Fundamental analysis · SEC EDGAR · TTM through 31/05/2026

Fundamental analysis of Constellation Brands, Inc.

STZ · NYSE · Consumer

Fundamental quality

REASONABLE

62

out of 100

Constellation Brands, Inc. runs like a cash machine: it converts about 20.3% of revenue into free cash flow and holds a 20.1% net margin, though it grows at a measured pace. On fundamental quality it scores 62 out of 100, profiling it as a company of reasonable quality. Its weakest area is its growth (revenue +1%/yr). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Constellation Brands owns Mexican beer in the United States: Modelo and Corona, whose US rights it holds exclusively, plus a wine and spirits business on a permanent diet. Modelo dethroned Bud Light as the country's best-selling beer.

What will shape its future

  • The Hispanic consumer and Modelo's momentum, the demographic heart of its thesis.
  • Tariffs and immigration policy, external risks for a beer brewed in Mexico.
  • The structural decline of alcohol consumption among the young, the sector's long-term cloud.

Breakdown by area

I.Growth
27

EPS growth: -1.7% · Revenue growth: 1%

II.Profitability
85

Net margin: 20.1% · ROE: 22.1% · ROIC: 11.7%

III.Financial health
73

Net debt/EBITDA: 3.09x · FCF: 20.3%

Source: SEC EDGAR · TTM through 31/05/2026

The score combines growth, profitability and financial strength. Here its profitability weighs in its favor, while its growth drags it down the most.

Versus its sector

Percentile against the other 98 Consumer companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 93%
ROEbeats 62%
Growthbeats 14%
Cash generationbeats 94%
Less debtbeats 20%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Constellation Brands, Inc. strengths

  • Excellent free-cash-flow generation (FCF margin of 20.3%): profit turns into real cash.
  • Strong return on equity (ROE of 22.1%): it puts shareholder capital to good use.
  • High net margin (20.1%), high even for its sector: the business is clearly profitable.
  • Positive free cash flow year after year, a self-funding business.

Constellation Brands, Inc. risks and weaknesses

  • Shrinking margins: net margin has fallen from 23% to 18% in recent years.
  • Declining earnings per share (-1.7% annualized).
  • Weak revenue growth (1% annualized).

Constellation Brands, Inc. historical evolution

YearRevenueNet incomeFree cash flowNet debt
20218,6151,9981,9429,982
20228,821-401,6799,894
20239,453-711,72211,163
20249,9621,7271,51111,486
202510,209-811,93810,623
20269,1391,6871,79410,194

Between 2021 and 2026, revenue went from $8,615M to $9,139M (+6%) and net income went from $1,998M to $1,687M (-16%). Meanwhile, its margins have narrowed (from 23% to 18%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the quarter ended May 31, 2026, versus the quarter ended May 31, 2025 (SEC filings):

  • Revenue-3.3%
  • Net income+26.7%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

42.4% of earnings

Payout

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Constellation Brands, Inc. cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is Constellation Brands, Inc. a good company to invest in?

In terms of business quality, Constellation Brands, Inc. scores 62 out of 100 in our analysis, placing it as a company of reasonable quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Constellation Brands, Inc. a profitable company?

Very. Constellation Brands, Inc. shows a net margin of 20.1% and an ROE of 22.1%, typical of a highly profitable business.

Does Constellation Brands, Inc. have a lot of debt?

Yes, its leverage is high: net debt is 3.09 times its EBITDA.

Is Constellation Brands, Inc. growing?

Its revenue has grown 1% annualized in recent years.

Does Constellation Brands, Inc. generate cash?

Yes. It converts about 20.3% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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