Constellation Brands Stock Analysis, Valuation (NYSE:STZ)

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$201.81 $0.79 (0.39%) STZ stock closing price Sep 22, 2017 (Closing)
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Constellation Brands
Updated on : Sep 22, 2017
previous close
STZ 201.8 (0%)
S&P 500 2502.2 (0%)
Closing Price On: Sep 22, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Beverages-Alcoholic
Sector :
Consumer Staples
5 Quarter Revenue
Revenue Growth
2018-Q1
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
29.7%
Sector Average:
11.3%
5 Quarter Net Profit
Net Margins
2018-Q1
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
8.83B
Debt/Equity Ratio:
 1.19
Compared to the industry
Cash Flow
Operating cash flow:
$381.6M
Net Income:
$402.8M
Dividend Yield
STZ dividend yield:
0.85%
PROS      CONS
Operating Margins
Net Margins
ROIC
ROE
High Debt Burden
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
STZ PS :
4.3
Industry PS :
1.6
Sector:   Consumer Staples.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
11.9%
Return on Equity:
22.8%
Free Cash Flow Margin:
7.8%
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Constellation Brands Stock Analysis

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View Constellation Brands stock analysis video. This is our analyst opinion covering the buy and sell arguments for STZ stock.

Constellation Brands, Inc. Stock Rating 3.3/5

Our Constellation Brands stock opinion is based on fundamentals of the company. This Constellation Brands stock analysis is based on latest 2018 Q1 earnings. The stock price analysis takes into account the company's valuation metrics.

Should you buy STZ stock?

  • Constellation Brands's average operating margin of 29.7% was exceptional.
  • Net margins came in at average 19.9% for Constellation Brands over the last twelve months.
  • Constellation Brands's return on invested capital of 11.9% is good.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Constellation Brands at 22.8%.

Should you sell STZ stock?

  • Constellation Brands is debt laden and has a high debt/equity ratio of  1.19.
  • The company is trading at a price to sales multiple of 4.3, which is overvalued in comparison to the Beverages-Alcoholic industry average multiple of 1.6.

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