Constellation Brands (STZ)
Consumer Staples · $20.4B market cap · SEC CIK 0000016918
fundamentals score out of 100
Next reports on Apr 6, 2027, after the close, with analysts expecting $1.94 in earnings per share.
The case for STZ
- Cheap on earnings at 11.2×, well under the market's usual 20×.
- Generated $1.8B of free cash flow in FY2025, 20% of revenue.
- 20% of revenue drops through to net profit.
- Free cash flow of 8.8% of its market value a year: a lot of cash for the price.
- Earnings per share up 30.8%.
- A PEG of 0.36: a P/E of 11.2× is low for EPS growing 31%.
The case against
- Revenue fell 10.0% year over year.
- Near the bottom of its 52-week range, 30% below the high. Falling prices usually have a reason; find it first.
- Current liabilities exceed current assets (ratio 0.91).
- Long-term debt of $10.3B against $152M of cash.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Consumer Staples companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 85 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 40 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 76 |
| Momentumhow the price has behaved lately | 18 |
| Stabilityhow violently it moves, what it owes and what it pays you | 54 |
- Each factor except momentum is half fixed thresholds, half rank among the 36 Consumer Staples companies.
Key numbers
| Price / earnings | 11.2× |
|---|---|
| Price / book | 2.83× |
| Price / sales | 2.3× |
| Revenue growth (YoY) | -10.0% |
| EPS growth (YoY) | +30.8% |
| Gross margin | 53% |
| Operating margin | 31% |
| Net margin | 20% |
| Return on equity | 23% |
| Debt / equity | 1.28× |
| Current ratio | 0.91 |
| Dividend yield | 1.49% |
| Beta | 0.41 |
| 52-week range | $116.93 – $168.60 |
| Position in that range | 1% of the way up |
| 3-month return | -16.1% |
| 1-year return | -10.9% |
Five years of financials, as filed
Pulled from Constellation Brands's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $9.1B | $10.2B | $10.0B | $9.5B | $8.8B |
| Gross profit | $4.7B | $5.3B | $5.0B | $4.8B | $4.7B |
| Operating income | $2.7B | $355M | $3.2B | $2.8B | $2.3B |
| Net income | $1.7B | -$81.4M | $1.7B | -$71.0M | -$40.4M |
| Operating cash flow | $2.7B | $3.2B | $2.8B | $2.8B | $2.7B |
| Capital expenditure | $875M | $1.2B | $1.3B | $1.0B | $1.0B |
| Total assets | $21.7B | $22.8B | $25.1B | $24.5B | $25.5B |
| Total liabilities | $13.7B | $14.7B | $15.3B | $15.7B | $14.0B |
| Shareholder equity | $7.7B | $7.8B | $9.5B | $8.4B | $11.2B |
| Cash | $152M | $73.7M | $78.7M | $185M | $361M |
| Long-term debt | $10.3B | $10.2B | $10.3B | $11.3B | $10.1B |
| Free cash flow | $1.8B | $1.9B | $1.5B | $1.7B | $1.7B |
| Gross margin | 51.6% | 52.1% | 50.4% | 50.5% | 53.4% |
| Operating margin | 29.8% | 3.5% | 31.8% | 30.1% | 26.4% |
| Net margin | 18.5% | -0.8% | 17.3% | -0.8% | -0.5% |
What Constellation Brands says it does
Table of Contents PART I ITEM 1. BUSINESS INTRODUCTION We are an international producer and marketer of beer, wine, and spirits with operations in the U.S., Mexico, New Zealand, and Italy with powerful, consumer-connected, high-quality brands like Modelo Especial, Corona Extra, Pacifico, Victoria, Kim Crawford, Ruffino, The Prisoner Wine Company, Robert Mondavi Winery, Mi CAMPO, and High West. In the U.S., we are one of the top dollar share gainers among beverage alcohol suppliers. We are also the second-largest beer company and have the #1 beer brand, Modelo Especial, in dollar sales in the U.S. We continued to strengthen our leadership position in the U.S. beer market as the #1 dollar share gainer in the overall U.S. beer market, and the #2 dollar share gainer in the high-end. Within wine and spirits, we have implemented a multi-year strategy that repositioned this business to a portfolio of exclusively higher-end brands that we…
Risk factors STZ lists in its 10-K
- Potential declines in the consumption of products we sell; dependence on sales of our beer brands
- Constellation Brands, Inc. FY 2026 Form 10-K
- President and Chief Executive Officer transition
- Acquisition, divestiture, investment, and NPD strategies and activities
- Dependence upon trademarks and proprietary rights; failure to protect our intellectual property rights
- Economic and other uncertainties associated with our international operations, including tariffs
- Supply of quality water, agricultural, and other raw materials, certain raw and packaging materials purchased under supply contracts; supply chain disruptions and other factors; limited group of certain suppliers
- Reliance upon complex information systems and third-party global networks; cybersecurity; AI
- Dependence on limited facilities for production of our beer brands; impacts from Brewery Projects
- Operational disruptions or catastrophic loss to breweries, wineries, other facilities, or distribution systems
- Severe weather and natural or man-made disasters; climate change; environmental sustainability and CSR-related regulatory compliance; failure to meet environmental sustainability and CSR commitments and aspirations
- Success of cost savings, restructuring, and efficiency initiatives
- Reliance on wholesale distributors, major retailers, and government agencies
- Food safety and quality, including contamination and product degradation from diseases, pests, and weather and other conditions