Constellation BrandsLTS:0REP 69 Gross Margin % is 49.56% as of Feb. 2026, which is 2% below its 10-year median of 50.41. GuruFocus rates LTS:0REP with a GF Score™ of 69/100 and a GF Value™ of CHF312.22. The stock has 3 warning signs investors should review. Among 205 Beverages - Alcoholic companies, Constellation Brands ranks better than 70.73% on this metric.
The historical rank and industry rank for Constellation Brands's Gross Margin % or its related term are showing as below:
LTS:0REP'
s Gross Margin % Range Over the Past 10 Years
Min: 48.07 Med: 50.41 Max: 53.37
Current: 51.55
During the past 13 years, the highestGross Margin % of Constellation Brands was 53.37%. The lowest was 48.07%. And the median was 50.41%.
LTS:0REP's Gross Margin % is ranked better than 70.73% of 205
companies
in the Beverages - Alcoholic industry
Industry Median: 42.29
vs LTS:0REP: 51.55
Constellation Brands had a gross margin of 49.56% for the quarter that ended in Feb. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Constellation Brands was -0.30% per year.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Constellation Brands had a gross margin of 49.56% for the quarter that ended in Feb. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Constellation Brands Gross Margin % Related Terms
Constellation Brands Gross Margin % Historical Data
* Premium members only.
The historical data trend for Constellation Brands's Gross Margin % 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.
For the Beverages - Brewers subindustry, Constellation Brands's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Constellation Brands's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Constellation Brands's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Constellation Brands (LTS:0REP) has a Gross Margin % of 49.56% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Constellation Brands and its competitors. This is near median its historical median of 50.41. Over the past decade, Constellation Brands' Gross Margin % has ranged from 48.07 to 53.37. According to the industry distribution chart, Constellation Brands ranks #60 out of 205 companies in the Beverages - Alcoholic industry, placing it in the top 29.3%.
Is Constellation Brands' Gross Margin % too high?
Constellation Brands' current Gross Margin % of 49.56% is near median its 10-year median of 50.41. Over the past 10 years, this metric has ranged from a low of 48.07 to a high of 53.37. The Beverages - Alcoholic industry median Gross Margin % is 42.29. Constellation Brands' value of 49.56% is 17.2% above this industry median. Based on the distribution chart, Constellation Brands ranks #60 out of 205 companies in the Beverages - Alcoholic industry, which is above the industry midpoint. Overall, Constellation Brands has a GF Score™ of 69/100, reflecting its overall financial health beyond just this single metric.
How does Constellation Brands' Gross Margin % compare to TAP and SAM?
According to the Beverages - Alcoholic industry distribution chart, Constellation Brands ranks #60 out of 205 companies for Gross Margin %. This puts Constellation Brands in the upper half of its industry. The industry median Gross Margin % is 42.29. Constellation Brands' value of 49.56% is 17.2% above this benchmark. Historically, Constellation Brands' own Gross Margin % has ranged from 48.07 to 53.37 over the past decade. While the company's 10-year median is 50.41 vs. the industry median of 42.29, Constellation Brands has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Beverages - Alcoholic company?
The median Gross Margin % among Beverages - Alcoholic companies is 42.29, based on 205 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Constellation Brands's current Gross Margin % of 49.56% is 17.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Constellation Brands and its competitors. For the Beverages - Alcoholic industry, the median Gross Margin % is 42.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Constellation Brands's current Gross Margin % is 49.56%, which is near median its own 10-year median of 50.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Constellation Brands stock overvalued right now?
Constellation Brands (LTS:0REP) has a current Gross Margin % of 49.56%. The stock's GF Value™ is CHF312.22, compared to a current price of CHF196.36 — trading 37.1% below its estimated fair value. The current Gross Margin % is 49.56%, which is near median its 10-year median of 50.41 and 17.2% above the Beverages - Alcoholic industry median of 42.29. Constellation Brands' overall GF Score™ is 69/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Constellation Brands (LTS:0REP), the current Gross Margin % is 49.56% as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Constellation Brands (LTS:0REP) Overvalued in 2026?
Based on GuruFocus' analysis, Constellation Brands stock appears to be undervalued.
The current stock price of CHF196.36 is trading 37.1% below its estimated GF Value™ of CHF312.22.
Key valuation signals for LTS:0REP:
Gross Margin %: 49.56% (near median its 10-year median of 50.41)
GF Value™: CHF312.22 vs. price of CHF196.36 (37.1% below fair value)
Industry Position: 17.2% above the Beverages - Alcoholic median (#60 of 205)
No single metric tells the full story. See the LTS:0REP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Constellation Brands is the largest provider of alcoholic beverages across the beer, wine, and spirits categories in the US, generating more than 90% of revenue from Mexican beer imports under top-selling brands such as Modelo and Corona. The rest of the business includes some remaining wine and spirits brands, categories where the company has pruned assets in recent years. With its exclusive rights tied to the Mexican beer brands effective only in the US, the firm has limited revenue exposure to international markets. Constellation owns a 10% stake in Canopy Growth, a medicinal and recreational cannabis producer in Canada, and has a 50/50 joint venture with glass manufacturer Owens-Illinois in Mexico.
69GF Score
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