Constellation Brands STZ
Constellation Brands is an American alcoholic beverage company, known for its portfolio of imported beers (Modelo, Corona) and wines, with a business model based on premium brands and a strong presence in the US market. Constellation Brands shows an attractive valuation (P/E 10.82, FCF yield 11.39%) and solid quality (ROE 23.69%), but its high leverage (Net Debt/EBITDA 3.02) and declining revenue (-3.3%) in a high-rate environment limit the appeal.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Constellation Brands is an American alcoholic beverage company, known for its portfolio of imported beers (Modelo, Corona) and wines, with a business model based on premium brands and a strong presence in the US market. Constellation Brands shows an attractive valuation (P/E 10.82, FCF yield 11.39%) and solid quality (ROE 23.69%), but its high leverage (Net Debt/EBITDA 3.02) and declining revenue (-3.3%) in a high-rate environment limit the appeal.
Score by category
| Category | Score |
|---|---|
| Financial health | 5.3 |
| Quality / Moat | 7.8 |
| Valuation | 7.8 |
| Growth | 5.0 |
| Dividend | 7.9 |
| Momentum | 3.9 |
| Risk & Context | 8.2 |
OVERALL SCORE: 6.9/10
Context and risks
Rising 10-year Treasury yields (5.17%) affect Constellation Brands due to its high leverage (Net Debt/EBITDA of 3.02) and its position at 52-week lows, increasing the cost of its debt and pressuring long-duration cash flow valuations.
News considered in the analysis
- STZ Stock’s Selloff Just Pushed the Yield to 3.6%. But Should Dividend Investors Be Worried? — Artículo especulativo sobre la sostenibilidad del dividendo tras la caída; no aporta información nueva sobre la empresa.
- 6 food manufacturers talk supply chain tactics — Artículo genérico de sector sin datos específicos sobre Constellation Brands.
- Constellation (STZ) Brands Hit a 52-Week Low. Is the Corona-and-Modelo Machine Broken, or On Sale? — Análisis especulativo sobre la caída de la acción; no revela hechos nuevos sobre el negocio.
- 3 Relentless Dividend Stocks to Buy in September — Listículo promocional sin información específica relevante.
- Constellation Brands' Premiumization and Innovation Aid Growth — Estrategia de premiumización e innovación como motor de crecimiento; positivo pero ya conocido y parcialmente descontado.
Verdict: Hold; the cheap valuation and business quality offer support, but leverage and the high-rate environment warrant caution until revenue stabilizes.
Main risk: High leverage (Net Debt/EBITDA of 3.02) combined with rising 10-year Treasury yields (5.17%) increases the cost of debt and pressures valuation, especially with declining revenue.
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