A Business at a Glance
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CONSTELLATION BRANDS, INC.
STZ
$130.16
+0.69%
CONSTELLATION BRANDS, INC. (STZ) has a current P/E ratio of 20.4, compared to its historical median P/E of 18.3. The stock is currently considered Fair based on its historical valuation range.
CONSTELLATION BRANDS, INC. (STZ) has a 5-year average return on invested capital (ROIC) of 7.8%. This is below average and may indicate limited pricing power.
CONSTELLATION BRANDS, INC. (STZ) does not currently pay a regular dividend.
Based on historical P/E analysis, CONSTELLATION BRANDS, INC. (STZ) appears fair. The current P/E of 20.4 is 12% above its historical median of 18.3. The estimated fair value CAGR (P/E method) is -6.0%.
CONSTELLATION BRANDS, INC. (STZ) operates in the Beverages industry, within the Consumer Defensive sector.
CONSTELLATION BRANDS, INC. (STZ) reported annual revenue of $9.1 billion in its most recent fiscal year, based on SEC EDGAR filings.
CONSTELLATION BRANDS, INC. (STZ) has a net profit margin of 18.5%. This is a healthy margin.
Constellation Brands is an international producer and marketer of beer, wine, and spirits with operations in the U.S., Mexico, New Zealand, and Italy, operating through wholly owned entities and joint ventures. The company's beer segment, which generates the majority of revenue, focuses on imported and high-end beer brands including Modelo Especial (the #1 beer brand by dollar sales in the U.S.), Corona Extra, Pacifico, and Victoria, with exclusive rights to import and sell Mexican beer brands across all 50 U.S. states; the company is the second-largest beer company and #1 share gainer in the high-end segment of the U.S. beer market. The wine and spirits segment comprises a portfolio of higher-end brands including Kim Crawford, Robert Mondavi Winery, The Prisoner Wine Company, High West, Casa Noble, and Nelson's Green Brier, supported by grapes from independent growers and vineyard holdings in the U.S., New Zealand, and Italy, with distribution through wholesale, retail, on-premise locations, and increasingly through direct-to-consumer and international channels. The company's business model relies on brand equity and consumer-led premiumization trends, with distribution through wholesale distributors, retailers, and on-premise locations in the U.S. and select international markets; the beer business benefits from strong margins and capital investments in Mexican brewery capacity, while the wine and spirits business is being repositioned toward exclusively higher-end brands to generate higher growth and margins. The company's competitive moat derives from powerful, consumer-connected brands with leading market positions, advantaged routes to market, and ongoing innovation in product line extensions and new offerings aligned with consumer trends.
【Cautious near-term, structural recovery ahead】 Management expects beer shipments and depletions to align closely over the full year, with volume declines improving from prior-year comparisons as the company laps easier comparisons and benefits from sporting events including the World Cup. The wine and spirits business is expected to return to net sales growth beyond fiscal 2026 as the company's portfolio repositioning toward higher-end brands takes effect, distributor inventories normalize, and category headwinds moderate, though near-term visibility remains limited due to challenging macroeconomic conditions and selective consumer shopping behavior. The company is managing capital expenditure modularly, adjusting the timing of capacity additions at its Veracruz brewery and other facilities based on volume expectations and macroeconomic visibility, while maintaining disciplined pricing strategies of 1–2% annually and continuing to invest in marketing, particularly around major sporting events. Management believes the current headwinds are cyclical rather than structural and remains confident in achieving medium-term margin targets, though the timing of recovery has extended beyond prior expectations.
| Metric | Target | Period |
|---|---|---|
| Beer net sales growth | -1% to +1% | FY2027 |
| Beer operating margin | 37%-38% | FY2027 |
| Capital expenditure | approximately $2 billion | FY2026 through FY2028 |
Beer net sales growth (FY2027): “Maybe you could just unpack the beer top line guidance for the upcoming fiscal year, the -1% to +1%.”
Beer operating margin (FY2027): “You're guiding margins of 37%-38% for this year, which is a step down from your prior guidance of 39%-40%.”
Capital expenditure (FY2026 through FY2028): “We expect to spend approximately $2 billion over Fiscal 2026 through Fiscal 2028 largely on such activities.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2027 Earnings Call, Q3 FY2027 Earnings Call, Q2 FY2027 Earnings Call, Q1 FY2027 Earnings Call
| Metric | TTM | FY2026 | FY2025 | FY2024 | FY2023 | FY2022 |
|---|---|---|---|---|---|---|
| Revenue | 9.1B | 9.1B | 10.2B | 10.0B | 9.5B | 8.8B |
| Net Income | 1.7B | 1.7B | -81M | 1.7B | -71M | -40M |
| EPS | $0.00 | - | - | - | - | - |
| Free Cash Flow | 1.8B | 1.8B | 1.9B | 1.5B | 1.7B | 1.7B |
| ROIC | 10.4% | 11.2% | 1.8% | 11.9% | 8.1% | 6.1% |
| Gross Margin | 51.6% | 51.6% | 52.1% | 50.4% | 50.5% | 53.4% |
| Debt/Equity | 1.39 | 1.39 | 1.67 | 1.22 | 1.48 | 0.89 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 2.7B | 2.7B | 355M | 3.2B | 2.8B | 2.3B |
| Operating Margin | 29.8% | 29.8% | 3.5% | 31.8% | 30.1% | 26.4% |
| ROE | 20.9% | 22.5% | -1.0% | 19.0% | -0.7% | -0.3% |
| Shares Outstanding | 0M | - | - | - | - | - |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 6.0B | 6.5B | 7.3B | 7.6B | 8.1B | 8.3B | 8.6B | 8.8B | 9.5B | 10.0B | 10.2B | 9.1B | 9.1B |
| Gross Margin | 42.8% | 44.9% | 48.1% | 50.3% | 50.3% | 49.8% | 51.8% | 53.4% | 50.5% | 50.4% | 52.1% | 51.6% | 51.6% |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 1.1B | 1.2B | 1.4B | 1.5B | 1.7B | 1.6B | 1.7B | 1.7B | 1.9B | 1.8B | 1.9B | 1.8B | 1.8B |
| EBIT | 1.5B | 1.8B | 2.4B | 2.3B | 2.4B | 2.2B | 2.8B | 2.3B | 2.8B | 3.2B | 355M | 2.7B | 2.7B |
| Op. Margin | 24.9% | 27.0% | 32.6% | 30.1% | 29.7% | 25.8% | 32.4% | 26.4% | 30.1% | 31.8% | 3.5% | 29.8% | 29.8% |
| Net Income | 839M | 1.1B | 1.5B | 2.3B | 3.4B | -12M | 2.0B | -40M | -71M | 1.7B | -81M | 1.7B | 1.7B |
| Net Margin | 13.9% | 16.1% | 20.9% | 30.4% | 42.3% | -0.1% | 23.2% | -0.5% | -0.8% | 17.3% | -0.8% | 18.5% | 18.5% |
| Non-Recurring | 0 | 0 | 0 | 0 | 120M | 125M | 101M | 717M | 23M | 20M | 2.7B | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 7.9% | 8.6% | 12.0% | 13.6% | 9.1% | 8.6% | 9.5% | 6.1% | 8.1% | 11.9% | 1.8% | 11.2% | 10.4% |
| ROE | 14.5% | 16.1% | 22.7% | 31.0% | 33.5% | -0.1% | 15.5% | -0.3% | -0.7% | 19.0% | -1.0% | 22.5% | 20.9% |
| ROA | 5.6% | 6.2% | 8.6% | 11.8% | 13.8% | -0.0% | 7.3% | -0.2% | -0.3% | 6.9% | -0.3% | 7.7% | 7.7% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 1.1B | 1.4B | 1.7B | 1.9B | 2.2B | 2.6B | 2.8B | 2.7B | 2.8B | 2.8B | 3.2B | 2.7B | 2.7B |
| Free Cash Flow | 362M | 522M | 789M | 874M | 1.4B | 1.8B | 1.9B | 1.7B | 1.7B | 1.5B | 1.9B | 1.8B | 1.8B |
| Owner Earnings | 864M | 1.2B | 1.4B | 1.6B | 1.8B | 2.2B | 2.4B | 2.3B | 2.3B | 2.3B | 2.6B | 2.2B | 2.2B |
| CapEx | 719M | 891M | 907M | 1.1B | 886M | 727M | 865M | 1.0B | 1.0B | 1.3B | 1.2B | 875M | 875M |
| Maint. CapEx | 162M | 180M | 248M | 300M | 339M | 332M | 299M | 342M | 387M | 429M | 447M | 420M | 420M |
| Growth CapEx | 557M | 711M | 660M | 758M | 547M | 394M | 566M | 684M | 648M | 840M | 767M | 455M | 455M |
| D&A | 162M | 180M | 248M | 300M | 339M | 332M | 299M | 342M | 387M | 429M | 447M | 420M | 420M |
| CapEx/OCF | 66.5% | 63.0% | 53.5% | 54.8% | 39.5% | 28.5% | 30.8% | 38.0% | 37.6% | 45.7% | 38.5% | N/A | 32.8% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 242M | 242M | 315M | 400M | 558M | 569M | 575M | 573M | 588M | 654M | 732M | 716M | 716M |
| Dividend Yield | 1.6% | 1.1% | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 34M | 1.1B | 1.1B | 1.0B | 504M | 50M | 0 | 1.4B | 1.7B | 250M | 1.1B | 924M | 924M |
| Buyback Yield | N/A | 0.1% | 4.0% | 2.7% | 1.7% | 0.2% | N/A | 3.8% | 4.4% | 0.6% | 3.6% | 0.0% | 0.0% |
| Stock-Based Comp | 55M | 54M | 56M | 61M | 64M | 60M | 63M | 45M | 69M | 64M | 72M | 68M | 68M |
| Debt Repayment | 606M | 972M | 972M | 7.1B | 63M | 2.2B | 2.7B | 1.4B | 2.2B | 810M | 957M | 1.4B | 1.4B |
| Balance Sheet | |||||||||||||
| Net Debt | 7.8B | 7.9B | 9.1B | 10.1B | 13.4B | 12.1B | 10.0B | 10.2B | 12.3B | 11.7B | 11.4B | 11.0B | 11.1B |
| Cash & Equiv. | 110M | 83M | 177M | 90M | 94M | 81M | 461M | 199M | 134M | 152M | 68M | 102M | 102M |
| Long-Term Debt | 7.1B | 6.8B | 7.7B | 9.4B | 11.8B | 11.2B | 10.4B | 9.5B | 11.3B | 10.7B | 9.3B | 9.7B | 9.7B |
| Debt/Equity | 1.39 | 1.23 | 1.34 | 1.28 | 1.08 | 1.00 | 0.77 | 0.89 | 1.48 | 1.22 | 1.67 | 1.39 | 1.39 |
| Interest Coverage | 4.4 | 5.6 | 7.1 | 6.8 | 6.4 | 3077.9 | 5582.2 | 4663.4 | 6.8 | 7.1 | 0.8 | 7.5 | 7.5 |
| Equity | 5.8B | 6.6B | 6.9B | 8.0B | 12.6B | 12.1B | 13.6B | 11.7B | 8.4B | 9.7B | 6.9B | 8.1B | 8.1B |
| Total Assets | 15.1B | 17.0B | 18.6B | 20.5B | 29.2B | 27.3B | 27.1B | 25.9B | 24.7B | 25.7B | 21.7B | 21.9B | 21.9B |
| Total Liabilities | 9.2B | 10.3B | 11.7B | 12.5B | 16.4B | 14.8B | 13.2B | 13.8B | 15.9B | 15.6B | 14.5B | 13.5B | 13.5B |
| Intangibles | 3.2B | 3.4B | 3.4B | 3.3B | 3.2B | 2.7B | 2.7B | 2.8B | 2.7B | 2.7B | 2.5B | 2.5B | 2.5B |
| Retained Earnings | 5.3B | 6.1B | 7.3B | 9.2B | 14.3B | 13.7B | 15.1B | 14.5B | 12.3B | 13.4B | 12.6B | 13.6B | 13.6B |
| Working Capital | 1.8B | 705M | 532M | 1.4B | 520M | 1.2B | 1.8B | 631M | 528M | 588M | -319M | 217M | 216M |
| Current Assets | 2.9B | 3.0B | 3.2B | 3.5B | 3.7B | 3.5B | 3.0B | 3.3B | 3.5B | 3.7B | 3.7B | 2.9B | 2.9B |
| Current Liabilities | 1.1B | 2.3B | 2.7B | 2.0B | 3.2B | 2.3B | 1.3B | 2.7B | 3.0B | 3.1B | 4.0B | 2.7B | 2.7B |
| Per Share Data | |||||||||||||
| EPS | 4.17 | 5.18 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Owner EPS | 4.29 | 5.79 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Book Value | 28.67 | 32.21 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Cash Flow/Share | 5.37 | 6.94 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Dividends/Share | 0.00 | 1.24 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 201.3M | 203.6M | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.0M |
| Valuation | |||||||||||||
| P/E Ratio | 23.4 | 23.5 | 18.3 | 16.5 | 8.6 | N/A | 19.2 | N/A | N/A | 25.2 | N/A | N/A | N/A |
| P/FCF | 54.3 | 47.6 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| EV/EBIT | 17.8 | 18.6 | 15.4 | 20.8 | 16.5 | 17.3 | 16.7 | 20.1 | 17.9 | 17.4 | 119.2 | N/A | 4.1 |
| Price/Book | 3.4 | 3.8 | 4.1 | 4.8 | 2.3 | 2.2 | 2.8 | 3.1 | 4.6 | 4.5 | 4.5 | N/A | N/A |
| Price/Sales | 2.6 | 3.4 | 3.8 | 4.6 | 4.4 | 3.5 | 3.8 | 4.4 | 4.3 | 4.3 | 4.1 | N/A | N/A |
| FCF Yield | 1.8% | 2.1% | 2.8% | 2.3% | 4.6% | 7.0% | 5.1% | 4.6% | 4.5% | 3.5% | 6.3% | N/A | N/A |
| Market Cap | 19.6B | 24.8B | 28.1B | 37.9B | 29.4B | 26.2B | 38.4B | 36.8B | 38.6B | 43.6B | 30.9B | 0 | 0 |
| Avg. Price | 76.82 | 109.50 | 135.98 | 171.89 | 181.94 | 172.39 | 168.60 | 210.93 | 222.36 | 230.22 | 229.81 | 0.00 | 130.16 |
| Year-End Price | 97.57 | 121.99 | 137.77 | 188.90 | 150.49 | 155.69 | 196.62 | 200.63 | 210.98 | 236.79 | 171.06 | 0.00 | 130.16 |
CONSTELLATION BRANDS, INC. passes 1 of 9 quality checks, indicating weak fundamentals.
CONSTELLATION BRANDS, INC. trades at 20.4x trailing earnings, compared to its 15-year median P/E of 18.3x, suggesting it is currently Fair relative to its historical range. The company's 5-year average ROIC is 7.8% with a gross margin of 51.6%. At current prices, the estimated annualized return to fair value is -6.0%.
CONSTELLATION BRANDS, INC. (STZ) generated $1.8 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
CONSTELLATION BRANDS, INC. (STZ) has a debt-to-equity ratio of 1.39. This indicates moderate leverage.
CONSTELLATION BRANDS, INC. (STZ) has a return on equity (ROE) of 22.5%. This indicates the company generates strong returns for shareholders.
CONSTELLATION BRANDS, INC. (STZ) has a 5-year average gross margin of 51.6%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 18 years of financial data for CONSTELLATION BRANDS, INC. (STZ), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Based on recent SEC filings and earnings disclosures, Management expects beer shipments and depletions to align closely over the full year, with volume declines improving from prior-year comparisons as the company laps easier comparisons and benefits from sporting events including the World Cup. The wine and spirits business is expected to return to net sales growth beyond fiscal 2026 as the company's portfolio repositioning toward higher-end brands takes effect, distributor inventories normalize, and category headwinds moderate, though near-term visibility remains limited due to challenging macroeconomic conditions and selective consumer shopping behavior. The company is managing capital expenditure modularly, adjusting the timing of capacity additions at its Veracruz brewery and other facilities based on volume expectations and macroeconomic visibility, while maintaining disciplined pricing strategies of 1–2% annually and continuing to invest in marketing, particularly around major sporting events. Management believes the current headwinds are cyclical rather than structural and remains confident in achieving medium-term margin targets, though the timing of recovery has extended beyond prior expectations.
Based on recent SEC filings and earnings calls, CONSTELLATION BRANDS, INC. (STZ) has provided the following forward guidance: Beer net sales growth: -1% to +1% (FY2027); Beer operating margin: 37%-38% (FY2027); Capital expenditure: approximately $2 billion (FY2026 through FY2028).