NYSE · Consumer Defensive

Constellation Brands, Inc.

STZ · Beverages - Brewers

$141.18

▲ 2.22 (1.6%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

B⤢

Gross Profit Margin 49.6%

Operating Margin 27.7%

Net Income Margin 10.5%

Fin. Health

D⤢

Years to Pay Off Debt 55.5 yrs

Working Capital vs Long-Term Debt -$9.5B

Working Capital $216M

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 3.00x

Cash Flow

C⤢

Free Cash Flow $344M

CapEx % of Net Income 108.5%

Owner Earnings $532M

Profitability

Gross Profit Margin 49.6%

Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.

Operating Margin 27.7%

Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.

Net Income Margin 10.5%

Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.

Financial Health

Years to Pay Off Debt 55.5 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt -$9.5B

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital $216M

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Cash Flow

Free Cash Flow $344M

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 108.5%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $532M

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

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

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.

Market Data

Market Cap $24.2B

Enterprise Value $36.2B

P/E (TTM) 14.69

Dividend Yield 2.94%

Exchange NYSE

Key Margins

Gross Profit 49.6%

Operating Margin 27.7%

Net Margin 10.5%

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 $141.18.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

At $141.18, the stock trades at a 302% premium to its Graham Number of $35.08. 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.

Showing Key Metrics

Income Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Gross Profit %	49.6%▼	53.2%•	N/A
Operating Margin %	27.7%▼	31.1%•	N/A
Net Income %	10.5%▼	22.6%•	N/A
Diluted EPS	1.16▼	2.88•	N/A

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Total Assets	$21.9B	$21.7B	N/A
Total Debt	$11.2B▲	$10.7B•	N/A
Working Capital	$216M▼	$736M•	N/A
Years to Pay Debt	55.51	21.21	N/A

Cash Flow Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Free Cash Flow	$344M▼	$371M•	N/A
Owner Earnings	$532M	$848M	N/A
CapEx % of Net Income	108.5%	48.9%	N/A

Income Statement

	2026	2025	2024
Tax Effect Of Unusual Items	-32,273	-98
Tax Rate For Calcs	0	0
Normalized EBITDA	638,000	818,300
Total Unusual Items	-89,600	-400
Total Unusual Items Excluding Goodwill	-89,600	-400
Net Income From Continuing Operation Net Minority Interest	201,800	502,800
Reconciled Depreciation	111,800	99,000
Reconciled Cost Of Revenue	968,500	1,039,600
EBITDA	548,400	817,900
EBIT	436,600	718,900
Net Interest Income	-82,900	-82,800
Interest Expense	85,400	86,600
Interest Income	2,500	3,800	3,300
Normalized Income	259,127	503,102
Net Income From Continuing And Discontinued Operation	201,800	502,800
Total Expenses	1,389,000	1,530,800
Total Operating Income As Reported	441,600	692,000
Diluted Average Shares	173,679	174,614
Basic Average Shares	173,465	174,515
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	201,800	502,800
Net Income Common Stockholders	201,800	502,800
Net Income	201,800	502,800
Minority Interests	-22,900	-19,400
Net Income Including Noncontrolling Interests	224,700	522,200
Net Income Continuous Operations	224,700	522,200
Tax Provision	126,500	110,100
Pretax Income	351,200	632,300
Other Income Expense	-97,100	23,100
Special Income Charges	-89,600	-400
Other Special Charges	0	400
Write Off	57,700	0
Impairment Of Capital Assets	0	0	0
Earnings From Equity Interest	-7,500	23,500
Gain On Sale Of Security	0		-38,600
Net Non Operating Interest Income Expense	-82,900	-82,800
Interest Expense Non Operating	85,400	86,600
Interest Income Non Operating	2,500	3,800	3,300
Operating Income	531,200	692,000
Operating Expense	420,500	491,200
Selling General And Administration	420,500	491,200
Gross Profit	951,700	1,183,200
Cost Of Revenue	968,500	1,039,600
Total Revenue	1,920,200	2,222,800
Excise Taxes	129,500	151,600
Operating Revenue	2,049,700	2,374,400

Balance Sheet

	2026	2025	2024
Treasury Shares Number	39,927	39,315
Ordinary Shares Number	172,798	173,411
Share Issued	212,725	212,725
Net Debt	10,466,100	10,511,400
Total Debt	11,202,600	10,663,800
Tangible Book Value	315,500	-12,500
Invested Capital	18,650,900	18,374,600
Working Capital	216,500	735,900
Net Tangible Assets	315,500	-12,500
Capital Lease Obligations	634,100		540,400
Common Stock Equity	8,082,400	7,710,800
Total Capitalization	17,775,300	17,995,900
Total Equity Gross Minority Interest	8,386,900	8,000,300
Minority Interest	304,500	289,500
Stockholders Equity	8,082,400	7,710,800
Gains Losses Not Affecting Retained Earnings	423,200	-800
Other Equity Adjustments	423,200	-800
Treasury Stock	8,103,000	8,007,700
Retained Earnings	13,574,400	13,550,400
Additional Paid In Capital	2,185,700	2,166,800
Capital Stock	2,100	2,100
Common Stock	2,100	2,100
Total Liabilities Net Minority Interest	13,513,600	13,683,100
Total Non Current Liabilities Net Minority Interest	10,823,800	11,509,900
Other Non Current Liabilities	76,300	1,224,800
Derivative Product Liabilities	8,900		83,900
Tradeand Other Payables Non Current	309,600		246,500
Non Current Deferred Liabilities	203,900		295,400
Non Current Deferred Revenue			71,300
Non Current Deferred Taxes Liabilities	203,900		224,100
Long Term Debt And Capital Lease Obligation	10,225,100	10,285,100
Long Term Capital Lease Obligation	532,200		540,400
Long Term Debt	9,692,900	10,285,100
Current Liabilities	2,689,800	2,173,200
Other Current Liabilities	95,300
Current Deferred Liabilities	17,800
Current Deferred Revenue	17,800
Current Debt And Capital Lease Obligation	977,500	378,700
Current Capital Lease Obligation	101,900
Current Debt	875,600	378,700
Other Current Borrowings	603,600	4,000
Commercial Paper	272,000	374,700
Payables And Accrued Expenses	1,599,200	1,794,500
Current Accrued Expenses	435,200	818,000
Interest Payable	102,700
Payables	1,164,000	976,500
Total Tax Payable	203,800
Income Tax Payable	164,300
Accounts Payable	960,200	976,500
Total Assets	21,900,500	21,683,400
Total Non Current Assets	18,994,200	18,774,300
Other Non Current Assets	159,600	160,900
Non Current Deferred Assets	1,370,300	1,569,000
Non Current Deferred Taxes Assets	1,370,300	1,569,000
Non Current Accounts Receivable	188,600	177,800
Financial Assets	186,400	122,800
Investments And Advances	219,100	230,300
Investmentin Financial Assets	90,300	82,900
Held To Maturity Securities	69,100	61,700
Available For Sale Securities	21,200	21,200
Long Term Equity Investment	128,800	147,400
Investments In Other Ventures Under Equity Method			151,000
Goodwill And Other Intangible Assets	7,766,900	7,723,300
Other Intangible Assets	2,533,000	2,532,700
Goodwill	5,233,900	5,190,600
Net PPE	9,103,300	8,790,200
Accumulated Depreciation	-3,095,100	-2,918,000
Gross PPE	12,198,400	11,708,200
Construction In Progress	2,759,800
Other Properties	582,400	11,708,200
Machinery Furniture Equipment	5,795,800
Buildings And Improvements	2,320,800
Land And Improvements	739,600
Current Assets	2,906,300	2,909,100
Other Current Assets	112,100	669,200
Hedging Assets Current	179,500
Assets Held For Sale Current	0	0
Prepaid Assets	131,100
Inventory	1,433,900	1,379,200
Finished Goods	679,800	645,300
Work In Process	549,500	519,900
Raw Materials	204,600	214,000
Receivables	947,300	708,300
Taxes Receivable	289,100
Accounts Receivable	658,200	708,300
Cash Cash Equivalents And Short Term Investments	102,400	152,400
Cash And Cash Equivalents	102,400	152,400

Cash Flow

	2026	2025	2024
Free Cash Flow	343,900	370,900
Repurchase Of Capital Stock	-100,000	-220,100
Repayment Of Debt	-1,100	-501,200
Issuance Of Debt	0	498,600
Capital Expenditure	-218,900	-246,000
End Cash Position	102,400	152,400
Beginning Cash Position	152,400	72,000
Effect Of Exchange Rate Changes	2,100	-200
Changes In Cash	-52,100	80,600
Financing Cash Flow	-401,300	-301,600
Cash Flow From Continuing Financing Activities	-401,300	-301,600
Net Other Financing Charges	-25,100	-23,400
Proceeds From Stock Option Exercised	4,600	0
Cash Dividends Paid	-176,900	-177,700
Common Stock Dividend Paid
Net Common Stock Issuance	-100,000	-220,100
Common Stock Payments	-100,000	-220,100
Net Issuance Payments Of Debt	-103,900	119,600
Net Short Term Debt Issuance	-102,800	122,200
Net Long Term Debt Issuance	-1,100	-2,600
Long Term Debt Payments	-1,100	-501,200
Long Term Debt Issuance	0	498,600
Investing Cash Flow	-213,600	-234,700
Cash Flow From Continuing Investing Activities	-213,600	-234,700
Net Other Investing Changes	16,400	11,800	300
Net Business Purchase And Sale	-11,100	-500
Sale Of Business	-100	-500
Purchase Of Business	-11,000	0
Net PPE Purchase And Sale	-218,900	-246,000
Purchase Of PPE	-218,900	-246,000
Operating Cash Flow	562,800	616,900
Cash Flow From Continuing Operating Activities	562,800	616,900
Change In Working Capital	-3,300	-94,600
Change In Other Current Liabilities
Change In Payables And Accrued Expense	-11,300	-136,400
Change In Accrued Expense	-15,500	-75,500
Change In Payable	4,200	-60,900
Change In Account Payable	4,200	-60,900
Change In Prepaid Assets	10,400	49,800
Change In Inventory	-49,200	49,200
Change In Receivables	51,700	-41,000
Changes In Account Receivables	51,700	-41,000
Other Non Cash Items	-71,800	29,600
Stock Based Compensation	19,700	15,900
Unrealized Gain Loss On Investment Securities			0
Asset Impairment Charge	59,200	0	0
Deferred Tax	198,800	34,100
Deferred Income Tax	198,800	34,100
Depreciation Amortization Depletion	111,800	99,000
Depreciation And Amortization	111,800	99,000
Depreciation	111,800	99,000
Operating Gains Losses	18,700		12,800
Earnings Losses From Equity Investments	18,700		-23,900
Net Foreign Currency Exchange Gain Loss			38,600
Net Income From Continuing Operations	224,700	522,200

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $2.2B ▼ $1.9B -11.3%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 51.5% ▼ 49.6% -1.9pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Operating Margin

Prior year: 24.5% ▼ 27.7% +3.1pp

Graham: operating margin reflects true business economics before financing. Trend matters as much as level.

Net Margin

Prior year: -17.3% ▲ 10.5% +27.9pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$1.9B/qtr (≈$7.7B ann.)

vs > $1.5B annualised revenue

❌ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

1.08x current ratio

vs ≥ 2.0x

✅ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

$344M

vs Positive

Operating Cash Flow

$563M

Latest quarter · Buffett's cash reality check

ROIC

2.2%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

2.9x

Net Assets: $8.4B

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

12.88%

High — management has strong skin in the game

Return on Equity (ROE)

2.5%

Weak — poor returns on equity

Return on Assets (ROA)

0.9%

Poor — assets are not generating adequate returns

Share Buybacks (Latest Year)

$924M

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+5.1% YoY

Debt is roughly stable

Leadership Team

Nicholas Ian Fink

President, CEO & Director

Age 50

Pay: $118,173

0.059% of net income

Garth Hankinson

Executive VP & CFO

Age 57

Pay: $1,525,902

0.756% of net income

James Sabia Jr.

Executive VP & President of Beer Division

Age 63

Pay: $1,459,529

0.723% of net income

Samuel James Glaetzer

Executive VP & President of Wine & Spirits Division

Age 50

Pay: $1,037,669

0.514% of net income

Blair Veenema

Vice President of Investor Relations

Top Institutional Holders

Institution	% Owned	Shares
Capital World Investors	7.12%	12,206,493
Blackrock Inc.	6.48%	11,119,599
Vanguard Capital Management LLC	5.29%	9,076,016
Vanguard Portfolio Management LLC	4.38%	7,515,202
State Street Corporation	4.10%	7,025,709
Wellington Management Group, LLP	3.87%	6,630,917
FMR, LLC	2.99%	5,126,543
Grantham, Mayo, Van Otterloo & Co. LLC	2.35%	4,025,780

Risk Analysis

Beta (Market Risk)

0.38

Low volatility — more stable than the market

Short Interest

5.2% of float

Moderate short interest

Debt-to-Equity

1.34x

Moderate leverage

Current Ratio

1.08x

Adequate liquidity

52-Week Price Range

Low: $126.45 Current: $141.18 High: $178.14

Currently at 28% of 52-week range

Constellation Brands, Inc.

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis