ScoreWhy is Constellation Brands, Inc. ?
1
Poor long term growth as Operating profit has grown by an annual rate 4.56% of over the last 5 years
2
Flat results in May 25
- ROCE(HY) Lowest at -5.05%
- CASH AND EQV(HY) Lowest at USD 142 MM
- DEBT-EQUITY RATIO (HY) Highest at 158.19 %
3
With ROCE of 19.72%, it has a risky valuation with a 2.61 Enterprise value to Capital Employed
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -37.66%, its profits have risen by 86.3% ; the PEG ratio of the company is 0.1
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -37.66% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Beverages)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Constellation Brands, Inc. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Constellation Brands, Inc.
-12.2%
-1.28
31.63%
S&P 500
22.24%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
1.84%
EBIT Growth (5y)
1.51%
EBIT to Interest (avg)
8.00
Debt to EBITDA (avg)
3.18
Net Debt to Equity (avg)
1.58
Sales to Capital Employed (avg)
0.50
Tax Ratio
2.01%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
94.18%
ROCE (avg)
15.04%
ROE (avg)
18.89%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
14
Industry P/E
Price to Book Value
4.08
EV to EBIT
12.90
EV to EBITDA
11.45
EV to Capital Employed
2.30
EV to Sales
4.48
PEG Ratio
NA
Dividend Yield
237.58%
ROCE (Latest)
17.86%
ROE (Latest)
30.18%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bearish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend6What is working for the Company
ROCE(HY)
Highest at 22.54%
DIVIDEND PER SHARE(HY)
Highest at USD 9.42
DIVIDEND PAYOUT RATIO(Y)
Highest at 87.79%
INVENTORY TURNOVER RATIO(HY)
Highest at 3.15 times
-26What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD 2,669 MM
INTEREST COVERAGE RATIO(Q)
Lowest at 555.99
RAW MATERIAL COST(Y)
Grown by 6.65% (YoY
NET SALES(Q)
Lowest at USD 1,920.2 MM
OPERATING PROFIT(Q)
Lowest at USD 473.7 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 24.67 %
PRE-TAX PROFIT(Q)
Lowest at USD 417.8 MM
NET PROFIT(Q)
Lowest at USD 244.41 MM
Here's what is working for Constellation Brands, Inc.
Dividend per share
Highest at USD 9.42 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Inventory Turnover Ratio
Highest at 3.15 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Dividend Payout Ratio
Highest at 87.79%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Depreciation
Highest at USD 112.1 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Constellation Brands, Inc.
Net Sales
At USD 1,920.2 MM has Fallen at -18.13%
over average net sales of the previous four periods of USD 2,345.47 MMMOJO Watch
Near term sales trend is extremely negative
Net Sales (USD MM)
Pre-Tax Profit
At USD 417.8 MM has Fallen at -41.65%
over average net sales of the previous four periods of USD 716 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (USD MM)
Net Profit
At USD 244.41 MM has Fallen at -57.02%
over average net sales of the previous four periods of USD 568.71 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (USD MM)
Interest Coverage Ratio
Lowest at 555.99
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Cash Flow
Lowest at USD 2,669 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Net Sales
Lowest at USD 1,920.2 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (USD MM)
Operating Profit
Lowest at USD 473.7 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (USD MM)
Operating Profit Margin
Lowest at 24.67 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at USD 417.8 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
Net Profit
Lowest at USD 244.41 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
Raw Material Cost
Grown by 6.65% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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