CONSTELLATION BRANDS's gross profit margin for the third quarter of its fiscal year 2015 has increased 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 0.63 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has increased by 15.21% 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 FY15||Q3 FY14|
|Net Sales ($mil)||1640.5||1541.7|
|Net Income ($mil)||270.5||222.2|
|Balance Sheet||Q3 FY15||Q3 FY14|
|Cash & Equiv. ($mil)||491.3||67.3|
|Total Assets ($mil)||16156.6||14980.5|
|Total Debt ($mil)||7403.0||7318.8|
|Profitability||Q3 FY15||Q3 FY14|
|Gross Profit Margin||48.36||45.36|
|Return on Assets||6.35||5.21|
|Return on Equity||15.8||13.87|
|Debt||Q3 FY15||Q3 FY14|
|Share Data||Q3 FY15||Q3 FY14|
|Shares outstanding (mil)||199.23||193.39|
|Div / share||0.31||0.0|
|Book value / share||32.59||29.14|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1449155.0||1361659.0|
BUY. CONSTELLATION BRANDS's P/E ratio indicates a premium compared to an average of 26.66 for the Beverages industry and a premium compared to the S&P 500 average of 21.13. To use another comparison, its price-to-book ratio of 4.51 indicates a significant premium versus the S&P 500 average of 2.51 and a significant discount versus the industry average of 7.28. The current price-to-sales ratio is well above the S&P 500 average and above the industry average, indicating a premium. The valuation analysis reveals that, CONSTELLATION BRANDS seems to be trading at a premium to investment alternatives within the industry.
|STZ 29.04||Peers 26.66||STZ 20.53||Peers 20.04|
Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.
STZ is trading at a valuation on par with its peers.
Average. 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 valuation on par to its peers.
|STZ 24.01||Peers 23.57||STZ 1.00||Peers 2.38|
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.
Discount. 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 trades at a significant discount to its peers.
|STZ 4.51||Peers 7.28||STZ 29.74||Peers -8.15|
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.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
STZ is expected to have an earnings growth rate that significantly exceeds its peers.
|STZ 4.60||Peers 4.19||STZ 6.68||Peers -4.37|
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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