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Constellation Brands, Inc.. (STZ) Stock Fundamental Analysis & AI Rating 2026

STZ NYSE Beverages DE CIK: 0000016918
Recently Updated • Analysis: Apr 16, 2026 • SEC Data: 2025-11-30
SELL
68% Conf
Pending
Analysis scheduled

📊 STZ Key Takeaways

Revenue: $7.2B
Net Margin: 20.6%
Free Cash Flow: $1.5B
Current Ratio: 1.34x
Debt/Equity: 1.33x
EPS: $0.00
AI Rating: SELL with 68% confidence
Constellation Brands, Inc.. (STZ) receives a SELL rating with 68% confidence from our AI fundamental analysis based on SEC 10-K filings. With revenue of $7.2B, net profit margin of 20.6%, and return on equity (ROE) of 19.3%, Constellation Brands, Inc.. demonstrates mixed fundamentals in the Consumer sector. Below is our complete STZ stock analysis for 2026.

Is Constellation Brands, Inc.. (STZ) a Good Investment?

Claude

Constellation Brands faces material headwinds despite robust operational profitability: revenue contracted 6.8% YoY while net income collapsed 104.7%, signaling either substantial one-time charges or underlying operational stress not reflected in margin stability. Elevated leverage (1.33x D/E) and weak liquidity (0.70x quick ratio) combined with minimal cash reserves ($152.4M) create financial vulnerability amid declining top-line performance.

Why Buy Constellation Brands, Inc.. Stock? STZ Key Strengths

Claude
  • + Exceptional profitability margins: 52.1% gross, 31.6% operating, 20.6% net margin
  • + Strong cash generation with $2.1B operating cash flow and $1.5B free cash flow (20.1% FCF margin)
  • + Solid return on equity of 19.3% reflecting capital efficiency

STZ Stock Risks: Constellation Brands, Inc.. Investment Risks

Claude
  • ! Revenue decline of 6.8% YoY indicates market share loss or demand weakness in beverages category
  • ! Unexplained net income collapse of 104.7% YoY despite maintained operating margins raises material concerns
  • ! Elevated financial leverage (1.33x debt-to-equity ratio) combined with weak liquidity (0.70x quick ratio) and minimal cash position ($152.4M)

Key Metrics to Watch

Claude
  • * Revenue trend stabilization and organic growth rate
  • * Net income reconciliation and one-time item breakdown in filings
  • * Debt reduction progress and cash conversion cycle efficiency

Constellation Brands, Inc.. (STZ) Financial Metrics & Key Ratios

Revenue
$7.2B
Net Income
$1.5B
EPS (Diluted)
$0.00
Free Cash Flow
$1.5B
Total Assets
$21.7B
Cash Position
$152.4M

💡 AI Analyst Insight

The 20.1% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.

STZ Profit Margin, ROE & Profitability Analysis

Gross Margin 52.1%
Operating Margin 31.6%
Net Margin 20.6%
ROE 19.3%
ROA 6.8%
FCF Margin 20.1%

STZ vs Consumer Sector: How Constellation Brands, Inc.. Compares

How Constellation Brands, Inc.. compares to Consumer sector averages

Net Margin
STZ 20.6%
vs
Sector Avg 8.0%
STZ Sector
ROE
STZ 19.3%
vs
Sector Avg 18.0%
STZ Sector
Current Ratio
STZ 1.3x
vs
Sector Avg 1.5x
STZ Sector
Debt/Equity
STZ 1.3x
vs
Sector Avg 0.8x
STZ Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Constellation Brands, Inc.. Stock Overvalued? STZ Valuation Analysis 2026

Based on fundamental analysis, Constellation Brands, Inc.. has mixed fundamental signals relative to the Consumer sector in 2026.

Return on Equity
19.3%
Sector avg: 18%
Net Profit Margin
20.6%
Sector avg: 8%
Revenue Growth
N/A
Year-over-year
Debt/Equity
1.33x
Sector avg: 0.8x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Constellation Brands, Inc.. Balance Sheet: STZ Debt, Cash & Liquidity

Current Ratio
1.34x
Quick Ratio
0.70x
Debt/Equity
1.33x
Debt/Assets
63.1%
Interest Coverage
6.64x
Long-term Debt
$10.3B

STZ Revenue & Earnings Growth: 5-Year Financial Trend

STZ 5-year financial data: Year 2021: Revenue $8.6B, Net Income $3.4B, EPS N/A. Year 2022: Revenue $8.8B, Net Income -$11.8M, EPS N/A. Year 2023: Revenue $9.5B, Net Income $2.0B, EPS N/A. Year 2024: Revenue $10.0B, Net Income -$40.4M, EPS N/A. Year 2025: Revenue $10.2B, Net Income -$71.0M, EPS N/A.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Constellation Brands, Inc..'s revenue has grown significantly by 19% over the 5-year period, indicating strong business expansion.

STZ Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
20.1%
Free cash flow / Revenue

STZ Quarterly Earnings & Performance

Quarterly financial performance data for Constellation Brands, Inc.. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2026 $2.2B $293.9M N/A
Q2 2026 $2.5B -$322.0M N/A
Q1 2026 $2.5B $516.1M N/A
Q3 2025 $2.5B $293.9M N/A
Q2 2025 $2.8B -$322.0M N/A
Q1 2025 $2.5B $135.9M N/A
Q3 2024 $2.4B -$294.0M N/A
Q2 2024 $2.7B $690.0M N/A

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Constellation Brands, Inc.. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$2.1B
Cash generated from operations
Stock Buybacks
$824.1M
Shares repurchased (TTM)
Capital Expenditures
$656.1M
Investment in assets
Dividends Paid
$538.8M
Returned to shareholders

STZ SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Constellation Brands, Inc.. (CIK: 0000016918)

📋 Recent SEC Filings

Date Form Document Action
Apr 9, 2026 4 xslF345X06/wk-form4_1775767466.xml View →
Apr 9, 2026 4 xslF345X06/wk-form4_1775767373.xml View →
Apr 9, 2026 4 xslF345X06/wk-form4_1775767263.xml View →
Apr 9, 2026 4 xslF345X06/wk-form4_1775767171.xml View →
Apr 9, 2026 4 xslF345X06/wk-form4_1775767083.xml View →

Frequently Asked Questions about STZ

What is the AI rating for STZ?

Constellation Brands, Inc.. (STZ) has an AI rating of SELL with 68% confidence, based on fundamental analysis of SEC EDGAR filings.

What are STZ's key strengths?

Claude: Exceptional profitability margins: 52.1% gross, 31.6% operating, 20.6% net margin. Strong cash generation with $2.1B operating cash flow and $1.5B free cash flow (20.1% FCF margin).

What are the risks of investing in STZ?

Claude: Revenue decline of 6.8% YoY indicates market share loss or demand weakness in beverages category. Unexplained net income collapse of 104.7% YoY despite maintained operating margins raises material concerns.

What is STZ's revenue and growth?

Constellation Brands, Inc.. reported revenue of $7.2B.

Does STZ pay dividends?

Constellation Brands, Inc.. pays dividends, with $538.8M distributed to shareholders in the trailing twelve months.

Where can I find STZ SEC filings?

Official SEC filings for Constellation Brands, Inc.. (CIK: 0000016918) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is STZ's EPS?

Constellation Brands, Inc.. has a diluted EPS of $0.00.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.

Is STZ a good stock to buy right now?

Based on our AI fundamental analysis in April 2026, Constellation Brands, Inc.. has a SELL rating with 68% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.

Is STZ stock overvalued or undervalued?

Valuation metrics for STZ: ROE of 19.3% (sector avg: 18%), net margin of 20.6% (sector avg: 8%). Higher ROE suggests strong returns relative to peers.

Should I buy STZ stock in 2026?

Our dual AI analysis gives Constellation Brands, Inc.. a combined SELL rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.

What is STZ's free cash flow?

Constellation Brands, Inc..'s operating cash flow is $2.1B, with capital expenditures of $656.1M. FCF margin is 20.1%.

How does STZ compare to other Consumer stocks?

Vs Consumer sector averages: Net margin 20.6% (avg: 8%), ROE 19.3% (avg: 18%), current ratio 1.34 (avg: 1.5).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Apr 16, 2026 | Data as of: 2025-11-30 | Powered by Claude AI