Constellation Brands, Inc. (STZ)

FairStock Score: 72/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable consumer franchises bought at sensible prices. Constellation has a real brand portfolio—Modelo, Corona, Pacifico—in beer, wine, and spirits, and the quarter ended 2026-08-31 (fiscal Q2 2027) showed revenue of $2.6B and net income of $565.8M. Brand strength is the likely moat. The filed annual record is more uneven: fiscal year 2025 (ended 2025-02-28) had revenue of $10.2B and a net loss of $81.4M, while fiscal year 2026 (ended 2026-02-28) had revenue of $9.1B and net income of $1.7B. That is why FairStock labels it a TURNAROUND: returned to profit after a loss within the last three years. Financial health is decent but not pristine: FairStock's Piotroski F-Score is 7/9 and Altman Z-Score is 2.35, while debt-to-equity is 1.23. Returns are mixed—ROE 23.69% but ROCE 8.57%—so leverage helps the equity return. At the 2026-10-26 close of $135.62, FairStock calculations show P/E 12.90, P/B 2.82, FCF yield 7.0%, PEG 0.62, and Graham Number $109.34, a -26.83% margin of safety, meaning the price is above the Graham value. I see a cash-generative brand owner priced fairly, perhaps modestly cheap on earnings and free cash flow, but not at a Graham-style discount and not without debt and revenue-volatility risk.

In plain English: Constellation Brands makes and sells beer, wine, and spirits, including brands like Modelo and Corona. The business looks profitable and produces plenty of cash, but it has meaningful debt and sales have been uneven. At $135.62, the price looks fair rather than deeply cheap compared with its earnings and asset value.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2027 10-Q (period ended 2026-08-31) · fiscal Q1 2027 10-Q (period ended 2026-05-31) · fiscal Q4 2026 10-K (period ended 2026-02-28) · fiscal Q3 2026 10-Q (period ended 2025-11-30) · FY2026 10-K (period ended 2026-02-28) · FY2025 10-K (period ended 2025-02-28) · FY2024 10-K (period ended 2024-02-29)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer