NYSE · Consumer Defensive

Constellation Brands, Inc.

STZ · Beverages - Brewers

$148.19

▼ -4.63 (-3.03%)

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Mr. Market is currently offering Constellation Brands, Inc. at $148.19.

The business passes only 2 of 7 of Graham's defensive criteria — well below his required standard.

Overall Grade

Defensive

Enterprising

Profitability A

Gross Profit Margin 51.6%

Operating Margin 31.3%

Net Income Margin 18.5%

Fin. Health D

Years to Pay Off Debt 6.6 yrs

Working Capital vs Long-Term Debt -$9.5B

Working Capital $216M

Valuation F

Margin of Safety 0.0%

Price-to-Book 3.16x

Cash Flow C

Free Cash Flow $1.8B

CapEx % of Net Income 51.9%

Owner Earnings $3.0B

2/7

Graham Score

Speculative

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

Market Data

Market Cap $25.5B

Enterprise Value $37.7B

P/E (TTM) 15.42

Dividend Yield 2.67%

Exchange NYSE

Key Margins

Gross Profit 51.6%

Operating Margin 31.3%

Net Margin 18.5%

Company Info

Sector Consumer Defensive

Industry Beverages - Brewers

Employees 9400

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Constellation Brands, Inc. at $148.19.

The business passes only 2 of 7 of Graham's defensive criteria — well below his required standard.

At $148.19, the stock trades at a 47% premium to its Graham Number of $100.75. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

About Constellation Brands, Inc.

Constellation Brands, Inc., together with its subsidiaries, produces, imports, markets, and sells beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. It offers beer under the Corona Extra, Corona Familiar, Corona Sunbrew, Corona Light, Corona Non-Alcoholic, Corona Premier, Modelo Especial, Modelo Chelada, Modelo Negra, Modelo Spiked Aguas Frescas, Modelo Oro, Modelo Noche Especial, Victoria, Vicky Chamoy, and Pacifico brand names. The company also offers wine under the Sea Smoke, Schrader Cellars, Kim Crawford, Mount Veeder, Ruffino, My Favorite Neighbor, Robert Mondavi Winery, and The Prisoner Wine Company brand names; and spirits under the Casa Noble, High West, Mi CAMPO, and Nelson's Green Brier brand names. It provides its products to wholesale distributors, retailers, and state alcohol beverage control agencies. Constellation Brands, Inc. was founded in 1945 and is headquartered in Rochester, New York.

Showing Key Metrics

Income Highlights

Metric	2026	2025	2024	2023	2022
Gross Profit %	51.6% ▼	52.1%	50.4%	50.5%	N/A
Operating Margin %	31.3% ▼	33.0%	32.0%	30.1%	N/A
Net Income %	18.5% ▲	-0.8%	17.3%	-0.8%	N/A
Diluted EPS	9.61 ▲	-0.45	9.39	-0.11	N/A

Balance Sheet Highlights

Metric	2026	2025	2024	2023	2022
Total Assets	$21.9B	$21.7B	$25.7B	$24.7B	N/A
Total Debt	$11.2B ↓	$12.1B	$12.6B	$13.0B	N/A
Working Capital	$216M ▲	-$319M	$588M	$528M	N/A
Years to Pay Debt	6.64	-148.81	7.27	-182.54	N/A

Cash Flow Highlights

Metric	2026	2025	2024	2023	2022
Free Cash Flow	$1.8B ▼	$1.9B	$1.5B	$1.7B	N/A
Owner Earnings	$3.0B	$1.6B	$3.4B	$1.3B	N/A
CapEx % of Net Income	51.9%	N/A	73.5%	N/A	N/A

Income Statement

	2026	2025	2024	2023	2022
Tax Effect Of Unusual Items	-39,070	-642,411	-48,884	-231,882
Tax Rate For Calcs	0	0	0	0
Normalized EBITDA	3,307,700	3,840,400	3,330,600	2,294,500
Total Unusual Items	-149,600	-3,059,100	-237,300	-1,104,200
Total Unusual Items Excluding Goodwill	-149,600	-3,059,100	-237,300	-1,104,200
Net Income From Continuing Operation Net Minority Interest	1,686,700	-81,400	1,727,400	-71,000
Reconciled Depreciation	418,700	445,700	427,900	383,800
Reconciled Cost Of Revenue	4,427,500	4,894,100	4,944,300	4,683,600
EBITDA	3,158,100	781,300	3,093,300	1,190,300
EBIT	2,739,400	335,600	2,665,400	806,500
Net Interest Income	-351,200	-411,400	-435,400	-422,900
Interest Expense	361,600	418,400	443,600	422,900
Interest Income	10,400	7,000	8,200
Normalized Income	1,797,230	2,335,289	1,915,816	801,318
Net Income From Continuing And Discontinued Operation	1,686,700	-81,400	1,727,400	-71,000
Total Expenses	6,275,900	6,844,100	6,777,000	6,611,700
Total Operating Income As Reported	2,721,400	354,900	3,169,700	2,842,900
Diluted Average Shares	175,568	181,476	183,959	192,543
Basic Average Shares	175,414	181,476	183,307	192,543
Diluted EPS	0	0	0	0
Basic EPS	0	0	0	0
Diluted NI Availto Com Stockholders	1,686,700	-81,400	1,727,400	-71,000
Net Income Common Stockholders	1,686,700	-81,400	1,727,400	-71,000
Net Income	1,686,700	-81,400	1,727,400	-71,000
Minority Interests	-70,100	-50,300	-37,800	-32,500
Net Income Including Noncontrolling Interests	1,756,800	-31,100	1,765,200	-38,500
Net Income Continuous Operations	1,756,800	-31,100	1,765,200	-38,500
Tax Provision	621,000	-51,700	456,600	422,100
Pretax Income	2,377,800	-82,800	2,221,800	383,600
Other Income Expense	-134,100	-3,036,000	-527,600	-2,034,400
Special Income Charges	-144,600	-3,018,400	-151,900	-1,058,300
Gain On Sale Of Business	-31,900	266,000	-15,100	15,000
Other Special Charges	1,400		700	24,200	29,400
Write Off	111,300	486,700	136,100	1,060,300
Impairment Of Capital Assets	0	2,797,700	0	13,000
Earnings From Equity Interest	15,500	23,100	-290,300	-930,200
Gain On Sale Of Security	-5,000	-40,700	-85,400	-45,900
Net Non Operating Interest Income Expense	-351,200	-411,400	-435,400	-422,900
Interest Expense Non Operating	361,600	418,400	443,600	422,900
Interest Income Non Operating	10,400	7,000	8,200
Operating Income	2,863,100	3,364,600	3,184,800	2,840,900
Operating Expense	1,848,400	1,950,000	1,832,700	1,928,100
Selling General And Administration	1,848,400	1,950,000	1,832,700	1,928,100
Gross Profit	4,711,500	5,314,600	5,017,500	4,769,000
Cost Of Revenue	4,427,500	4,894,100	4,944,300	4,683,600
Total Revenue	9,139,000	10,208,700	9,961,800	9,452,600
Excise Taxes	616,500	748,200	749,200	724,600
Operating Revenue	9,755,500	10,956,900	10,711,000	10,177,200

Balance Sheet

	2026	2025	2024	2023	2022
Treasury Shares Number	39,927	34,505	29,810	29,498
Ordinary Shares Number	172,798	178,220	182,912	183,222
Share Issued	212,725	212,725	212,722	212,720
Net Debt	10,466,100	11,429,600	11,726,900	12,327,800
Total Debt	11,202,600	12,113,500	12,557,600	12,960,100
Tangible Book Value	315,500	-777,100	-968,900	-2,239,900
Invested Capital	18,650,900	18,379,700	21,622,400	20,874,900
Working Capital	216,500	-318,800	587,800	527,800
Net Tangible Assets	315,500	-777,100	-968,900	-2,239,900
Capital Lease Obligations	634,100	615,800	678,300	498,800
Common Stock Equity	8,082,400	6,882,000	9,743,100	8,413,600
Total Capitalization	17,775,300	16,171,000	20,424,200	19,700,100
Total Equity Gross Minority Interest	8,386,900	7,134,800	10,064,600	8,733,900
Minority Interest	304,500	252,800	321,500	320,300
Stockholders Equity	8,082,400	6,882,000	9,743,100	8,413,600
Gains Losses Not Affecting Retained Earnings	423,200	-662,700	376,800	28,500
Other Equity Adjustments	423,200	-662,700	376,800	28,500
Treasury Stock	8,103,000	7,205,400	6,100,300	5,863,900
Retained Earnings	13,574,400	12,603,400	13,417,200	12,343,900
Additional Paid In Capital	2,185,700	2,144,600	2,047,300	1,903,000
Capital Stock	2,100	2,100	2,100	2,100
Common Stock	2,100	2,100	2,100	2,100
Total Liabilities Net Minority Interest	13,513,600	14,517,500	15,627,100	15,928,400
Total Non Current Liabilities Net Minority Interest	10,823,800	10,482,300	12,485,400	12,960,100
Other Non Current Liabilities	76,300	94,700	127,700	137,300
Derivative Product Liabilities	8,900	42,600	8,300
Tradeand Other Payables Non Current	309,600	424,300	407,900	457,400
Non Current Deferred Liabilities	203,900	92,600	671,700	661,500
Non Current Deferred Revenue		10,700	80,200	92,000	104,100
Non Current Deferred Taxes Liabilities	203,900	92,600	591,500	569,500
Long Term Debt And Capital Lease Obligation	10,225,100	9,828,100	11,269,800	11,703,900
Long Term Capital Lease Obligation	532,200	539,100	588,700	417,400
Long Term Debt	9,692,900	9,289,000	10,681,100	11,286,500
Current Liabilities	2,689,800	4,035,200	3,141,700	2,968,300
Other Current Liabilities	95,300	176,000	177,600	164,500
Current Deferred Liabilities	17,800	91,500	34,600	34,000
Current Deferred Revenue	17,800	91,500	34,600	34,000
Current Debt And Capital Lease Obligation	977,500	2,285,400	1,287,800	1,256,200
Current Capital Lease Obligation	101,900	76,700	89,600	81,400
Current Debt	875,600	2,208,700	1,198,200	1,174,800
Other Current Borrowings	603,600	1,402,000	956,800	9,500
Commercial Paper	272,000	806,700	241,400	1,165,300
Payables And Accrued Expenses	1,599,200	1,482,300	1,641,700	1,513,600
Current Accrued Expenses	435,200	471,800	483,600	525,300
Interest Payable	102,700	98,700	110,700	99,300
Payables	1,164,000	1,010,500	1,158,100	988,300
Total Tax Payable	203,800	70,700	51,000	46,800
Income Tax Payable	164,300	20,900			21,500
Accounts Payable	960,200	939,800	1,107,100	941,500
Total Assets	21,900,500	21,652,300	25,691,700	24,662,300
Total Non Current Assets	18,994,200	17,935,900	21,962,200	21,166,200
Other Non Current Assets	159,600	132,900	126,200	790,900
Non Current Deferred Assets	1,370,300	1,805,300	2,055,000	2,193,300
Non Current Deferred Taxes Assets	1,370,300	1,805,300	2,055,000	2,193,300
Non Current Accounts Receivable	188,600	135,500
Financial Assets	186,400	41,600	154,900
Investments And Advances	219,100	206,000	243,600	663,300
Other Investments				93,200	191,400
Investmentin Financial Assets	90,300	81,500	73,000
Held To Maturity Securities	69,100	60,300	73,000
Available For Sale Securities	21,200	21,200
Long Term Equity Investment	128,800	124,500	170,600	663,300
Goodwill And Other Intangible Assets	7,766,900	7,659,100	10,712,000	10,653,500
Other Intangible Assets	2,533,000	2,532,300	2,731,700	2,728,100
Goodwill	5,233,900	5,126,800	7,980,300	7,925,400
Net PPE	9,103,300	7,955,500	8,670,500	6,865,200
Accumulated Depreciation	-3,095,100	-2,547,900	-2,733,100	-2,391,900
Gross PPE	12,198,400	10,503,400	11,403,600	9,257,100
Construction In Progress	2,759,800	2,218,100	2,296,600	1,272,000
Other Properties	582,400	545,700	879,900	243,500
Machinery Furniture Equipment	5,795,800	5,266,200	5,811,900	5,464,000
Buildings And Improvements	2,320,800	1,907,900	1,941,600	1,800,400
Land And Improvements	739,600	565,500	473,600	477,200
Current Assets	2,906,300	3,716,400	3,729,500	3,496,100
Other Current Assets	112,100	102,200	124,900	114,700
Hedging Assets Current	179,500	67,200	162,500	136,200
Assets Held For Sale Current	0	913,500	0	7,700
Prepaid Assets	131,100	150,400	130,900	129,500
Inventory	1,433,900	1,437,200	2,078,300	1,898,700
Finished Goods	679,800	666,100	728,200	685,400
Work In Process	549,500	540,900	1,096,000	967,800
Raw Materials	204,600	230,200	254,100	245,500
Receivables	947,300	977,800	1,080,500	1,075,800
Taxes Receivable	289,100	241,300	247,700	174,200
Accounts Receivable	658,200	736,500	832,800	901,600
Cash Cash Equivalents And Short Term Investments	102,400	68,100	152,400	133,500
Cash And Cash Equivalents	102,400	68,100	152,400	133,500

Cash Flow

	2026	2025	2024	2023	2022
Free Cash Flow	1,794,000	1,938,100	1,510,900	1,721,500
Repurchase Of Capital Stock	-924,100	-1,123,800	-249,700	-3,200,200
Repayment Of Debt	-1,404,400	-957,000	-809,700	-2,159,700
Issuance Of Debt	997,700	0	1,144,400	3,344,900
Capital Expenditure	-875,000	-1,214,100	-1,269,100	-1,035,400
Interest Paid Supplemental Data	346,200	416,100	418,600	386,300
Income Tax Paid Supplemental Data	173,600	197,100	333,500	129,700
End Cash Position	102,400	68,100	152,400	133,500
Beginning Cash Position	68,100	152,400	133,500	199,400
Effect Of Exchange Rate Changes	4,800	100	-600	-3,500
Changes In Cash	29,500	-84,400	19,500	-62,400
Financing Cash Flow	-2,656,000	-2,261,800	-1,474,600	-1,819,900
Cash Flow From Continuing Financing Activities	-2,656,000	-2,261,800	-1,474,600	-1,819,900
Net Other Financing Charges	-82,400	-88,300	-86,400	-101,900
Proceeds From Stock Option Exercised	7,700	73,800	104,500	42,400
Cash Dividends Paid	-715,700	-731,800	-653,800	-587,700
Common Stock Dividend Paid			-653,800	-587,700	-573,000
Net Common Stock Issuance	-924,100	-1,123,800	-249,700	-3,200,200
Common Stock Payments	-924,100	-1,123,800	-249,700	-3,200,200
Net Issuance Payments Of Debt	-941,500	-391,700	-589,200	2,027,500
Net Short Term Debt Issuance	-534,800	565,300	-923,900	842,300
Net Long Term Debt Issuance	-406,700	-957,000	334,700	1,185,200
Long Term Debt Payments	-1,404,400	-957,000	-809,700	-2,159,700
Long Term Debt Issuance	997,700	0	1,144,400	3,344,900
Investing Cash Flow	16,500	-974,800	-1,285,900	-999,400
Cash Flow From Continuing Investing Activities	16,500	-974,800	-1,285,900	-999,400
Net Other Investing Changes	59,000	23,800	19,900	7,200
Net Investment Purchase And Sale			300	0	74,400
Sale Of Investment			300	0	74,400
Net Business Purchase And Sale	832,500	215,500	-36,700	28,800
Sale Of Business	850,500	409,200	5,400	96,700
Purchase Of Business	-18,000	-193,700	-42,100	-67,900
Net PPE Purchase And Sale	-875,000	-1,214,100	-1,269,100	-1,035,400
Purchase Of PPE	-875,000	-1,214,100	-1,269,100	-1,035,400
Operating Cash Flow	2,669,000	3,152,200	2,780,000	2,756,900
Cash Flow From Continuing Operating Activities	2,669,000	3,152,200	2,780,000	2,756,900
Change In Working Capital	-185,200	-134,200	-287,800	-274,500
Change In Other Working Capital	-71,500	-35,500	-11,000	12,800
Change In Payables And Accrued Expense	-151,700	52,600	-91,200	-124,900
Change In Accrued Expense	-148,000	-48,900	-115,900	-239,800
Change In Payable	-3,700	101,500	24,700	114,900
Change In Account Payable	-3,700	101,500	24,700	114,900
Change In Prepaid Assets	3,400	-89,400	-76,500	197,900
Change In Inventory	-48,300	-152,200	-182,300	-356,400
Change In Receivables	82,900	90,300	73,200	-3,900
Changes In Account Receivables	82,900	90,300	73,200	-3,900
Other Non Cash Items	-45,200	-51,000	105,400	259,600
Stock Based Compensation	67,700	72,200	63,600	68,500
Unrealized Gain Loss On Investment Securities	5,000	47,900	85,400	45,900
Asset Impairment Charge	111,300	3,284,400	136,100	1,126,800
Deferred Tax	510,500	-210,300	147,900	207,800
Deferred Income Tax	510,500	-210,300	147,900	207,800
Depreciation Amortization Depletion	418,700	445,700	427,900	383,800
Depreciation And Amortization	418,700	445,700	427,900	383,800
Depreciation	418,700	445,700	427,900	383,800
Operating Gains Losses	29,400	-271,400	336,300	977,500
Earnings Losses From Equity Investments	-2,500	-5,400	321,200	971,800
Gain Loss On Investment Securities			1,600	20,700	-51,000
Gain Loss On Sale Of Business	31,900	-266,000	15,100	-15,000
Net Income From Continuing Operations	1,756,800	-31,100	1,765,200	-38,500

These metrics estimate what Constellation Brands, Inc. is worth based on its fundamentals — independent of what the market currently prices it at. Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles. EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.

Graham's Fair Value

$100.75

Margin of Safety

Market Cap ÷ Company Value

2.12

P/B Ratio

3.16

Warren's Owner Earnings

$3.0B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

2/7 — Speculative Investor

✅ Adequate Size

$9.1B

vs > $1.5B revenue

❌ Strong Financial Condition

1.08x

vs Current Ratio > 2.0x

❌ Earnings Stability

2 loss years (4 yrs data)

vs No negative EPS years

✅ Dividend Record

2.67%

vs Uninterrupted dividends

❌ Earnings Growth

+2.3% EPS growth

vs > 33% EPS growth

❌ Moderate P/E Ratio

15.4x

vs P/E ≤ 15.0x

❌ Moderate Price-to-Book

3.16x P/B (P/E×P/B: 48.7)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

Net Current Asset Value

$-61.61

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

$184.77

Per share, no-growth floor. Compare to current price.

Cash Flow Analysis

Metric	2026	2025	2024	2023	2022
Capital Expenditure % of Net Income	51.9%	N/A	73.5%	N/A	N/A
Repurchase of Capital Stock	-$924M	-$1.1B	-$250M	-$3.2B	N/A
Free Cash Flow	$1.8B ▼	$1.9B ▲	$1.5B ▼	$1.7B •	N/A •
Warren's Owner Earnings	$3.0B	$1.6B	$3.4B	$1.3B	N/A

Peers & Industry

No auto-detected peers for Beverages - Brewers. You can manually compare STZ against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

20.00%

High — management has strong skin in the game

Return on Equity (ROE)

20.9%

Excellent — management generates strong returns on equity

Return on Assets (ROA)

7.7%

Strong — management uses assets efficiently

Share Buybacks (Latest Year)

$924M

Management is returning capital to shareholders via buybacks

Debt Trend YoY

-7.5% YoY

Debt is declining — management is deleveraging

Leadership Team

Nicholas Ian Fink

President, CEO & Director

Age 50

Pay: $115,000

0.007% of net income

Garth Hankinson

Executive VP & CFO

Age 57

Pay: $1,597,591

0.095% of net income

James Sabia Jr.

Executive VP & President of Beer Division

Age 63

Pay: $1,639,037

0.097% of net income

Samuel James Glaetzer

Executive VP & President of Wine & Spirits Division

Age 50

Pay: $895,788

0.053% of net income

Blair Veenema

Vice President of Investor Relations

Top Institutional Holders

Institution	% Owned	Shares
Vanguard Group Inc	10.38%	17,864,333
Berkshire Hathaway, Inc	7.55%	13,000,000
Blackrock Inc.	6.31%	10,865,382
Capital World Investors	4.20%	7,238,575
State Street Corporation	4.01%	6,911,369
Capital International Investors	3.74%	6,442,600
Wellington Management Group, LLP	3.50%	6,018,653
FMR, LLC	2.34%	4,033,393

Risk Analysis

Beta (Market Risk)

0.42

Low volatility — more stable than the market

Short Interest

3.4% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

1.34x

Moderate leverage

Current Ratio