Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Constellation Brands's annualized net income for the quarter that ended in Feb. 2026 was CHF624 Mil. Constellation Brands's average shareholder tangible equity for the quarter that ended in Feb. 2026 was CHF117 Mil. Therefore, Constellation Brands's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2026 was 533.68%.
The historical rank and industry rank for Constellation Brands's Return-on-Tangible-Equity or its related term are showing as below:
LTS:0REP'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -1.93 Med: -0.81 Max: 84.5
Current: Negative Tangible Equity
During the past 13 years, Constellation Brands's highest Return-on-Tangible-Equity was 84.50%. The lowest was -1.93%. And the median was -0.81%.
LTS:0REP's Return-on-Tangible-Equity is ranked better than 99.5% of 201
companies
in the Beverages - Alcoholic industry
Industry Median: 8.55
vs LTS:0REP: Negative Tangible Equity
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Constellation Brands Return-on-Tangible-Equity Related Terms
Constellation Brands Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Constellation Brands's Return-on-Tangible-Equity 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, BUD: Return-on-Tangible-Equity Comparison
For the Beverages - Brewers subindustry, Constellation Brands's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Constellation Brands's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Constellation Brands's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Feb. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 533.68% mean?
Constellation Brands (LTS:0REP) has a Return-on-Tangible-Equity of 533.68% as of Feb. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Constellation Brands and its competitors. According to the industry distribution chart, Constellation Brands ranks #1 out of 201 companies in the Beverages - Alcoholic industry, placing it in the top 0.5%.
Is Constellation Brands' Return-on-Tangible-Equity too high?
Constellation Brands' current Return-on-Tangible-Equity is 533.68%. The Beverages - Alcoholic industry median Return-on-Tangible-Equity is 8.55. Constellation Brands' value of 533.68% is 6141.9% above this industry median. Based on the distribution chart, Constellation Brands ranks #1 out of 201 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 63/100, reflecting its overall financial health beyond just this single metric.
How does Constellation Brands' Return-on-Tangible-Equity compare to TAP and SAM?
According to the Beverages - Alcoholic industry distribution chart, Constellation Brands ranks #1 out of 201 companies for Return-on-Tangible-Equity. This places Constellation Brands in the top 1% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.55. Constellation Brands' value of 533.68% is 6141.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Beverages - Alcoholic company?
The median Return-on-Tangible-Equity among Beverages - Alcoholic companies is 8.55, based on 201 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Constellation Brands's current Return-on-Tangible-Equity of 533.68% is 6141.9% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Constellation Brands and its competitors. For the Beverages - Alcoholic industry, the median Return-on-Tangible-Equity is 8.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Constellation Brands's current Return-on-Tangible-Equity is 533.68%. 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 Return-on-Tangible-Equity of 533.68%. The stock's GF Value™ is CHF319.73, compared to a current price of CHF196.36 — trading 38.6% below its estimated fair value. The current Return-on-Tangible-Equity is 533.68% and 6141.9% above the Beverages - Alcoholic industry median of 8.55. Constellation Brands' overall GF Score™ is 63/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Constellation Brands (LTS:0REP), the current Return-on-Tangible-Equity is 533.68% 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 38.6% below its estimated GF Value™ of CHF319.73.
Key valuation signals for LTS:0REP:
Return-on-Tangible-Equity: 533.68%
GF Value™: CHF319.73 vs. price of CHF196.36 (38.6% below fair value)
Industry Position: 6141.9% above the Beverages - Alcoholic median (#1 of 201)
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.
63GF Score
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