Constellation Brands
Market Cap
US$43.1b
Last Updated
2021/01/14 23:53 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
Rewards
Risk Analysis
Snowflake Analysis
Proven track record 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 +/- 5% a week.
Volatility Over Time: STZ's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
-2.2%
STZ
-1.2%
US Beverage
0.6%
US Market
1 Year Return
17.3%
STZ
0.8%
US Beverage
21.0%
US Market
Return vs Industry: STZ exceeded the US Beverage industry which returned 0.8% over the past year.
Return vs Market: STZ underperformed the US Market which returned 21% over the past year.
Shareholder returns
| STZ | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.2% | -1.2% | 0.6% |
| 30 Day | 5.5% | -2.4% | 4.2% |
| 90 Day | 23.4% | 3.4% | 12.4% |
| 1 Year | 19.3%17.3% | 3.6%0.8% | 23.7%21.0% |
| 3 Year | 7.8%3.0% | 22.1%12.6% | 47.4%37.6% |
| 5 Year | 66.7%56.1% | 58.7%38.9% | 131.6%105.9% |
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
6 hours ago | Simply Wall St
A Look At The Intrinsic Value Of Constellation Brands, Inc. (NYSE:STZ)1 week ago | Simply Wall St
Did Constellation Brands, Inc. (NYSE:STZ) Insiders Sell Shares?3 months ago | Simply Wall St
Have Insiders Been Selling Constellation Brands, Inc. (NYSE:STZ) Shares?Valuation
Is Constellation Brands undervalued compared to its fair value and its price relative to the market?
17.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: STZ ($223.9) is trading below our estimate of fair value ($271.11)
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 (21.5x) compared to the US Beverage industry average (25.4x).
PE vs Market: STZ is poor value based on its PE Ratio (21.5x) compared to the US market (21.3x).
Price to Earnings Growth Ratio
PEG Ratio: STZ is poor value based on its PEG Ratio (4.6x)
Price to Book Ratio
PB vs Industry: STZ is good value based on its PB Ratio (3.3x) compared to the US Beverage industry average (5.4x).
Next Steps
Future Growth
How is Constellation Brands forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
4.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: STZ's forecast earnings growth (4.7% per year) is above the savings rate (2%).
Earnings vs Market: STZ's earnings (4.7% per year) are forecast to grow slower than the US market (21.6% per year).
High Growth Earnings: STZ's earnings are forecast to grow, but not significantly.
Revenue vs Market: STZ's revenue (2.9% per year) is forecast to grow slower than the US market (10.2% per year).
High Growth Revenue: STZ's revenue (2.9% 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 (14.9%).
Next Steps
Past Performance
How has Constellation Brands performed over the past 5 years?
-0.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: STZ has high quality earnings.
Growing Profit Margin: STZ's current net profit margins (23.5%) are higher than last year (10%).
Past Earnings Growth Analysis
Earnings Trend: STZ's earnings have declined by 0.6% per year over the past 5 years.
Accelerating Growth: STZ's earnings growth over the past year (145.5%) exceeds its 5-year average (-0.6% per year).
Earnings vs Industry: STZ earnings growth over the past year (145.5%) exceeded the Beverage industry 11%.
Return on Equity
High ROE: STZ's Return on Equity (15%) is considered low.
Next Steps
Financial Health
How is Constellation Brands's financial position?
Financial Position Analysis
Short Term Liabilities: STZ's short term assets ($3.4B) exceed its short term liabilities ($2.0B).
Long Term Liabilities: STZ's short term assets ($3.4B) do not cover its long term liabilities ($11.9B).
Debt to Equity History and Analysis
Debt Level: STZ's debt to equity ratio (80.4%) is considered high.
Reducing Debt: STZ's debt to equity ratio has reduced from 112.6% to 80.4% over the past 5 years.
Debt Coverage: STZ's debt is well covered by operating cash flow (25.9%).
Interest Coverage: STZ's interest payments on its debt are well covered by EBIT (7.5x coverage).
Balance Sheet
Next Steps
Dividend
What is Constellation Brands's current dividend yield, its reliability and sustainability?
1.34%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: STZ's dividend (1.34%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.38%).
High Dividend: STZ's dividend (1.34%) is low compared to the top 25% of dividend payers in the US market (3.84%).
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 (28.8%), 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 (26.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.3yrs
Average management tenure
CEO
Bill Newlands (61 yo)
1.83yrs
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 ($USD10.54M).
Compensation vs Earnings: Bill's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 1.83yrs | US$8.62m | 5.67% $ 2.4b | |
| President | 1.83yrs | US$9.39m | 0.0098% $ 4.2m | |
| Executive Vice Chairman of the Board | 1.83yrs | US$7.37m | 3.67% $ 1.6b | |
| Executive VP & CFO | 1yr | US$4.30m | 0.0025% $ 1.1m | |
| Executive VP and President of Wine & Spirits | 1.58yrs | US$7.14m | 0.0021% $ 883.5k | |
| Senior VP & Chief Technology Officer | 2.58yrs | no data | no data | |
| Senior VP & Chief Information Officer | no data | no data | no data | |
| Senior Vice President of Investor Relations | 13.75yrs | no data | no data | |
| Executive VP | 6.33yrs | no data | 0.0021% $ 900.7k | |
| EVP & Chief Communications | 1.92yrs | no data | 0.00039% $ 168.1k | |
| Sales Director | 12.33yrs | no data | no data | |
| Executive VP & Chief Marketing Officer | 2.67yrs | no data | 0.025% $ 10.6m |
2.3yrs
Average Tenure
58yo
Average Age
Experienced Management: STZ's management team is considered experienced (2.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 1.83yrs | US$8.62m | 5.67% $ 2.4b | |
| President | 1.83yrs | US$9.39m | 0.0098% $ 4.2m | |
| Executive Vice Chairman of the Board | 1.83yrs | US$7.37m | 3.67% $ 1.6b | |
| Independent Non-Executive Director | 10.67yrs | US$277.73k | 0.0093% $ 4.0m | |
| Independent Lead Director | no data | US$294.78k | 0.021% $ 8.9m | |
| Independent Director | 5.5yrs | US$259.55k | 0.0014% $ 594.7k | |
| Independent Director | 2.33yrs | US$254.55k | 0.00046% $ 198.2k | |
| Independent Director | 7.92yrs | US$279.55k | 0.0022% $ 956.7k | |
| Independent Director | 6.5yrs | US$259.55k | 0.0011% $ 491.3k | |
| Independent Director | 3.5yrs | US$264.34k | 0.00075% $ 323.2k | |
| Independent Director | 1.33yrs | US$177.27k | 0.00015% $ 64.6k | |
| Independent Director | 1.33yrs | US$156.11k | 0.00015% $ 64.6k |
2.3yrs
Average Tenure
60.5yo
Average Age
Experienced Board: STZ's board of directors are not considered experienced ( 2.3 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: STZ insiders have only sold shares 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$43.095b
- 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
| 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 |
| 0REP | LSE (London Stock Exchange) | Yes | Class A Common Stock | GB | 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 u...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/14 23:53 |
| End of Day Share Price | 2021/01/14 00:00 |
| Earnings | 2020/11/30 |
| 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.