STZConstellation Brands
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.2×).
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Margins have held roughly steady, a stable cost structure.
Margin-driven, fat margins on slower asset turns. ROE 20% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is STZ?
Constellation Brands earns 12% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 2.7 points above what the capital costs: growth creates value
- Operating margin
- 30%
Operating margin · Beverages - Brewers median 17% · 12 months to Q2 2027
- Cash conversion
- 1.18×
Cash conversion · 1.69× a year ago · operating cash flow covers the operating profit after tax
- Gross margin
- 53%
Gross margin
| Year | Operating margin |
|---|---|
| FY2021 | 32% |
| FY2022 | 26% |
| FY2023 | 30% |
| FY2024 | 32% |
| FY2025 | 3.5% |
| FY2026 | 30% |
Details›
- Gross margin12 months to Q2 2027
- 53%
- Operating margin12 months to Q2 2027
- 30%
- Net margin12 months to Q2 2027
- 21%
- Free cash flow margin
- 20%
- Revenue, trailing twelve months
- $9.21B
- Free cash flow, trailing twelve months
- $1.84B
- Net income, trailing twelve months
- $1.92B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 12%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Customers and suppliers
Who buys from STZ and who it buys from, as the companies report it.
- Southern Wine and Spirits6.7%
Share of revenue · FY2026 10-K
- Ten largest customers60%
Combined share of revenue · FY2026 10-K
None disclosed.
A company has to disclose every customer behind 10% or more of its revenue. Each share comes from the latest annual report of the company that states it and shows on both companies’ pages; STZ’s own figures are from its FY2026 10-K. Smaller customers and suppliers go unreported.
Consumer Defensive
Ranks #69 of 126 by RyuScore