STZ · Consumer staples(beverages) · 10 years of annual accounts filed with the SEC · latest fiscal year ended 2026-02-28
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Constellation Brands, Inc. reported revenue of $9.1 billion in fiscal 2026, after growing 2.5% a year over the previous 9 years. Its operating margin narrowed from 32.6% in 2017 to 29.8%, and it earned 10.9% on its invested capital in the latest year. Of the $25.3 billion its operations generated over 10 years, 39.0% went back into the business and 32.0% to buybacks. On the accounting screens, it passes 5 of 8 Piotroski tests, its Altman Z'' of 3.55 is in the safe zone and its Beneish M-score is below the -1.78 line; 1 of the six cross-checks between its statements fires.
Revenue, fiscal 20269.1B+2.5% a year over 9 years
Operating margin29.8%gross margin 51.6%
Return on invested capital10.9%4.9% on average over 5 years
Free cash flow after stock pay1.7B18.9% of revenue
Net debt ÷ EBITDA3.2×net debt 10.2B
Piotroski F-score5/8tests of improvement passed
Is it growing?
Revenue and the operating income it turns into. Growth that does not reach operating income is growth bought with margin.
RevenueOperating income
05B10B15B
2017Revenue 7.3BOperating income 2.4B
2018Revenue 7.6BOperating income 2.3B
2019Revenue 8.1BOperating income 2.4B
2020Revenue 8.3BOperating income 2.2B
2021Revenue 8.6BOperating income 2.8B
2022Revenue 8.8BOperating income 2.3B
2023Revenue 9.5BOperating income 2.8B
2024Revenue 10.0BOperating income 3.2B
2025Revenue 10.2BOperating income 354.9M
2026Revenue 9.1BOperating income 2.7B
2017201820192020202120222023202420252026
Compound growth a year
3 yrs
5 yrs
9 yrs
Revenue
-1.1%
+1.2%
+2.5%
Operating income
-1.4%
-0.5%
+1.5%
Net income
—
-3.3%
+1.1%
Falling shares are buybacks: each remaining share owns more of the company.
Does it earn more than its capital costs?
Margins say how much of each sale is kept; return on invested capital says how much the business earns on the money it needs to operate. Growth only creates value when that return is above the cost of the capital.
Needs a cost of capital, which comes from the valuation below.
Return on equity
20.9%
Return on assets
7.7%
Asset turnover
0.42×
Overheads (SG&A)
20.2% of revenue
Is the profit cash, and where does the cash go?
Net income is an accounting opinion; free cash flow is what was left in the bank after investing. Stock-based pay does not leave the bank — shareholders pay it through dilution — so it is shown taken off as well.
Net incomeFree cash flowAfter stock-based pay
-1B01B2B3B4B
2017Net income 1.5BFree cash flow 788.6MAfter stock-based pay 732.5M
2018Net income 2.3BFree cash flow 873.8MAfter stock-based pay 812.9M
2019Net income 3.4BFree cash flow 1.4BAfter stock-based pay 1.3B
2020Net income -11.8MFree cash flow 1.8BAfter stock-based pay 1.8B
2021Net income 2.0BFree cash flow 1.9BAfter stock-based pay 1.9B
2022Net income -40.4MFree cash flow 1.7BAfter stock-based pay 1.6B
2023Net income -71.0MFree cash flow 1.7BAfter stock-based pay 1.7B
2024Net income 1.7BFree cash flow 1.5BAfter stock-based pay 1.4B
2025Net income -81.4MFree cash flow 1.9BAfter stock-based pay 1.9B
2026Net income 1.7BFree cash flow 1.8BAfter stock-based pay 1.7B
2017201820192020202120222023202420252026
Where 10 years of operating cash went, 2017–2026
25.3B generated by the business. Each band is its share of that total.
Reinvested in the business 39%9.9B
Acquisitions 6%1.6B
Dividends 22%5.7B
Share buybacks 32%8.1B
Kept, or used to pay down debt 0%29.5M
Over the same years it paid 621.4M in stock. 7.5B of the buybacks went beyond offsetting that dilution.
Per share
Shares outstanding
Debt and liquidity
Debt is not bad in itself; debt the business cannot service in a bad year is. Net debt is debt minus cash, and below zero the company holds more cash than it owes.
Net debt
05B10B15B
2017Net debt 8.5B
2018Net debt 9.3B
2019Net debt 12.7B
2020Net debt 11.9B
2021Net debt 10.0B
2022Net debt 9.9B
2023Net debt 11.2B
2024Net debt 11.5B
2025Net debt 10.6B
2026Net debt 10.2B
2017201820192020202120222023202420252026
Net debt ÷ EBITDA
3.2×
Interest coverage
8× operating income ÷ interest
Current ratio
1.08 current assets ÷ current liabilities
Cash conversion cycle
65 days collects in 26d, stock 118d, pays in 79d
Three classic screens of the accounts
Each asks a different question of the same statements — is it improving, does it look like a company heading for distress, do the accounts resemble ones that were manipulated. None is a verdict; each shows what moves it.
Piotroski F-score
Is the business improving? Nine yes-or-no tests, this year against last.
5of 8 tests passed
✓ProfitableReturn on assets above zeropassed
✓Cash from operationsOperating cash flow above zeropassed
✓Profitability improvedReturn on assets higher than a year beforepassed
✓Profit backed by cashOperating cash flow above net income (low accruals)passed
✕Less long-term debtLong-term debt as a share of assets fellfailed
✓More liquidCurrent ratio higher than a year beforepassed
–No new sharesShare count did not grow — not reportedno data
✕Better gross marginGross margin higher than a year beforefailed
✕Sells more per assetAsset turnover higher than a year beforefailed
Where it misleads: it measures change, not level. An excellent business that stood still for a year scores low; a poor one recovering from a disaster scores high.
Altman Z''-score
Does the balance sheet look like those of companies that went bankrupt?
3.55safe zone
1.12.6
Working capital ÷ assets 0.01 × 6.56+0.06
Retained earnings ÷ assets 0.62 × 3.26+2.02
Operating income ÷ assets 0.12 × 6.72+0.84
Equity ÷ liabilities 0.60 × 1.05+0.63
Where it misleads: buybacks. A company that returns so much cash that its equity turns small or negative sinks the last two ratios without being anywhere near bankruptcy. Banks and insurers do not fit the model at all.
Beneish M-score
Do the accounts resemble those of companies that manipulated their earnings?
-2.76below the -1.78 line
-1.78
Receivables vs sales 1.00+0.92
Gross margin slipping 1.01+0.53
Soft assets 1.00 (not reported, set to 1)+0.40
Sales growth 0.90+0.80
Slower depreciation 1.00 (not reported, set to 1)+0.12
Overheads vs sales 1.06-0.18
Profit not in cash -0.04-0.21
Leverage rising 0.92-0.30
Where it misleads: fast growth and acquisitions. Sales growth carries a heavy weight, so a company growing 50% a year scores like a suspect without having done anything. It is a screen from a 1999 study, not an accusation.
Where the statements disagree
Cross-checks between the income statement, the balance sheet and the cash flow for the latest year, each with the benign reading and the worrying one.
Net debt is 3.2 times EBITDA.
Benign
A stable sector with predictable cash flows and comfortable maturities.
Worrying
Little room if earnings fall; the maturity schedule is what to check.
What is it worth, under which assumptions?
A company is worth the cash it will generate, brought back to today. This model projects revenue with growth that fades over the years, applies a free cash flow margin, and discounts the result at the cost of capital. Every assumption says where it came from, and all of them can be changed.
The SEC accounts lack the lines needed for revenue, free cash flow or the share count, so there is no DCF for this company.
What it has filed lately
The last twelve months at the SEC, most important first: annual and quarterly reports, events, large holders and insiders.
From the Form 13F of the 28 institutions followed on this site, as of the end of their last reported quarter. A 13F is filed up to 45 days later and shows only long positions in US-listed shares.
Accounts from the company's own SEC filings; lines some companies do not report are shown as a dash rather than estimated. The risk-free rate is the 10-year US Treasury yield. A DCF is a way of making assumptions explicit, not a forecast: it states what the company would be worth if the assumptions held. The scores are screens that point where to look, not verdicts. Nothing here is a recommendation to buy or sell.
