Constellation Brands, Inc.
Constellation Brands, Inc. Fundamental Analysis
Constellation Brands, Inc. (STZ-B) shows moderate financial fundamentals with a PE ratio of 17.00, profit margin of 18.46%, and ROE of 22.08%. The company generates N/A in annual revenue with moderate year-over-year growth of 5.39%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 66.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze STZ-B's fundamental strength across five key dimensions:
Efficiency Score
WeakSTZ-B struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSTZ-B trades at attractive valuation levels.
Growth Score
ExcellentSTZ-B delivers strong and consistent growth momentum.
Financial Health Score
ModerateSTZ-B shows balanced financial health with some risks.
Profitability Score
ModerateSTZ-B maintains healthy but balanced margins.
Key Financial Metrics
Is STZ-B Expensive or Cheap?
P/E Ratio
STZ-B trades at 17.00 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, STZ-B's PEG of 0.33 indicates potential undervaluation.
Price to Book
The market values Constellation Brands, Inc. at 3.55 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 5.69 times EBITDA. This is generally considered low.
How Well Does STZ-B Make Money?
Net Profit Margin
For every $100 in sales, Constellation Brands, Inc. keeps $18.46 as profit after all expenses.
Operating Margin
Core operations generate 31.33 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $22.08 in profit for every $100 of shareholder equity.
ROA
Constellation Brands, Inc. generates $7.70 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
FCF Per Share
Each share generates $10.34 in free cash annually.
FCF Yield
STZ-B converts 6.24% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.005
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.33
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.55
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.15
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.31
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.08
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.22
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How STZ-B Stacks Against Its Sector Peers
| Metric | STZ-B Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.00 | 22.76 | Better (Cheaper) |
| ROE | 22.08% | 1222.00% | Weak |
| Net Margin | 18.46% | -5512.00% (disorted) | Strong |
| Debt/Equity | 1.31 | 0.80 | Weak (High Leverage) |
| Current Ratio | 1.08 | 2.52 | Neutral |
| ROA | 7.70% | -193416.00% (disorted) | Weak |
STZ-B outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Constellation Brands, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
27.61%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
-47.73%
Industry Style: Defensive, Dividend, Low Volatility
DecliningFCF CAGR
28.66%
Industry Style: Defensive, Dividend, Low Volatility
High Growth