Constellation Brands, Inc.
- Open
- 132.31
- Day high
- 135.09
- Day low
- 131.31
- Prev close
- 129.71
- Volume
- 2.2M
- Mkt cap
- $22.5B
- P/E (TTM)
- 12.6
- EPS (TTM)
- $10.49
- P/B
- 2.7
- P/S
- 2.5
- Yield
- 0.78%
- Per share
- $1.03
- ▼Insiders net selling -$631K over the last 3 months (0 open-market buys, 1 sale)
- 🏛Institutions mixed (13F)
Constellation Brands, Inc. (STZ) is a Consumer Defensive company listed on NYSE. The stock is down 25% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 1 sale (SEC Form 4). Drillr has 1 published research article covering STZ.
Constellation Brands, Inc. (STZ) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 15 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
STZ earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 9, 2026 | $3.19 | $3.43 | +7.5% | $2.4B | +1.9% |
| Jan 7, 2026 | $2.63 | $3.06 | +16.3% | $2.2B | +3.2% |
| Oct 6, 2025 | $3.38 | $3.63 | +7.4% | $2.5B | +1.0% |
| Jul 1, 2025 | $3.31 | $3.22 | -2.7% | $2.5B | -1.5% |
| Apr 9, 2025 | $2.27 | $2.63 | +15.9% | $2.2B | +1.8% |
| Jan 10, 2025 | $3.31 | $3.25 | -1.8% | $2.5B | -2.6% |
| Oct 3, 2024 | $4.08 | $4.32 | +5.9% | $2.9B | -0.9% |
| Jul 3, 2024 | $3.46 | $3.57 | +3.2% | $2.7B | -0.3% |
| Apr 11, 2024 | $2.08 | $2.26 | +8.7% | $2.1B | +2.1% |
| Jan 5, 2024 | $3.00 | $3.19 | +6.3% | $2.5B | -2.9% |
| Oct 5, 2023 | $3.36 | $3.70 | +10.1% | $2.8B | +0.5% |
| Jun 30, 2023 | $2.83 | $2.91 | +2.8% | $2.5B | -10.5% |
STZ insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 24, 2026 | Hernandez Ernesto Mdirector | Grant | 1,400 | — |
| Jul 24, 2026 | Flatley Edith Morgandirector | Grant | 1,400 | — |
| Jul 24, 2026 | Daniels Jenniferdirector | Grant | 1,400 | — |
| Jul 24, 2026 | Baldwin Christopher Jdirector, other: Non-Exec Chair of the Board | Grant | 1,400 | — |
| Jul 24, 2026 | Zaramella Lucadirector | Grant | 1,400 | — |
| Jul 24, 2026 | Clark Christydirector | Grant | 1,400 | — |
| Jul 24, 2026 | SANDS RICHARDdirector, 10 percent owner: | Grant | 1,400 | — |
| Jul 24, 2026 | Madero Garza Jose Manueldirector | Grant | 1,400 | — |
| Jul 24, 2026 | GILES WILLIAM Tdirector | Grant | 1,400 | — |
| Jul 24, 2026 | MCCARTHY DANIEL Jdirector | Grant | 1,400 | — |
| Jul 24, 2026 | SANDS ROBERTdirector, 10 percent owner: | Grant | 1,400 | — |
| Jul 14, 2026 | GILES WILLIAM Tdirector | Option | 1,114 | — |
| Jul 14, 2026 | Hernandez Ernesto Mdirector | Tax | 15 | $134.06 |
| Jul 14, 2026 | Baldwin Christopher Jdirector, other: Non-Exec Chair of the Board | Option | 1,114 | — |
| Jul 14, 2026 | SANDS RICHARDdirector, 10 percent owner: | Option | 1,114 | — |
Source: STZ SEC Form 4 filings, latest Jul 24, 2026. For informational purposes only — not investment advice.
See the full STZ insider & 13F page →STZ research & analysis
Constellation Brands, Inc. company profile
Overview
Constellation Brands, Inc. (NYSE:STZ) is a leading alcoholic beverage company founded in 1945 and headquartered in Victor, New York. The company has evolved from a small wine producer into one of the largest beer, wine, and spirits companies in North America through strategic acquisitions and brand development. Constellation went public in 1992 and has built a diverse portfolio of premium alcoholic beverages, with particular strength in imported Mexican beer brands and premium wine segments.
Business
Constellation Brands operates in the alcoholic beverage industry, focusing on three main segments: beer, wine, and spirits. The alcoholic beverage industry is characterized by brand loyalty, regulatory complexity, and distribution challenges, with success often dependent on marketing effectiveness and distribution network strength. The company's Beer Business represents its largest and most profitable segment, generating approximately 70-75% of total revenues. This segment primarily focuses on imported Mexican beer brands including Modelo Especial (which became the #1 beer brand in the US by dollar sales), Corona Extra, Corona Premier, Pacifico, and Victoria. These brands are produced in Mexico and imported to the US market, where they compete in the premium imported beer category. The Wine and Spirits Business accounts for roughly 25-30% of revenues and includes both premium wine brands and craft spirits. Key wine brands include Kim Crawford, Meiomi, Robert Mondavi, The Prisoner Wine Company, and Ruffino. The spirits portfolio features brands like High West, Casa Noble, and SVEDKA (recently divested). This segment has been undergoing strategic transformation, with the company divesting mainstream wine brands to focus on higher-end, premium offerings that command better margins. The company operates through a three-tier distribution system common in the US alcohol industry, selling to wholesale distributors who then sell to retailers and on-premise locations like restaurants and bars. This creates complexity but also provides some barriers to entry for new competitors.
Revenue model
Constellation Brands generates revenue primarily through product sales to wholesale distributors, retailers, and on-premise establishments. The company operates under different business models across its segments. For the Beer Business, Constellation has exclusive rights to import, market, and sell specific Mexican beer brands in the US market through agreements with Grupo Modelo. The company does not own the breweries but has long-term contracts that provide stability. Revenue comes from selling these imported beers at premium prices, with the business benefiting from strong brand recognition and consumer loyalty, particularly among Hispanic consumers. The Wine and Spirits Business operates through direct ownership of brands and production facilities. Revenue is generated through sales of bottled wine and spirits to distributors and direct-to-consumer channels. The company has been focusing on premiumization, moving away from lower-margin mainstream brands toward higher-end offerings that command better pricing. Several factors influence the company's margins positively or negatively. Positive margin drivers include brand strength allowing for premium pricing, operational efficiencies from scale, successful innovation launches, and favorable foreign exchange rates (since beer costs are in Mexican pesos while sales are in US dollars). The company's beer business maintains exceptionally strong margins of 39-40%, among the highest in the industry. Negative margin pressures include inflationary pressures on input costs, transportation expenses, potential tariffs on Mexican imports, competitive pricing pressure, and economic downturns affecting premium beverage consumption. The company has noted particular sensitivity to Hispanic consumer sentiment, as this demographic represents a core customer base for their beer brands. Macroeconomic factors like unemployment rates, inflation concerns, and immigration policy uncertainty can impact demand patterns.
Competitive moat
Constellation Brands possesses a moderate to strong moat primarily built around brand strength, distribution relationships, and exclusive import rights. The company's strongest competitive advantage lies in its exclusive US import and marketing rights for popular Mexican beer brands, particularly Modelo Especial and Corona. These brands have achieved significant consumer loyalty and cultural relevance, especially among Hispanic consumers, creating switching costs for consumers who identify with these brands. The company benefits from the three-tier distribution system in the US alcohol market, which creates barriers to entry and requires significant investment in distributor relationships. Constellation has built strong partnerships with distributors over decades, providing shelf space advantages and market access that would be difficult for new entrants to replicate quickly. However, the moat faces several challenges. The company's dependence on import agreements with Grupo Modelo creates some vulnerability, though these agreements are long-term. The beer industry faces ongoing pressure from craft beer, hard seltzers, and other alternative alcoholic beverages that appeal to younger consumers. The wine and spirits business operates in highly fragmented, competitive markets with lower barriers to entry. Potential disruption could come from changing consumer preferences toward craft beverages, direct-to-consumer sales models that bypass traditional distribution, potential changes in trade relationships with Mexico, or significant shifts in demographic consumption patterns. The company's heavy reliance on Mexican beer imports also creates exposure to trade policy changes and currency fluctuations. The moat is strongest in the beer segment but more vulnerable in wine and spirits, where brand loyalty is often weaker and competition more intense. Overall, the company maintains a solid competitive position but must continue investing in brand building and innovation to maintain its advantages.
Risks & safety
The company presents moderate financial risk with some concerning leverage metrics but strong cash generation capabilities. • Debt and Solvency: Debt-to-equity ratio of 1.76x is elevated, indicating significant leverage. Net leverage ratio of 2.9x is approaching the company's 3x target ceiling. Total debt of approximately $10.9 billion against $7.1 billion in equity shows meaningful financial leverage. • Cash Position: Low cash position of only $68 million creates liquidity concerns, though the company generates strong operating cash flow of $3.15 billion annually. Free cash flow of $1.94 billion provides good coverage for debt service and capital returns. • Valuation Metrics: Trading at 4.6x book value appears expensive. EV/EBITDA of 57x is extremely high due to recent write-downs affecting EBITDA, making traditional valuation metrics less reliable. Current ratio of 0.92x indicates potential short-term liquidity pressure. • Other Considerations: Strong cash flow generation provides debt service coverage. Beer business maintains excellent margins providing earnings stability. Wine and spirits segment turnaround adds execution risk to financial performance.
Recent development
Over the past few years, Constellation Brands has undergone significant strategic transformation focused on portfolio optimization and operational efficiency. The company has been systematically divesting non-core assets while strengthening its position in premium segments. In the Beer Business, the company has continued expanding production capacity in Mexico with new brewery construction in Veracruz, expected to come online by end of fiscal 2026. The company has also been investing heavily in brand innovation, launching products like Modelo Oro, Corona Sunbrew, and expanding Modelo Aguas Frescas to capture evolving consumer preferences. Distribution gains have been a key focus, with the company securing over 50% of targeted distribution points for key brands. The Wine and Spirits Business has undergone more dramatic transformation. The company divested mainstream wine brands including SVEDKA and initiated sales processes for other non-core assets. Management has refocused the portfolio on 11 key premium brands and promoted new leadership with Sam Glaetzer as President. The company is targeting $200 million in annualized cost savings by fiscal 2028 through operational improvements and portfolio rationalization. Capital allocation strategy has emphasized shareholder returns with $4 billion in share repurchase authorization and commitment to a 30% dividend payout ratio. The company has maintained discipline in acquisitions, focusing on smaller "tuck-in" opportunities like the SeaSmoke wine acquisition rather than large transformational deals. The company has also been addressing macroeconomic challenges, particularly softening consumer demand among Hispanic consumers who represent a core customer base. Management has noted concerns about inflation, job markets, and immigration policy affecting consumer sentiment, leading to more conservative near-term growth expectations.
STZ company profile · for informational purposes only — not investment advice.
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