BROWN-FORMAN CORP-CLASS A (BF.A) Stock Fundamental Analysis
USA - NYSE:BF.A - US1156371007 - Common Stock
27.6 USD
-0.13 (-0.47%)
27.6 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to BF.A. BF.A was compared to 32 industry peers in the Beverages industry. BF.A gets an excellent profitability rating and is at the same time showing great financial health properties. BF.A is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year BF.A was profitable.
BF.A had a positive operating cash flow in the past year.
In the past 5 years BF.A has always been profitable.
Each year in the past 5 years BF.A had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.33%, BF.A belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
BF.A has a better Return On Equity (21.16%) than 71.88% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.57%, BF.A is in the better half of the industry, outperforming 78.13% of the companies in the same industry.
BF.A had an Average Return On Invested Capital over the past 3 years of 13.49%. This is above the industry average of 10.95%.
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 96.88% of the companies in the same industry.
In the last couple of years the Profit Margin of BF.A has declined.
With an excellent Operating Margin value of 30.02%, BF.A belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
BF.A's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 59.02%, BF.A belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
BF.A's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BF.A is still creating some value.
The number of shares outstanding for BF.A remains at a similar level compared to 1 year ago.
Compared to 5 years ago, BF.A has less shares outstanding
Compared to 1 year ago, BF.A has an improved debt to assets ratio.
2.2 Solvency
BF.A has an Altman-Z score of 4.04. This indicates that BF.A is financially healthy and has little risk of bankruptcy at the moment.
BF.A's Altman-Z score of 4.04 is fine compared to the rest of the industry. BF.A outperforms 68.75% 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.
With a decent Debt to FCF ratio value of 4.63, BF.A is doing good in the industry, outperforming 78.13% of the companies in the same industry.
BF.A has a Debt/Equity ratio of 0.59. This is a neutral value indicating BF.A is somewhat dependend on debt financing.
BF.A has a Debt to Equity ratio (0.59) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.63 | ||
| Altman-Z | 4.04 |
ROIC/WACC1.77
WACC7.67%
2.3 Liquidity
BF.A has a Current Ratio of 2.79. This indicates that BF.A is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.79, BF.A belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
BF.A has a Quick Ratio of 1.06. This is a normal value and indicates that BF.A is financially healthy and should not expect problems in meeting its short term obligations.
BF.A has a Quick ratio of 1.06. This is in the better half of the industry: BF.A outperforms 71.88% 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%.
BF.A shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.35% yearly.
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 3.82% on average per year.
The Revenue is expected to grow by 0.23% on average over the next years.
EPS Next Y-1.1%
EPS Next 2Y1.82%
EPS Next 3Y3.82%
EPS Next 5YN/A
Revenue Next Year-5.13%
Revenue Next 2Y-1.64%
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 16.73, which indicates a correct valuation of BF.A.
Based on the Price/Earnings ratio, BF.A is valued a bit cheaper than 68.75% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.91, BF.A is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 15.66, 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 65.63% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.92. BF.A is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.73 | ||
| Fwd PE | 15.66 |
4.2 Price Multiples
BF.A's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BF.A is cheaper than 65.63% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BF.A indicates a somewhat cheap valuation: BF.A is cheaper than 71.88% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.34 | ||
| EV/EBITDA | 11.84 |
4.3 Compensation for Growth
BF.A has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.82%
EPS Next 3Y3.82%
5. Dividend
5.1 Amount
BF.A has a Yearly Dividend Yield of 3.22%. Purely for dividend investing, there may be better candidates out there.
BF.A's Dividend Yield is a higher than the industry average which is at 2.98.
Compared to an average S&P500 Dividend Yield of 2.34, BF.A pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
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 2Y1.82%
EPS Next 3Y3.82%
27.6
-0.13 (-0.47%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners66.8%
Inst Owner Change0.68%
Ins Owners2.09%
Ins Owner ChangeN/A
Market Cap13.05B
Revenue(TTM)3.95B
Net Income(TTM)844.00M
Analysts56.92
Price Target31.95 (15.76%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
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)-3.89%
PT rev (3m)-1.69%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)-3.32%
EPS NY rev (1m)-0.3%
EPS NY rev (3m)-0.22%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)-1.7%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.73 | ||
| Fwd PE | 15.66 | ||
| P/S | 3.3 | ||
| P/FCF | 22.34 | ||
| P/OCF | 17.61 | ||
| P/B | 3.27 | ||
| P/tB | 9.25 | ||
| EV/EBITDA | 11.84 |
EPS(TTM)1.65
EY5.98%
EPS(NY)1.76
Fwd EY6.39%
FCF(TTM)1.24
FCFY4.48%
OCF(TTM)1.57
OCFY5.68%
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 | 4.04 |
F-Score4
WACC7.67%
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-1.1%
EPS Next 2Y1.82%
EPS Next 3Y3.82%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.5%
Revenue growth 3Y0.35%
Revenue growth 5Y3.4%
Sales Q2Q%-2.84%
Revenue Next Year-5.13%
Revenue Next 2Y-1.64%
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 5 / 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 16.73 and the Price/Book (PB) ratio is 3.27.
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%.