STZ - Embedded Expectations Analysis - 2018 03 14
ï€ Constellation Brands, Inc. (STZ:USA) currently trades near historical highs relative to UAFRS-based (Uniform) Earnings, with a 26.4x Uniform P/E, implying bullish expectations for the firm. Moreover, management is confident about their initiatives, revenue growth, and marginsï€ Specifically, management generated an excitement marker when saying they are supportive of the tax reform, as it will allow U.S. companies to remain competitive globally. Additionally, they are confident in their progress towards implementing the Nava capacity addition to complete the 27.5mn hectoliter expansion, and that their wine and spirits revenue growth will improve by 100 basis points for fiscal '18, while also improving operating margin and ROIC, as a result of their premiumization efforts. Furthermore, they are confident in their financial prospects heading into fiscal '19, and that their beer margins didn't face expected FX headwinds related to the value of the peso
Constellation Brands is an international beverage alcohol company. The company is a producer and marketer of beer, wine and spirits with operations in the U.S., Mexico, New Zealand, Italy and Canada. The company has two segments: Beer, in which the company is engaged in the U.S. beer market that includes the imported, craft, domestic super premium, and alternative beverage alcohol categories and it has the right to import, market and sell these Mexican beer brands in the U.S.; and Wine and Spirits, in which its wine portfolio is supported by grapes purchased from independent growers, primarily in the U.S., New Zealand and Chile, and vineyard holdings in the U.S., New Zealand and Italy.
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