CONSTELLATION BRANDS, INC. (STZ)

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AI: Fair-priced

Price checkThe shares look reasonably priced, with strong cash returns offset by heavy debt.

At the August 14, 2026, close, shares were $139.18. Management forecasts fiscal 2027 reported earnings of $11.10–$11.80 per share, making the price about 11.8–12.5 times expected earnings. Guided free cash flow—cash left after operations and investment—is $1.6–$1.7 billion. Using roughly 171.47 million shares, the market value is $23.9 billion and the cash yield is 6.7%–7.1%. However, $10.4 billion of net debt removes the margin needed for an Undervalued verdict.

Big pictureCash generation remains solid, but sales have shrunk and consumer demand is uneven.

Fiscal 2026 revenue fell 10.5% to $9.14 billion, partly because wine brands were sold, while beer sales fell 3% as shipment volumes weakened. Operating cash flow nevertheless reached $2.67 billion, versus $3.15 billion in fiscal 2025; after $875 million of investment spending, free cash flow was $1.79 billion. First-quarter fiscal 2027 operating cash increased 4% to $662 million. This history supports durable cash generation, but not dependable growth: demand for premium imported beer remains sensitive to pressure on household budgets.

Business strengthImported beer brands remain powerful, while buybacks have reduced the share count.

Beer supplied about 94% of first-quarter fiscal 2027 revenue and earned a 39% operating margin before selected adjustments. Constellation also holds exclusive, perpetual United States rights for Corona and Modelo, supporting pricing and distribution strength. Fiscal 2026 buybacks totaled $924 million and dividends $716 million; another $224 million and $179 million, respectively, were spent in the latest quarter. Shares outstanding fell about 3% year over year to 171.47 million, so buybacks more than offset employee-share dilution. Still, those returns compete with necessary debt reduction.

What could change the storyA beer recovery could unlock value, while another volume slide would expose debt risk.

The bull case gained support when first-quarter beer sales and operating income each rose 2%, while the remaining wine portfolio’s organic sales rose 8%. The warning is that beer deliveries from distributors to retailers slipped 0.3% even as company shipments rose 1.8%, suggesting limited end-demand momentum. Fiscal 2027 guidance assumes $8.91–$9.09 billion of sales and at least $1.6 billion of free cash flow. Positive retail volumes and net debt below $10 billion would strengthen the thesis; renewed declines or weaker cash would undermine it.

$139.18 price considered

AI: News

Quarterly profit beatQuarterly results beat expectations, and resilient beer sales supported unchanged annual profit guidance.

On June 30, 2026, Constellation reported first-quarter adjusted earnings of $3.43 per share, above the $3.20 analyst estimate, while $2.43 billion of sales exceeded the $2.39 billion estimate. Beer sales grew 2% to $2.28 billion, helping management reaffirm annual adjusted earnings guidance of $11.20–$11.90 per share. Shares rose about 3.5% in extended trading. That reaction is reliably associated with the release, although later trading reflected additional information.

Berkshire completed exitBerkshire sold its remaining stake, creating a sentiment signal without changing company cash flows.

A filing reported on August 14–15, 2026 showed Berkshire Hathaway held no Constellation shares at June 30, after owning 632,890 shares at March 31 and cutting the position by roughly 95% that prior quarter. The disclosure arrived after Friday’s close, so no regular trading session had occurred by the research timestamp to establish a market reaction. The sale may affect sentiment, but Berkshire gave no reason, and its former holding was too small to alter Constellation’s business value.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008
Revenue	$9.14B	$10.21B	$9.96B	$9.45B	$8.82B	$8.61B	$8.34B	$8.12B	$7.58B	$7.32B	—	—	—	—	—	—	—	—
Gross profit	$4.71B	$5.31B	$5.02B	$4.77B	$4.71B	$4.47B	$4.15B	$4.08B	$3.81B	$3.52B	$2.94B	$2.58B	$1.99B	$1.11B	$1.06B	$1.19B	$1.14B	$1.23B
Operating income	$2.72B	$354.9M	$3.17B	$2.84B	$2.33B	$2.79B	$2.15B	$2.41B	$2.28B	$2.39B	$1.77B	$1.50B	$2.44B	$522.9M	$486.5M	$502.5M	$311.5M	$29.6M
EBITDAderived	$3.14B	$801.9M	$3.60B	$3.23B	$2.67B	$3.09B	$2.49B	$2.75B	$2.58B	$2.64B	$1.99B	$1.70B	$2.59B	$638.3M	$590.3M	$627.2M	$467.4M	—
Net income	$1.69B	−$81.4M	$1.73B	−$71.0M	−$40.4M	$2.00B	−$11.8M	$3.44B	$2.30B	$1.53B	$1.05B	$839.3M	$1.94B	$387.8M	$445.0M	$559.5M	$99.3M	−$301.4M

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys3$527.3K disclosed value

Sells (SEC code S)29$157.77M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
May 12, 2026Form 4	Bourdeau James O.EVP and Senior Advisor	SellClass A Common Stock	4.4K	$143.24	$631.3K	9.1K
Apr 27, 2026Form 4	Hernandez Ernesto MDirector	SellClass A Common Stock	2.0K	$153.92	$307.8K	2.6K
Feb 17, 2026Form 4	Glaetzer Samuel JEVP & Pres. Wine and Spirits	SellClass A Common Stock	555	$153.78	$85.3K	2.6K
Jul 21, 2025Form 4	Bourdeau James O.EVP & Chief Legal Officer	SellClass A Common Stock	821	$169.00	$138.7K	9.4K
Jul 8, 2025Form 4	Baldwin Christopher JDirector,Other	BuyClass A Common Stock	1.0K	$169.62	$169.6K	2.2K

Review ownership filings at SEC.gov ↗

CONSTELLATION BRANDS, INC. (STZ)

Financial charts

Financial statements

Insider buys & sells