STZSTZ
US • —
$139.09
P/E
14.50
PEG
—
FCF Yield
—
Rev Growth YoY
-10.5% YoY
Gross Margin
51.8%
Health Score
7/10
D/E Ratio
1.31
Confidence
LOW
Business Snapshot
Constellation Brands (STZ) is a leading producer and marketer of beer, wine, and spirits, with its Mexican beer portfolio including brands like Modelo Especial and Corona serving as the primary revenue driver. The company operates primarily in the U.S. beer and wine markets, where it holds a strong competitive position as a major player in the premium import beer segment. The company generated an earnings beat in each of the last four quarters, indicating consistent operational execution against analyst expectations. With a gross margin of 51.8% and a net margin of 18.5%, the company demonstrates solid profitability in the consumer staples sector.
Financial Health
Gross margin stands at a healthy 51.8%, though a prior-year comparison is unavailable to assess the trend. Net margin is a robust 18.5%, reflecting efficient cost management and strong pricing power in its core beer segment...
Risk Assessment
- REVENUE DECELERATION — Revenue declined 10.5% year-over-year, a significant reversal that erodes the growth premium typically assigned to branded consumer staples.
- DEBT / LIQUIDITY — Debt-to-equity of 1.31x is above the 1.0x threshold, indicating a moderate but notable level of financial leverage that restricts financial flexibility.
- TECHNICALS — RSI, MACD, and moving average data are unavailable for this period; momentum cannot be independently confirmed.
- VALUATION — Despite a P/E of 14.5x below the sector average of 22x, the EV/EBITDA of 18.93x is elevated, suggesting the stock is not uniformly cheap when debt is factored in.
- INSIDER — Insider activity shows 1 sell and 0 buys over the last 90 days, a net selling signal that suggests internal sentiment may be cautious....
Gross margin stands at a healthy 51.8%, though a prior-year comparison is unavailable to assess the trend. Net margin is a robust 18.5%, reflecting efficient cost management and strong pricing power in its core beer segment. The debt-to-equity ratio of 1.31x is elevated but manageable, indicating the company uses moderate leverage to finance its operations and growth investments. The current ratio of 1.08x suggests adequate short-term liquidity, though it is not generous. Return on equity is a strong 22.1%, demonstrating effective use of shareholder capital to generate profits. Overall, the company is financially sound with strong margins and profitability, though leverage limits financial flexibility and reduces the margin of safety for dividend growth or aggressive reinvestment.
- REVENUE DECELERATION — Revenue declined 10.5% year-over-year, a significant reversal that erodes the growth premium typically assigned to branded consumer staples. - DEBT / LIQUIDITY — Debt-to-equity of 1.31x is above the 1.0x threshold, indicating a moderate but notable level of financial leverage that restricts financial flexibility. - TECHNICALS — RSI, MACD, and moving average data are unavailable for this period; momentum cannot be independently confirmed. - VALUATION — Despite a P/E of 14.5x below the sector average of 22x, the EV/EBITDA of 18.93x is elevated, suggesting the stock is not uniformly cheap when debt is factored in. - INSIDER — Insider activity shows 1 sell and 0 buys over the last 90 days, a net selling signal that suggests internal sentiment may be cautious.
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