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Constellation Brands

DB:CB1A
Snowflake Description

Moderate growth potential with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CB1A
DB
$37B
Market Cap
  1. Home
  2. DE
  3. Food, Beverage & Tobacco
Company description

Constellation Brands, Inc., together with its subsidiaries, produces, imports, and markets beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. The last earnings update was 10 days ago. More info.


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CB1A Share Price and Events
7 Day Returns
-1.5%
DB:CB1A
-0.5%
DE Beverage
2.8%
DE Market
1 Year Returns
-7.2%
DB:CB1A
5.6%
DE Beverage
3%
DE Market
CB1A Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Constellation Brands (CB1A) -1.5% -4% -0.1% -7.2% 15.5% 176.3%
DE Beverage -0.5% 2.4% -0.7% 5.6% 30% 68%
DE Market 2.8% 0.2% 1.3% 3% 8% 23.6%
1 Year Return vs Industry and Market
  • CB1A underperformed the Beverage industry which returned 5.6% over the past year.
  • CB1A underperformed the Market in Germany which returned 3% over the past year.
Price Volatility
CB1A
Industry
5yr Volatility vs Market

Value

 Is Constellation Brands undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Constellation Brands to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Constellation Brands.

DB:CB1A Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 19 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 5%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:CB1A
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Beverage Unlevered Beta Simply Wall St/ S&P Global 0.51
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.508 (1 + (1- 21%) (36.71%))
0.769
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (0.8 * 5.96%)
5%

Discounted Cash Flow Calculation for DB:CB1A using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Constellation Brands is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:CB1A DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 5%)
2020 1,316.67 Analyst x7 1,254.02
2021 1,637.15 Analyst x10 1,485.06
2022 1,821.92 Analyst x8 1,574.02
2023 2,230.85 Analyst x2 1,835.61
2024 2,536.15 Analyst x2 1,987.52
2025 2,746.64 Est @ 8.3% 2,050.06
2026 2,908.10 Est @ 5.88% 2,067.28
2027 3,029.74 Est @ 4.18% 2,051.28
2028 3,120.53 Est @ 3% 2,012.21
2029 3,188.12 Est @ 2.17% 1,957.98
Present value of next 10 years cash flows $18,275.00
DB:CB1A DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $3,188.12 × (1 + 0.23%) ÷ (5% – 0.23%)
$67,017.49
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $67,017.49 ÷ (1 + 5%)10
$41,158.60
DB:CB1A Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $18,275.00 + $41,158.60
$59,433.60
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $59,433.60 / 190.81
$311.48
DB:CB1A Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:CB1A represents 0.91506x of NYSE:STZ
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.91506x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 311.48 x 0.91506
€285.02
Value per share (EUR) From above. €285.02
Current discount Discount to share price of €176.68
= -1 x (€176.68 - €285.02) / €285.02
38%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Constellation Brands is available for.
Intrinsic value
38%
Share price is €176.68 vs Future cash flow value of €285.02
Current Discount Checks
For Constellation Brands to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Constellation Brands's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Constellation Brands's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Constellation Brands's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Constellation Brands's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:CB1A PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-08-31) in USD $4.04
NYSE:STZ Share Price ** NYSE (2019-10-11) in USD $193.08
Germany Beverage Industry PE Ratio Median Figure of 7 Publicly-Listed Beverage Companies 27.57x
Germany Market PE Ratio Median Figure of 417 Publicly-Listed Companies 19.72x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Constellation Brands.

DB:CB1A PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:STZ Share Price ÷ EPS (both in USD)

= 193.08 ÷ 4.04

47.74x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Constellation Brands is overvalued based on earnings compared to the DE Beverage industry average.
  • Constellation Brands is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Constellation Brands's expected growth come at a high price?
Raw Data
DB:CB1A PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 47.74x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts
68.8%per year
Europe Beverage Industry PEG Ratio Median Figure of 31 Publicly-Listed Beverage Companies 2.84x
Germany Market PEG Ratio Median Figure of 265 Publicly-Listed Companies 1.39x

*Line of best fit is calculated by linear regression .

DB:CB1A PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 47.74x ÷ 68.8%

0.69x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Constellation Brands is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Constellation Brands's assets?
Raw Data
DB:CB1A PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-08-31) in USD $59.70
NYSE:STZ Share Price * NYSE (2019-10-11) in USD $193.08
Germany Beverage Industry PB Ratio Median Figure of 8 Publicly-Listed Beverage Companies 1.56x
Germany Market PB Ratio Median Figure of 598 Publicly-Listed Companies 1.74x
DB:CB1A PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:STZ Share Price ÷ Book Value per Share (both in USD)

= 193.08 ÷ 59.70

3.23x

* Primary Listing of Constellation Brands.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Constellation Brands is overvalued based on assets compared to the DE Beverage industry average.
X
Value checks
We assess Constellation Brands's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Beverage industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Beverage industry average (and greater than 0)? (1 check)
  5. Constellation Brands has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Constellation Brands expected to perform in the next 1 to 3 years based on estimates from 19 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
68.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Constellation Brands expected to grow at an attractive rate?
  • Constellation Brands's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Constellation Brands's earnings growth is expected to exceed the Germany market average.
  • Constellation Brands's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:CB1A Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:CB1A Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts 68.8%
DB:CB1A Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 19 Analysts 1.8%
Germany Beverage Industry Earnings Growth Rate Market Cap Weighted Average -0.6%
Europe Beverage Industry Revenue Growth Rate Market Cap Weighted Average 4.5%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.8%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:CB1A Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:CB1A Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-02-29
2023-02-28
2022-02-28 8,458 2,449 1,998 11
2021-02-28 7,894 2,211 1,733 19
2020-02-29 8,057 2,189 -81 18
2019-10-13
DB:CB1A Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-08-31 8,211 2,327 772
2019-05-31 8,166 2,335 2,447
2019-02-28 8,116 2,246 3,436
2018-11-30 8,081 2,437 3,107
2018-08-31 7,910 2,167 3,297
2018-05-31 7,699 2,054 2,649
2018-02-28 7,580 1,931 2,303
2017-11-30 7,446 1,749 1,845
2017-08-31 7,455 1,754 1,758
2017-05-31 7,388 1,732 1,615
2017-02-28 7,321 1,696 1,529
2016-11-30 7,247 1,738 1,327

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Constellation Brands's earnings are expected to grow significantly at over 20% yearly.
  • Constellation Brands's revenue is expected to grow by 1.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:CB1A Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below

All data from Constellation Brands Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:CB1A Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-02-29
2023-02-28
2022-02-28 10.61 11.55 9.91 3.00
2021-02-28 9.02 9.55 8.41 6.00
2020-02-29 -0.41 -0.22 -0.53 3.00
2019-10-13
DB:CB1A Past Financials Data
Date (Data in USD Millions) EPS *
2019-08-31 4.04
2019-05-31 12.84
2019-02-28 18.03
2018-11-30 16.24
2018-08-31 17.11
2018-05-31 13.66
2018-02-28 11.82
2017-11-30 9.45
2017-08-31 8.94
2017-05-31 8.16
2017-02-28 7.67
2016-11-30 6.62

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Constellation Brands is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Constellation Brands's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Constellation Brands has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Constellation Brands performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Constellation Brands's growth in the last year to its industry (Beverage).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Constellation Brands has delivered over 20% year on year earnings growth in the past 5 years.
  • Constellation Brands's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Constellation Brands's 1-year earnings growth is negative, it can't be compared to the DE Beverage industry average.
Earnings and Revenue History
Constellation Brands's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Constellation Brands Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:CB1A Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-08-31 8,211.00 772.00 1,500.90
2019-05-31 8,166.10 2,446.70 1,461.00
2019-02-28 8,116.00 3,435.90 1,472.00
2018-11-30 8,080.80 3,106.90 1,469.50
2018-08-31 7,910.10 3,296.60 1,514.80
2018-05-31 7,698.90 2,648.70 1,488.40
2018-02-28 7,580.30 2,303.40 1,426.60
2017-11-30 7,446.30 1,844.90 1,388.60
2017-08-31 7,454.90 1,758.00 1,316.20
2017-05-31 7,388.20 1,615.30 1,317.40
2017-02-28 7,321.10 1,528.60 1,284.80
2016-11-30 7,246.70 1,326.50 1,291.40
2016-08-31 7,076.70 1,191.10 1,225.60
2016-05-31 6,788.90 1,134.60 1,149.00
2016-02-29 6,548.40 1,054.90 1,124.30
2015-11-30 6,361.40 1,026.10 1,089.60
2015-08-31 6,262.60 977.80 1,067.80
2015-05-31 6,133.30 871.20 1,072.70
2015-02-28 6,028.00 839.30 1,045.40
2014-11-30 5,963.00 781.90 1,020.40
2014-08-31 5,864.60 770.70 997.60
2014-05-31 5,720.30 2,096.90 952.20
2014-02-28 4,867.70 1,943.10 843.00
2013-11-30 4,272.40 1,867.60 761.20
2013-08-31 3,596.00 1,766.10 664.40
2013-05-31 2,834.70 368.70 577.40
2013-02-28 2,796.10 387.80 555.90
2012-11-30 2,728.30 409.10 546.70

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Constellation Brands has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Constellation Brands used its assets more efficiently than the DE Beverage industry average last year based on Return on Assets.
  • Constellation Brands's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Constellation Brands's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Beverage industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Constellation Brands has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Constellation Brands's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Constellation Brands's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Constellation Brands is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Constellation Brands's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Constellation Brands's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Constellation Brands Company Filings, last reported 1 month ago.

DB:CB1A Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-08-31 11,691.00 12,922.40 81.40
2019-05-31 12,488.20 13,372.80 98.70
2019-02-28 12,837.20 13,616.50 93.60
2018-11-30 11,520.00 13,569.60 130.60
2018-08-31 11,535.20 9,923.60 208.80
2018-05-31 10,565.80 10,107.00 210.00
2018-02-28 7,991.70 10,186.70 90.30
2017-11-30 8,009.10 9,350.20 154.50
2017-08-31 7,945.30 8,947.40 126.30
2017-05-31 7,397.80 9,211.60 199.60
2017-02-28 6,884.80 9,238.10 177.70
2016-11-30 6,997.70 8,632.20 197.30
2016-08-31 7,174.10 8,033.50 177.70
2016-05-31 6,988.60 8,315.40 168.10
2016-02-29 6,691.80 8,088.80 83.80
2015-11-30 6,596.70 7,416.60 493.50
2015-08-31 6,165.00 7,441.30 332.70
2015-05-31 6,051.90 7,338.60 134.00
2015-02-28 5,881.30 7,319.70 113.40
2014-11-30 5,635.00 7,326.40 71.40
2014-08-31 5,487.40 7,201.70 108.40
2014-05-31 5,287.00 7,208.50 382.40
2014-02-28 4,981.30 7,053.40 67.40
2013-11-30 4,789.80 7,175.70 69.60
2013-08-31 4,510.40 7,339.70 120.90
2013-05-31 2,997.40 5,114.50 613.30
2013-02-28 2,860.30 3,352.50 334.80
2012-11-30 2,775.30 4,051.30 204.30
  • Constellation Brands's level of debt (110.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (131.2% vs 110.5% today).
  • Debt is not well covered by operating cash flow (18%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.3x coverage).
X
Financial health checks
We assess Constellation Brands's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Constellation Brands has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Constellation Brands's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.55%
Current annual income from Constellation Brands dividends. Estimated to be 1.63% next year.
If you bought €2,000 of Constellation Brands shares you are expected to receive €31 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Constellation Brands's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.46%).
  • Constellation Brands's dividend is below the markets top 25% of dividend payers in Germany (3.86%).
Upcoming dividend payment

Purchase Constellation Brands before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:CB1A Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
Germany Beverage Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 1.8%
Germany Market Average Dividend Yield Market Cap Weighted Average of 337 Stocks 3.1%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.7%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:CB1A Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-02-29
2023-02-28
2022-02-28 3.35 12.00
2021-02-28 3.13 17.00
2020-02-29 2.99 16.00
2019-10-13
DB:CB1A Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-10-03 3.000 1.563
2019-06-28 3.000 1.495
2019-04-23 3.000 1.529
2019-04-04 3.000 1.546
2019-01-09 2.960 1.749
2018-10-04 2.960 1.536
2018-06-29 2.960 1.391
2018-04-23 2.960 1.314
2018-03-29 2.960 1.301
2018-01-05 2.080 0.946
2017-10-05 2.080 0.957
2017-06-29 2.080 1.051
2017-04-27 2.080 1.151
2017-04-06 2.080 1.214
2016-10-05 1.600 1.018
2016-04-06 1.600 0.994
2015-10-07 1.240 0.876
2015-04-09 1.240 1.024

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Constellation Brands has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Constellation Brands only paid a dividend in the past 5 years.
Current Payout to shareholders
What portion of Constellation Brands's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.1x coverage).
X
Income/ dividend checks
We assess Constellation Brands's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.7%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Constellation Brands afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Constellation Brands has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Constellation Brands's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Bill Newlands
COMPENSATION $7,854,942
AGE 60
TENURE AS CEO 0.6 years
CEO Bio

Mr. William A. Newlands, also known as Bill, has been the President of Constellation Brands, Inc. since February 12, 2018 and has been its Chief Executive Officer and Director since March 1, 2019. Mr. Newlands has been the Director at Canopy Growth Corporation since November 1, 2018. He served as Chief Operating Officer of Constellation Brands, Inc. since January 30, 2017 until March 1, 2019 and served as its Executive Vice President since January 2015 until September 16, 2017. Mr. Newlands has been the President of Wine & Spirits Division at Constellation Brands, Inc. since January 26, 2016. He served as Chief Growth Officer of Constellation Brands, Inc. from January 26, 2015 to April 9, 2016. He served as the President of Wine & Spirits Division at Constellation Brands, Inc. He joined Constellation Brands in 2015. He has leadership experience with well-respected companies including LVMH and E. & J. Gallo Winery. He served as Senior Vice President and President of North America at Beam, Inc. from October 2011 to May 31, 2014. Mr. Newlands served as the President of North America at Beam Global Spirits & Wine, Inc. since December 2010. He served as the President of Beam Global Spirits & Wine USA of Beam Global Spirits & Wine, Inc. since February 2008. He was a Member of the Beam Global Spirits & Wine, Inc.’s executive leadership team. He was responsible for growing the Beam Global Spirits & Wine, Inc.’s brands and commercial sales and oversaw marketing, commercial activation, sales training and distributor strategies in the United States. He served as the President of U S Commercial Development of Beam Global Spirits & Wine Inc. He served as Senior Vice President of U.S. Commercial Development for Beam Global Spirits & Wine Inc. and Beam, Inc. since February 2008. Mr. Newlands served as the President of U S business of Beam Global Spirits & Wine Inc. He leads a top-five super-premium U.S. wine company with sales approaching three million cases annually and premier brands such as Clos du Bois, the #2 super-premium U.S. wine brand, Geyser Peak, Wild Horse, Buena Vista, William Hill and Gary Farrell. He served as the President of Beam Spirits U.S. from 2008 to 2010. He served as Senior Vice President of Beam Global Spirits & Wine Inc. He served as President of Beam Wine Estates, Inc. of Beam Global Spirits & Wine Inc. since July 2005 until 2007 and also served as its Chief Executive Officer. He was responsible for U.S. regional marketing, commercial activation and the sales training function while working closely and collaborating with Future Brands and distributor partners at Beam Global Spirits & Wine Inc. He served as the President and Chief Executive Officer of Allied Domecq Wines, USA from 2002 to 2005. Mr. Newlands served as the President, Chief Executive Officer and Director at Wine.com from 1999 to 2001 and North American Still and Sparkling Wine Group of Louis Vuitton Moet Hennessy's. He served as Vice President of Marketing of Ernest & Julio Gallo. He served as Marketing Advisor for Louis Vuitton Moet Hennessy's sister properties in Argentina, Spain, Portugal, Brazil and Australia, helping to create uniform positioning for Chandon globally. He served as Managing Director of U.S. and Global Marketing Officer of LVMH Chandon Estates from 1996 to 1999. Mr. Newlands has an MBA from Harvard Business School and graduated from the Wharton School of the University of Pennsylvania with a B.S. in Marketing and Human Relations.

CEO Compensation
  • Bill's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Bill's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Constellation Brands management team in years:

2.8
Average Tenure
56
Average Age
  • The tenure for the Constellation Brands management team is about average.
Management Team

Rob Sands

TITLE
Executive Chairman
COMPENSATION
$10M
AGE
60
TENURE
0.6 yrs

Bill Newlands

TITLE
President
COMPENSATION
$8M
AGE
60
TENURE
0.6 yrs

Richard Sands

TITLE
Executive Vice Chairman of the Board
COMPENSATION
$8M
AGE
68

David Klein

TITLE
Executive VP & CFO
COMPENSATION
$7M
AGE
55
TENURE
4.3 yrs

Francis Hetterich

TITLE
Executive VP & President of Beer Division
COMPENSATION
$5M
AGE
56
TENURE
16.3 yrs

Robert Hanson

TITLE
Executive VP and President of Wine & Spirits
COMPENSATION
$397K
AGE
56
TENURE
0.3 yrs

Chris Stenzel

TITLE
President of Wine & Spirits Division
COMPENSATION
$6M
AGE
51
TENURE
2.8 yrs

Ricardo Bartra

TITLE
Senior VP & Chief Technology Officer
TENURE
1.3 yrs

Patty Yahn-Urlaub

TITLE
Vice President of Investor Relations
TENURE
12.5 yrs

James Bourdeau

TITLE
Executive VP
AGE
54
TENURE
5.1 yrs
Board of Directors Tenure

Average tenure and age of the Constellation Brands board of directors in years:

2.3
Average Tenure
60
Average Age
  • The average tenure for the Constellation Brands board of directors is less than 3 years, this suggests a new board.
Board of Directors

Rob Sands

TITLE
Executive Chairman
COMPENSATION
$10M
AGE
60
TENURE
0.6 yrs

Bill Newlands

TITLE
President
COMPENSATION
$8M
AGE
60
TENURE
0.6 yrs

Richard Sands

TITLE
Executive Vice Chairman of the Board
COMPENSATION
$8M
AGE
68
TENURE
0.6 yrs

James Locke

TITLE
Lead Director
COMPENSATION
$257K
AGE
77

Jerry Fowden

TITLE
Non-Executive Director
COMPENSATION
$257K
AGE
62
TENURE
9.4 yrs

Judy Schmeling

TITLE
Director
COMPENSATION
$427K
AGE
59
TENURE
6.7 yrs

Ernesto M. Hernández

TITLE
Director
COMPENSATION
$242K
AGE
61
TENURE
5.3 yrs

Dan McCarthy

TITLE
Director
COMPENSATION
$242K
AGE
55
TENURE
4.3 yrs

Susan Johnson

TITLE
Director
COMPENSATION
$242K
AGE
53
TENURE
2.3 yrs

Jennifer Daniels

TITLE
Director
COMPENSATION
$168K
AGE
55
TENURE
1.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
30. May 19 Sell James Sabia Individual 28. May 19 28. May 19 -4,275 €174.22 €-744,789
17. May 19 Sell James Sabia Individual 16. Nov 18 16. Nov 18 -850 €172.91 €-146,972
08. Apr 19 Sell Thomas Kane Individual 05. Apr 19 05. Apr 19 -3,071 €169.50 €-520,524
19. Feb 19 Sell Barry Fromberg Individual 15. Feb 19 15. Feb 19 -1,500 €154.97 €-232,461
23. Oct 18 Sell Thomas Kane Individual 19. Oct 18 19. Oct 18 -4,419 €194.87 €-861,116
X
Management checks
We assess Constellation Brands's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Constellation Brands has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Constellation Brands, Inc., together with its subsidiaries, produces, imports, and markets beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. It provides beer primarily under the Corona Extra, Corona Light, Corona Premier, Corona Familiar Modelo Especial, Modelo Negra, Modelo Chelada, Pacifico, and Victoria brands, as well as Funky Buddha, Four Corners, and Ballast Point brands. The company offers wine under the 7 Moons, Black Box, Clos du Bois, Franciscan Estate, Kim Crawford, Mark West, Meiomi, Mount Veeder, Nobilo, Ravage, Robert Mondavi, Ruffino, Schrader, Simi, The Dreaming Tree, Charles Smith, Prisoner; and sprits under the Casa Noble, High West, SVEDKA Vodka, Casa Noble Tequila, and High West Whiskey brands. It provides its products to wholesale distributors, retailers, on-premise locations, and state alcohol beverage control agencies. The company was founded in 1945 and is headquartered in Victor, New York.

Details
Name: Constellation Brands, Inc.
CB1A
Exchange: DB
Founded: 1945
$33,370,948,853
190,812,683
Website: http://www.cbrands.com
Address: Constellation Brands, Inc.
Building 100,
207 High Point Drive,
Victor,
New York, 14564,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE STZ Class A Common Stock New York Stock Exchange US USD 01. Jul 1986
DB CB1A Class A Common Stock Deutsche Boerse AG DE EUR 01. Jul 1986
SWX STZ Class A Common Stock SIX Swiss Exchange CH CHF 01. Jul 1986
BMV STZ * Class A Common Stock Bolsa Mexicana de Valores MX MXN 01. Jul 1986
NYSE STZ.B Class B Common Stock New York Stock Exchange US USD 28. Feb 1973
BOVESPA STZB34 BDR EACH REP 0.25 COM USD0.01 CLASS A Bolsa de Valores de Sao Paulo BR BRL 20. May 2019
Number of employees
Current staff
Staff numbers
9,800
Constellation Brands employees.
Industry
Distillers and Vintners
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/10/13 21:05
End of day share price update: 2019/10/11 00:00
Last estimates confirmation: 2019/10/11
Last earnings filing: 2019/10/03
Last earnings reported: 2019/08/31
Last annual earnings reported: 2019/02/28


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.