STZ

Constellation Brands Inc

Consumer


Presented:02/09/2017
Price:$155.73
Cap:$35.63B
Current Price:$244.07
Cap:$44.31B

Presented

Date02/09/2017
Price$155.73
Market Cap$35.63B
Ent Value$43.00B
P/E Ratio26.15x
Book Value$35.26
Div Yield0.01%
Shares O/S228.81M
Ave Daily Vol2,151,727
Short IntN/A

Current

Price$244.07
Market Cap$44.31B
Constellation Brands, Inc. engages in the production, marketing and distribution of beverage alcohol products. It operates through the following segments: Beer, Wine and Spirits, and Corporate Operations and Other. The Beer segment includes Coreona Extra, Corona Light, Modelo Especial, Pacifico, Negra Modelo, Victoria, and Ballast Point brands. The Wine and Spirits segment produces and markets premium wine including table wine, sparkling wine, and dessert wine; and imports SVEDKA Vodka. The Corporate Operations and Other segment comprises of traditional corporate-related items including executive management, corporate development, corporate finance, human resource, internal audit, investor relations, legal, public relation, and information technology. The company was founded by Marvin Sands in 1945 and is headquartered in Victor, NY.

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

Highlights

The presenter is long shares of Constellation Brands (STZ), viewing it as a rare growth company in the consumer staples space. He calls it an “opportunistic” investment, given the weakness attributed to “noise around Trump issues,” and expects STZ shares to appreciate 50% over the next two years on the basis of high single digit revenue growth, a small amount of margin expansion, reduced capex, and increased dividend yield and share buybacks. With a low 20s multiple on $10 in calendar 2019 earnings, STZ shares could trade up to $220 - $230.

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Idea Discussion

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