Constellation Brands Inc

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STZ : NYSE : Consumer Goods
$198.52 up 0.4 | 0.2%
Today's Range: 196.931 - 198.68
Avg. Daily Volume: 1356300.0
07/21/17 - 4:02 PM ET

Financial Analysis


CONSTELLATION BRANDS's gross profit margin for the first quarter of its fiscal year 2017 has increased when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. CONSTELLATION BRANDS has very weak liquidity. Currently, the Quick Ratio is 0.47 which clearly 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 7.91% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)1935.51871.8
EBITDA ($mil)739.6627.9
EBIT ($mil)668.1567.9
Net Income ($mil)402.8318.3


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)199.1167.3
Total Assets ($mil)18959.417630.0
Total Debt ($mil)9211.58308.2
Equity ($mil)7389.76848.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin55.4850.72
EBITDA Margin38.2133.54
Operating Margin34.5230.34
Sales Turnover0.390.39
Return on Assets8.546.43
Return on Equity21.9116.56
Debt Q1 FY17 Q1 FY16
Current Ratio1.541.19
Debt/Capital0.550.55
Interest Expense82.585.0
Interest Coverage8.16.68


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)195.27200.5
Div / share0.520.4
EPS2.01.55
Book value / share37.8434.15
Institutional Own % n/a n/a
Avg Daily Volume1337194.01748661.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 38.88 for the Beverages industry and a value on par with the S&P 500 average of 24.41. To use another comparison, its price-to-book ratio of 5.19 indicates a significant premium versus the S&P 500 average of 3.04 and a significant discount versus the industry average of 8.13. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, CONSTELLATION BRANDS proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
STZ 24.56 Peers 38.88   STZ 21.94 Peers 20.53

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

STZ is trading at a significant discount to 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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
STZ 21.73 Peers 24.31   STZ 3.01 Peers 1.47

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

STZ is trading at a valuation on par with its peers.

 

Premium. 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 premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
STZ 5.19 Peers 8.13   STZ 43.70 Peers 3.22

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
STZ 5.18 Peers 4.42   STZ 8.93 Peers 8.70

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 premium to its industry on this measurement.

 

Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

STZ is keeping pace with its peers on the basis of sales growth.

 

 

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