STZ

Constellation Brands Inc.

Consumer


Presented:11/05/2014
Price:$92.60
Cap:$17.90B
Current Price:$244.07
Cap:$44.31B

Presented

Date11/05/2014
Price$92.60
Market Cap$17.90B
Ent Value$24.96B
P/E Ratio29.1x
Book Value$28.46
Div YieldN/A
Shares O/S194.41M
Ave Daily Vol1,140,000
Short Int1.42%

Current

Price$244.07
Market Cap$44.31B
Constellation Brands, Inc., together with its subsidiaries, produces, imports, and markets beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. The company sells wine across various categories, including table wine, sparkling wine, and dessert wine. Its wine brands include Arbor Mist, Black Box, Blackstone, Clos du Bois, Estancia, Franciscan Estate, Inniskillin, Kim Crawford, Mark West, Mount Veeder, Nobilo, Ravenswood, Rex Goliath, Robert Mondavi, Ruffino, Simi, Toasted Head, and Wild Horse; and Spirits Brands comprise Black Velvet Canadian Whisky and Svedka Vodka. Constellation Brands, Inc. primarily offers its products to wholesale distributors, retailers, on-premise locations, and government alcohol beverage control agencies. The company was founded in 1945 and is headquartered in Victor, New York.

Publicly traded companies mentioned herein: Constellation Brands Inc (STZ), Anheuser-Busch InBev SA/NV (BUD)

Highlights

Constellation Brands’ (STZ) spirits and wine segments are stable and showing slight growth, but on the beer side of the business there is reason to be excited. Mexican beer is a hot commodity right now, and price and volume trends for Corona, Tecate, Dos Equis, Pacifico and others are positive. The presenter is long shares of STZ, and sees a couple of key strategic initiatives/ investments driving costs out of STZ’s chain. Street expectations appear to be meaningfully below the presenter’s, and if his assumptions prove to be accurate shares could trade up to $115 over the next 12-24 months (from the low $90s today).

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Idea Discussion

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