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Constellation Brands Inc (STZ)

Fair Value
Consumer DefensiveBeverages - BrewersUnited States

Fundamental

68

Price

$113.06

Market Cap

$19.29B

Part 1 · What the company is worth

Overview

Constellation Brands, Inc., together with its subsidiaries, produces, imports, markets, and sells beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. It offers beer under the Corona Extra, Corona Familiar, Corona Sunbrew, Corona Light, Corona Non-Alcoholic, Corona Premier, Modelo Especial, Modelo Chelada, Modelo Negra, Modelo Spiked Aguas Frescas, Modelo Oro, Modelo Noche Especial, Victoria, Vicky Chamoy, and Pacifico brand names. The company also offers wine under the Sea Smoke, Schrader Cellars, Kim Crawford, Mount Veeder, Ruffino, My Favorite Neighbor, Robert Mondavi Winery, and The Prisoner Wine Company brand names; and spirits under the Casa Noble, High West, Mi CAMPO, and Nelson's Green Brier brand names. It provides its products to wholesale distributors, retailers, and state alcohol beverage control agencies. Constellation Brands, Inc. was founded in 1945 and is headquartered in Rochester, New York.

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Direct competitors

Who this company fights with for the same customers

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No competitor list for this company yet.

Balance Sheet & Liquidity

Revenue

$9.06B

Trailing 12 months (through 5/31/2026)

Net Income

$1.82B

Trailing 12 months (through 5/31/2026)

Free Cash Flow

$1.79B

Total Equity

$8.08B

Total Liabilities

$13.51B

Current Ratio

0.91

Interest Coverage

7.53

Debt/EBITDA

3.35

Earnings Per Share

No EPS data available

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

General caseFairly Valued

Fair Value

$135.65

Current Price

$113.06

Margin of Safety

+16.7%

Fair Value Range

$104.65 - $166.65

Spread across the valuation methods used, not a statistically calibrated confidence interval.

Estimation Methods

Analyst price target:$163.35
Discounted cash flow (DCF):Not enough data to compute it
Earnings multiple (P/E):$102.37
Graham growth formula:$97.02
Earnings power value (EPV):$163.30
Justified P/B:$223.73
Dividend discount (Gordon):$106.04
P/FFO, funds from operations:Not enough data to compute it
Mid-cycle earnings:Not enough data to compute it
Revenue multiple:$62.23
Analyst Consensus:Buy (18B / 9H / 2S)
Last Earnings Surprise:+6.06%

Valuation Metrics

P/E Ratio

10.55

ROE

20.9%

P/B Ratio

2.34

P/FCF

10.53

Gross Margin

52.6%

ROIC

11.2%

Profitability Radar

Value Creation (Economic Moat)

ROIC

11.2%

WACC

6.1%

ROIC − WACC

+5.1 pp

ROIC exceeds the cost of capital — the company is creating value for shareholders.

Fundamental Analysis Criteria

Passed (17)

  • ROIC 11.2%
  • Gross Margin 52.6%
  • P/FCF 10.53
  • P/B Ratio 2.34
  • Debt/Equity ratio
  • Operating Margin 29.8%
  • Positive Free Cash Flow
  • Current Ratio
  • Interest Coverage
  • Debt/EBITDA
  • Return on Tangible Assets
  • ROE 23.1%
  • Analyst Consensus 62% Buy
  • Earnings Surprise avg 7.7%
  • Earnings Quality (OCF/NI) 1.48
  • Net Margin Trend 20.1% vs -4.4%
  • Piotroski F-Score 6/9

Failed (6)

  • Price CAGR -2.22%
  • CapEx intensity
  • Low reliance on intangibles
  • DCF valuation (Unknown)
  • Revenue Growth 5Y 1.2%
  • PEG Ratio 10.55

Unavailable (4)

  • EPS data insufficient
  • Dividend Payout NaN%
  • Price below Graham Number
  • Share Dilution (missing shares data)

Piotroski F-Score

6/9

Mixed signals: some areas need attention

score
criteria

Earnings Quality

1.48

High quality: earnings backed by cash

Share Dilution

-

Buying back shares. Shareholder friendly

Institutional Holdings

Governance

Executive Team

NameTitleAge
Mr. Nicholas Ian Fink J.D.President, CEO & Director50
Mr. Garth HankinsonExecutive VP & CFO57
Mr. James O. Bourdeau Esq., J.D.Executive VP & Strategic Advisor60
Mr. James A. Sabia Jr.Executive VP & President of Beer Division63
Mr. Samuel James GlaetzerExecutive VP & President of Wine & Spirits Division50
Mr. Michael BeckaSenior VP of Corporate Finance-
Mr. Blair VeenemaVice President of Investor Relations-
Mr. Jeffrey H. LaBarge J.D.Executive VP, Chief Legal Officer & Secretary52
Mr. Michael McGrewEVP and Chief Communications, CSR & Inclusion Officer51
Mr. Steve KingSVP of Corporate Development and Financial Planning & Analytics-

Audit Risk

8

Board Risk

3

Compensation Risk

3

Shareholder Rights Risk

4

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Documents

  • Annual Report (10-K)

    A yearly overview of the business, its financial results, and the risks it faces.

    Filed on 2026-04-22

    View document
  • Quarterly Report (10-Q)

    A snapshot of financial performance for the most recent three-month period.

    Filed on 2026-07-01

    View document
  • Current Report (8-K)

    An announcement of a major event, such as a leadership change or big news.

    Filed on 2026-09-18

    View document

via SEC EDGAR

Income History

via SEC EDGAR

Latest News

Recent headlines for STZ, sourced from Markets Gazette.

  • 5/11/2026NEUTRAL
    Here's How Much You Would Have Made Owning Constellation Brands Stock In The Last 15 Years

    Analysis of Constellation Brands Inc. (STZ) stock performance over the past 15 years reveals a significant return for investors. While specific figures are not detailed in the provided snippet, the title suggests a substantial positive trajectory. This historical performance data is crucial for investors evaluating long-term potential, offering insights into the company's resilience and growth capabilities across various market conditions. Further examination of the underlying financial reports and strategic decisions during this period would be necessary to fully understand the drivers of this performance.

  • 4/9/2026POSITIVE
    $100 Invested In Constellation Brands 15 Years Ago Would Be Worth This Much Today

    An investment of $100 in Constellation Brands Inc. (STZ) 15 years ago would have grown to a substantial amount today, reflecting the company's strong performance and market position. While specific figures are not provided in the snippet, this historical performance indicates significant shareholder value creation. Investors can interpret this as a testament to the company's effective management, successful brand portfolio (including beer, wine, and spirits), and ability to navigate market dynamics. The sustained growth suggests potential for continued appreciation, making it a noteworthy consideration for portfolio diversification.

  • 4/9/2026NEGATIVE
    Modelo Owner Constellation Gives Softer-Than-Expected Outlook

    Constellation Brands, the owner of Modelo and Corona, has issued a cautious outlook for its beer division, projecting organic beer sales to range from a 1% decline to a 1% increase for the current fiscal year. This forecast falls short of the 2.2% growth anticipated by analysts. Despite representing an improvement from the prior year, the subdued guidance signals that even its popular brands are not immune to the ongoing downturn in alcohol consumption. Investors should note this indicates potential headwinds for the company's core beer business.

  • 4/8/2026NEGATIVE
    Corona brewer says shoppers are going for cheaper beer and wine, as it grows more cautious on demand

    Constellation Brands has withdrawn its long-term financial outlook, signaling increased caution regarding future demand. The company's executives previously noted that concerns over ICE raids and elevated prices were impacting Hispanic consumer spending habits. This cautious stance suggests potential headwinds for sales and profitability, prompting investors to re-evaluate the company's growth prospects in the current economic climate.

  • 4/7/2026POSITIVE
    Corona brewer’s stock has rallied ahead of earnings amid signs of improving beer sales

    Constellation Brands Inc. (STZ) shares have seen a notable rally year-to-date, fueled by investor optimism regarding a potential resurgence in beer consumption. The company, known for its Corona brand, is anticipating improved sales figures ahead of its upcoming earnings report. This positive sentiment suggests that market participants are expecting the company to meet or exceed expectations, potentially driven by recovering consumer demand for its beverage portfolio. Investors are closely watching for confirmation of this trend in the forthcoming financial results.

  • 4/7/2026NEUTRAL
    Top Wall Street Forecasters Revamp Constellation Brands Expectations Ahead Of Q4 Earnings

    Constellation Brands is set to report its fourth-quarter earnings on April 8th, with analysts projecting earnings per share of $1.71 and revenue of $1.88 billion. Recent analyst ratings present a mixed outlook, with firms like Wells Fargo, Barclays, and Credit Suisse maintaining 'Overweight' or 'Outperform' ratings in early 2022. While the upcoming earnings report will provide crucial insights into the company's performance, the current analyst sentiment suggests a wait-and-see approach from the market, indicating no immediate strong directional bias.

via Markets Gazette