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Constellation Brands Piotroski F-Score

: 4 (As of Today)
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The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Constellation Brands has an F-score of 4 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Constellation Brands's Piotroski F-Score or its related term are showing as below:

STZ' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 6   Max: 9
Current: 4

During the past 13 years, the highest Piotroski F-Score of Constellation Brands was 9. The lowest was 2. And the median was 6.


Constellation Brands Piotroski F-Score Historical Data

The historical data trend for Constellation Brands's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Constellation Brands Annual Data
Trend Feb13 Feb14 Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 5.00 5.00 8.00 6.00

Constellation Brands Quarterly Data
Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.00 7.00 5.00 6.00 4.00

Competitive Comparison

For the Beverages - Wineries & Distilleries subindustry, Constellation Brands's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Constellation Brands Piotroski F-Score Distribution

For the Beverages - Alcoholic industry and Consumer Defensive sector, Constellation Brands's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Constellation Brands's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (May22) TTM:Last Year (May21) TTM:
Net Income was 1.5 + 470.8 + 395.4 + 389.5 = $1,257 Mil.
Cash Flow from Operations was 809.9 + 918.2 + 261.3 + 758.2 = $2,748 Mil.
Revenue was 2371.1 + 2320.6 + 2102.5 + 2363.2 = $9,157 Mil.
Gross Profit was 1229.7 + 1225.7 + 1132.6 + 1255 = $4,843 Mil.
Average Total Assets from the begining of this year (May21)
to the end of this year (May22) was
(26192.4 + 25340.3 + 25527.3 + 25855.8 + 25841.1) / 5 = $25751.38 Mil.
Total Assets at the begining of this year (May21) was $26,192 Mil.
Long-Term Debt & Capital Lease Obligation was $10,278 Mil.
Total Current Assets was $3,302 Mil.
Total Current Liabilities was $2,366 Mil.
Net Income was 512.1 + 1280.9 + 382.9 + -908.1 = $1,268 Mil.

Revenue was 2260.4 + 2438.1 + 1953 + 2026.5 = $8,678 Mil.
Gross Profit was 1215.8 + 1268.2 + 993.7 + 1119.3 = $4,597 Mil.
Average Total Assets from the begining of last year (May20)
to the end of last year (May21) was
(26149.8 + 26462.5 + 27630.6 + 27104.8 + 26192.4) / 5 = $26708.02 Mil.
Total Assets at the begining of last year (May20) was $26,150 Mil.
Long-Term Debt & Capital Lease Obligation was $9,915 Mil.
Total Current Assets was $3,313 Mil.
Total Current Liabilities was $2,063 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Constellation Brands's current Net Income (TTM) was 1,257. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Constellation Brands's current Cash Flow from Operations (TTM) was 2,748. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (May21)
=1257.2/26192.4
=0.04799866

ROA (Last Year)=Net Income/Total Assets (May20)
=1267.8/26149.8
=0.04848221

Constellation Brands's return on assets of this year was 0.04799866. Constellation Brands's return on assets of last year was 0.04848221. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Constellation Brands's current Net Income (TTM) was 1,257. Constellation Brands's current Cash Flow from Operations (TTM) was 2,748. ==> 2,748 > 1,257 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: May22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from May21 to May22
=10278.2/25751.38
=0.39913201

Gearing (Last Year: May21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from May20 to May21
=9914.8/26708.02
=0.37122932

Constellation Brands's gearing of this year was 0.39913201. Constellation Brands's gearing of last year was 0.37122932. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: May22)=Total Current Assets/Total Current Liabilities
=3302.2/2365.8
=1.39580692

Current Ratio (Last Year: May21)=Total Current Assets/Total Current Liabilities
=3313.1/2062.8
=1.6061179

Constellation Brands's current ratio of this year was 1.39580692. Constellation Brands's current ratio of last year was 1.6061179. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Constellation Brands's number of shares in issue this year was 212.539. Constellation Brands's number of shares in issue last year was 193.849. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=4843/9157.4
=0.5288619

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=4597/8678
=0.52973035

Constellation Brands's gross margin of this year was 0.5288619. Constellation Brands's gross margin of last year was 0.52973035. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (May21)
=9157.4/26192.4
=0.3496205

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (May20)
=8678/26149.8
=0.33185722

Constellation Brands's asset turnover of this year was 0.3496205. Constellation Brands's asset turnover of last year was 0.33185722. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+0+0+0+0+1
=4

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Constellation Brands has an F-score of 4 indicating the company's financial situation is typical for a stable company.

Constellation Brands  (NYSE:STZ) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Constellation Brands Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of Constellation Brands's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Constellation Brands Business Description

Constellation Brands logo
Address
207 High Point Drive, Building 100, Victor, New York, NY, USA, 14564
Constellation Brands is the largest multi-category alcohol supplier in the U.S. The business is anchored by a portfolio of Mexican beer trademarks, including Corona and Modelo, for which it acquired exclusive and perpetual U.S. ownership from AB InBev. The latter had to divest these rights due to antitrust mandates as it consummated its 2013 acquisition of dominant Mexican brewer, Grupo Modelo. Constellation's wine/spirits business is in transition, and it has divested several lower-margin assets, including myriad wine brands and its Ballast Point craft beer brand. The firm imports most products after manufacturing them abroad, going to market through independent wholesalers. It owns 38.6% of Canopy Growth, a leading provider of medicinal and recreational cannabis products.
Executives
Carey Kaneenat Kristann officer: EVP & Chief HR Officer 207 HIGH POINT DRIVE BUILDING 100 VICTOR NY 14564
Richard Sands Master Trust 10 percent owner 207 HIGH POINT DRIVE BUILDING 100 VICTOR NY 14564
Res Master Llc 10 percent owner 207 HIGH POINT DRIVE BUILDING 100 VICTOR NY 14564
Robert Sands Master Trust 10 percent owner 207 HIGH POINT DRIVE BUILDING 100 VICTOR NY 14564
Rss Master Llc 10 percent owner 207 HIGH POINT DRIVE BUILDING 100 VICTOR NY 14564
Rct 2020 Investments Llc 10 percent owner 207 HIGH POINT DRIVE BUILDING 100 VICTOR NY 14564
Fink Nicholas I. director 510 LAKE COOK ROAD DEERFIELD IL 60015
Daniels Jennifer director C/O BARNES & NOBLE, INC. 122 FIFTH AVENUE NEW YORK NY 10011
Johnson Susan S director 303 PEACHTREE STREET, NE ATLANTA GA 30308
Hernandez Ernesto M director C/O CONSTELLATION BRANDS, INC. 207 HIGH POINT DRIVE, BLDG. 100 VICTOR NY 14564
Schmeling Judy director C/O HSN, INC. 1 HSN DRIVE ST.PETERSBURG FL 33729
Mccarthy Daniel J director FRONTIER COMMUNICATIONS 401 MERRITT 7 NORWALK CT 06851
Newlands William A director, officer: President & CEO C/O CONSTELLATION BRANDS, INC. 207 HIGH POINT DR., BUILDING 100 VICTOR NY 14564
Bourdeau James O. officer: EVP & Gen. Counsel C/O CONSTELLATION BRANDS, INC. 207 HIGH POINT DRIVE, BLDG. 100 VICTOR NY 14564
Sabia James A. Jr. officer: EVP & Chief Marketing Officer C/O CONSTELLATION BRANDS, INC. 207 HIGH POINT DRIVE, BLDG. 100 VICTOR NY 14564

Constellation Brands Headlines

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