Constellation Brands Inc - Class A
Exchange: NYSESector: Consumer DefensiveIndustry: Beverages - Wineries & Distilleries
At Constellation Brands, our mission is to build brands that people love because we believe sharing a toast, unwinding after a day, celebrating milestones, and helping people connect, are Worth Reaching For. It’s worth our dedication, hard work, and the bold calculated risks we take to deliver more for our consumers, trade partners, shareholders, and communities in which we live and work. It’s what has made us one of the fastest-growing large CPG companies in the U.S. at retail, and it drives our pursuit to deliver what’s next. Today, we are a leading international producer and marketer of beer, wine, and spirits with operations in the U.S., Mexico, New Zealand, and Italy. Every day, people reach for our high-end, iconic imported beer brands such as Corona Extra, Corona Light, Corona Premier, Modelo Especial, Modelo Negra, and Pacifico, our fine wine and craft spirits brands, including The Prisoner Wine Company, Robert Mondavi Winery, Schrader Cellars, Double Diamond, To Kalon Vineyard Company, Lingua Franca, My Favorite Neighbor, LLC (including Booker Wines), Mount Veeder Winery, Casa Noble Tequila, and High West Whiskey, and our premium wine brands such as Meiomi and Kim Crawford. But we won’t stop here. Our visionary leadership team and passionate employees from barrel room to boardroom are reaching for the next level, to explore the boundaries of the beverage alcohol industry and beyond. Join us in discovering what’s Worth Reaching For.
Did you know?
Price sits at 42% of its 52-week range.
Current Price
$152.82
-2.40%GoodMoat Value
$161.73
5.8% undervaluedProfile
Valuation (TTM)
Market Cap$26.50B
P/E15.71
EV$37.20B
P/B3.28
Shares Out173.41M
P/Sales2.90
Revenue$9.14B
EV/EBITDA11.53
Constellation Brands Inc - Class A (STZ) Stock Analysis
GoodMoat Analysis
Constellation Brands is a major beverage alcohol company with a strong portfolio of imported beer brands like Corona and Modelo. It shows signs of a durable competitive moat and adequate financial quality, but its current valuation appears full, offering only a marginal margin of safety.
Read full analysis
Constellation Brands is a leading producer and marketer of beer, wine, and spirits, with its cornerstone being the exclusive, perpetual US rights to market and distribute the high-growth imported beer portfolio of Modelo and Corona. Applying the GoodMoat framework, the business demonstrates a potentially durable moat. It scores on criteria including Brand & Culture, given its dominant imported beer brands, and Regulatory Barriers, as its distribution rights for these key brands are a significant, hard-to-replicate asset. The company also exhibits Scale Privilege in its distribution network and shows Pricing Power. Financially, it shows adequate quality with a strong ROE of 16.1% and a solid FCF Yield of 7.4%, though its high Debt/Equity ratio of 1.67 and negative revenue growth of -9.8% YoY are points of concern. The Decision Framework indicates the stock passes the initial Moat & Quality Gate. However, the valuation assessment is less compelling. The GoodMoat Target price of $157.06 implies a margin of safety of only about 3.6% from the current price of $151.56, which falls into the 'Marginal' (10-20%) or even 'Unfavourable' (<10%) band. The P/E of 23.9x is elevated for a company with negative recent revenue growth. For a value investor, this suggests the stock is fairly valued to slightly overvalued based on current estimates, making it an investment that would require a very high-conviction view on a growth rebound to justify the price. It is worth investigating further to understand the drivers behind the revenue decline and the sustainability of its cash flow, but the current price does not offer a significant margin of safety.
Market Cap$26.50B
Current Price$152.82
P/E Ratio15.71
Forward P/E—
PEG Ratio-0.10
EPS$9.61
Book Value$46.61
P/B Ratio3.28
STZ Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 0.2% FCF growth (CAGR)
Cash vs Debt
Net Debt: 10.5B
Revenue
8.3B
FY20
8.6B
FY21
8.8B
FY22
9.5B
FY23
10.0B
FY24
10.2B
FY25
9.1B
FY26
Net Income
—
FY20
2.0B
FY21
—
FY22
—
FY23
1.7B
FY24
—
FY25
1.7B
FY26
STZ 52-Week Range
$125.95
$190.37
50-Day MA: $153.71200-Day MA: $147.82
Did you know?
Trading 6% below its estimated fair value of $161.73.
Constellation Brands Inc - Class A (STZ) Financial Summary
Constellation Brands Inc - Class A (STZ) is a Consumer Defensive company in the Beverages - Wineries & Distilleries industry, listed on NYSE. The stock currently trades at $152.82 with a market capitalization of $26.50B.
Key valuation metrics include a P/E ratio of 15.71, price-to-book ratio of 3.28, and EPS of $9.61. The company reports a profit margin of 18.5% and return on equity of 20.9%.
STZ Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $26.50B |
| P/E Ratio | 15.71 |
| EPS | $9.61 |
| P/B Ratio | 3.28 |
| P/S Ratio | 2.90 |
| EV/EBITDA | 11.53 |
| Dividend Yield | 2.70% |
| Profit Margin | 18.5% |
| Return on Equity | 20.9% |
| Debt/Equity | 1.31 |
STZ Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY20 | $8.34B | $-11.80M |
| FY21 | $8.61B | $2.00B |
| FY22 | $8.82B | $-40.40M |
| FY23 | $9.45B | $-71.00M |
| FY24 | $9.96B | $1.73B |
| FY25 | $10.21B | $-81.40M |
| FY26 | $9.14B | $1.69B |
Constellation Brands Inc - Class A (STZ) Valuation
Based on GoodMoat's DCF model, Constellation Brands Inc - Class A has a fair value estimate of $161.73. At the current price of $152.82, the stock appears 5.5% undervalued relative to our intrinsic value estimate.
STZ Quality Indicators
Constellation Brands Inc - Class A maintains a profit margin of 18.5% and an operating margin of 30.1%. Return on equity stands at 20.9%. The current ratio is 1.08. Debt-to-equity ratio is 1.31.
About Constellation Brands Inc - Class A
At Constellation Brands, our mission is to build brands that people love because we believe sharing a toast, unwinding after a day, celebrating milestones, and helping people connect, are Worth Reaching For. It’s worth our dedication, hard work, and the bold calculated risks we take to deliver more for our consumers, trade partners, shareholders, and communities in which we live and work. It’s what has made us one of the fastest-growing large CPG companies in the U.S. at retail, and it drives our pursuit to deliver what’s next. Today, we are a leading international producer and marketer of beer, wine, and spirits with operations in the U.S., Mexico, New Zealand, and Italy. Every day, people reach for our high-end, iconic imported beer brands such as Corona Extra, Corona Light, Corona Premier, Modelo Especial, Modelo Negra, and Pacifico, our fine wine and craft spirits brands, including The Prisoner Wine Company, Robert Mondavi Winery, Schrader Cellars, Double Diamond, To Kalon Vineyard Company, Lingua Franca, My Favorite Neighbor, LLC (including Booker Wines), Mount Veeder Winery, Casa Noble Tequila, and High West Whiskey, and our premium wine brands such as Meiomi and Kim Crawford. But we won’t stop here. Our visionary leadership team and passionate employees from barrel room to boardroom are reaching for the next level, to explore the boundaries of the beverage alcohol industry and beyond. Join us in discovering what’s Worth Reaching For.
STZ Free Cash Flow
Constellation Brands Inc - Class A generated $1.85B in trailing twelve-month free cash flow, representing an FCF yield of 6.99%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
STZ Shares Outstanding
Constellation Brands Inc - Class A has 0.17 billion shares outstanding at a share price of $152.82, giving it a market capitalization of $26.50B.
STZ Recent Insider Trades
Recent insider transactions at Constellation Brands Inc - Class A include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Hernandez Ernesto M | SELL | 2,000 | $307830.00 |
| Glaetzer Samuel J (EVP & Pres. Wine and Spirits) | SELL | 555 | $85345.13 |