Constellation BrandsLTS:0REP 69 Interest Coverage is 6.22 as of Feb. 2026, which is 12% below its 10-year median of 7.03. 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 159 Beverages - Alcoholic companies, Constellation Brands ranks worse than 54.72% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Constellation Brands's
Operating Income
for the
three
months ended in Feb. 2026 was CHF411 Mil. Constellation Brands's Interest Expense for the
three
months ended in Feb. 2026 was CHF-66 Mil.
Constellation Brands's interest coverage for the quarter that ended in Feb. 2026 was 6.22.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Constellation Brands's Interest Coverage or its related term are showing as below:
LTS:0REP'
s Interest Coverage Range Over the Past 10 Years
Min: 5.9 Med: 7.03 Max: 8.41
Current: 7.92
LTS:0REP's Interest Coverage is ranked worse than 54.72% of 159
companies
in the Beverages - Alcoholic industry
Industry Median: 8.63
vs LTS:0REP: 7.92
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Constellation Brands Interest Coverage Related Terms
Constellation Brands Interest Coverage Historical Data
* Premium members only.
The historical data trend for Constellation Brands's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
LTS:0REP vs TAP, SAM: Interest Coverage Comparison
For the Beverages - Brewers subindustry, Constellation Brands's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Constellation Brands's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Constellation Brands's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Constellation Brands (LTS:0REP) has a Interest Coverage of 6.22 as of Feb. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Constellation Brands and its competitors. This is 12% below median its historical median of 7.03. Over the past decade, Constellation Brands' Interest Coverage has ranged from 5.90 to 8.41. According to the industry distribution chart, Constellation Brands ranks #87 out of 159 companies in the Beverages - Alcoholic industry, placing it in the top 54.7%.
Is Constellation Brands' Interest Coverage too high?
Constellation Brands' current Interest Coverage of 6.22 is 12% below median its 10-year median of 7.03. Over the past 10 years, this metric has ranged from a low of 5.90 to a high of 8.41. The Beverages - Alcoholic industry median Interest Coverage is 8.63. Constellation Brands' value of 6.22 is 27.9% below this industry median. Based on the distribution chart, Constellation Brands ranks #87 out of 159 companies in the Beverages - Alcoholic industry, which is below 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' Interest Coverage compare to TAP and SAM?
According to the Beverages - Alcoholic industry distribution chart, Constellation Brands ranks #87 out of 159 companies for Interest Coverage. This places Constellation Brands in the lower half of its industry. The industry median Interest Coverage is 8.63. Constellation Brands' value of 6.22 is 27.9% below this benchmark. Historically, Constellation Brands' own Interest Coverage has ranged from 5.90 to 8.41 over the past decade. While the company's 10-year median is 7.03 vs. the industry median of 8.63, Constellation Brands has consistently been below 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 Interest Coverage for a Beverages - Alcoholic company?
The median Interest Coverage among Beverages - Alcoholic companies is 8.63, based on 159 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Constellation Brands's current Interest Coverage of 6.22 is 27.9% below 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Constellation Brands and its competitors. For the Beverages - Alcoholic industry, the median Interest Coverage is 8.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Constellation Brands's current Interest Coverage is 6.22, which is 12% below median its own 10-year median of 7.03. 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 Interest Coverage of 6.22. 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 Interest Coverage is 6.22, which is 12% below median its 10-year median of 7.03 and 27.9% below the Beverages - Alcoholic industry median of 8.63. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Constellation Brands (LTS:0REP), the current Interest Coverage is 6.22 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:
Interest Coverage: 6.22 (12% below median its 10-year median of 7.03)
GF Value™: CHF312.22 vs. price of CHF196.36 (37.1% below fair value)
Industry Position: 27.9% below the Beverages - Alcoholic median (#87 of 159)
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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