# Constellation Brands Inc. (STZ) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-13  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/STZ/thesis · /stocks/STZ/memo

## Financial Snapshot

---
ticker: STZ
step: 04
generated: 2026-05-12
source: quick-research
---

### Constellation Brands Inc. (STZ) — Financial Snapshot

#### Income Statement Summary

*Note: Constellation fiscal year ends February 28/29. FY2024 = March 2023–Feb 2024; FY2025 = March 2024–Feb 2025.*

| Metric | FY2023 | FY2024 | FY2025 | YoY |
|--------|--------|--------|--------|-----|
| Revenue | $9.45B | $9.96B | $10.21B | +2.5% |
| Gross Margin | ~51% | ~52% | ~52% | flat |
| Operating Margin | ~29% | ~31% | ~32% | +100bps |
| Net Income (GAAP) | ~$2.1B | ~$2.3B | ~$(0.1B)* | |
| Comparable EPS | ~$11.20 | ~$12.90 | $13.78 | +7% |

*FY2025 GAAP net income negative due to $3B+ non-cash goodwill impairment charges on the Wine & Spirits segment. Comparable (adjusted) EPS of $13.78 reflects strong underlying beer business performance.*

*FY2026 (ended Feb 2026): Revenue $9.14B (-10.5%, reflecting wine divestitures); Comparable EPS guidance $11.30–$11.60 (declining from tariffs and Hispanic consumer volume weakness).*

#### Cash Flow & Balance Sheet (FY2025)

| Metric | Value |
|--------|-------|
| Operating Cash Flow | ~$2.4B |
| Free Cash Flow | $1.97B |
| FCF Margin | ~19% |
| Cash & Equivalents | ~$0.3B |
| Total Debt | ~$11.5B |
| Net Debt / EBITDA | ~3.5x |

#### Key Ratios (approximate, based on FY2025)
- P/E (comparable): ~13–15x | FCF Yield: ~8–9% at current market cap
- EV/EBITDA: ~11x | Dividend Yield: ~2.5%
- Revenue Growth (FY2025): +2.5% | Beer segment: ~+5–6% organic
- Leverage: ~3.5x net debt/EBITDA (elevated due to Mexico brewery expansion capex)

#### Growth Profile
Constellation's beer business delivered consistent 5–7% organic revenue growth for most of the 2018–2024 period, driven by Modelo Especial's market share gains. FY2026 marked a turning point: a 25% tariff on Mexican imports (announced April 2025) and measurable pullback among Hispanic consumers amid immigration enforcement created volume weakness — the first real deceleration in the Modelo story. Management withdrew its FY2028 growth guidance, guided comparable EPS down to $11.30–$11.60 (from $13.78 in FY2025), and deferred capex decisions on the Veracruz brewery expansion. FY2026 FCF was $1.79B; FY2027 guided $1.6–$1.7B.

#### Forward Estimates
- **FY2027**: Comparable EPS ~$10.50–$12.00 (wide range reflecting tariff uncertainty); FCF ~$1.6–1.7B
- **FY2028 target (withdrawn)**: Management previously guided to $20+ comparable EPS by FY2028; guidance withdrawn April 2026 due to tariff and macro uncertainty
- **Wine divestitures**: Expected to close in FY2026-FY2027; proceeds to reduce $11.5B debt load; $200M in annualized cost savings expected by FY2028
- **FIFA World Cup 2026**: Scheduled for summer 2026 in U.S./Canada/Mexico — natural marketing event for beer brands; could catalyze consumption occasion recovery

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/STZ/fundamental

## Navigation

- Overview: /stocks/STZ
- Financials (this page): /stocks/STZ/financials
- Thesis: /stocks/STZ/thesis
- Investment Memo: /stocks/STZ/memo
- Coverage universe: /stocks