📊 STZ Key Takeaways
Is Constellation Brands, Inc.. (STZ) a Good Investment?
Constellation Brands demonstrates exceptional operational profitability with 54.3% gross margins and strong 485M free cash flow generation, indicating robust brand power in beverages. However, a concerning 6.3% revenue decline combined with below-1.0 current ratio and minimal cash reserves ($96.6M) relative to $10.2B debt creates near-term financial stress that offsets operational strength.
Constellation Brands maintains strong margins and free cash flow generation despite a 6.3% revenue decline. However, the extraordinary net income increase appears driven by an unusually weak comparison period, while high debt, limited liquidity, and modest interest coverage constrain financial flexibility.
Constellation Brands, Inc.. Key Strengths (STZ)
- Exceptional profitability margins (54.3% gross, 34.7% operating, 26.9% net) demonstrate pricing power and operational efficiency
- Strong free cash flow generation ($484.6M FCF, 19.9% FCF margin) provides debt service capability
- Solid operating cash flow ($661.8M) supports dividend and debt payments despite revenue headwinds
- Strong gross and operating margins of 54.3% and 34.7%
- Healthy free cash flow of $484.6 million with a 19.9% margin
- Operating cash flow comfortably exceeds capital expenditures
STZ Stock Risks: Constellation Brands, Inc.. Investment Risks
- Revenue declining 6.3% YoY signals market share loss or volume weakness in core beverage category
- Critical liquidity position with current ratio 0.91x and quick ratio 0.48x below healthy thresholds relative to $13.6B liabilities
- High leverage (Debt/Equity 1.24x, $10.2B debt) with minimal cash buffer ($96.6M) creates refinancing risk if free cash flow deteriorates
- Revenue declined 6.3% year over year, indicating weakening top-line momentum
- Long-term debt of $10.2 billion and debt-to-equity of 1.24x create meaningful leverage risk
- Current and quick ratios below 1.0x, combined with 2.5x interest coverage, indicate constrained liquidity
Key Metrics to Watch
- Revenue stabilization and growth trajectory—continued decline threatens debt service capacity
- Cash position and working capital trends—current ratio must improve above 1.0x
- Debt reduction pace and refinancing rates—interest coverage of 2.5x provides limited cushion
- Organic revenue growth
- Net debt and interest coverage
Constellation Brands, Inc.. (STZ) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
STZ Profit Margin, ROE & Profitability Analysis
STZ vs Consumer Sector: How Constellation Brands, Inc.. Compares
How Constellation Brands, Inc.. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Constellation Brands, Inc.. Stock Overvalued? STZ Valuation Analysis 2026
Based on fundamental analysis, Constellation Brands, Inc.. has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Constellation Brands, Inc.. Balance Sheet: STZ Debt, Cash & Liquidity
STZ Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Constellation Brands, Inc..'s revenue has grown significantly by 16% over the 5-year period, indicating strong business expansion.
STZ Revenue Growth, EPS Growth & YoY Performance
STZ Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2027 | $2.4B | $516.1M | N/A |
| Q3 2026 | $2.2B | $293.9M | N/A |
| Q2 2026 | $2.5B | -$322.0M | N/A |
| Q1 2026 | $2.5B | $516.1M | N/A |
| Q3 2025 | $2.5B | $293.9M | N/A |
| Q2 2025 | $2.8B | -$322.0M | N/A |
| Q1 2025 | $2.5B | $135.9M | N/A |
| Q3 2024 | $2.4B | -$294.0M | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Constellation Brands, Inc.. Dividends, Buybacks & Capital Allocation
STZ SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Constellation Brands, Inc.. (CIK: 0000016918)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Jul 24, 2026 | 4 | xslF345X06/wk-form4_1784925632.xml | View → |
| Jul 24, 2026 | 4 | xslF345X06/wk-form4_1784925534.xml | View → |
| Jul 24, 2026 | 4 | xslF345X06/wk-form4_1784925454.xml | View → |
| Jul 24, 2026 | 4 | xslF345X06/wk-form4_1784925377.xml | View → |
| Jul 24, 2026 | 4 | xslF345X06/wk-form4_1784925282.xml | View → |
❓ Frequently Asked Questions about STZ
What is the AI rating for STZ?
Constellation Brands, Inc.. (STZ) has a Combined AI Grade of B from Claude (B) and ChatGPT (B) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are STZ's key strengths?
Claude: Exceptional profitability margins (54.3% gross, 34.7% operating, 26.9% net) demonstrate pricing power and operational efficiency. Strong free cash flow generation ($484.6M FCF, 19.9% FCF margin) provides debt service capability. ChatGPT: Strong gross and operating margins of 54.3% and 34.7%. Healthy free cash flow of $484.6 million with a 19.9% margin.
What are the risks of investing in STZ?
Claude: Revenue declining 6.3% YoY signals market share loss or volume weakness in core beverage category. Critical liquidity position with current ratio 0.91x and quick ratio 0.48x below healthy thresholds relative to $13.6B liabilities. ChatGPT: Revenue declined 6.3% year over year, indicating weakening top-line momentum. Long-term debt of $10.2 billion and debt-to-equity of 1.24x create meaningful leverage risk.
What is STZ's revenue and growth?
Constellation Brands, Inc.. reported revenue of $2.4B.
Does STZ pay dividends?
Constellation Brands, Inc.. pays dividends, with $178.7M distributed to shareholders in the trailing twelve months.
Where can I find STZ SEC filings?
Official SEC filings for Constellation Brands, Inc.. (CIK: 0000016918) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is STZ's EPS?
Constellation Brands, Inc.. has a diluted EPS of $0.00.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is STZ's fundamental grade?
Based on our AI fundamental analysis in August 2026, Constellation Brands, Inc.. has a B grade with 78% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is STZ stock overvalued or undervalued?
Valuation metrics for STZ: ROE of 7.9% (sector avg: 18%), net margin of 26.9% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
What is STZ's AI grade for 2026?
Our dual AI analysis gives Constellation Brands, Inc.. a combined B grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is STZ's free cash flow?
Constellation Brands, Inc..'s operating cash flow is $661.8M, with capital expenditures of $177.2M. FCF margin is 19.9%.
How does STZ compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 26.9% (avg: 8%), ROE 7.9% (avg: 18%), current ratio 0.91 (avg: 1.5).