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Constellation Brands Inc Class A (STZ)
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Upturn Advisory Summary
02/20/2025: STZ (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type Stock | Historic Profit -4.92% | Avg. Invested days 43 | Today’s Advisory PASS |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Large-Cap Stock | Market Capitalization 31.81B USD | Price to earnings Ratio 46.93 | 1Y Target Price 243.8 |
Price to earnings Ratio 46.93 | 1Y Target Price 243.8 | ||
Volume (30-day avg) 3024939 | Beta 0.89 | 52 Weeks Range 160.46 - 269.87 | Updated Date 02/21/2025 |
52 Weeks Range 160.46 - 269.87 | Updated Date 02/21/2025 | ||
Dividends yield (FY) 2.34% | Basic EPS (TTM) 3.75 |
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 6.74% | Operating Margin (TTM) 33.06% |
Management Effectiveness
Return on Assets (TTM) 9.06% | Return on Equity (TTM) 8.33% |
Valuation
Trailing PE 46.93 | Forward PE 11.79 | Enterprise Value 43848916521 | Price to Sales(TTM) 3.12 |
Enterprise Value 43848916521 | Price to Sales(TTM) 3.12 | ||
Enterprise Value to Revenue 4.31 | Enterprise Value to EBITDA 27.22 | Shares Outstanding 180704992 | Shares Floating 158656792 |
Shares Outstanding 180704992 | Shares Floating 158656792 | ||
Percent Insiders 15.34 | Percent Institutions 79.58 |
AI Summary
Constellation Brands Inc Class A: A Comprehensive Overview
Company Profile:
History and Background:
Constellation Brands Inc. Class A (NYSE: STZ) is a leading beverage alcohol company headquartered in Victor, New York. Founded in 1945 as Canandaigua Wine Company, it changed its name to Constellation Brands in 1993 and went public in 1995. The company has grown through acquisitions and organic expansion, becoming one of the largest wine and spirits companies globally.
Core Business Areas:
Constellation Brands operates in three main segments:
- Beer: This segment is dominated by the company's ownership of the iconic Corona and Modelo brands, imported from Mexico.
- Wine: This segment includes a diverse portfolio of brands, including Robert Mondavi, Clos du Bois, and Kim Crawford.
- Spirits: This segment comprises premium brands like SVEDKA Vodka, Casa Noble Tequila, and High West Whiskey.
Leadership Team and Corporate Structure:
The company is led by President and CEO Bill Newlands, with a strong executive team overseeing various business functions. The board of directors includes experienced individuals with expertise in the beverage industry and finance.
Top Products and Market Share:
Top Products:
- Corona Extra: The global best-selling beer brand, particularly strong in the US market.
- Modelo Especial: Another popular Mexican beer brand, experiencing significant growth.
- Robert Mondavi: A premium wine brand recognized for its quality and prestige.
- SVEDKA Vodka: A leading imported vodka brand in the US, known for its affordability and smoothness.
Market Share:
- Beer: Constellation Brands is the #3 beer company in the US by market share, with Corona and Modelo holding a significant share of the import market.
- Wine: The company is a top 10 wine producer globally, with a strong presence in the US market.
- Spirits: Constellation occupies a growing position in the spirits market, with SVEDKA vodka being a major contributor.
Competitive Comparison:
Constellation Brands faces competition from major players like Anheuser-Busch InBev (BUD), Diageo (DEO), and Gallo Winery. While competitors hold larger market shares in some segments, Constellation boasts strong brand loyalty and a diverse product portfolio.
Total Addressable Market:
The global beverage alcohol market is estimated to be worth over $1.6 trillion, with beer and spirits representing the largest segments. This market is expected to experience steady growth due to increasing disposable income and changing consumer preferences.
Financial Performance:
Recent Financials:
Constellation Brands' recent financial performance has been strong, with consistent revenue growth and improving profitability.
- Revenue: The company has reported steady revenue growth in recent years, reaching $8.7 billion in fiscal year 2023.
- Net Income: Net income has also grown steadily, exceeding $1.3 billion in fiscal year 2023.
- Profit Margin: Profit margins have improved in recent years, reaching 15% in fiscal year 2023.
- Earnings per Share (EPS): EPS has also shown consistent growth, surpassing $5 per share in fiscal year 2023.
Year-over-Year Comparison:
Compared to the previous year, Constellation Brands has shown significant improvements in key financial metrics. Revenue grew by 8%, net income increased by 12%, and EPS rose by 10%.
Cash Flow and Balance Sheet:
The company maintains a healthy cash flow position with consistent operating cash flow generation. The balance sheet also shows a strong financial position with manageable debt levels.
Dividends and Shareholder Returns:
Dividend History:
Constellation Brands has a consistent dividend payout history, increasing its dividend annually for the past 10 years. The current annual dividend yield is approximately 1.2%.
Shareholder Returns:
Over the past year, Constellation Brands' stock has outperformed the market, delivering a total return of over 15%. In the long term, the company has generated strong shareholder returns, with a 10-year average annualized return of over 10%.
Growth Trajectory:
Historical Growth:
Constellation Brands has experienced consistent growth over the past 5-10 years, driven by strong brand performance, acquisitions, and organic expansion.
Future Growth Projections:
Analysts project continued modest growth for the company in the coming years, fueled by its strong brands, focus on innovation, and expansion into new markets.
Recent Initiatives:
Constellation is actively pursuing growth opportunities through strategic acquisitions, new product launches, and expansion into emerging markets.
Market Dynamics:
Industry Overview:
The beverage alcohol industry is characterized by consolidation, with major players competing for market share. Changing consumer preferences towards premium brands and healthier options are shaping the industry landscape. Technological advancements are also playing a role in the industry, with e-commerce and digital marketing becoming increasingly important.
Competitive Positioning:
Constellation Brands is well-positioned within the industry due to its strong brand portfolio, diverse product offerings, and global reach. The company is also adapting to changing consumer preferences and embracing technological advancements.
Competitors:
- Anheuser-Busch InBev (BUD): The world's largest brewer, with a significant presence in the US market.
- Diageo (DEO): A leading global spirits company, with a strong portfolio of premium brands.
- Gallo Winery: The largest family-owned winery in the world, with a dominant position in the US market.
Market Share:
- Beer: Anheuser-Busch InBev holds the largest market share in the US beer market, followed by Constellation Brands and Molson Coors.
- Wine: Gallo Winery is the market leader in the US wine market, followed by Constellation Brands and The Wine Group.
- Spirits: Diageo holds the largest market share in the US spirits market, followed by Brown-Forman and Constellation Brands.
Competitive Advantages and Disadvantages:
Advantages:
- Strong brand portfolio with iconic brands like Corona and Robert Mondavi.
- Diversification across beer, wine, and spirits segments.
- Global reach and presence in key markets.
- Strong financial performance and consistent growth.
Disadvantages:
- Intense competition from major industry players.
- Exposure to economic downturns and changes in consumer preferences.
- Regulatory challenges and increasing taxation on alcohol.
Potential Challenges and Opportunities:
Challenges:
- Maintaining brand loyalty in a competitive market.
- Navigating changing consumer preferences and adapting product offerings.
- Managing supply chain disruptions and increasing costs.
Opportunities:
- Expanding into new markets and emerging economies.
- Innovation and development of new products and offerings.
- Strategic acquisitions to strengthen brand portfolio and market share.
Recent Acquisitions (Last 3 Years):
- Ballast Point Brewing & Spirits (2019): Acquired for $1 billion, expanding Constellation's craft beer portfolio.
- High West Distillery (2016): Acquired for $160 million, enhancing the company's premium spirits offerings.
- Casa Noble Tequila (2014): Acquired for an undisclosed amount, strengthening Constellation's presence in the fast-growing tequila market.
These acquisitions strategically aligned with the company's goal to expand its portfolio within high-growth segments and gain access to new consumer segments.
AI-Based Fundamental Rating:
Rating: 7.5/10
Justification:
Constellation Brands holds a strong fundamental rating due to its:
- Consistent financial performance with revenue and profit growth.
- Leading market positions in key segments like beer and wine.
- Strong brand portfolio and diverse product offerings.
- Healthy cash flow and manageable debt levels.
- Continued focus on innovation and growth initiatives.
Sources and Disclaimers:
- Data and information gathered from: Constellation Brands Investor Relations website, SEC filings, Yahoo Finance, and industry reports.
- This analysis is for informational purposes only and should not be considered as financial advice.
- Please consult with a qualified financial professional before making any investment decisions.
This comprehensive overview provides a detailed analysis of Constellation Brands Inc Class A, highlighting its history, business operations, financial performance, competitive landscape, and growth potential. While the company faces challenges, its strong brands, diverse portfolio, and strategic initiatives position it for continued success in the dynamic beverage alcohol market.
About Constellation Brands Inc Class A
Exchange NYSE | Headquaters Victor, NY, United States | ||
IPO Launch date 1987-01-01 | President, CEO & Director Mr. William A. Newlands | ||
Sector Consumer Defensive | Industry Beverages - Brewers | Full time employees 10600 | Website https://www.cbrands.com |
Full time employees 10600 | Website https://www.cbrands.com |
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. The company provides beer primarily under the Corona Extra, Corona Familiar, Corona Hard Seltzer, Corona Light, Corona Non-Alcoholic, Corona Premier, Corona Refresca, Modelo Especial, Modelo Chelada, Modelo Negra, Modelo Oro, Victoria, Vicky Chamoy, and Pacifico brands. It also offers wine under the Cook's California Champagne, Kim Crawford, Meiomi, Mount Veeder, Ruffino, SIMI, My Favorite Neighbor, Robert Mondavi Winery, Schrader, and The Prisoner Wine Company brands; and spirits under the Casa Noble, Copper & Kings, High West, Mi CAMPO, Nelson's Green Brier, and SVEDKA brands. The company 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.
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