Constellation Brands Inc

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STZ : NYSE : Consumer Goods
$148.88 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 1651900.0
12/05/16 - 4:03 PM ET

Financial Analysis


CONSTELLATION BRANDS's gross profit margin for the second quarter of its fiscal year 2016 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 very weak liquidity. Currently, the Quick Ratio is 0.46 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 18.46% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)2021.21733.4
EBITDA ($mil)681.8544.1
EBIT ($mil)621.6487.4
Net Income ($mil)358.9302.4


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)177.3329.7
Total Assets ($mil)17717.415673.4
Total Debt ($mil)8029.07423.6
Equity ($mil)7182.46062.8


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin51.0948.08
EBITDA Margin33.7331.38
Operating Margin30.7528.12
Sales Turnover0.40.4
Return on Assets6.726.23
Return on Equity16.5816.12
Debt Q2 FY16 Q2 FY15
Current Ratio1.442.58
Debt/Capital0.530.55
Interest Expense94.777.4
Interest Coverage6.566.3


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)201.16196.19
Div / share0.40.31
EPS1.751.49
Book value / share35.730.9
Institutional Own % n/a n/a
Avg Daily Volume1642322.01211597.0

Valuation


BUY. CONSTELLATION BRANDS's P/E ratio indicates a discount compared to an average of 30.23 for the Beverages industry and a value on par with the S&P 500 average of 25.22. Conducting a second comparison, its price-to-book ratio of 4.09 indicates a premium versus the S&P 500 average of 2.79 and a significant discount versus the industry average of 7.13. The current price-to-sales ratio is well above the S&P 500 average and above 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 25.09 Peers 30.23   STZ 17.83 Peers 19.89

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

STZ is trading at a discount 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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
STZ 20.20 Peers 21.94   STZ 1.02 Peers 1.52

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.

 

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
STZ 4.09 Peers 7.13   STZ 20.49 Peers -2.27

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 4.15 Peers 4.05   STZ 12.99 Peers -0.96

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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