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Market Cap

US$43.3b

Last Updated

2021/04/11 22:03 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. More Details


Snowflake Analysis

Good value with adequate balance sheet.


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: STZ's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-2.4%

STZ

1.3%

US Beverage

2.1%

US Market


1 Year Return

34.8%

STZ

17.0%

US Beverage

56.3%

US Market

Return vs Industry: STZ exceeded the US Beverage industry which returned 17% over the past year.

Return vs Market: STZ underperformed the US Market which returned 56.3% over the past year.


Shareholder returns

STZIndustryMarket
7 Day-2.4%1.3%2.1%
30 Day-2.3%4.8%2.4%
90 Day-1.2%1.8%6.1%
1 Year37.1%34.8%20.1%17.0%59.1%56.3%
3 Year4.9%0.1%35.0%24.7%65.7%55.1%
5 Year52.9%43.0%50.3%31.2%122.3%97.6%

Long-Term 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?

10.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: STZ ($224.15) is trading below our estimate of fair value ($251.11)

Significantly Below Fair Value: STZ is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: STZ is good value based on its PE Ratio (19.1x) compared to the US Beverage industry average (28.6x).

PE vs Market: STZ is good value based on its PE Ratio (19.1x) compared to the US market (22.3x).


Price to Earnings Growth Ratio

PEG Ratio: STZ is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: STZ is good value based on its PB Ratio (2.8x) compared to the US Beverage industry average (6.7x).


Future Growth

How is Constellation Brands forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

5.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STZ's forecast earnings growth (5.3% per year) is above the savings rate (2%).

Earnings vs Market: STZ's earnings (5.3% per year) are forecast to grow slower than the US market (18.6% per year).

High Growth Earnings: STZ's earnings are forecast to grow, but not significantly.

Revenue vs Market: STZ's revenue (3.8% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: STZ's revenue (3.8% 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 (16.6%).


Past Performance

How has Constellation Brands performed over the past 5 years?

-1.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STZ has high quality earnings.

Growing Profit Margin: STZ became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: STZ's earnings have declined by 1.5% per year over the past 5 years.

Accelerating Growth: STZ has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: STZ has become profitable in the last year, making it difficult to compare its past year earnings growth to the Beverage industry (6.2%).


Return on Equity

High ROE: STZ's Return on Equity (14.6%) is considered low.


Financial Health

How is Constellation Brands's financial position?


Financial Position Analysis

Short Term Liabilities: STZ's short term assets ($3.0B) exceed its short term liabilities ($1.3B).

Long Term Liabilities: STZ's short term assets ($3.0B) do not cover its long term liabilities ($11.9B).


Debt to Equity History and Analysis

Debt Level: STZ's debt to equity ratio (74.9%) is considered high.

Reducing Debt: STZ's debt to equity ratio has reduced from 120.9% to 74.9% over the past 5 years.

Debt Coverage: STZ's debt is well covered by operating cash flow (26.9%).

Interest Coverage: STZ's interest payments on its debt are well covered by EBIT (7.3x coverage).


Balance Sheet


Dividend

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

1.34%

Current Dividend Yield


Upcoming Dividend Payment

TodayApr 11 2021Ex Dividend DateMay 03 2021Dividend Pay DateMay 18 202115 days from Ex DividendBuy in the next 21 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: STZ's dividend (1.34%) is higher than the bottom 25% of dividend payers in the US market (1.26%).

High Dividend: STZ's dividend (1.34%) is low compared to the top 25% of dividend payers in the US market (3.5%).


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 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.6%), STZ's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: STZ's dividends in 3 years are forecast to be well covered by earnings (25.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

Bill Newlands (61 yo)

2.08yrs

Tenure

US$9,392,650

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 ($USD9.39M) is about average for companies of similar size in the US market ($USD10.98M).

Compensation vs Earnings: Bill's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: STZ's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: STZ's board of directors are not considered experienced ( 2.6 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$43.293b
  • Shares outstanding: 193.30m
  • 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


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 u...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/11 22:03
End of Day Share Price2021/04/09 00:00
Earnings2021/02/28
Annual Earnings2021/02/28


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.