CONSTELLATION BRANDS's gross profit margin for the third quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. CONSTELLATION BRANDS has weak liquidity. Currently, the Quick Ratio is 0.62 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 17.64% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q3 FY14||Q3 FY13|
|Net Sales ($mil)||1541.5||1443.3|
|Net Income ($mil)||222.2||211.0|
|Balance Sheet||Q3 FY14||Q3 FY13|
|Cash & Equiv. ($mil)||67.3||65.2|
|Total Assets ($mil)||14980.5||14336.3|
|Total Debt ($mil)||7318.8||7134.6|
|Profitability||Q3 FY14||Q3 FY13|
|Gross Profit Margin||45.52||45.31|
|Return on Assets||5.21||13.02|
|Return on Equity||13.87||38.99|
|Debt||Q3 FY14||Q3 FY13|
|Share Data||Q3 FY14||Q3 FY13|
|Shares outstanding (mil)||193.39||190.02|
|Div / share||0.0||0.0|
|Book value / share||29.14||25.21|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1209289.0||1220852.0|
BUY. This stock's P/E ratio indicates a premium compared to an average of 24.16 for the Beverages industry and a significant premium compared to the S&P 500 average of 19.72. Conducting a second comparison, its price-to-book ratio of 3.98 indicates a premium versus the S&P 500 average of 2.78 and a significant discount versus the industry average of 5.81. The current price-to-sales ratio is well above the S&P 500 average, but below the industry average.
|STZ 29.75||Peers 24.16||STZ 23.76||Peers 16.83|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
STZ is trading at a premium to its peers.
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
STZ is trading at a significant premium to its peers.
|STZ 23.85||Peers 21.83||STZ NM||Peers 2.25|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
STZ is trading at a premium to its peers.
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
STZ's negative PEG ratio makes this valuation measure meaningless.
|STZ 3.98||Peers 5.81||STZ -59.00||Peers -14.72|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
STZ is trading at a significant discount to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, STZ is expected to significantly trail its peers on the basis of its earnings growth rate.
|STZ 3.76||Peers 3.96||STZ 39.64||Peers 3.46|
Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
STZ is trading at a valuation on par with its industry on this measurement.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
STZ has a sales growth rate that significantly exceeds its peers.
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