Constellation Brands Inc.
Find Ratings ReportsCONSTELLATION BRANDS's gross profit margin for the third quarter of its fiscal year 2023 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 subsector this quarter as compared to the same quarter a year ago. CONSTELLATION BRANDS has very weak liquidity. Currently, the Quick Ratio is 0.29 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 12.89% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
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Income Statement | Q3 FY23 | Q3 FY22 |
---|---|---|
Net Sales ($mil) | 2470.9 | 2436.5 |
EBITDA ($mil) | 910.6 | 836.3 |
EBIT ($mil) | 802.2 | 740.5 |
Net Income ($mil) | 509.1 | 467.7 |
Balance Sheet | Q3 FY23 | Q3 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 78.7 | 185.0 |
Total Assets ($mil) | 25057.4 | 24463.0 |
Total Debt ($mil) | 11698.5 | 12172.3 |
Equity ($mil) | 9471.0 | 8389.5 |
Profitability | Q3 FY23 | Q3 FY22 |
---|---|---|
Gross Profit Margin | 55.81 | 54.33 |
EBITDA Margin | 36.85 | 34.32 |
Operating Margin | 32.47 | 30.39 |
Sales Turnover | 0.39 | 0.39 |
Return on Assets | 6.21 | 0.41 |
Return on Equity | 16.45 | 1.21 |
Debt | Q3 FY23 | Q3 FY22 |
---|---|---|
Current Ratio | 1.05 | 1.29 |
Debt/Capital | 0.55 | 0.59 |
Interest Expense | 103.2 | 98.7 |
Interest Coverage | 7.77 | 7.5 |
Share Data | Q3 FY23 | Q3 FY22 |
---|---|---|
Shares outstanding (mil) | 183.26 | 184.49 |
Div / share | 0.89 | 0.8 |
EPS | 2.76 | 2.24 |
Book value / share | 51.68 | 45.47 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 1169698.0 | 1108817.0 |
HOLD. CONSTELLATION BRANDS's P/E ratio indicates a premium compared to an average of 22.25 for the Beverage and Tobacco Product Manufacturing subsector and a premium compared to the S&P 500 average of 27.95. Conducting a second comparison, its price-to-book ratio of 5.05 indicates a premium versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 7.67. The price-to-sales ratio is well above both the S&P 500 average and the subsector average, indicating a premium. The valuation analysis reveals that, CONSTELLATION BRANDS seems to be trading at a premium to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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STZ 30.87 | Peers 22.25 | STZ 16.84 | Peers 19.91 | |||||||||||||||||||||
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. STZ is trading at a significant premium to its peers. |
Discount. 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 discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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STZ 19.49 | Peers 16.98 | STZ NM | Peers 1.14 | |||||||||||||||||||||
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 significant 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. |
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Price/Book |
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Earnings Growth |
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STZ 5.05 | Peers 7.67 | STZ 10662.50 | Peers 357.05 | |||||||||||||||||||||
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. |
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Price/Sales |
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Sales Growth |
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STZ 4.87 | Peers 3.77 | STZ 2.75 | Peers 9.01 | |||||||||||||||||||||
Premium. 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 significant premium to its subsector. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. STZ significantly trails its peers on the basis of sales growth. |
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