Constellation Brands, Inc. — Earnings Quality Grade F
STZ · Consumer Defensive
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 26 days, change -4 days YoY
AR growth -11.6% vs revenue growth 2.5%
Revenue 2.5%, CFFO 13.4%. Cash follows revenue
Expense Quality
Inventory -30.8% vs COGS -1.0%. Normal
CapEx growth -4.3% vs revenue 2.5%. Normal
SG&A/Gross Profit = 36.7%. Normal
Gross margin 52.1%, change +1.7pp. Stable
Cash Flow Quality
CFFO/NI = -38.72. Below 1.0
FCF $1.9B, FCF/NI = -23.81
Accruals ratio = -14.9%. Low accruals
Cash $0.1B covers only 1% of debt $12.1B
Balance Sheet Health
Goodwill+Intangibles $7.7B = 111% of equity. Over 50%
Debt/EBITDA = 15.6x (>4x). Financial stress
Other assets 5.3% vs revenue 2.5%. Normal
Write-offs surged 258% YoY, = 598% of NI. Possible big bath
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -28% YoY. Normal
Manipulation Score
M-Score = -3.41 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10