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Constellation Brands

NYSE:STZ
Snowflake Description

Fair value with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
STZ
NYSE
$39B
Market Cap
  1. Home
  2. US
  3. Food, Beverage & Tobacco
Company 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 last earnings update was 20 days ago. More info.


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STZ Share Price and Events
7 Day Returns
2.5%
NYSE:STZ
-0.5%
US Beverage
-0.3%
US Market
1 Year Returns
-6.1%
NYSE:STZ
10.9%
US Beverage
3.4%
US Market
STZ Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Constellation Brands (STZ) 2.5% 11.3% 1.9% -6.1% 22.5% 132.2%
US Beverage -0.5% 1.4% 6.5% 10.9% 15.3% 38.7%
US Market -0.3% 2.9% 2.1% 3.4% 36.2% 41.3%
1 Year Return vs Industry and Market
  • STZ underperformed the Beverage industry which returned 10.9% over the past year.
  • STZ underperformed the Market in United States of America which returned 3.4% over the past year.
Price Volatility
STZ
Industry
5yr Volatility vs Market

STZ Value

 Is Constellation Brands undervalued based on future cash flows and its price relative to the stock market?

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Constellation Brands.

NYSE:STZ Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 19 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.6%
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.

Calculation of Discount Rate/ Cost of Equity for NYSE:STZ
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 0.56
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.561 (1 + (1- 21%) (36.3%))
0.813
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.81
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.813 * 5.96%)
7.58%

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.

NYSE:STZ DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.58%)
2020 1,259.75 Analyst x8 1,171.01
2021 1,595.86 Analyst x9 1,378.94
2022 1,754.98 Analyst x6 1,409.60
2023 1,886.10 Est @ 7.47% 1,408.20
2024 2,000.19 Est @ 6.05% 1,388.19
2025 2,101.26 Est @ 5.05% 1,355.61
2026 2,192.80 Est @ 4.36% 1,315.01
2027 2,277.63 Est @ 3.87% 1,269.66
2028 2,357.96 Est @ 3.53% 1,221.84
2029 2,435.48 Est @ 3.29% 1,173.11
Present value of next 10 years cash flows $13,091.17
NYSE:STZ DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $2,435.48 × (1 + 2.73%) ÷ (7.58% – 2.73%)
$51,605.45
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $51,605.45 ÷ (1 + 7.58%)10
$24,857.06
NYSE:STZ Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $13,091.17 + $24,857.06
$37,948.23
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $37,948.23 / 190.56
$199.14
NYSE:STZ Discount to Share Price
Calculation Result
Value per share (USD) From above. $199.14
Current discount Discount to share price of $202.60
= -1 x ($202.60 - $199.14) / $199.14
-1.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Constellation Brands is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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?
Raw Data
NYSE:STZ PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-05-31) in USD $12.84
NYSE:STZ Share Price ** NYSE (2019-07-18) in USD $202.6
United States of America Beverage Industry PE Ratio Median Figure of 16 Publicly-Listed Beverage Companies 30.52x
United States of America Market PE Ratio Median Figure of 3,083 Publicly-Listed Companies 17.88x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Constellation Brands.

NYSE:STZ PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:STZ Share Price ÷ EPS (both in USD)

= 202.6 ÷ 12.84

15.78x

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?
Raw Data
NYSE:STZ PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 15.78x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts
9.9%per year
United States of America Beverage Industry PEG Ratio Median Figure of 13 Publicly-Listed Beverage Companies 1.97x
United States of America Market PEG Ratio Median Figure of 2,124 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

NYSE:STZ PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 15.78x ÷ 9.9%

1.59x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Constellation Brands is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Constellation Brands's assets?
Raw Data
NYSE:STZ PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-05-31) in USD $63.89
NYSE:STZ Share Price * NYSE (2019-07-18) in USD $202.6
United States of America Beverage Industry PB Ratio Median Figure of 29 Publicly-Listed Beverage Companies 5.84x
United States of America Market PB Ratio Median Figure of 5,245 Publicly-Listed Companies 1.8x
NYSE:STZ PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:STZ Share Price ÷ Book Value per Share (both in USD)

= 202.6 ÷ 63.89

3.17x

* 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.
X
Value checks
We assess Constellation Brands's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Beverage industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Beverage industry average (and greater than 0)? (1 check)
  5. 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

 How is Constellation Brands expected to perform in the next 1 to 3 years based on estimates from 19 analysts?

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!
Annual Growth Rate
9.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Constellation Brands expected to grow at an attractive rate?
  • Constellation Brands's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Constellation Brands's earnings growth is positive but not above 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
Raw Data
NYSE:STZ Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:STZ Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts 9.9%
NYSE:STZ Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 19 Analysts 3.4%
United States of America Beverage Industry Earnings Growth Rate Market Cap Weighted Average 7.7%
United States of America Beverage Industry Revenue Growth Rate Market Cap Weighted Average 4.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*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
Raw Data
NYSE:STZ Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:STZ Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-02-28 8,552 2,519 2,067 11
2021-02-28 7,990 2,302 1,808 19
2020-02-29 7,898 2,109 984 19
NYSE:STZ Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-05-31 8,166 2,335 2,447
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 7,699 2,054 2,649
2018-02-28 7,580 1,931 2,303
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 7,321 1,696 1,529
2016-11-30 7,247 1,738 1,327
2016-08-31 7,077 1,656 1,191

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Constellation Brands's earnings are expected to grow by 9.9% yearly, however this is not considered high growth (20% yearly).
  • Constellation Brands's revenue is expected to grow by 3.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:STZ 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 19 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.

NYSE:STZ Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-02-28 10.86 11.61 9.91 5.00
2021-02-28 9.41 10.00 8.66 9.00
2020-02-29 4.93 5.10 4.67 6.00
NYSE:STZ Past Financials Data
Date (Data in USD Millions) EPS *
2019-05-31 12.84
2019-02-28 18.03
2018-11-30 16.32
2018-08-31 17.19
2018-05-31 13.66
2018-02-28 11.82
2017-11-30 9.45
2017-08-31 8.94
2017-05-31 8.16
2017-02-28 7.67
2016-11-30 6.62
2016-08-31 5.98

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Constellation Brands is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Constellation Brands's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Constellation Brands has a total score of 1/6, 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
Below we compare Constellation Brands's growth in the last year to its industry (Beverage).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Constellation Brands has delivered over 20% year on year earnings growth in the past 5 years.
  • Constellation Brands's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Constellation Brands's 1-year earnings growth is negative, it can't be compared to the US Beverage industry average.
Earnings and Revenue History
Constellation Brands's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Constellation Brands Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:STZ Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-05-31 8,166.10 2,446.70 1,447.60
2019-02-28 8,116.00 3,435.90 1,472.00
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 7,698.90 2,648.70 1,488.40
2018-02-28 7,580.30 2,303.40 1,426.60
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 7,321.10 1,528.60 1,284.80
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

*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.
  • Constellation Brands has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • 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).
X
Past performance checks
We assess Constellation Brands's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Beverage industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Constellation Brands has a total score of 2/6, 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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of Constellation Brands's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • 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.
Raw Data

All data from Constellation Brands Company Filings, last reported 1 month ago.

NYSE:STZ Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-05-31 12,488.20 13,397.60 98.70
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 7,991.70 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 9,238.10 177.70
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
  • Constellation Brands's level of debt (107.3%) 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 (136.3% vs 107.3% today).
  • Debt is not well covered by operating cash flow (17.4%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.8x coverage).
X
Financial health checks
We assess Constellation Brands's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Constellation Brands has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
1.48%
Current annual income from Constellation Brands dividends. Estimated to be 1.57% next year.
If you bought $2,000 of Constellation Brands shares you are expected to receive $30 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Constellation Brands's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).
  • Constellation Brands's dividend is below the markets top 25% of dividend payers in United States of America (3.76%).
Upcoming dividend payment

Purchase Constellation Brands before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
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.
Raw Data
NYSE:STZ Annualized Past and Future Dividends
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 19 Analyst Estimates (S&P Global) See Below
United States of America Beverage Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 2.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 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 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:STZ Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-02-28 3.45 13.00
2021-02-28 3.18 17.00
2020-02-29 3.01 18.00
NYSE:STZ Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-06-28 3.000 1.509
2019-04-23 3.000 1.529
2019-04-04 3.000 1.546
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.
Current Payout to shareholders
What portion of Constellation Brands's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.1x coverage).
X
Income/ dividend checks
We assess Constellation Brands's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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

 What is the CEO of Constellation Brands's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Bill Newlands
COMPENSATION $7,854,942
AGE 60
TENURE AS CEO 0.3 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 1, 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
  • Bill's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.
  • 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:

4.1
Average Tenure
56
Average Age
  • The tenure for the Constellation Brands management team is about average.
Management Team

Rob Sands

TITLE
Executive Chairman
COMPENSATION
$10M
AGE
60
TENURE
0.3 yrs

Bill Newlands

TITLE
President
COMPENSATION
$8M
AGE
60
TENURE
0.3 yrs

Richard Sands

TITLE
Executive Vice Chairman of the Board
COMPENSATION
$8M
AGE
68

David Klein

TITLE
Executive VP & CFO
COMPENSATION
$7M
AGE
55
TENURE
4.1 yrs

Francis Hetterich

TITLE
Executive VP & President of Beer Division
COMPENSATION
$5M
AGE
56
TENURE
16.1 yrs

Robert Hanson

TITLE
Executive VP and President of Wine & Spirits
COMPENSATION
$397K
AGE
56
TENURE
0.1 yrs

Chris Stenzel

TITLE
President of Wine & Spirits Division
COMPENSATION
$6M
AGE
51
TENURE
5 yrs

Ricardo Bartra

TITLE
Senior VP & Chief Technology Officer
TENURE
1.1 yrs

Patty Yahn-Urlaub

TITLE
Vice President of Investor Relations
TENURE
12.3 yrs

James Bourdeau

TITLE
Executive VP
AGE
54
TENURE
4.8 yrs
Board of Directors Tenure

Average tenure and age of the Constellation Brands board of directors in years:

5
Average Tenure
61.5
Average Age
  • The tenure for the Constellation Brands board of directors is about average.
Board of Directors

Rob Sands

TITLE
Executive Chairman
COMPENSATION
$10M
AGE
60
TENURE
0.3 yrs

Bill Newlands

TITLE
President
COMPENSATION
$8M
AGE
60
TENURE
0.3 yrs

Richard Sands

TITLE
Executive Vice Chairman of the Board
COMPENSATION
$8M
AGE
68
TENURE
0.3 yrs

James Locke

TITLE
Lead Director
COMPENSATION
$257K
AGE
77

Jerry Fowden

TITLE
Director
COMPENSATION
$257K
AGE
62
TENURE
9.2 yrs

Judy Schmeling

TITLE
Director
COMPENSATION
$427K
AGE
59
TENURE
6.4 yrs

Barry Fromberg

TITLE
Director
COMPENSATION
$247K
AGE
64
TENURE
13.3 yrs

Keith Wandell

TITLE
Director
COMPENSATION
$242K
AGE
69
TENURE
8 yrs

Ernesto Hernández

TITLE
Director
COMPENSATION
$242K
AGE
61
TENURE
5 yrs

Dan McCarthy

TITLE
Director
COMPENSATION
$242K
AGE
55
TENURE
4 yrs
Who owns this company?
Recent Insider Trading
  • Constellation Brands individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
30. May 19 Sell James Sabia Individual 28. May 19 28. May 19 -4,275 $194.70 $-832,352
17. May 19 Sell James Sabia Individual 16. Nov 18 16. Nov 18 -850 $197.18 $-167,605
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
X
Management checks
We assess Constellation Brands's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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

Do You Know What Constellation Brands, Inc.'s (NYSE:STZ) P/E Ratio Means?

We'll look at Constellation Brands, Inc.'s (NYSE:STZ) P/E ratio and reflect on what it tells us about the company's share price. … The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Constellation Brands: P/E of 15.55 = $199.6 ÷ $12.84 (Based on the trailing twelve months to May 2019.) Is A High Price-to-Earnings Ratio Good? … NYSE:STZ Price Estimation Relative to Market, July 15th 2019 Its relatively low P/E ratio indicates that Constellation Brands shareholders think it will struggle to do as well as other companies in its industry classification.

Simply Wall St -

Constellation Brands (NYSE:STZ) Takes On Some Risk With Its Use Of Debt

NYSE:STZ Historical Debt, July 4th 2019 How Healthy Is Constellation Brands's Balance Sheet? … While this might seem like a lot, it is not so bad since Constellation Brands has a huge market capitalization of US$38.1b, and so it could probably strengthen its balance sheet by raising capital if it needed to. … Either way, since Constellation Brands does have more debt than cash, it's worth keeping an eye on its balance sheet.

Simply Wall St -

Should You Be Excited About Constellation Brands, Inc.'s (NYSE:STZ) 27% Return On Equity?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Constellation Brands: 27% = US$3.4b ÷ US$13b (Based on the trailing twelve months to February 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Does Constellation Brands Have A Good Return On Equity? … If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

Simply Wall St -

Shareholders Are Thrilled That The Constellation Brands (NYSE:STZ) Share Price Increased 120%

Over half a decade, Constellation Brands managed to grow its earnings per share at 12% a year. … This EPS growth is slower than the share price growth of 17% per year, over the same period. … We note that for Constellation Brands the TSR over the last 5 years was 131%, which is better than the share price return mentioned above.

Simply Wall St -

How Financially Strong Is Constellation Brands, Inc. (NYSE:STZ)?

Check out our latest analysis for Constellation Brands STZ’s Debt (And Cash Flows) STZ has built up its total debt levels in the last twelve months, from US$10b to US$14b – this includes long-term debt. … On top of this, STZ has produced US$2.2b in operating cash flow in the last twelve months, leading to an operating cash to total debt ratio of 16%, meaning that STZ’s debt is not covered by operating cash. … Next Steps: STZ’s debt and cash flow levels indicate room for improvement.

Simply Wall St -

Estimating The Fair Value Of Constellation Brands, Inc. (NYSE:STZ)

A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $1.26k $1.31k $1.71k $1.93k $2.11k $2.26k $2.40k $2.52k $2.63k $2.73k Growth Rate Estimate Source Analyst x11 Analyst x7 Analyst x7 Analyst x4 Est @ 9.31% Est @ 7.34% Est @ 5.95% Est @ 4.99% Est @ 4.31% Est @ 3.84% Present Value ($, Millions) Discounted @ 7.84% $1.17k $1.13k $1.36k $1.43k $1.45k $1.44k $1.41k $1.38k $1.33k $1.28k Present Value of 10-year Cash Flow (PVCF)= $13.38b "Est" = FCF growth rate estimated by Simply Wall St We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … We discount the terminal cash flows to today's value at a cost of equity of 7.8%. … NYSE:STZ Intrinsic value, May 14th 2019 The assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

Are Constellation Brands, Inc.’s Returns On Capital Worth Investigating?

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Want To Invest In Constellation Brands, Inc. (NYSE:STZ)? Here's How It Performed Lately

In this article, I will take a look at Constellation Brands, Inc.'s (NYSE:STZ) most recent earnings update (28 February 2019) and compare these latest figures against its performance over the past few years, along with how the rest of STZ's industry performed. … Commentary On STZ's Past Performance. … STZ's trailing twelve-month earnings (from 28 February 2019) of US$3.4b has

Simply Wall St -

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 -

Did 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 -

STZ 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. It provides beer primarily under the Corona Extra, Corona Light, Corona Premier, Corona Familiar Modelo Especial, Modelo Negra, Modelo Chelada, Pacifico, and Victoria brands, as well as Funky Buddha, Four Corners, and Ballast Point brands. The company offers wine under the 7 Moons, Black Box, Clos du Bois, Franciscan Estate, Kim Crawford, Mark West, Meiomi, Mount Veeder, Nobilo, Ravage, Robert Mondavi, Ruffino, Schrader, Simi, The Dreaming Tree, Charles Smith, Prisoner; and sprits under the Casa Noble, High West, SVEDKA Vodka, 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
$38,564,684,294
190,556,042
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
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
BOVESPA STZB34 BDR EACH REP 0.25 COM USD0.01 CLASS A Bolsa de Valores de Sao Paulo BR BRL 20. May 2019
Number of employees
Current staff
Staff numbers
9,800
Constellation Brands employees.
Industry
Distillers and Vintners
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/18 23:36
End of day share price update: 2019/07/18 00:00
Last estimates confirmation: 2019/07/18
Last earnings filing: 2019/06/28
Last earnings reported: 2019/05/31
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.