Is STZ a high-quality business?

AlphaMadera's AlphaQuality grade scores Constellation Brands, Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how STZ compares to a Buffett-style quality bar.

What is Constellation Brands, Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to STZ based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes STZ a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

STZ - Constellation Brands, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $175.70 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

F 30.0 / 100 pillar composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — no stock price or analyst input.

⚠ 3 of the last 5 fiscal years showed negative net income — AlphaQuality will not grade above F for persistent unprofitability in a stable earnings power business.

Grade overrides the 30.0 pillar composite because hard gates always win. Use the pillar breakdown below to see where the underlying numbers sit.

Profitability

Weight: 20%

D+ 43.7

5yr Avg ROIC 5.6% 38/100
Operating Margin Trend +0.06 pp/yr 57/100

Capital Efficiency

Weight: 15%

B- 63.0

5yr Avg ROE 8.0% 50/100
5yr Share-Count CAGR -2.0% 88/100

Growth Quality

Weight: 15%

D 38.0

5yr Revenue CAGR 0.9% 27/100
5yr EPS CAGR 1.2% 28/100
Revenue-Growth Years (5) 4/5 80/100

Cash Generation

Weight: 15%

A 91.5

5yr FCF Margin 18.2% 87/100
5yr FCF/NI Conversion 0.97x 97/100

Balance Sheet

Weight: 20%

C+ 60.6

Net Debt / EBITDA 3.38x 42/100
Interest Coverage (EBIT/Int) 8.12x 77/100
Altman Z-Score 2.86 73/100

Stability

Weight: 15%

C+ 59.0

EPS Volatility (σ/μ) 0.41 42/100
Piotroski F-Score 6 67/100
Negative-Revenue Years (5) 1/5 80/100

5 of 5 gurus held; 2 added; 3 trimmed.

Holders: 5
Avg Δ position: -17.4%
New buys: 0
Full exits: 0

Buffett decreased -95%
Wood increased +80%
Cooperman decreased -77%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (20%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (15%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (20%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (15%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.