Aureus
BGood

Constellation Brands, Inc.(STZ)

B

Financial data as of Feb 28, 2025Declining · Consumer Staples

FCF Margin19.0%Free Cash Flow / Revenue
Cash Conversion—Operating CF / Net Income
Free Cash Flow$1.9B
Revenue$10.2B
Net Cash-$12.0BNet debt position
Debt / FCF6.3xElevated debt burden
Current Ratio0.92Tight short-term liquidity
YoY FCF Growth-18.8%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
-0.5Elevated debt-to-FCF ratio (6.3x)
→
+0.5Healthy FCF margin with manageable debt (19.0%, 6.3x)
→
-1Current ratio below 1.0 (0.92)
→
-0.5Moderate decline but healthy margin (-18.8% YoY)
→
+0.5Highly consistent quarterly FCF
→
FinalB

Analysis Summary

Strengths

  • Strong FCF margin (19.0%)
  • Highly consistent quarterly FCF

Concerns

  • Heavy debt position ($12.0B)
  • High debt-to-FCF ratio (6.3x)
  • Current ratio below 1.0 — tight short-term liquidity
  • FCF trend declining (-18.8% YoY) but margin still healthy
Cash conversion ratio unavailable or not meaningful

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin19.0%
Net Margin-0.8%
Operating CF Margin30.9%
CapEx Ratio11.9%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$12.0BNet debt position
Debt / FCF6.3xElevated debt burden
Current Ratio0.92Tight liquidity
Debt / Equity1.76Moderate leverage

Quarterly FCF Trend

-18.8% YoYDeclining (-18.8%)

Free cash flow per quarter

Sector Comparison — Consumer Staples

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameConstellation Brands, Inc.
SectorConsumer Staples
Free Cash Flow$1.9B
Revenue$10.2B
Net Income-$81.4M
Operating Cash Flow$3.2B
Capital Expenditure$1.2B
FCF Margin19.0%
Cash Conversion Rate—
Net Margin-0.8%
Total Debt$12.1B
Total Cash$68.1M
Net Cash-$12.0B
Current Ratio0.92
Debt / Equity1.76
Debt / FCF6.3x
YoY FCF Growth-18.8%
Positive Quarters5 of 5
Trend DirectionDeclining
Report DateFeb 28, 2025
GradeB
Data SourceYahoo Finance

Related Research

All research →
Sector Report5 min read

Consumer Staples: Eight A-Grades and a Margin Split

Tobacco and energy drinks print 20%+ margins. Retail giants barely break 2%. Both earn A-grades. Something's broken.

Feb 13, 2026
PMMNSTSTZCL+8