STZ (Update)

Constellation Brands Inc.

Consumer


Presented:01/07/2015
Price:$103.05
Cap:$19.90B
Current Price:$244.07
Cap:$44.31B

Presented

Date01/07/2015
Price$103.05
Market Cap$19.90B
Ent Value$26.97B
P/E Ratio27.89x
Book Value$28.46
Div YieldN/A
Shares O/S192.87M
Ave Daily Vol1
Short Int1.44%

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.

Please note, this is an update to Long – Constellation Brands (STZ), which was originally presented on 4/16/2014 ($79.75).

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

Highlights

The presenter briefly recounted how Constellation Brands (STZ) came to acquire the license to distribute Corona and other top Mexican beers in the US, and said, “The AB InBev acquisition of Modelo and subsequent divestiture was a gift for STZ, which got to pick off one of the fastest growing beer assets in the US for under 10x EBITDA.” He remains long the stock, and noted that the Street seems to have nearly caught up and there have been a fair amount of earnings upgrades driven principally by top line growth and better margins.

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Idea Discussion

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