Aureus
AExcellent

Constellation Brands, Inc.(STZ)

A

Financial data as of Feb 28, 2026Stable · Consumer Staples

FCF Margin18.9%Free Cash Flow / Revenue
Cash Conversion158.2%Operating CF / Net Income
Free Cash Flow$1.8B
Revenue$9.1B
Net Cash-$11.1BNet debt position
Debt / FCF6.5xElevated debt burden
Current Ratio1.08Adequate short-term liquidity
YoY FCF Growth+7.9%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 (6.5x)
→
+0.5Healthy FCF margin with manageable debt (18.9%, 6.5x)
→
+0.5Highly consistent quarterly FCF
→
FinalA

Analysis Summary

Strengths

  • Strong FCF margin (18.9%)
  • Excellent cash conversion (158%)
  • Highly consistent quarterly FCF

Concerns

  • Heavy debt position ($11.1B net debt, 6.5x FCF)
  • High debt-to-FCF ratio (6.5x)
  • Revenue declining (-11.3% YoY)

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin18.9%
Net Margin18.5%
Operating CF Margin29.2%
CapEx Ratio9.6%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$11.1BNet debt position
Debt / FCF6.5xElevated debt burden
Current Ratio1.08Adequate liquidity
Debt / Equity1.39Moderate leverage

Quarterly FCF Trend

+7.9% YoYStable (+7.9%)

Free cash flow per quarter

Sector Comparison — Consumer Staples

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameConstellation Brands, Inc.
SectorConsumer Staples
Free Cash Flow$1.8B
Revenue$9.1B
Net Income$1.7B
Operating Cash Flow$2.7B
Capital Expenditure$875.0M
FCF Margin18.9%
Cash Conversion Rate158.2%
Net Margin18.5%
Total Debt$11.2B
Total Cash$102.4M
Net Cash-$11.1B
Current Ratio1.08
Debt / Equity1.39
Debt / FCF6.5x
YoY FCF Growth+7.9%
Positive Quarters5 of 5
Trend DirectionStable
Report DateFeb 28, 2026
GradeA
Data SourceYahoo Finance

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