Constellation Brands (STZ) AI Stock Analysis

• Market Cap: $29.30B
• Dividend Yield: 2.38%
• Average Volume (3M): 2.25M
• Price to Earnings (P/E): 49.1
• Beta (1Y): 0.47
• Revenue Growth: -0.47%
• EPS Growth: -117.62%
• Country: US
• Employees: 10,600
• Sector: Consumer Defensive
• Sector Strength: 53
• Industry: Beverages - Wineries & Distilleries
• EPS (TTM): 3.22
• Shares Outstanding: 176,266,240
• 10 Day Avg. Volume: 1,687,451
• 30 Day Avg. Volume: 2,251,479
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.48
• Enterprise Value/Revenue: 4.32
• Enterprise Value/Gross Profit: 8.40
• Enterprise Value/Ebitda: 95.32
• 1Y Price Target: $201.28
• Price Target Upside: 17.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19

• Rating: 68 Neutral
• Price Target: $185.00 ▲(8.41% Upside)

Constellation Brands' overall stock score is driven by solid cash flow and strategic corporate actions, but tempered by profitability challenges and technical resistance. Confidence in beer growth and effective hedging strategies provide optimism, while macroeconomic uncertainties and high leverage pose ongoing risks.

Positive Factors

Analyst Optimism

Analysts express optimism about the stock due to a favorable risk/reward setup as comparisons are expected to ease.

Distribution Expansion

Constellation is successfully expanding its beer distribution and introducing more pack sizes and price points, which can help offset economic pressure on its Hispanic consumer base.

Earnings Report

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

Negative Factors

Beer Sales Decline

Beer organic sales declined by 1.7% due to shipment volumes down 3.3%, though price/mix was up 1.6%.

Market Competition

ABI's investments in the U.S. market pose a tougher fight for shelf space ahead for Constellation.

Tariff Impact

Analyst lowers beer growth assumptions for the future due to expectations of reduced operating margins impacted by a 50% tariff on aluminum.

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 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 has a robust operating cash flow and strong gross margins, reflecting operational efficiency. However, negative net income and a high debt-to-equity ratio present financial risks. The balance sheet is stable but financial leverage and negative earnings impact overall performance.

Income Statement

Constellation Brands shows a strong Gross Profit Margin at 51.5% for TTM, indicating effective cost management. However, the Net Profit Margin is negative due to a net income loss of $442.3 million in TTM, reflecting challenges in profitability. The revenue growth rate shows a slight decline from the previous year, indicating stable yet stagnant revenue performance. Despite the positive EBIT and EBITDA margins, the negative net income impacts the overall performance.

Balance Sheet

The company's Debt-to-Equity Ratio is 1.59 for TTM, pointing to a moderate level of financial leverage. Return on Equity is negative due to the net loss, raising concerns about shareholder value creation. The Equity Ratio is 32.6%, showing a solid equity base but highlighting potential risks related to high debt levels. Overall, the balance sheet exhibits stability but is constrained by leverage and negative earnings.

Cash Flow

Operating Cash Flow remains robust at $3.1 billion in TTM, and the Free Cash Flow is positive, reflecting strong cash generation capability. The Free Cash Flow to Net Income ratio is favorable due to cash flow strengths, despite the net income loss. However, the Free Cash Flow Growth Rate is moderate, influenced by steady capital expenditures. Overall, cash flow performance is strong and provides a cushion against operational challenges.

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

Constellation Brands Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 170.65
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STZ, the sentiment is Positive. The current price of 170.65 is above the 20-day moving average (MA) of 170.19, above the 50-day MA of 169.44, and below the 200-day MA of 191.60, indicating a neutral trend. The MACD of 0.23 indicates Positive momentum. The RSI at 50.87 is Neutral, neither overbought nor oversold. The STOCH value of 29.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STZ.

Constellation Brands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SAM	73 Outperform	$0.00	30.64	8.15%	―	2.46%	-7.28%
CCU	71 Outperform	$2.22B	12.56	11.33%	3.83%	6.18%	61.39%
DEO	69 Neutral	$53.77B	15.05	35.83%	4.25%	-1.21%	-8.89%
TAP	69 Neutral	$0.00	9.57	7.79%	3.78%	-5.17%	-0.74%
Sector *	68 Neutral	¥216.30B	20.87	8.19%	2.25%	4.81%	0.40%
STZ	68 Neutral	$29.30B	49.10	-5.05%	2.38%	-0.47%	-117.62%
ABEV	66 Neutral	$35.39B	13.48	15.08%	2.01%	-0.79%	-10.83%

Constellation Brands Corporate Events

Constellation Brands Approves Equity Grants for CFO

On July 15, 2025, Constellation Brands‘ Board of Directors approved equity grants for CFO Garth Hankinson, recognizing his leadership in the company’s cost-savings agenda. The grants, comprising restricted stock units and performance share units, are set to vest by May 1, 2028, contingent on his continued service and certain performance metrics. Additionally, the company’s virtual Annual Meeting on the same day resulted in the election of 12 directors for a one-year term and the ratification of KPMG LLP as the independent registered public accounting firm for the fiscal year ending February 28, 2026. Stockholders also approved the compensation of the company’s named executive officers.

The most recent analyst rating on (STZ) stock is a Hold with a $256.00 price target. To see the full list of analyst forecasts on Constellation Brands stock, see the STZ Stock Forecast page.

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.