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Constellation Brands
(NYSE:STZ)
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Rating:68Neutral
Price Target:
$133.00
▼(-1.49% Downside)
Action:Reiterated
Date:09/19/26
The score is driven primarily by solid fundamentals (strong profitability and cash generation) and supportive valuation (low P/E and attractive dividend). Offsetting these positives are weak technicals (price below key moving averages with negative MACD) and a guarded outlook from the latest call, with management highlighting near-term margin headwinds and macro/brand softness despite maintaining guidance.
Positive Factors
Strong profitability and cash generation
Healthy profitability and substantial operating and free cash flow provide internal funding for marketing, innovation, debt management, and shareholder returns. This earnings quality gives Constellation greater resilience and supports continued investment even when sales growth is uneven.
Negative Factors
Negative recent revenue momentum
Negative recent revenue growth raises questions about the durability of volume, pricing, and product mix gains. If top-line weakness persists, it could limit operating leverage, reduce reinvestment capacity, and make it harder for strong margins to translate into sustained earnings growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and cash generation
Healthy profitability and substantial operating and free cash flow provide internal funding for marketing, innovation, debt management, and shareholder returns. This earnings quality gives Constellation greater resilience and supports continued investment even when sales growth is uneven.
Read all positive factors
Constellation Brands Key Performance Indicators (KPIs)
Constellation Brands (STZ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$19.41B
Dividend Yield3.61%
Average Volume (3M)2.11M
Price to Earnings (P/E)10.8
Beta (1Y)0.44
Revenue Growth-9.99%
EPS GrowthN/A
CountryUS
Employees9,400
SectorConsumer Defensive
Sector Strength42
IndustryBeverages - Alcoholic
Share Statistics
EPS (TTM)10.49
Shares Outstanding170,752,520
10 Day Avg. Volume2,412,067
30 Day Avg. Volume2,114,936
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)3.43
Price to Sales (P/S)3.03
P/FCF Ratio15.44
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$163.71Price Target Upside21.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering18
EPS Forecast (FY)11.74
Revenue Forecast (FY)$9.09B
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. The company offers beer under the Corona Extra, Corona Familiar...
How the Company Makes Money
Constellation Brands makes money primarily by selling beverage alcohol products—most significantly beer—into the U.S. market. Revenue is generated when the company ships branded products to customers (generally wholesalers/distributors and, in som...
Constellation Brands Earnings Call Summary
Earnings Call Date:Jun 30, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Oct 06, 2026
Earnings Call Sentiment Neutral
The call conveyed a balanced view: management emphasized the underlying strength of the brand portfolio, early signs of demand reacceleration (notably June and World Cup-related occasions), margin benefits from fixed-cost absorption and cost savings, and strategic moves such as senior sales hiring and targeted innovation (Corona non-alc, RTD/Chelada). Offsetting this optimism were material near-term headwinds — volatile consumer spending driven by a sharp gas-price shock, continued softness in core brands (Modelo Especial and Corona Extra), sub-2% volume growth, expected SG&A and marketing-driven margin pressure in Q2/Q3, currency headwinds and regional/Hispanic consumer weakness. Given the mix of encouraging portfolio and margin elements versus meaningful macro and brand-specific challenges, the tone is cautiously constructive but guarded.Positive Updates
Portfolio Strength and Management Confidence
New CEO highlighted enduring strength of core brands (Modelo, Corona, Pacifico, Kim Crawford, Mi CAMPO) and confidence in the company's ability to create demand and scale brands through consumer insights, commercial execution and disciplined investment.
Negative Updates
Volatile Consumer Backdrop and Fuel Shock
Quarter saw volatility — strong March then softer April/May as a massive spike in gas prices pressured consumer behavior. Gas prices rose over ~50% on average in the U.S. peak-to-trough (California ~40%, Illinois ~70%, New York/Florida/Texas >50%), which management ties to softened demand.
Read all updates
Q1-2027 Updates
Positive
Negative
Portfolio Strength and Management Confidence
New CEO highlighted enduring strength of core brands (Modelo, Corona, Pacifico, Kim Crawford, Mi CAMPO) and confidence in the company's ability to create demand and scale brands through consumer insights, commercial execution and disciplined investment.
Read all positive updates
Company Guidance
Management maintained FY‑27 beer net‑sales guidance while noting Q1 shipment growth of ~1.8% and a beer gross margin of 39%; Q1 benefited roughly +30 bps from fixed‑overabsorption, ~+20 bps from pricing net of mix and cost‑savings, offset by ~‑30 bps of currency/other COGS, yielding ~+20 bps gross‑margin expansion but a ~‑10 bps decline in operating margin (including ~+20 bps SG&A from Veracruz hires and ~‑10 bps from incremental marketing). Looking ahead, they still expect gross margins to be strong in Q2 and Q3 but anticipate incremental operating‑margin headwinds as marketing is increased (marketing spend expected to exceed 10% of net sales in both Q2 and Q3) and SG&A steps up; shipments and depletions should align by year‑end after Q1’s seasonal ahead‑shipping, and management cited macro volatility (e.g., prior gas spikes of ~40–70% in key states) and limited visibility as reasons for caution.Constellation Brands Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
66
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.06B | 9.14B | 10.21B | 9.96B | 9.45B | 8.82B |
| Gross Profit | 4.77B | 4.71B | 5.20B | 4.91B | 4.81B | 4.60B |
| EBITDA | 3.31B | 3.15B | 782.60M | 3.08B | 1.17B | 1.00B |
| Net Income | 1.82B | 1.69B | -81.40M | 1.73B | -71.00M | -40.40M |
Balance Sheet | ||||||
| Total Assets | 22.11B | 21.90B | 21.65B | 25.69B | 24.66B | 25.86B |
| Cash, Cash Equivalents and Short-Term Investments | 96.60M | 102.40M | 68.10M | 152.40M | 133.50M | 199.40M |
| Total Debt | 10.53B | 11.20B | 12.11B | 12.56B | 12.96B | 10.95B |
| Total Liabilities | 13.56B | 13.51B | 14.52B | 15.63B | 15.93B | 13.81B |
| Stockholders Equity | 8.26B | 8.08B | 6.88B | 9.74B | 8.41B | 11.73B |
Cash Flow | ||||||
| Free Cash Flow | 1.83B | 1.79B | 1.94B | 1.51B | 1.72B | 1.68B |
| Operating Cash Flow | 2.69B | 2.67B | 3.15B | 2.78B | 2.76B | 2.71B |
| Investing Cash Flow | 19.40M | 16.50M | -974.80M | -1.29B | -999.40M | -1.04B |
| Financing Cash Flow | -2.69B | -2.66B | -2.26B | -1.47B | -1.82B | -1.93B |
Constellation Brands Technical Analysis
Negative
135.01
Price Trends
128.74
Negative
134.47
Negative
142.52
Negative
Market Momentum
-4.30
Positive
24.66
Positive
4.61
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STZ, the sentiment is Negative. The current price of 135.01 is above the 20-day moving average (MA) of 123.04, above the 50-day MA of 128.74, and below the 200-day MA of 142.52, indicating a bearish trend. The MACD of -4.30 indicates Positive momentum. The RSI at 24.66 is Positive, neither overbought nor oversold. The STOCH value of 4.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for STZ.
Constellation Brands Risk Analysis
Constellation Brands disclosed 25 risk factors in its most recent earnings report. Constellation Brands reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Constellation Brands Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $45.73B | 14.73 | 18.13% | 4.16% | 4.24% | 19.95% | |
68 Neutral | $19.41B | 10.83 | 23.13% | 3.61% | -9.99% | ― | |
67 Neutral | $12.09B | 16.99 | 17.80% | 3.46% | -0.18% | -13.00% | |
66 Neutral | $152.93B | 12.97 | 12.72% | 1.73% | 6.60% | 31.61% | |
66 Neutral | $48.38B | 27.89 | 15.52% | 3.79% | -3.59% | -26.73% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
57 Neutral | $6.78B | -3.12 | -22.65% | 5.31% | -1.77% | -326.16% |
* Consumer Defensive Sector Average
STZ
Constellation Brands
113.63
-18.97
-14.30%
BUD
Anheuser-Busch Inbev Sa
78.00
18.92
32.04%
BF.A
Brown Forman A
26.69
0.80
3.09%
DEO
Diageo
87.52
-4.22
-4.60%
TAP
Molson Coors
35.95
-7.83
-17.89%
ABEV
Ambev SA
2.91
0.73
33.73%
Constellation Brands Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Constellation Brands Establishes New $300 Million Term Loan
Positive
Sep 18, 2026
On September 18, 2026, Constellation Brands entered into a new term loan credit agreement with Manufacturers and Traders Trust Company and other lenders, establishing a delayed draw facility of up to $300 million for general corporate purposes, in...
Business Operations and StrategyPrivate Placements and Financing
Constellation Brands Announces Early Redemption of 2027 Notes
Positive
Sep 8, 2026
On September 8, 2026, Constellation Brands announced it had delivered notice for the full redemption prior to maturity of all its outstanding 4.350% Senior Notes due 2027. The $600.0 million aggregate principal amount of notes is scheduled to be r...
Executive/Board ChangesShareholder Meetings
Constellation Brands Shareholders Back Governance and Incentive Plan
Positive
Jul 24, 2026
Constellation Brands held its Annual Meeting of Stockholders virtually on July 22, 2026, where shareholders elected 12 directors to one-year terms ending at the 2027 annual meeting, reinforcing continuity in the company’s board leadership. S...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Constellation Brands Reports Solid Fiscal 2027 Q1 Results
Positive
Jun 30, 2026
On June 30, 2026, Constellation Brands reported first-quarter fiscal 2027 results showing net sales of $2.43 billion, up 3% on a comparable organic basis, and operating income growth, driving reported EPS of $3.79 and comparable EPS of $3.43. The ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.