - – Full articleShould 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 - – Full articleIs 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 - – Full articleSTZ Company Info
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 |
| $37,544,816,095 | |
| 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
Industry
| Distillers and Vintners | |
| Food, Beverage & Tobacco |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/04/19 23:34 |
| End of day share price update: | 2019/04/18 00:00 |
| Last estimates confirmation: | 2019/04/18 |
| Last earnings filing: | 2019/04/04 |
| Last earnings reported: | 2019/02/28 |
| Last annual earnings reported: | 2019/02/28 |
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.
