NYSE:STZ

Stock Analysis Report

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Executive Summary

Constellation Brands, Inc., together with its subsidiaries, produces, imports, and markets beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy.


Snowflake 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

STZIndustryMarket
7 Day-3.4%0.9%2.4%
30 Day5.8%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 Year51.4%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

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

NamePositionTenureCompensationOwnership
Robert Sands
Executive Chairman1.25yrsUS$10.31m5.71% $1.9b
William Newlands
President1.25yrsUS$7.85m0.0099% $3.3m
Richard Sands
Executive Vice Chairman of the Board1.25yrsUS$7.98m3.7% $1.2b
Francis Hetterich
Executive VP & President of Beer Division17yrsUS$5.48m0.041% $13.7m
Robert Hanson
Executive VP and President of Wine & Spirits1yrUS$396.83k0.0021% $685.2k
Garth Hankinson
Executive VP & CFO0.42yrno data0.0025% $834.1k
Ricardo Bartra
Senior VP & Chief Technology Officer2yrsno datano data
Patty Yahn-Urlaub
Vice President of Investor Relations13.17yrsno datano data
James Bourdeau
Executive VP5.75yrsno data0.0021% $698.4k
Tiffanie De Liberty
Senior VP1.33yrsno datano 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

NamePositionTenureCompensationOwnership
Robert Sands
Executive Chairman1.25yrsUS$10.31m5.71% $1.9b
William Newlands
President1.25yrsUS$7.85m0.0099% $3.3m
Richard Sands
Executive Vice Chairman of the Board1.25yrsUS$7.98m3.7% $1.2b
Jeremy S. Fowden
Independent Non-Executive Director10.08yrsUS$257.43k0.0091% $3.0m
James Locke
Independent Lead Directorno dataUS$257.43k0.021% $6.8m
Daniel McCarthy
Independent Director4.92yrsUS$242.43k0.0011% $370.7k
Jennifer Daniels
Independent Director1.75yrsUS$167.62k0.00019% $62.9k
Judy Schmeling
Independent Director7.33yrsUS$426.89k0.0020% $652.1k
Ernesto M. Hernández
Independent Director5.92yrsUS$242.43k0.00096% $317.8k
Susan Johnson
Independent Director2.92yrsUS$242.43k0.00048% $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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
STZ.BNYSE (New York Stock Exchange)Class B Common StockUSUSDFeb 1973
STZNYSE (New York Stock Exchange)YesClass A Common StockUSUSDJul 1986
CB1ADB (Deutsche Boerse AG)YesClass A Common StockDEEURJul 1986
STZ *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNJul 1986
STZSWX (SIX Swiss Exchange)YesClass A Common StockCHCHFJul 1986
CB1AETLX (Eurotlx)YesClass A Common StockITEURJul 1986
STZB34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REP 0.25 COM USD0.01 CLASS ABRBRLMay 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/03 02:16
End of Day Share Price2020/06/02 00:00
Earnings2020/02/29
Annual Earnings2020/02/29


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.