Is the business good?
How good a business is STZ?
Constellation Brands earns 12% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
12%
Return on invested capital · cost of capital 9.0% · 3.1 points above what the capital costs: growth creates value
- Operating margin
- 32%
Operating margin · Beverages - Brewers median 18% · 12 months to Q1 2027
- Cash conversion
- 1.00×
Cash conversion · every dollar of reported profit arrived as cash, and more
- Gross margin
- 53%
Gross margin
| Year | Operating margin |
|---|---|
| FY2021 | 32% |
| FY2022 | 26% |
| FY2023 | 30% |
| FY2024 | 32% |
| FY2025 | 3.5% |
| FY2026 | 30% |
Details›
- Gross margin12 months to Q1 2027
- 53%
- Operating margin12 months to Q1 2027
- 32%
- Net margin12 months to Q1 2027
- 20%
- Free cash flow margin
- 20%
- Revenue, trailing twelve months
- $9.06B
- Free cash flow, trailing twelve months
- $1.83B
- Net income, trailing twelve months
- $1.82B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 12%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.