Constellation Brands, Inc. (STZ) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Constellation Brands, Inc.

Brown-Forman Corp.

Boston Beer Co., Inc.

Fresh Vine Wine, Inc.

Molson Coors Beverage Co.

Willamette Valley Vineyards, Inc.

Vintage Wine Estates, Inc.

Why is Constellation Brands, Inc. ?

Poor long term growth as Operating profit has grown by an annual rate 4.56% of over the last 5 years

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 %

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

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 Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Constellation Brands, Inc. should be less than 10%
Overall Portfolio exposure to Beverages should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Beverages)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Constellation Brands, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Constellation Brands, Inc.

-21.63%

-1.28

31.63%

S&P 500

22.36%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality 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

Pledged Shares

Institutional Holding

94.18%

ROCE (avg)

15.04%

ROE (avg)

18.89%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

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

Dividend Yield

237.58%

ROCE (Latest)

17.86%

ROE (Latest)

30.18%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Mildly Bearish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 11.76

RAW MATERIAL COST(Y)

Fallen by -3.82% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 3.1 times

NET PROFIT(Q)

Highest at USD 628.07 MM

EPS(Q)

Highest at USD 3.79

-6What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 2,693.6 MM

NET PROFIT(HY)

At USD 872.48 MM has Grown at -32.31%

Here's what is working for Constellation Brands, Inc.

Dividend per share

Highest at USD 11.76 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Net Profit

Highest at USD 628.07 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 3.79

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Inventory Turnover Ratio

Highest at 3.1 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -3.82% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Constellation Brands, Inc.

Operating Cash Flow

Lowest at USD 2,693.6 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)