Reading the tape
NYSE: STZ
Constellation Brands, Inc.
Consumer Defensive · Beverages - Wineries & Distilleries
Market Cap
$24.78B
52w High
$196.91
52w Low
$126.45
P/E
14.80
Volume
987.67K
Outstanding Shares
172.17M
Price vs Fundamentals
Why The Stock Is Moving
Likely fundamental deteriorationHigh confidence
1Y Price: -24.32%Revenue (TTM): -10.47%FCF (TTM): -7.44%P/FCF: 3rd pct
What changed
The stock fell 24.32% over the last year. Revenue declined 10.47% over the trailing twelve months. Operating margin moved from 35.52% to 31.33%. Free cash flow declined 7.44% over the trailing twelve months.
What the market seems to be pricing
The market is reacting to weaker business momentum more than just compressing the valuation multiple. Even if the shares already screen cheap on P/FCF, investors are still discounting lower future earnings power.
What would invalidate this read
Operating margin stands at 31.33%. Revenue declined 10.47% — this read reverses if that trend stabilizes. Free cash flow fell 7.44% — a return toward positive territory would undermine the deterioration thesis. If margins and cash flow stabilize while the stock stays depressed, the gap shifts from fundamental damage toward pure multiple compression.
Company profile
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.
CEONicholas Ian Fink
SectorConsumer Defensive
IndustryBeverages - Wineries & Distilleries
Employees10,600
IPO dateMar 17, 1992
Valuation
Forward P/E—
EV/EBITDA11.82
Enterprise value$38.79B
Stock splits
May 16, 2005↑ Forward
Every 1 shares became 2
May 14, 2002↑ Forward
Every 1 shares became 2
May 15, 2001↑ Forward
Every 1 shares became 2
Jul 21, 1992↑ Forward
Every 2 shares became 3
Nov 12, 1991↑ Forward
Every 2 shares became 3
Profitability & growth
Revenue growth-11.27%
Gross margin51.67%▲1.17%vs FY2025
Operating margin31.33%▼11.63%vs FY2025
ROE20.87%▲1864.36%vs FY2025
Analyst consensus
RatingBuy
Target price$175.70▲22.08%
25
Buy
20
Hold
1
Sell
Analyst ratings tend to be lagging indicators. Use as one signal among many.
Earnings
Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.
Next report
Jul 7, 2026
Q3 FY26 · EPS est $3.24 · Revenue est $2.42B
View
Dividends
$4.09/shareQuarterlyDividend Achiever · 10yrSafeSTZ pays a dividend with a 2.84% dividend yield, 10 consecutive years of growth, growing at 6.32% annually, covered 2.5× by free cash flow.
Dividend Yield
2.84%
Annual Div / Share
$4.09
5yr CAGR
+6.32%
Doubles every ~11.3yr
Payout Ratio
42.43%
Safe
Dividend Growth Rate
3yr CAGR
+7.52%
5yr CAGR
+6.32%
10yr CAGR
+11.89%
Dividend Safety
9/10Safe
Dividend History
Annualized dividend cycles per share
YearAnnual DivYoY
2026$4.09+1.0%
2025$4.05+10.1%
2024$3.68+11.9%
2023$3.29+6.8%
2022$3.08+2.3%
2021$3.01+0.3%
2020$3.00+1.0%
Income Projection
Invest
$
Growth rate:
Reinvest dividends
Today
$28/yr
$2/mo
In 5 yrs
$39/yr+36%
$3/mo
In 10 yrs
$52/yr+85%
$4/mo
| Today | In 5 yrs | In 10 yrs |
|---|---|---|
$28/yr $2/mo | $39/yr+36% $3/mo | $52/yr+85% $4/mo |
Yield-on-cost grows from 2.84% → 5.25% over 10yr
Analysis
Dividend Strengths
Dividend Achiever
STZ has raised its dividend for 10 consecutive years — qualifying as a Dividend Achiever, demonstrating long-term commitment to shareholder income.
Well-covered by free cash flow
The dividend is covered 2.5× by free cash flow, indicating the company generates sufficient cash to sustain and potentially grow the payout without straining its finances.
Strong dividend growth rate
The 5-year CAGR of 6.32% meaningfully outpaces inflation, compounding real income growth for long-term holders.
Risks to Watch
No strong risk signal stands out from the latest period pair.