FMP
Jan 10, 2025(Last modified: Jan 13, 2025)
Constellation Brands, Inc. (NYSE:STZ) is a leading beverage company known for its popular beer brands like Corona and Modelo. The company operates in the alcoholic beverage industry, competing with other major players such as Anheuser-Busch and Heineken. Constellation Brands focuses on producing and marketing beer, wine, and spirits, catering to a wide range of consumer preferences.
On January 10, 2025, Constellation Brands reported earnings per share (EPS) of $3.25, slightly below the estimated $3.31. This performance also missed the Zacks Consensus Estimate of $3.34 per share, as highlighted by Zacks. Despite this, the EPS showed a slight improvement from the previous year's $3.19 per share, indicating some growth.
The company's revenue for the quarter was approximately $2.46 billion, falling short of the estimated $2.53 billion. This nearly flat sales performance has led to a decline in STZ shares. The subdued spending, influenced by persistent inflation, has impacted the company's financial results, prompting a reduction in its annual sales forecast.
Constellation Brands' financial metrics reveal a complex picture. The company has a high price-to-earnings (P/E) ratio of 50.65, suggesting that investors are willing to pay a premium for its earnings. The price-to-sales ratio of 3.42 indicates that investors pay $3.42 for every dollar of sales, while the enterprise value to sales ratio is 3.50, reflecting the company's total valuation relative to its sales.
The enterprise value to operating cash flow ratio stands at 82.26, indicating a high valuation compared to cash flow generation. The earnings yield is 1.97%, providing a measure of return on investment. With a debt-to-equity ratio of 0.11, Constellation Brands maintains a conservative capital structure, and a current ratio of 1.10 suggests reasonable short-term financial health.
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