BROWN-FORMAN CORP-CLASS A (BF.A) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BF.A - US1156371007 - Common Stock
28.32 USD
+0.01 (+0.04%)
28.32 USD
0 (0%)
BF.A gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 33 industry peers in the Beverages industry. Both the health and profitability get an excellent rating, making BF.A a very profitable company, without any liquidiy or solvency issues. BF.A has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
BF.A had positive earnings in the past year.
BF.A had a positive operating cash flow in the past year.
BF.A had positive earnings in each of the past 5 years.
Each year in the past 5 years BF.A had a positive operating cash flow.
1.2 Ratios
BF.A has a Return On Assets of 10.33%. This is amongst the best in the industry. BF.A outperforms 81.82% of its industry peers.
BF.A has a better Return On Equity (21.16%) than 72.73% of its industry peers.
With a decent Return On Invested Capital value of 13.57%, BF.A is doing good in the industry, outperforming 78.79% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BF.A is in line with the industry average of 11.60%.
The last Return On Invested Capital (13.57%) for BF.A is above the 3 year average (13.49%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.33% | ||
| ROE | 21.16% | ||
| ROIC | 13.57% |
ROA(3y)11.12%
ROA(5y)12.07%
ROE(3y)24.95%
ROE(5y)27.89%
ROIC(3y)13.49%
ROIC(5y)14.53%
1.3 Margins
With an excellent Profit Margin value of 21.38%, BF.A belongs to the best of the industry, outperforming 93.94% of the companies in the same industry.
In the last couple of years the Profit Margin of BF.A has declined.
Looking at the Operating Margin, with a value of 30.02%, BF.A belongs to the top of the industry, outperforming 93.94% of the companies in the same industry.
In the last couple of years the Operating Margin of BF.A has remained more or less at the same level.
With an excellent Gross Margin value of 59.02%, BF.A belongs to the best of the industry, outperforming 84.85% of the companies in the same industry.
In the last couple of years the Gross Margin of BF.A has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.02% | ||
| PM (TTM) | 21.38% | ||
| GM | 59.02% |
OM growth 3Y0.25%
OM growth 5Y-1.49%
PM growth 3Y0.86%
PM growth 5Y-2.33%
GM growth 3Y-1.02%
GM growth 5Y-1.4%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BF.A is creating some value.
Compared to 1 year ago, BF.A has about the same amount of shares outstanding.
BF.A has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, BF.A has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.08 indicates that BF.A is not in any danger for bankruptcy at the moment.
BF.A's Altman-Z score of 4.08 is fine compared to the rest of the industry. BF.A outperforms 69.70% of its industry peers.
BF.A has a debt to FCF ratio of 4.63. This is a neutral value as BF.A would need 4.63 years to pay back of all of its debts.
BF.A has a Debt to FCF ratio of 4.63. This is in the better half of the industry: BF.A outperforms 75.76% of its industry peers.
A Debt/Equity ratio of 0.59 indicates that BF.A is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.59, BF.A is in line with its industry, outperforming 51.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.63 | ||
| Altman-Z | 4.08 |
ROIC/WACC1.77
WACC7.68%
2.3 Liquidity
A Current Ratio of 2.79 indicates that BF.A has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.79, BF.A belongs to the best of the industry, outperforming 84.85% of the companies in the same industry.
A Quick Ratio of 1.06 indicates that BF.A should not have too much problems paying its short term obligations.
BF.A's Quick ratio of 1.06 is fine compared to the rest of the industry. BF.A outperforms 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.79 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
BF.A shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.29%.
The Earnings Per Share has been decreasing by -0.35% on average over the past years.
Looking at the last year, BF.A shows a decrease in Revenue. The Revenue has decreased by -3.50% in the last year.
Measured over the past years, BF.A shows a small growth in Revenue. The Revenue has been growing by 3.40% on average per year.
EPS 1Y (TTM)-20.29%
EPS 3Y-0.77%
EPS 5Y-0.35%
EPS Q2Q%-12.2%
Revenue 1Y (TTM)-3.5%
Revenue growth 3Y0.35%
Revenue growth 5Y3.4%
Sales Q2Q%-2.84%
3.2 Future
Based on estimates for the next years, BF.A will show a small growth in Earnings Per Share. The EPS will grow by 3.89% on average per year.
Based on estimates for the next years, BF.A will show a small growth in Revenue. The Revenue will grow by 0.23% on average per year.
EPS Next Y-1.13%
EPS Next 2Y1.9%
EPS Next 3Y3.89%
EPS Next 5YN/A
Revenue Next Year-5.18%
Revenue Next 2Y-1.62%
Revenue Next 3Y0.23%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.16, which indicates a rather expensive current valuation of BF.A.
BF.A's Price/Earnings ratio is a bit cheaper when compared to the industry. BF.A is cheaper than 63.64% of the companies in the same industry.
BF.A's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.15.
Based on the Price/Forward Earnings ratio of 16.04, the valuation of BF.A can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BF.A indicates a somewhat cheap valuation: BF.A is cheaper than 60.61% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of BF.A to the average of the S&P500 Index (36.12), we can say BF.A is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.16 | ||
| Fwd PE | 16.04 |
4.2 Price Multiples
BF.A's Enterprise Value to EBITDA is on the same level as the industry average.
BF.A's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.93 | ||
| EV/EBITDA | 12.06 |
4.3 Compensation for Growth
The excellent profitability rating of BF.A may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.9%
EPS Next 3Y3.89%
5. Dividend
5.1 Amount
BF.A has a Yearly Dividend Yield of 3.31%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.12, BF.A pays a bit more dividend than its industry peers.
BF.A's Dividend Yield is a higher than the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
5.2 History
The dividend of BF.A has a limited annual growth rate of 5.49%.
BF.A has been paying a dividend for at least 10 years, so it has a reliable track record.
BF.A has decreased its dividend in the last 3 years.
Dividend Growth(5Y)5.49%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
50.24% of the earnings are spent on dividend by BF.A. This is a bit on the high side, but may be sustainable.
BF.A's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP50.24%
EPS Next 2Y1.9%
EPS Next 3Y3.89%
28.32
+0.01 (+0.04%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners66.8%
Inst Owner Change1.64%
Ins Owners2.09%
Ins Owner ChangeN/A
Market Cap13.39B
Revenue(TTM)3.95B
Net Income(TTM)844.00M
Analysts56.8
Price Target31.99 (12.96%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
Yearly Dividend0.89
Dividend Growth(5Y)5.49%
DP50.24%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.25%
Min EPS beat(2)-11.43%
Max EPS beat(2)-3.08%
EPS beat(4)1
Avg EPS beat(4)-3.29%
Min EPS beat(4)-11.43%
Max EPS beat(4)9.71%
EPS beat(8)3
Avg EPS beat(8)0.74%
EPS beat(12)3
Avg EPS beat(12)-5.91%
EPS beat(16)6
Avg EPS beat(16)-2.93%
Revenue beat(2)0
Avg Revenue beat(2)-4.88%
Min Revenue beat(2)-9.4%
Max Revenue beat(2)-0.37%
Revenue beat(4)0
Avg Revenue beat(4)-3.86%
Min Revenue beat(4)-9.4%
Max Revenue beat(4)-0.18%
Revenue beat(8)0
Avg Revenue beat(8)-5.28%
Revenue beat(12)2
Avg Revenue beat(12)-3.24%
Revenue beat(16)5
Avg Revenue beat(16)-1.49%
PT rev (1m)0.15%
PT rev (3m)-0.68%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)-2.58%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.33%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)-1.7%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.16 | ||
| Fwd PE | 16.04 | ||
| P/S | 3.39 | ||
| P/FCF | 22.93 | ||
| P/OCF | 18.07 | ||
| P/B | 3.36 | ||
| P/tB | 9.5 | ||
| EV/EBITDA | 12.06 |
EPS(TTM)1.65
EY5.83%
EPS(NY)1.77
Fwd EY6.23%
FCF(TTM)1.24
FCFY4.36%
OCF(TTM)1.57
OCFY5.53%
SpS8.35
BVpS8.44
TBVpS2.98
PEG (NY)N/A
PEG (5Y)N/A
Graham Number17.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.33% | ||
| ROE | 21.16% | ||
| ROCE | 17.76% | ||
| ROIC | 13.57% | ||
| ROICexc | 14.55% | ||
| ROICexgc | 24.15% | ||
| OM | 30.02% | ||
| PM (TTM) | 21.38% | ||
| GM | 59.02% | ||
| FCFM | 14.79% |
ROA(3y)11.12%
ROA(5y)12.07%
ROE(3y)24.95%
ROE(5y)27.89%
ROIC(3y)13.49%
ROIC(5y)14.53%
ROICexc(3y)14.34%
ROICexc(5y)16.44%
ROICexgc(3y)23.06%
ROICexgc(5y)25.14%
ROCE(3y)17.75%
ROCE(5y)18.87%
ROICexgc growth 3Y-10.17%
ROICexgc growth 5Y-4.65%
ROICexc growth 3Y-12.83%
ROICexc growth 5Y-6.23%
OM growth 3Y0.25%
OM growth 5Y-1.49%
PM growth 3Y0.86%
PM growth 5Y-2.33%
GM growth 3Y-1.02%
GM growth 5Y-1.4%
F-Score4
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.63 | ||
| Debt/EBITDA | 1.85 | ||
| Cap/Depr | 180.46% | ||
| Cap/Sales | 3.98% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 58.25% | ||
| Profit Quality | 69.19% | ||
| Current Ratio | 2.79 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 4.08 |
F-Score4
WACC7.68%
ROIC/WACC1.77
Cap/Depr(3y)227.59%
Cap/Depr(5y)185.59%
Cap/Sales(3y)4.66%
Cap/Sales(5y)3.82%
Profit Quality(3y)49.63%
Profit Quality(5y)65.74%
High Growth Momentum
Growth
EPS 1Y (TTM)-20.29%
EPS 3Y-0.77%
EPS 5Y-0.35%
EPS Q2Q%-12.2%
EPS Next Y-1.13%
EPS Next 2Y1.9%
EPS Next 3Y3.89%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.5%
Revenue growth 3Y0.35%
Revenue growth 5Y3.4%
Sales Q2Q%-2.84%
Revenue Next Year-5.18%
Revenue Next 2Y-1.62%
Revenue Next 3Y0.23%
Revenue Next 5YN/A
EBIT growth 1Y5.8%
EBIT growth 3Y0.61%
EBIT growth 5Y1.86%
EBIT Next Year3.53%
EBIT Next 3Y4.23%
EBIT Next 5YN/A
FCF growth 1Y90.85%
FCF growth 3Y-18.93%
FCF growth 5Y-6.56%
OCF growth 1Y46.73%
OCF growth 3Y-13.87%
OCF growth 5Y-3.75%
BROWN-FORMAN CORP-CLASS A / BF.A FAQ
What is the fundamental rating for BF.A stock?
ChartMill assigns a fundamental rating of 6 / 10 to BF.A.
What is the valuation status of BROWN-FORMAN CORP-CLASS A (BF.A) stock?
ChartMill assigns a valuation rating of 4 / 10 to BROWN-FORMAN CORP-CLASS A (BF.A). This can be considered as Fairly Valued.
Can you provide the profitability details for BROWN-FORMAN CORP-CLASS A?
BROWN-FORMAN CORP-CLASS A (BF.A) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for BF.A stock?
The Price/Earnings (PE) ratio for BROWN-FORMAN CORP-CLASS A (BF.A) is 17.16 and the Price/Book (PB) ratio is 3.36.
How sustainable is the dividend of BROWN-FORMAN CORP-CLASS A (BF.A) stock?
The dividend rating of BROWN-FORMAN CORP-CLASS A (BF.A) is 5 / 10 and the dividend payout ratio is 50.24%.