Constellation Brands, Inc. (STZ) AI Stock Analysis

Founded in 1945 and headquartered in Victor, New York, Constellation Brands, Inc. produces, imports, markets, and distributes beer, wine, and spirits. Its beer portfolio features brands such as Corona Extra, Modelo Especial, Pacifico, and Victoria. The company also markets wine labels including Kim Crawford, Meiomi, Robert Mondavi, and The Prisoner Wine Company, as well as spirits like Casa Noble Tequila, High West Whiskey, and SVEDKA Vodka. Constellation distributes its products across the United States, Canada, Mexico, New Zealand, and Italy, serving wholesale distributors, retail outlets, on-premise locations, and state alcohol control agencies.

Constellation Brands grew annual revenue from $8.82B in FY2022 to $10.21B in FY2025 before revenue fell 10.5% to $9.14B in FY2026. Its 5-year revenue CAGR from FY2021 to FY2026 stands at 1.2%. Gross margin remained steady, registering 52.1% in FY2022 and 51.6% in FY2026. Annual net income fluctuated from -$40.4M in FY2022 and -$81.4M in FY2025 to positive net income of $1.69B in FY2026, which yielded an operating margin of 31.3% and EPS of $11.81. For the latest quarter ended August 31, 2026, quarterly revenue growth was 6.1% year-over-year, while quarterly earnings growth reached 25.3%.

As of August 31, 2026, Constellation Brands held $98.5M in cash and short-term investments against $10.32B in total debt, resulting in net debt of $10.22B. Total assets stood at $22.06B, with shareholders' equity at $8.59B, a current ratio of 1.00, and a debt-to-equity ratio of 1.20. In FY2026, the company generated $2.67B in operating cash flow and $1.79B in free cash flow. Capital expenditures were $875.0M, while capital returns included $924.1M in share buybacks and $715.7M in dividends paid.

At a last close of $131.35 on October 16, 2026, Constellation Brands has a market cap of $22.23B and an enterprise value of $30.34B. The stock trades at a trailing P/E of 11.8x and a forward P/E of 10.0x, both below the median of its S&P 500 Consumer Defensive peers of 23.5x and 15.3x. Its EV/EBITDA of 9.3x also sits below the peer median of 14.8x, though its price-to-sales of 2.4x is higher than the peer median of 1.6x. Over the past year, the stock returned -3.0%, trailing the S&P 500 return of 16.8%.

Constellation Brands pays a quarterly dividend with an annualized forward payout of $4.12, equating to a dividend yield of 3.14% and a payout ratio of 33.9%. The company has paid dividends for 12 consecutive years, generating a 5-year annualized dividend growth rate of 6.3%. Its last ex-dividend date was October 30, 2026.

Wall Street coverage consists of 11 Strong Buy, 3 Buy, 8 Hold, and 2 Sell ratings. The mean price target is $150.87, representing a 14.9% upside compared to the last close of $131.35. For the current fiscal year ending February 28, 2027, consensus estimates project revenue of $9.12B and EPS of $11.82. For the next fiscal year, 23 analysts project revenue of $9.25B with EPS of $12.10. Over the last 4 quarters, the company delivered 4 EPS beats.

This page is an AI-written research summary of Constellation Brands, Inc. (STZ). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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