Constellation Brands Inc Class A STZ

Morningstar Rating
$135.76 +3.24 (2.44%)
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Company Report

Price vs Fair Value

STZ is trading at a LOCK|cR%T&C premium.
Price
$135.76
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Strong brand equity and well-established distributor relationships will continue to fuel beer volume expansion for Constellation.

Bears

Distribution rights surrounding the Modelo and Corona brands limit Constellation’s beer operations to the US market and prevent the firm from replicating its success internationally.

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Trading Information

Previous Close Price
$132.52
Day Range
$132.56136.59
52-Week Range
$126.45174.32
Bid/Ask
$135.50 / $136.22
Shares Outstanding
170.78M
Market Cap
$23.18B
Volume/Avg
2M / 2M

Key Statistics

Price/Earnings (Normalized)
11.30
Price/Sales
2.61
Dividend Yield (Trailing)
3.02%
Dividend Yield (Forward)
3.03%
Total Yield
6.65%

Company Profile

Constellation Brands is the largest provider of alcoholic beverages across the beer, wine, and spirits categories in the US, generating more than 90% of revenue from Mexican beer imports under top-selling brands such as Modelo and Corona. The rest of the business includes some remaining wine and spirits brands, categories where the company has pruned assets in recent years. With its exclusive rights tied to the Mexican beer brands effective only in the US, the firm has limited revenue exposure to international markets. Constellation owns a 10% stake in Canopy Growth, a medicinal and recreational cannabis producer in Canada, and has a 50/50 joint venture with glass manufacturer Owens-Illinois in Mexico.
Sector
Consumer Defensive
Industry
Beverages - Brewers
Stock Style Box
Mid Value
Total Number of Employees
9,400

Competitors

Valuation

Metric
STZ
TAP
BF.B
Price/Earnings (Normalized)
11.308.5415.48
Price/Book Value
2.820.803.25
Price/Sales
2.610.753.39
Price/Cash Flow
8.474.5214.50
Price/Earnings
STZ
TAP
BF.B

Financial Strength

Metric
STZ
TAP
BF.B
Quick Ratio
0.250.260.93
Current Ratio
0.910.543.24
Interest Coverage
8.21−9.869.46
Quick Ratio
STZ
TAP
BF.B

Profitability

Metric
STZ
TAP
BF.B
Return on Assets (Normalized)
9.57%7.80%10.60%
Return on Equity (Normalized)
26.96%17.16%21.34%
Return on Invested Capital (Normalized)
12.39%11.59%13.93%
Return on Assets
STZ
TAP
BF.B

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