Constellation Brands Stock Analysis, Valuation (NYSE:STZ)

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$217.46 $4.35 (2.04%) STZ stock closing price Feb 23, 2018 (Closing)
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Constellation Brands
Updated on : Feb 23, 2018
previous close
STZ 217.5 (0%)
S&P 500 2747.3 (0%)
Closing Price On: Feb 23, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Beverages-Alcoholic
Sector :
Consumer Staples
5 Quarter Revenue
Revenue Growth
2018-Q3
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
30.2%
Sector Average:
11.2%
5 Quarter Net Profit
Net Margins
2018-Q3
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$365.5M
Net Income:
$491.1M
Dividend Yield
STZ dividend yield:
0.9%
PROS      CONS
Operating Margins
Net Margins
ROIC
ROE
FCF Margin
Cash Flow
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
STZ PS :
4.6
Industry PS :
1.7
Sector:   Consumer Staples.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
11.7%
Return on Equity:
24.8%
Free Cash Flow Margin:
8.3%
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Constellation Brands Stock Analysis

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View the Constellation Brands stock analysis video on Amigobulls. Our STZ analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Constellation Brands, Inc. Stock Rating 3.3/5

Amigobulls STZ stock analysis uses latest quarter 2018 Q3 financial data like Constellation Brands revenue growth, profit margins and cash flows. Constellation Brands valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Based on a company's historical fundamentals we arrive at Constellation Brands stock rating which is indicative of the company's financial performance.

Should you buy STZ stock?

  • Constellation Brands had a healthy average operating margin of 30.2% over the last 4 quarters.
  • Net margins came in at average 22.5% for Constellation Brands over the last twelve months.
  • Constellation Brands has an attractive ROIC (Return on Invested Capital) of 11.7%
  • The LTM ROE of 24.8% for Constellation Brands is attractive.
  • Constellation Brands has a healthy FCF (Free Cash Flow) margin of 8.3%.

Should you sell STZ stock?

  • Cash flow from operations is 0.7 times net income which is a negative signal.
  • The company is trading at a price to sales multiple of 4.6, which is higher in comparison to the Beverages-Alcoholic industry average of 1.7, making STZ stock expensive.

Comments on this video and Constellation Brands stock

Investors can make use of the Amigobulls Constellation Brands stock analysis to ascertain how STZ stock fares in fundamental analysis investment criteria. The fundamentals of a company are vital to identify long-term investment opportunities.

Constellation Brands revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Constellation Brands stock.