| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 76 | 12.2x | 17.3x | Top tier | |
Growth | 27 | -4.3% | 7.1% | Bottom tier | |
Quality | 80 | 12.1% | 4.5% | Top tier | |
Safety | 56 | 3.4x | 2.6x | Around median | |
Capital Return | 90 | 2.99% | 0.06% | Top tier | |
Momentum | 42 | -18.5% | -1.6% | Around median | |
Sentiment | 68 | 13 | 3 | Top tier |
The floor: what the company is worth if growth stopped today
30% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, 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 sells beer, wine, and spirits, generating revenue from a portfolio that includes Modelo, Corona, Pacifico, Kim Crawford, and Mi CAMPO. Its growth depends on expanding distribution and increasing brand presence among consumers, while managing package pricing and sizes and stimulating sales through distributors and retailers. The task differs between Modelo Especial, which management believes still has gaps in distribution and brand awareness, and Corona Extra, which needs to strengthen its association with consumption occasions despite its established presence. The acquisition of SpikedAde, announced on 2026-10-06, added a ready-to-drink alcoholic beverage brand to the portfolio.
In quarter 2 of fiscal year 2027 (ending 2026-08), revenue reached 2.6 billion dollars, growing 6.1% year over year, with net income of 565.8 million dollars and diluted earnings per share of 3.32 dollars. Gross margin was 52.9%, compared with 52.8% in quarter 2 of fiscal year 2026 (ending 2025-08), while operating margin declined to 30.6% from 35.2%. Beer, including Modelo Especial and Victoria, supported sales performance, with growth in wine and spirits also contributing; however, higher revenue did not prevent operating profitability from declining as a percentage of sales.
Revenue reached 9.2 billion dollars and net income reached 1.9 billion dollars over the last 12 months through 2026-08-31, compared with operating cash flow of 1.2 billion dollars and free cash flow of 360.4 million dollars. In quarter 2 of fiscal year 2027 (ending 2026-08), operating cash flow was -661.8 million dollars, with cash and investments of 98.5 million dollars and total debt of 9.2 billion dollars. Constellation Brands' performance therefore combines a return to quarterly growth with pressure on margins and liquidity, while the company lowered its fiscal year 2027 outlook on 2026-10-06.
Q2 FY2027 (2026-08)
When: 2027-01-06
Year-over-year revenue growth at the 6.1% threshold
Operating margin at the 30.6% threshold
The median analyst price target was 159 dollars, within a range of 122 dollars to 185 dollars across 7 analysts, reflecting their expectations for future growth and tending toward optimism by nature. The no-growth valuation was 94 dollars, measuring the continuation of current after-tax operating profit in perpetuity at a discount rate of 8.9%. The industry-multiple valuation was 42 dollars, within a range of 31 dollars to 116 dollars, using a median sales multiple of 0.8 across 9 companies; this is an indicative, low-confidence valuation that measures the company as its peers are valued on a sales basis. The no-growth valuation overlaps with the range of the industry-multiple method, while the analyst price target range exceeds that method's range, and the difference reflects the pricing of expected growth into the targets versus holding operating profit constant or applying peer companies' sales multiples.
Figures in the text are as of 2026-10-08; the live price is shown at the top of the page.
Revenue reached 2.6 billion dollars in quarter 2 of fiscal year 2027 (ending 2026-08), growing 6.1% year over year. However, operating margin was 30.6%, compared with 35.2% in quarter 2 of fiscal year 2026 (ending 2025-08), despite gross margin remaining stable at 52.9% versus 52.8%. Management had identified increased marketing and hiring related to Veracruz among the expense pressures on the 2026-07-01 call, making the conversion of sales growth into operating profit the focus of monitoring.
On the 2026-07-01 call, management acknowledged challenges facing the brands, but believed that Modelo Especial still had addressable gaps in distribution and awareness despite leading the market by value. Corona Extra needs to strengthen its presence in consumption occasions, while retaining its leading position in New York City and Miami, according to management. Overall revenue growth reached 6.1% in quarter 2 of fiscal year 2027 (ending 2026-08), but this figure alone does not establish that each brand's challenges have ended.
Automated analysis for informational purposes only — not investment advice.
Last 12 months to 2026-08-31
Management described the growth of non-alcoholic Corona as strong and double-digit on the 2026-07-01 call, with the brand ranking 4 in its category. Constellation Brands then announced the acquisition of SpikedAde on 2026-10-06 to expand its ready-to-drink alcoholic beverage portfolio. These 2 categories give the company opportunities to reach different consumption occasions, while its total revenue reached 2.6 billion dollars in quarter 2 of fiscal year 2027 (ending 2026-08).
Total debt reached 9.2 billion dollars, compared with cash and investments of 98.5 million dollars in quarter 2 of fiscal year 2027 (ending 2026-08). Over the last 12 months through 2026-08-31, operating cash flow reached 1.2 billion dollars, equivalent to 61% of net income of 1.9 billion dollars, while free cash flow reached 360.4 million dollars. Quarter 2 of fiscal year 2027 recorded operating cash flow of -661.8 million dollars, so the company's ability to generate cash remains important alongside the sales performance of Modelo and Corona.
The analyst consensus is buy, with an average price target of 158.47 dollars and a range of 122 dollars to 185 dollars. Nevertheless, the data included 5 target reductions versus 0 increases over 90 days, and Goldman Sachs lowered its target from 180 dollars to 155 dollars on 2026-10-07. This divergence coincides with the reduction in the fiscal year 2027 outlook on 2026-10-06, despite sales of Modelo Especial and Victoria supporting quarterly results.