Constellation Brands (STZ) AI Stock Analysis

• Market Cap: $24.72B
• Dividend Yield: 2.84%
• Average Volume (3M): 2.31M
• Price to Earnings (P/E): 20.7
• Beta (1Y): 0.42
• Revenue Growth: -5.57%
• EPS Growth: 119.49%
• Country: US
• Employees: 10,600
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Wineries & Distilleries
• EPS (TTM): 3.63
• Shares Outstanding: 174,039,540
• 10 Day Avg. Volume: 2,075,520
• 30 Day Avg. Volume: 2,313,078
• PEG Ratio: 3.73
• Price to Book (P/B): 4.63
• Price to Sales (P/S): 3.12
• P/FCF Ratio: 16.43
• Enterprise Value/Market Cap: 1.59
• Enterprise Value/Revenue: 4.08
• Enterprise Value/Gross Profit: 7.93
• Enterprise Value/Ebitda: 15.38
• 1Y Price Target: $168.68
• Price Target Upside: 17.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 20
• EPS Forecast (FY): 11.5
• Revenue Forecast (FY): $9.05B

• Rating: 67 Neutral
• Price Target: $154.00 ▲(7.41% Upside)

Constellation Brands' overall score reflects strong profitability and efficient operations, but is tempered by challenges in revenue and free cash flow growth. Technical indicators show short-term bullish momentum, while valuation metrics suggest caution. The earnings call and corporate events indicate strategic management but highlight ongoing challenges in volume growth and margin pressures.

Positive Factors

Brand Loyalty

Growing brand loyalty, especially among younger consumers, suggests a strong market position and potential for sustained revenue growth.

Strategic Financial Management

Strategic financial moves, like issuing senior notes, enhance financial flexibility and strengthen the balance sheet, supporting long-term stability.

Wine and Spirits Performance

Strong performance in wine and spirits indicates effective diversification and resilience in non-beer segments, supporting overall business growth.

Negative Factors

Revenue Decline

A decline in revenue growth can impact future profitability and market competitiveness, posing a risk to long-term financial health.

Free Cash Flow Challenges

Declining free cash flow growth limits the company's ability to invest in growth opportunities and manage debt, affecting liquidity.

Volume Growth Challenges

Challenges in volume growth, especially in key demographic segments, can hinder market share expansion and revenue potential.

Constellation Brands Business Overview & Revenue Model

Company Description

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 provides beer primarily under the Corona Extra, Corona Premier, Corona Familiar, Corona Light, Corona Refresca, Corona Hard Seltzer, Modelo Especial, Modelo Negra, Modelo Chelada, Pacifico, and Victoria brands. The company offers wine under the 7 Moons, Cook's California Champagne, Cooper & Thief, Crafters Union, Kim Crawford, Meiomi, Mount Veeder, Ruffino, SIMI, The Dreaming Tree, Charles Smith, The Prisoner Wine Company, Robert Mondavi, My Favorite Neighbor, and Schrader; and spirits under the Casa Noble, Copper & Kings, High West, Mi CAMPO, Nelson's Green Brier, and SVEDKA brands. It provides its products to wholesale distributors, retailers, on-premise locations, and state alcohol beverage control agencies. Constellation Brands, Inc. was founded in 1945 and is headquartered in Victor, New York.

How the Company Makes Money

Constellation Brands generates revenue primarily through the sale of its alcoholic beverages across various segments, including beer, wine, and spirits. The company's most significant revenue stream comes from its beer segment, which includes popular brands like Corona and Modelo, contributing a substantial percentage of total sales. Additionally, Constellation earns revenue from its wine and spirits division, which features brands like Robert Mondavi and Svedka Vodka. The company benefits from strategic partnerships, notably with Grupo Modelo for beer distribution in the U.S., enhancing its market presence and distribution capabilities. Furthermore, Constellation is increasingly investing in the cannabis sector, exploring opportunities in this emerging market, which could provide additional revenue streams in the future.

Constellation Brands Financial Statement Overview

Summary

Constellation Brands shows strong profitability with healthy margins and a strong ROE. However, the decline in revenue growth and free cash flow growth poses risks to future financial stability. The low debt-to-equity ratio suggests financial stability and low leverage.

Income Statement

Constellation Brands shows a mixed performance in its income statement. The TTM data indicates a decline in revenue growth rate by 4.35%, which is concerning. However, the company maintains a strong gross profit margin of 51.43% and a net profit margin of 19.08%, indicating good profitability. The EBIT margin of 22.05% and EBITDA margin of 25.49% are healthy, suggesting efficient operations despite the revenue decline.

Balance Sheet

The balance sheet of Constellation Brands reflects a solid equity position with a debt-to-equity ratio of 0.034 in the TTM period, indicating low leverage. The return on equity (ROE) is strong at 24.93%, showcasing effective use of equity to generate profits. However, the equity ratio is not provided, which limits the analysis of asset financing.

Cash Flow

The cash flow statement reveals challenges with a negative free cash flow growth rate of -10.60% in the TTM period. The operating cash flow to net income ratio is 0.48, and the free cash flow to net income ratio is 0.85, indicating moderate cash generation relative to net income. The decline in free cash flow growth is a concern for future liquidity.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.62B	10.21B	9.96B	9.45B	8.82B	8.61B
Gross Profit	4.95B	5.20B	4.91B	4.81B	4.60B	4.47B
EBITDA	2.55B	782.60M	3.08B	1.17B	1.00B	3.22B
Net Income	1.22B	-81.40M	1.73B	-71.00M	-40.40M	2.00B
Balance Sheet
Total Assets	21.42B	21.65B	25.69B	24.66B	25.86B	27.10B
Cash, Cash Equivalents and Short-Term Investments	72.00M	68.10M	152.40M	133.50M	199.40M	460.60M
Total Debt	10.04B	12.11B	12.56B	12.96B	10.95B	10.98B
Total Liabilities	13.63B	14.52B	15.63B	15.93B	13.81B	13.18B
Stockholders Equity	7.50B	6.88B	9.74B	8.41B	11.73B	13.60B
Cash Flow
Free Cash Flow	1.85B	1.94B	1.51B	1.72B	1.68B	1.94B
Operating Cash Flow	2.77B	3.15B	2.78B	2.76B	2.71B	2.81B
Investing Cash Flow	347.60M	-974.80M	-1.29B	-999.40M	-1.04B	-87.90M
Financing Cash Flow	-3.11B	-2.26B	-1.47B	-1.82B	-1.93B	-2.35B

Constellation Brands Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 143.37
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STZ, the sentiment is Neutral. The current price of 143.37 is above the 20-day moving average (MA) of 134.55, above the 50-day MA of 135.42, and below the 200-day MA of 160.45, indicating a neutral trend. The MACD of 2.15 indicates Negative momentum. The RSI at 70.84 is Negative, neither overbought nor oversold. The STOCH value of 96.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for STZ.

Constellation Brands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABEV	80 Outperform	$39.49B	13.67	15.97%	6.94%	-0.68%	4.29%
BF.B	74 Outperform	$14.02B	17.56	20.67%	3.07%	-4.59%	-19.19%
SAM	68 Neutral	$2.08B	23.10	9.58%	―	-1.13%	24.34%
STZ	67 Neutral	$24.72B	20.73	15.91%	2.84%	-5.57%	119.49%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
DEO	60 Neutral	$49.52B	20.78	22.33%	4.80%	0.22%	-38.76%
TAP	53 Neutral	$8.94B	―	-17.66%	4.16%	-4.01%	-339.22%

Constellation Brands Corporate Events

Constellation Brands Files Shelf Registration with SEC

On November 7, 2025, Constellation Brands filed an automatic shelf registration statement with the SEC to cover an unspecified amount of its Class A Common Stock and other securities. The company also filed a prospectus supplement for the resale of up to 21,274,829 shares of Class A Common Stock, although it will not receive proceeds from these sales, indicating a strategic move to facilitate stockholder transactions without impacting its own capital.

Constellation Brands Issues $500M Senior Notes

On October 16, 2025, Constellation Brands announced the termination of a $500 million delayed draw term loan agreement with Bank of America, which was initially set to expire on November 7, 2025. This decision, which incurred no early termination penalties, reflects the company’s strategic financial management. Additionally, on October 17, 2025, Constellation Brands issued $500 million in 4.950% Senior Notes due 2035, under a new supplemental indenture, to strengthen its financial position. This move is part of the company’s broader strategy to optimize its capital structure and maintain financial flexibility.

Constellation Brands Announces $500M Senior Notes Sale

On October 15, 2025, Constellation Brands announced an underwriting agreement for the sale of $500 million in 4.950% Senior Notes due 2035, with the transaction expected to close on October 17, 2025. The proceeds from this offering will be used for general corporate purposes, including redeeming its outstanding 4.400% Senior Notes due 2025, indicating a strategic move to manage its debt obligations effectively.

Constellation Brands Announces $500M Senior Notes Offering

On October 15, 2025, Constellation Brands announced the pricing of a $500 million public offering of 4.950% Senior Notes due 2035. The proceeds from this offering are intended for general corporate purposes, including the redemption of its outstanding 4.400% Senior Notes due 2025. This strategic financial move is expected to impact the company’s debt structure and operational flexibility.

Constellation Brands Reports Strong Q2 FY2026 Results

On October 6, 2025, Constellation Brands reported its second quarter fiscal year 2026 financial results, highlighting continued success in a challenging operating environment. The company achieved significant dollar share gains in the U.S. beer market and outperformed in the high-end wine segment. Despite a 15% decrease in net sales, Constellation generated a reported EPS of $2.65 and a comparable EPS of $3.63. The company returned nearly $300 million to shareholders through share repurchases and declared a quarterly cash dividend. Looking forward, Constellation updated its fiscal 2026 EPS outlook and reaffirmed its cash flow targets, while maintaining a focus on strategic objectives and capital allocation priorities.

Constellation Brands Amends By-Laws and Declares Dividend

On September 29, 2025, Constellation Brands announced the retirement of James O. Bourdeau as Chief Legal Officer, effective February 28, 2026, with Jeffrey H. LaBarge succeeding him on March 1, 2026. Bourdeau will transition to an Executive Vice President and Strategic Advisor role until March 1, 2027, under a new employment agreement. Additionally, on September 30, 2025, the Board amended the company’s By-Laws to align with Delaware law and declared a quarterly cash dividend payable on November 13, 2025.