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Constellation Brands, Inc. (STZ) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Constellation Brands, Inc.

STZMarket cap $20BPrice $118.4

Country🇺🇸United States

SectorConsumer

IndustryBeverages

Brews and imports beer while making wine and spirits, with Corona and Modelo leading the U.S. import beer market. Modelo Especial dethroned Bud Light as America's best-selling beer, proving Americans will pay more for imported flavor.

In Bastion Portfolios?

52W Return-14%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)-1%2

Revenue Forecast

Rev CAGR (1y)-1%2

Rev CAGR (3y)+1%2

Rev CAGR (5y)+1%2

Earnings Forecast

EPS Growth Y+1+22%8

EPS Growth Y+2+1%4

EPS Growth Y+3+5%5

Quality

Margins

EBIT Margin33%9

Net Income Margin21%8

Free Cash Flow Margin20%8

Debt

Net Debt/EBITDA2.93

Efficiency

ROE24%8

ROA9%8

Earnings Stability44

GEAR+AVERAGE41

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)108

P/E Ratio (Forward 3y)108

P/BV2.46

EV Multiples

EV/EBITDA Fwd97

EV/EBIT Fwd108

Yield

Free Cash Flow Yield9.1%9

Dividend Yield3.5%8

Momentum

Short term

1 month return-2%7

3 month return-8%4

YTD return-12%3

Mid term

Price vs 52wHigh71%4

1 year return-15%3

Long term

3 year return-47%1

5 year return-41%2

Risk Shield

Price Risk

Betana–

Volatility30%7

Free Cash Flow

Free Cash Flow Margin20%8

Free Cash Flow Yield9.1%9

Quality

ROCE16%8

Earnings Stability44

Net Debt/EBITDA2.93

02Growth

Is it actually growing, and how fast?

STZConstellation Brands

Revenue FY26$9.1B

GROWTH RATING↗

VERY WEAK10 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR-1%2

Revenue, next 1Y-1%2

Revenue, next 3Y, CAGR+1%2

Revenue, next 5Y, CAGR+1%2

EARNINGS FORECAST▾SCORE

EPS growth, FY27E+22%8

EPS growth, FY28E+1%4

EPS growth, FY29E+5%5

GROWTH ASSESSMENT

STRENGTHS

Earnings are set to grow in step with sales (EPS about 5%/yr vs revenue 1%/yr).

WATCH

Revenue fell 1%/yr over the last 3 years and is set to grow around 1%/yr from here.

WEAKNESSES

Growth is the weak spot here, trailing 90% of companies worldwide.

Revenue fell 1%/yr over the last 3 years, behind 80% of companies worldwide.2/10

Revenue is set to grow 1%/yr over the next 3 years, behind most of the market.2/10

Over five years revenue is set to grow 1%/yr, behind 80% of companies worldwide.2/10

BOTTOM LINE

Stalled Business

Growth is a weak point here. The one thing to watch: revenue has shrunk over the past 3 years.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

WEAK19 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-2%7

3-month return-8%4

YTD return-12%3

MID & LONG-TERM▾SCORE

% of 52-week high71%4

1-year return-15%3

3-year return-47%1

5-year return-41%2

MOMENTUM ASSESSMENT

STRENGTHS

Strong recent results. The stock is outperforming over the past month (-2%).

WATCH

Returns sit at the market level over three months (-8%).

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-47% over three years and -41% over five), behind 80% of the market.

It's down 15% over the past year, now 29% below its 52-week high. That is a touch behind the market.

The stock is underperforming so far this year (-12%).

BOTTOM LINE

Falling Knife

Returns rank poorly over both the short and long run, and the price is still falling. Momentum is firmly negative — catching this is a bet against the tape, not with it. Wait for a base to form. The one thing to watch: the multi-year record is weak.

04Value

Are you paying a fair price for it?

Stop guessing on Constellation Brands. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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Loading charts…

02Growth

Is it actually growing, and how fast?

STZConstellation Brands

Revenue FY26$9.1B

GROWTH RATING↗

VERY WEAK10 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR-1%2

Revenue, next 1Y-1%2

Revenue, next 3Y, CAGR+1%2

Revenue, next 5Y, CAGR+1%2

EARNINGS FORECAST▾SCORE

EPS growth, FY27E+22%8

EPS growth, FY28E+1%4

EPS growth, FY29E+5%5

GROWTH ASSESSMENT

STRENGTHS

Earnings are set to grow in step with sales (EPS about 5%/yr vs revenue 1%/yr).

WATCH

Revenue fell 1%/yr over the last 3 years and is set to grow around 1%/yr from here.

WEAKNESSES

Growth is the weak spot here, trailing 90% of companies worldwide.

Revenue fell 1%/yr over the last 3 years, behind 80% of companies worldwide.2/10

Revenue is set to grow 1%/yr over the next 3 years, behind most of the market.2/10

Over five years revenue is set to grow 1%/yr, behind 80% of companies worldwide.2/10

BOTTOM LINE

Stalled Business

Growth is a weak point here. The one thing to watch: revenue has shrunk over the past 3 years.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

WEAK19 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-2%7

3-month return-8%4

YTD return-12%3

MID & LONG-TERM▾SCORE

% of 52-week high71%4

1-year return-15%3

3-year return-47%1

5-year return-41%2

MOMENTUM ASSESSMENT

STRENGTHS

Strong recent results. The stock is outperforming over the past month (-2%).

WATCH

Returns sit at the market level over three months (-8%).

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-47% over three years and -41% over five), behind 80% of the market.

It's down 15% over the past year, now 29% below its 52-week high. That is a touch behind the market.

The stock is underperforming so far this year (-12%).

BOTTOM LINE

Falling Knife

04Value

Are you paying a fair price for it?

Stop guessing on Constellation Brands. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community