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Constellation Brands, Inc.
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S&P 500
$22.1B
Market Cap
14.7
P/E
4.21
PEG
14.9%
ROCE
23.7%
ROE
1.19
D/E
32.8%
OPM
-20.7%
% from 52W High
53
α RS
🔍 STZ is showing a multi-screen setup because it matches 6 of 39 tracked screener presets and it's hugging the 21 EMA. The main caution: the Consistent Margins preset's Backtest win rate is only 49.2%. Net: Mixed signal stack, not a recommendation. ? Conviction Technicals Backtest
Sources
Conviction 6/39 · hugging 21 EMA · Backtest win rate 49.2%
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🌏 Global Investor Returns
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📈 Price History
Ratio Health
— Excellent
— Good
— Average
— Poor
By Category
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About

Constellation Brands, Inc., together with its subsidiaries, produces, imports, markets, and sells beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. It offers beer under the Corona Extra, Corona Familiar, Corona Sunbrew, Corona Light, Corona Non-Alcoholic, Corona Premier, Modelo Especial, Modelo Chelada, Modelo Negra, Modelo Spiked Aguas Frescas, Modelo Oro, Modelo Noche Especial, Victoria, Vicky Chamoy, and Pacifico brand names. The company also offers wine under the Sea Smoke, Schrader Cellars, Kim Crawford, Mount Veeder, Ruffino, My Favorite Neighbor, Robert Mondavi Winery, and The Prisoner Wine Company brand names; and spirits under the Casa Noble, High West, Mi CAMPO, and Nelson’s Green Brier brand names. Additionally, it offers a spirit-based, ready-to-drink alcoholic beverage under the SpikedAde brand. It provides its products to wholesale distributors, retailers, and state alcohol beverage control agencies. Constellation Brands, Inc. was founded in 1945 and is headquartered in Rochester, New York.

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📈 Growth Pattern
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⭐ Superinvestors Holding STZ
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Manager Shares Value % of Fund Period
Steve Cohen Point72 Asset Management 1.89M $283.8M 0.36% Mar 2026
Warren Buffett Berkshire Hathaway Inc 632.9K $94.9M 0.04% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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🎙 Management Tone Confident Specific ~ Volatile 5 quarters Full tone analysis in Intelligence →
Mixed quarter Investor Presentation One-Pager? Q1 2027
Revenue
$2.433B
-3% YoY (reported)
Operating Income (comparable)
$834M
+6% YoY
Operating Margin (Beer)
39.0%
flat YoY
Comparable EPS
$3.43
+7% YoY
What Went Right
  • Beer net sales up 2% and operating income up 2%, with #1 dollar share gains in the category (outperforming by ~3pp)
  • Wine & Spirits organic net sales up 8% and depletions up 6.6%
  • Free cash flow up 9% to $485M; returned over $400M to shareholders via buybacks and dividends
What to Watch
  • Beer depletions down 0.3%, with Modelo Especial -2% and Corona Extra -5%+
  • Volatile consumer environment: gas price spikes and high inflation pressured Q1 consumption, especially in Texas and Florida
  • Higher marketing spend in Q2/Q3 (over 10% of net sales) expected to pressure operating margins
Management Guidance
  • Affirmed FY2027 comparable EPS outlook of $11.20-$11.90
  • Updated FY2027 reported EPS outlook to $11.50-$12.20
  • Reiterated operating cash flow target of $2.4-$2.5B and free cash flow target of $1.6-$1.7B
Investor Lens
The thesis is slightly mixed. Beer remains a dominant share gainer, but soft depletions in key brands and macro headwinds temper enthusiasm. Management's disciplined capital allocation and affirmed guidance provide stability, yet the lack of a raise despite a solid Q1 signals caution. Overall, the call reinforces the portfolio quality but highlights near-term consumption challenges.
From investor presentation · AI-generated analysis · Not investment advice
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📊 MIXED Mixed quarter: EPS up 7%, beer deps down 0.3%
Revenue
Reported net sales fell 3% to $2.433B, reflecting wine divestitures, while enterprise organic net sales grew 3%. Beer net sales rose 2% to $2.284B, and Wine & Spirits organic net sales surged 8%.
Profitability
Comparable operating income grew 6% to $834M, and comparable EPS rose 7% to $3.43. Reported EPS was $3.79, up 31%.
Margins
Beer operating margin held at 39.0%, with fixed-cost absorption and pricing offsetting unfavorable mix and higher SG&A. Wine & Spirits operating loss narrowed to $1.1M from $6.0M, improving margin by 140bps to -0.7%.
Balance Sheet
Operating cash flow was $662M and free cash flow $485M, up 4% and 9% respectively. The company returned over $400M to shareholders, including $324M in buybacks year-to-date through June 2026.
Key Risks
Management flagged macroeconomic volatility, particularly gas price spikes and inflation, which pressured consumer spending in Q1. Beer depletions declined 0.3% due to Modelo Especial -2% and Corona Extra -5%+. Marketing spend is expected to exceed 10% of net sales in Q2/Q3, pressuring operating margins.
Outlook
Full-year comparable EPS affirmed at $11.20-$11.90, with reported EPS updated to $11.50-$12.20. Operating cash flow and free cash flow targets were reiterated at $2.4-$2.5B and $1.6-$1.7B, respectively.
Generated by AI · Q1 2027 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q1 2027 Q1 2027 2026-07-01
Q1 saw strong gross margins and shipment growth, with continued investment in marketing and innovation. Despite headwinds for key brands and macro uncertainty, guidance remains unchanged as the company focuses on disciplined execution and consumer insights.
Q4 2026 Q4 2026 2026-04-09
Leadership transition is underway as the company posts strong beer momentum and solid cash generation, but guides for flat beer sales and lower margins due to new brewery costs and increased marketing. Wine and spirits face ongoing headwinds, but medium-term margin targets remain intact.
Q3 2026 Q3 2026 2026-01-08
Q3 beer margins were strong due to cost savings and pricing, but Q4 faces headwinds from tariffs, aluminum, and depreciation. Distribution gains and brand strength continue, though macroeconomic pressures persist, especially among Hispanic consumers.
Q2 2026 Q2 2026 2025-10-07
Q2 FY26 was marked by macro-driven volume softness, especially among Hispanic consumers, but brand loyalty and share gains persisted. Beer margins remain best in class, cost savings continue, and inventory levels are normalized, with cautious optimism for stabilization.
Q1 2026 Q1 2026 2025-07-02
Q1 results met expectations with affirmed full-year guidance for beer revenue growth and margins, despite macroeconomic uncertainty and incremental tariffs. Strong brand loyalty, innovation, and distribution gains are expected to drive growth, with operational improvements and hedging supporting margins.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Information Sources:
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