Constellation Brands (STZ) AI Stock Analysis

• Market Cap: $30.36B
• Dividend Yield: 2.37%
• Average Volume (3M): 2.54M
• Price to Earnings (P/E): 49.1
• Beta (1Y): 0.45
• Revenue Growth: -0.47%
• EPS Growth: -117.62%
• Country: US
• Employees: 10,600
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Beverages - Wineries & Distilleries
• EPS (TTM): 3.22
• Shares Outstanding: 176,266,240
• 10 Day Avg. Volume: 2,484,320
• 30 Day Avg. Volume: 2,542,625
• PEG Ratio: 0.17
• Price to Book (P/B): 4.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.59
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: 1.03
• Enterprise Value/Gross Profit: 8.05
• Enterprise Value/Ebitda: 9.42
• 1Y Price Target: $202.24
• Price Target Upside: 17.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 65 Neutral
• Price Target: $183.00 ▲(6.28%Upside)

Constellation Brands exhibits strong operational efficiency and cash flow generation, but profitability challenges and high leverage weigh on the financial health. Despite a promising outlook in the beer segment and strategic initiatives, macroeconomic uncertainties and valuation concerns limit the score.

Positive Factors

Analyst Recommendations

Analysts have increased their earnings per share estimates and have raised the price target to $200, maintaining a Buy rating on the stock.

Financial Performance

STZ reported fiscal 1Q26 EPS of $3.22, which was ahead of the estimate of $3.00.

Strategic Initiatives

The company's reiteration of guidance and confidence in a recovery is seen as encouraging by analysts.

Negative Factors

Consumer Trends

There is potential risk to the beer topline outlook as STZ beer trends remain very soft and there are concerns the Hispanic consumer softness may linger.

Cost Pressures

STZ could see beer margins towards the low-end of guidance considering the incremental aluminum tariff impact, potential for increase in promos in beer, and volume deleverage if the topline improvement doesn’t materialize.

Market Concerns

The market remains skeptical about the implied acceleration in the balance of the year with STZ expecting a return to beer sales/depletions growth in F2Q26.

Constellation Brands Business Overview & Revenue Model

Company Description

Constellation Brands, Inc. is a leading international producer and marketer of beer, wine, and spirits. Headquartered in Victor, New York, the company operates primarily in the alcoholic beverage industry, with a diverse portfolio of well-known brands including Corona, Modelo, and Pacifico in the beer segment, as well as Robert Mondavi, Kim Crawford, and Meiomi in the wine segment. Constellation Brands is committed to delivering high-quality products and experiences to its consumers while driving growth and innovation across its various sectors.

How the Company Makes Money

Constellation Brands generates revenue through the production, distribution, and sale of alcoholic beverages, primarily focusing on beer, wine, and spirits. The company earns money by selling its products to wholesalers, retailers, and directly to consumers. A significant portion of its revenue comes from its beer segment, particularly from its imported Mexican beer brands such as Corona and Modelo, which are highly popular in the U.S. market. Additionally, the wine and spirits segments contribute to its earnings through a range of premium and super-premium offerings. Constellation Brands also engages in strategic partnerships and acquisitions to expand its market presence and diversify its portfolio, which further enhances its revenue streams.

Constellation Brands Financial Statement Overview

Summary

Constellation Brands demonstrates strong revenue growth and robust cash flow generation, with a 28.31% increase in free cash flow. However, the company faces profitability challenges with a negative net income and declining EBIT margin, impacting return metrics. While the balance sheet remains stable with moderate leverage, improving profitability is crucial for financial health.

Income Statement

Constellation Brands has shown consistent revenue growth over the years, achieving a 2.50% increase in the latest annual period. However, the company experienced a significant decline in profitability, with a negative net income for the most recent year, resulting in a net profit margin of -0.80%. The gross profit margin remains healthy at 52.06%, indicating strong product markups, but EBIT margin has decreased significantly. Overall, while revenue growth is a positive sign, the declining profitability is a concern.

Balance Sheet

The company's balance sheet reflects a moderate debt-to-equity ratio of 0.12, indicating manageable leverage levels relative to equity. The return on equity is currently negative due to the net loss, which highlights potential inefficiencies in generating returns for shareholders. The equity ratio stands at 31.78%, suggesting a balanced asset financing structure. While the balance sheet is relatively stable, the negative profitability impacts the overall strength.

Cash Flow

Constellation Brands has demonstrated robust cash flow management, with a notable free cash flow growth of 28.31% in the latest period. The operating cash flow to net income ratio is exceptionally high due to the low or negative net income, indicating strong cash flow generation relative to earnings. The free cash flow to net income ratio is also strong. Overall, despite the earnings challenges, the company's cash flow position is a bright spot.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	10.06B	10.21B	9.96B	9.45B	8.82B	8.61B
Gross Profit	5.18B	5.31B	5.02B	4.77B	4.71B	4.47B
EBITDA	456.30M	774.30M	3.08B	1.26B	1.09B	3.31B
Net Income	-442.30M	-81.40M	1.73B	-38.50M	1.00M	2.00B
Balance Sheet
Total Assets	22.26B	21.65B	25.69B	24.66B	25.86B	27.10B
Cash, Cash Equivalents and Short-Term Investments	73.90M	68.10M	152.40M	133.50M	199.40M	460.60M
Total Debt	11.57B	12.11B	12.56B	12.46B	10.42B	10.44B
Total Liabilities	14.73B	14.52B	15.63B	15.93B	13.81B	13.18B
Stockholders Equity	7.27B	6.88B	9.74B	8.41B	11.73B	13.60B
Cash Flow
Free Cash Flow	2.07B	1.94B	1.51B	1.72B	1.68B	1.94B
Operating Cash Flow	3.10B	3.15B	2.78B	2.76B	2.71B	2.81B
Investing Cash Flow	-793.50M	-974.80M	-1.29B	-999.40M	-1.04B	-87.90M
Financing Cash Flow	-2.31B	-2.26B	-1.47B	-1.82B	-1.93B	-2.35B

Constellation Brands Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 172.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 172.19 is above the 20-day moving average (MA) of 166.10, below the 50-day MA of 176.40, and below the 200-day MA of 198.98, indicating a neutral trend. The MACD of -0.81 indicates Negative momentum. The RSI at 53.88 is Neutral, neither overbought nor oversold. The STOCH value of 71.95 is Neutral, 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	75 Outperform	$37.68B	14.47	15.09%	3.73%	1.25%	-13.02%
CCU	73 Outperform	$2.40B	13.62	11.33%	3.36%	6.18%	61.39%
DEO	71 Outperform	$57.01B	15.99	35.83%	3.13%	-1.21%	-8.89%
Sector *	65 Neutral	$26.92B	15.40	-4.18%	3.18%	1.01%	1.53%
STZ	65 Neutral	$30.36B	49.10	-5.05%	2.37%	-0.47%	-117.62%
SAM	65 Neutral	$2.17B	32.22	7.36%	―	0.79%	-24.27%
TAP	65 Neutral	$10.15B	10.05	7.90%	3.76%	-5.17%	-0.74%

Constellation Brands Corporate Events

Constellation Brands Announces Quarterly Cash Dividend

On July 1, 2025, Constellation Brands announced a quarterly cash dividend for its shareholders, reflecting its commitment to returning value to investors. Despite facing socioeconomic challenges affecting consumer demand, the company reported strong performance in its beer business, leading the U.S. market in dollar share gains. The wine and spirits segment saw a decline in sales following the divestiture of mainstream wine brands, but the company remains focused on high-margin segments. Constellation Brands also repurchased $381 million in shares and maintained its fiscal 2026 financial outlook, emphasizing strategic capital allocation and investment in brewery capacity.

The most recent analyst rating on (STZ) stock is a Hold with a $202.00 price target. To see the full list of analyst forecasts on Constellation Brands stock, see the STZ Stock Forecast page.

Constellation Brands Completes Wine Brands Sale to The Wine Group

On June 2, 2025, Constellation Brands announced the completion of its sale and exclusive licensing of certain mainstream wine brands and associated assets to The Wine Group, as part of a strategic move to focus on higher-growth, higher-margin brands. Additionally, Constellation Brands declared the full redemption of its outstanding 4.75% Senior Notes due 2025 and 5.00% Senior Notes due 2026, signaling a shift towards premiumization trends and improved performance in its wine and spirits segment.

The most recent analyst rating on (STZ) stock is a Hold with a $202.00 price target. To see the full list of analyst forecasts on Constellation Brands stock, see the STZ Stock Forecast page.

Constellation Brands Secures $500M Term Loan Agreement

On May 9, 2025, Constellation Brands entered into a Term Loan Credit Agreement with Bank of America and other lenders, allowing for a $500 million loan to be drawn in up to two parts. The company plans to use the funds for general corporate purposes, including debt repayment. The agreement includes various covenants and conditions similar to its existing credit facilities, and it is set to mature two years after the initial borrowing. This financial maneuver is expected to provide Constellation Brands with increased flexibility in managing its financial commitments and strategic initiatives.

Constellation Brands Announces $500M Senior Notes Offering

On April 29, 2025, Constellation Brands announced the pricing of a public offering of $500 million in senior notes due in 2030, with a 4.800% interest rate. The proceeds from this offering, expected to close on May 1, 2025, will be used for general corporate purposes, including debt repayment and capital expenditures, potentially impacting the company’s financial flexibility and market position.

Constellation Brands Appoints New Chief HR Officer

On April 14, 2025, Constellation Brands announced the appointment of Paula Erickson as the new Executive Vice President and Chief Human Resources Officer, effective April 21, 2025. Erickson, an industry veteran, will replace K. Kristann Carey, who will step down and leave the company in May 2025. Erickson’s extensive experience in talent strategy and organizational transformation is expected to enhance Constellation’s HR function and support its growth objectives.