| Company name | Constellation Brands, Inc. Class A |
| Stock ticker | STZ |
| Live stock price | [stckqut]STZ[/stckqut] |
| P/E compared to competitors | Good |
MANAGEMENT EXECUTION
| Employee productivity | Good |
| Sales growth | Fair |
| EPS growth | Good |
| P/E growth | Poor |
| EBIT growth | Good |
ANALYSIS
| Confident Investor Rating | Good |
| Target stock price (TWCA growth scenario) | $333.56 |
| Target stock price (averages with growth) | $420.88 |
| Target stock price (averages with no growth) | $285.89 |
| Target stock price (manual assumptions) | $307.56 |
The following company description is from Reuters: https://www.reuters.com/finance/stocks/company-profile/stz
Constellation Brands, Inc., incorporated on December 4, 1972, is an international beverage alcohol company. The Company is a producer and marketer of beer, wine, and spirits with operations in the United States, Canada, Mexico, New Zealand and Italy. The Company’s segments include Beer, Wine and Spirits, and Corporate Operations and Other. The Company’s wine portfolio is complemented by select spirits brands and other select beverage alcohol products. It is a multi-category supplier (beer, wine, and spirits) of beverage alcohol in the United States.
The Company owns principal facilities, including the Nava Brewery in Nava, Coahuila, Mexico; the glass production plant in Nava, Coahuila, Mexico; wineries in California, which include the Woodbridge Winery in Acampo and the Mission Bell winery in Madera; the Canandaigua winery in Canandaigua, New York, and the distillery in Lethbridge, Alberta, Canada. It operates over four facilities in the San Diego, California area that produce its Ballast Point brand, including Miramar, which serves as the primary production site for the brand. In the United States, the Company operates over 20 wineries using varieties of grapes grown in the Napa, Sonoma, Monterey and San Joaquin regions of California. It also operates over four wineries in New Zealand and approximately five wineries in Italy. The Company’s Canadian whisky requirements are produced and aged at its Canadian distillery in Lethbridge, Alberta.
Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Constellation Brands, Inc. Class A as long as the indicators that I describe in my book The Confident Investor are favorable.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.
How was this analysis of Constellation Brands, Inc. Class A calculated?
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
- Stock price at the time of the calculation: $215.91
- Growth: 0.18
- Current EPS (TTM): $10.31
- P/E: 21
- Future EPS Calc: $23.58
- Future Stock Price Calc: $495.32
- Target stock price: $307.55
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I hope that this makes you a Confident Investor.