| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 82 | 11.7x | 17.8x | Top tier | |
Growth | 37 | -10.0% | 7.1% | Bottom tier | |
Quality | 80 | 11.0% | 4.5% | Top tier | |
Safety | 53 | 3.6x | 2.6x | Around median | |
Capital Return | 74 | 3.31% | 2.12% | Top tier | |
Momentum | 26 | -8.7% | 2.9% | Bottom tier | |
Sentiment | 72 | 13 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Constellation Brands manages a portfolio of beer and wine brands, including Modelo, Corona, Pacifico, Kim Crawford, and Mi CAMPO. The value-creation mechanism presented by management on the July 1, 2026 call focuses on expanding distribution and awareness for brands that are still scaling, then supporting the presence and consumer relevance of mature brands through marketing, revenue management, pricing architecture, and package sizes.
In Q1 fiscal 2027, Constellation Brands recorded revenue of $2.4 billion, gross profit of $1.3 billion, and net income of $653.8 million. These figures equate to an approximate gross margin of 54% and an approximate net income margin of 27%, compared with revenue of $1.9 billion, gross profit of $951.7 million, and net income of $154.6 million in Q4 fiscal 2026.
Within the beer portfolio, gross margin was 39% in Q1 fiscal 2027, with shipment growth of 1.8%, a 30-basis-point benefit from fixed-cost absorption, and a 20-basis-point benefit from pricing after the mix impact. In contrast, operating margin declined by 10 basis points, as the improvement in gross margin was offset by higher selling, general and administrative expenses and World Cup-related marketing spending.
The analyst consensus is Buy, with an average price target of $165.2 and a wide range between $132 and $186. The average target is below the 52-week high of $168.6, while the highest target exceeds that level; this divergence reflects differing expectations regarding the recovery of Modelo Especial and Corona Extra and the company's ability to protect margins while increasing marketing spending.
Figures in the text are as of 2026-08-28; the live price is shown at the top of the page.
Revenue was $2.4 billion, gross profit was $1.3 billion, and net income was $653.8 million. This equates to an approximate gross margin of 54% and an approximate net income margin of 27%. In the beer business, gross margin was 39%, with shipment growth of 1.8%.
Management kept its beer net sales outlook unchanged on the July 1, 2026 call despite the strong start to shipments. It attributed the decision to volatile demand and limited economic visibility, after fuel prices rose by more than 50% on average from the end of fiscal 2026 to the Q1 fiscal 2027 peak. The company expects shipments and depletions to converge for fiscal 2027 as a whole after early seasonal shipments in the first quarter.
Questions on the July 1, 2026 call described Modelo Especial's performance as slow and Corona Extra as facing challenges, and management agreed that both brands faced headwinds. Management believes Modelo Especial still has gaps in distribution and unaided awareness, despite being the number-one brand by value in the market. Corona Extra needs greater presence, relevance, and everyday activation, while remaining the number-one brand in New York City and Miami, according to management.
Automated analysis for informational purposes only — not investment advice.
Corona Non-Alcohol delivered strong double-digit growth and became fourth in its category by the July 1, 2026 call. Management said it had not yet allocated significant investment to the product, providing an opportunity to test increased marketing and distribution support. In ready-to-drink beverages, management said Chelada would rank as the third-largest business in the category if measured that way, alongside a small brand with higher alcohol content.
Management expected gross margins to remain strong in Q2 and Q3 fiscal 2027 but warned of additional pressure on operating margins. Marketing is scheduled to exceed 10% of net sales in each quarter, with spending supporting the World Cup, college football, and NFL. Selling, general and administrative expenses will also rise because of employees added to support the startup of the Veracruz facility during fiscal 2027.
The analyst consensus is Buy, with an average price target of $165.2. The target range extends from $132 to $186, compared with a 52-week range of $126.45 to $168.6. The average target is close to the top of the 52-week range, while the highest target assumes a move above that level, highlighting the valuation's sensitivity to a recovery in the core brands and margin stability.
