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Constellation Brands Gross Margin %

: 53.11% (As of May. 2022)
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Gross Margin % is calculated as gross profit divided by its revenue. Constellation Brands's Gross Profit for the three months ended in May. 2022 was $1,255 Mil. Constellation Brands's Revenue for the three months ended in May. 2022 was $2,363 Mil. Therefore, Constellation Brands's Gross Margin % for the quarter that ended in May. 2022 was 53.11%.


The historical rank and industry rank for Constellation Brands's Gross Margin % or its related term are showing as below:

STZ' s Gross Margin % Range Over the Past 10 Years
Min: 39.64   Med: 48.92   Max: 53.37
Current: 52.89


During the past 13 years, the highest Gross Margin % of Constellation Brands was 53.37%. The lowest was 39.64%. And the median was 48.92%.

STZ's Gross Margin % is ranked better than
76.33% of 207 companies
in the Beverages - Alcoholic industry
Industry Median: 40.69 vs STZ: 52.89

Constellation Brands had a gross margin of 53.11% for the quarter that ended in May. 2022 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Constellation Brands was 1.70% per year.


Constellation Brands Gross Margin % Historical Data

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.

* Premium members only.

Constellation Brands Annual Data
Trend Feb13 Feb14 Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 50.29 50.27 49.76 51.84 53.37

Constellation Brands Quarterly Data
Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22
Gross Margin % 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 55.23 51.86 52.82 53.87 53.11

Competitive Comparison

For the Beverages - Wineries & Distilleries 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 % Distribution

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.



Constellation Brands Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Constellation Brands's Gross Margin for the fiscal year that ended in Feb. 2022 is calculated as

Gross Margin % (A: Feb. 2022 )=Gross Profit (A: Feb. 2022 ) / Revenue (A: Feb. 2022 )
=4707.3 / 8820.7
=(Revenue - Cost of Goods Sold) / Revenue
=(8820.7 - 4113.4) / 8820.7
=53.37 %

Constellation Brands's Gross Margin for the quarter that ended in May. 2022 is calculated as


Gross Margin % (Q: May. 2022 )=Gross Profit (Q: May. 2022 ) / Revenue (Q: May. 2022 )
=1255 / 2363.2
=(Revenue - Cost of Goods Sold) / Revenue
=(2363.2 - 1108.2) / 2363.2
=53.11 %

* 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  (NYSE:STZ) Gross Margin % Explanation

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 53.11% for the quarter that ended in May. 2022 => 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

Thank you for viewing the detailed overview of Constellation Brands's Gross Margin % 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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