ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Constellation Brands's annualized return on invested capital (ROIC %) for the quarter that ended in Feb. 2026 was 6.68%.
As of today (2026-06-25), Constellation Brands's WACC % is 5.02%. Constellation Brands's ROIC % is 10.56% (calculated using TTM income statement data).
Constellation Brands generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Constellation Brands's WACC % is 5.02%. Constellation Brands's ROIC % is 10.56% (calculated using TTM income statement data).
Constellation Brands generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
* 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 ROIC %, along with its competitors' market caps and ROIC % 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 ROIC % vs Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Constellation Brands's ROIC % distribution charts can be found below:
* The bar in red indicates where Constellation Brands's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Feb. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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 ROIC % of 6.68% as of Feb. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Constellation Brands and its competitors.
Is Constellation Brands' ROIC % too high?
Constellation Brands' current ROIC % is 6.68%. The Beverages - Alcoholic industry median ROIC % is 4.70. Constellation Brands' value of 6.68% is 42.1% above this industry median. Overall, Constellation Brands has a GF Score™ of 69/100, reflecting its overall financial health beyond just this single metric.
How does Constellation Brands' ROIC % compare to TAP and SAM?
Constellation Brands' ROIC % of 6.68% can be compared against companies in the Beverages - Alcoholic industry. The industry median ROIC % is 4.70. Constellation Brands' value of 6.68% is 42.1% 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 ROIC % for a Beverages - Alcoholic company?
The median ROIC % among Beverages - Alcoholic companies is 4.70, based on 211 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Constellation Brands's current ROIC % of 6.68% is 42.1% 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 ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Constellation Brands and its competitors. For the Beverages - Alcoholic industry, the median ROIC % is 4.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Constellation Brands's current ROIC % is 6.68%. 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 ROIC % of 6.68%. 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 ROIC % is 6.68% and 42.1% above the Beverages - Alcoholic industry median of 4.70. 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 ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Constellation Brands (LTS:0REP), the current ROIC % is 6.68% 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 37.1% below its estimated GF Value™ of CHF312.22.
Key valuation signals for LTS:0REP:
ROIC %: 6.68%
GF Value™: CHF312.22 vs. price of CHF196.36 (37.1% below fair value)
Industry Position: 42.1% above the Beverages - Alcoholic median
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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