Constellation Brands Inc (NYSE:STZ) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of STZ, it is a company with great financial health as well as a an impressive history of performance. Below, I’ve touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Constellation Brands here.
Outstanding track record with adequate balance sheet
Over the past year, STZ has grown its earnings by 64.9%, with its most recent figure exceeding its annual average over the past five years. This strong performance generated a robust double-digit return on equity of 25.3%, which is an notable feat for the company. STZ’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that STZ has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. STZ’s has produced operating cash levels of 0.2x total debt over the past year, which implies that STZ’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
For Constellation Brands, there are three essential factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for STZ’s future growth? Take a look at our free research report of analyst consensus for STZ’s outlook.
- Valuation: What is STZ worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether STZ is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of STZ? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.