Constellation BrandsLTS:0REP 69 Operating Margin % is 27.66% as of Feb. 2026, which is 10% below its 10-year median of 30.83. 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 210 Beverages - Alcoholic companies, Constellation Brands ranks better than 96.19% on this metric.
The historical rank and industry rank for Constellation Brands's Operating Margin % or its related term are showing as below:
LTS:0REP'
s Operating Margin % Range Over the Past 10 Years
Min: 29.05 Med: 30.83 Max: 33.98
Current: 31.33
LTS:0REP's Operating Margin % is ranked better than 96.19% of 210
companies
in the Beverages - Alcoholic industry
Industry Median: 7.915
vs LTS:0REP: 31.33
Constellation Brands's 5-Year Average Operating Margin % Growth Rate was -0.60% per year.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Constellation Brands Operating Margin % Related Terms
Constellation Brands Operating Margin % Historical Data
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The historical data trend for Constellation Brands's Operating 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.
LTS:0REP vs TAP, SAM: Operating Margin % Comparison
For the Beverages - Brewers subindustry, Constellation Brands's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Constellation Brands's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Constellation Brands's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Constellation Brands's Operating Margin % for the fiscal year that ended in Feb. 2026 is calculated as
* 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 Operating Margin % of 27.66% as of Feb. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Constellation Brands and its competitors. This is 10% below median its historical median of 30.83. Over the past decade, Constellation Brands' Operating Margin % has ranged from 29.05 to 33.98. According to the industry distribution chart, Constellation Brands ranks #8 out of 210 companies in the Beverages - Alcoholic industry, placing it in the top 3.8%.
Is Constellation Brands' Operating Margin % too high?
Constellation Brands' current Operating Margin % of 27.66% is 10% below median its 10-year median of 30.83. Over the past 10 years, this metric has ranged from a low of 29.05 to a high of 33.98. The Beverages - Alcoholic industry median Operating Margin % is 7.92. Constellation Brands' value of 27.66% is 249.5% above this industry median. Based on the distribution chart, Constellation Brands ranks #8 out of 210 companies in the Beverages - Alcoholic industry, which is in the top quartile — a strong position relative to peers. Overall, Constellation Brands has a GF Score™ of 69/100, reflecting its overall financial health beyond just this single metric.
How does Constellation Brands' Operating Margin % compare to TAP and SAM?
According to the Beverages - Alcoholic industry distribution chart, Constellation Brands ranks #8 out of 210 companies for Operating Margin %. This places Constellation Brands in the top 4% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 7.92. Constellation Brands' value of 27.66% is 249.5% above this benchmark. Historically, Constellation Brands' own Operating Margin % has ranged from 29.05 to 33.98 over the past decade. While the company's 10-year median is 30.83 vs. the industry median of 7.92, 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 Operating Margin % for a Beverages - Alcoholic company?
The median Operating Margin % among Beverages - Alcoholic companies is 7.92, based on 210 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Constellation Brands's current Operating Margin % of 27.66% is 249.5% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Constellation Brands and its competitors. For the Beverages - Alcoholic industry, the median Operating Margin % is 7.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Constellation Brands's current Operating Margin % is 27.66%, which is 10% below median its own 10-year median of 30.83. 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 Operating Margin % of 27.66%. 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 Operating Margin % is 27.66%, which is 10% below median its 10-year median of 30.83 and 249.5% above the Beverages - Alcoholic industry median of 7.92. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Constellation Brands (LTS:0REP), the current Operating Margin % is 27.66% 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:
Operating Margin %: 27.66% (10% below median its 10-year median of 30.83)
GF Value™: CHF312.22 vs. price of CHF196.36 (37.1% below fair value)
Industry Position: 249.5% above the Beverages - Alcoholic median (#8 of 210)
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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