Buffett Brain · Research note
Score updated 27 Oct 2026 · analysis from 17 Aug 2026
STZ· Consumer Staples
Constellation Brands
Constellation Brands' high margins can't mask its weak ROIC and inconsistent earnings history.
Buffett fit
Weak fit
Owner
43
Durability
10
Management
79
Price
71
Score updated 27 Oct 2026 · analysis from 17 Aug 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Consumer Staples stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If we owned 100% of Constellation Brands, we'd be concerned about its 5-year average of 3.11%, which is well below our 15% threshold.
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The company's durability is questionable, given its failure to be profitable every year over the past five years.
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Management has been active in reducing share count with a 5-year CAGR of -2.02% and a yield of 5.3%, signaling shareholder-friendly actions.
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At a of 15.5 and an yield of 6.91%, the valuation appears reasonable but not compelling.
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 151.67% is top-quintile within its sector.
- 231.33% indicates strong operational efficiency.
- 3Brand strength with well-known labels like Corona and Modelo.
- 4Interest coverage of 8.0 shows ability to cover debt expenses comfortably.
Concerns
5- 15-year average of 3.11% is below the sector's top quintile.
- 2Net debt/EBITDA of 3.45 indicates high .
- 3Revenue CAGR of 0.89% suggests stagnation.
- 45-year EPS max decline of 104.78% highlights earnings volatility.
Price history
$136-37.4%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Constellation Brands produces and sells beer, wine, and spirits under well-known brands like Corona and Modelo. Revenue is driven primarily by beer sales, with a of 51.67%, placing it in the top quintile of its sector. is strong at 31.33%, indicating efficient operations. However, the company's of 10.48% is below the sector's top quintile, suggesting limited reinvestment efficiency.
How this analysis has moved
The call has held across 4 reviews.
Sep 27, 2026 → Oct 16, 2026
What other investors would say
The same company, judged by three other documented playbooks.
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