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Is this Large Market Cap Stock target price reasonable for Constellation Brands Inc. (NYSE:STZ)?

The company in question is, Constellation Brands Inc. (NYSE:STZ) currently with a stock price of 167.13 (-1.37% today). The market cap for Constellation Brands Inc. is 33578.09, and is in the sector Consumer Goods, and Beverages – Wineries & Distillers industry. The target price for Constellation Brands Inc. is 180.25. Currently Constellation Brands Inc. is trading with a P/E of 31.05, and a forward P/E of 23.11. Average volume for Constellation Brands Inc. is 1021.91 and so far today it is 1516500.

Performance in the last year for Constellation Brands Inc. has been 24.89%. For EPS growth, Constellation Brands Inc. has seen a growth of 24.30%, and is looking to grow in the next year to 12.00%. More long term stats show that EPS growth has been 14.50% over the last five years and could be 16.97% for the next five years. Constellation Brands Inc. has seen sales growth quarter over quarter at 16.60%, with EPS growth quarter over quarter at 30.00%. The 20-day simple moving average is 0.77%, with the 200-day simple moving average coming to 7.42%.

Since the IPO date for Constellation Brands Inc. on the 3/17/1992, Constellation Brands Inc. has seen performance year to date to be 18.17%. With Constellation Brands Inc. trading at 167.13, the dividend yield is 0.96%, and the EPS is 5.38.

So could Constellation Brands Inc., be undervalued? Well as said before P/E is 31.05. The PEG is 1.83, P/S is 4.74 and the P/B is at 4.67. The P/cash is 189.39, with P/free cash flow at 81.94.

Constellation Brands Inc. ability to deal with debt shows that the current ratio is 1.4, and the quick ratio is 0.6. This is with long term debt/equity at 0.98, and total debt/equity at 1.12.

In terms of margins, Constellation Brands Inc. has a gross margin of 47.00%, an operating margin of 28.60% and a profit margin of 16.80%.Payout ratio for Constellation Brands Inc. is 23.80%. Return on assets come to 7.00% with return on investment coming to 9.00%.

Insider ownership for Constellation Brands Inc., is at 0.70% and institutional ownership comes to 86.70%. Outstanding shares are at 200.91. While shares float is 165.38. The float short is currently 2.17%, and short ratio is 3.51.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Mark Hines

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