Constellation Brands, Inc. (NYSETZ) is a leading beverage alcohol company with a diverse portfolio of beer, wine, and spirits. Known for popular brands like Corona and Modelo, STZ has a strong market presence. The company faces competition from other major players in the beverage industry, but its strategic initiatives and brand strength help maintain its competitive edge.
On April 9, 2025, STZ is set to release its quarterly earnings, with Wall Street estimating an earnings per share (EPS) of $2.27 and projected revenue of approximately $2.12 billion. Despite concerns over tariffs on Mexican imports affecting the company, STZ's strong fundamentals and market dominance present a compelling buying opportunity.
Currently, STZ is undervalued due to these tariff concerns. However, the tariffs are expected to be temporary, and their removal could lead to a boost in the stock price. The company has demonstrated steady growth in revenue and profitability, supported by strategic share buybacks and a solid dividend yield of 2.23%.
STZ's financial metrics reflect its market valuation and operational efficiency. With a price-to-earnings (P/E) ratio of 45.91 and a price-to-sales ratio of 3.09, the market values its earnings and sales positively. The enterprise value to sales ratio is 3.17, and the enterprise value to operating cash flow ratio is 10.78, indicating efficient cash flow management.
The company's debt-to-equity ratio of 0.11 suggests a relatively low level of debt compared to its equity, which is favorable for financial stability. Additionally, a current ratio of 1.10 indicates STZ's ability to cover short-term liabilities with short-term assets, reflecting sound liquidity management.