BROWN-FORMAN CORP-CLASS A (BF.A) Stock Fundamental Analysis
NYSE:BF.A - New York Stock Exchange, Inc. - US1156371007 - Common Stock - Currency: USD
Taking everything into account, BF.A scores 6 out of 10 in our fundamental rating. BF.A was compared to 33 industry peers in the Beverages industry. BF.A scores excellent points on both the profitability and health parts. This is a solid base for a good stock. BF.A has a valuation in line with the averages, 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.
In the past 5 years BF.A always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of BF.A (10.75%) is better than 87.88% of its industry peers.
The Return On Equity of BF.A (21.76%) is better than 69.70% of its industry peers.
BF.A has a Return On Invested Capital of 13.32%. This is in the better half of the industry: BF.A outperforms 72.73% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BF.A is above the industry average of 11.23%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.75% | ||
| ROE | 21.76% | ||
| ROIC | 13.32% |
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 21.86%, 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.
BF.A has a better Operating Margin (30.79%) than 93.94% of its industry peers.
In the last couple of years the Operating Margin of BF.A has remained more or less at the same level.
BF.A has a Gross Margin of 58.94%. This is amongst the best in the industry. BF.A outperforms 84.85% of its industry peers.
BF.A's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.79% | ||
| PM (TTM) | 21.86% | ||
| GM | 58.94% |
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.
BF.A has about the same amout of shares outstanding than it did 1 year ago.
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 4.30 indicates that BF.A is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.30, BF.A is doing good in the industry, outperforming 75.76% of the companies in the same industry.
The Debt to FCF ratio of BF.A is 6.34, which is on the high side as it means it would take BF.A, 6.34 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 6.34, BF.A is doing good in the industry, outperforming 60.61% of the companies in the same industry.
BF.A has a Debt/Equity ratio of 0.68. This is a neutral value indicating BF.A is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.68, BF.A is in line with its industry, outperforming 48.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 6.34 | ||
| Altman-Z | 4.3 |
ROIC/WACC1.65
WACC8.06%
2.3 Liquidity
BF.A has a Current Ratio of 3.88. This indicates that BF.A is financially healthy and has no problem in meeting its short term obligations.
BF.A's Current ratio of 3.88 is amongst the best of the industry. BF.A outperforms 96.97% of its industry peers.
A Quick Ratio of 1.56 indicates that BF.A should not have too much problems paying its short term obligations.
BF.A has a Quick ratio of 1.56. This is in the better half of the industry: BF.A outperforms 75.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.88 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
BF.A shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.56%.
Measured over the past years, BF.A shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.35% on average per year.
BF.A shows a decrease in Revenue. In the last year, the revenue decreased by -4.86%.
BF.A shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.40% yearly.
EPS 1Y (TTM)-20.56%
EPS 3Y-0.77%
EPS 5Y-0.35%
EPS Q2Q%-44.64%
Revenue 1Y (TTM)-4.86%
Revenue growth 3Y0.35%
Revenue growth 5Y3.4%
Sales Q2Q%-7.26%
3.2 Future
The Earnings Per Share is expected to grow by 4.14% on average over the next years.
BF.A is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.30% yearly.
EPS Next Y-0.88%
EPS Next 2Y2.09%
EPS Next 3Y4.14%
EPS Next 5YN/A
Revenue Next Year-5.04%
Revenue Next 2Y-1.56%
Revenue Next 3Y0.3%
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 16.76, which indicates a correct valuation of BF.A.
Based on the Price/Earnings ratio, BF.A is valued a bit 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 27.41.
Based on the Price/Forward Earnings ratio of 16.91, the valuation of BF.A can be described as correct.
60.61% of the companies in the same industry are more expensive than BF.A, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of BF.A to the average of the S&P500 Index (35.19), we can say BF.A is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.76 | ||
| Fwd PE | 16.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BF.A is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
BF.A's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.26 | ||
| EV/EBITDA | 12.06 |
4.3 Compensation for Growth
The decent profitability rating of BF.A may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.09%
EPS Next 3Y4.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.11%, BF.A has a reasonable but not impressive dividend return.
BF.A's Dividend Yield is a higher than the industry average which is at 3.08.
Compared to an average S&P500 Dividend Yield of 2.35, BF.A pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
5.2 History
The dividend of BF.A has a limited annual growth rate of 5.49%.
BF.A has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of BF.A decreased in the last 3 years.
Dividend Growth(5Y)5.49%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
BF.A pays out 48.33% of its income as dividend. 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.
DP48.33%
EPS Next 2Y2.09%
EPS Next 3Y4.14%
NYSE:BF.A (7/14/2025, 12:15:45 PM)
28.495
-0.77 (-2.65%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners65.9%
Inst Owner Change0%
Ins Owners0.38%
Ins Owner ChangeN/A
Market Cap13.47B
Analysts55.38
Price Target33.93 (19.07%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
Yearly Dividend0.89
Dividend Growth(5Y)5.49%
DP48.33%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-9.89%
Min EPS beat(2)-11.43%
Max EPS beat(2)-8.35%
EPS beat(4)1
Avg EPS beat(4)-5.63%
Min EPS beat(4)-12.45%
Max EPS beat(4)9.71%
EPS beat(8)3
Avg EPS beat(8)-0.31%
EPS beat(12)4
Avg EPS beat(12)-4.99%
EPS beat(16)6
Avg EPS beat(16)-2.75%
Revenue beat(2)0
Avg Revenue beat(2)-7.44%
Min Revenue beat(2)-9.4%
Max Revenue beat(2)-5.48%
Revenue beat(4)0
Avg Revenue beat(4)-5.39%
Min Revenue beat(4)-9.4%
Max Revenue beat(4)-0.18%
Revenue beat(8)0
Avg Revenue beat(8)-5.65%
Revenue beat(12)3
Avg Revenue beat(12)-3.11%
Revenue beat(16)6
Avg Revenue beat(16)-1.01%
PT rev (1m)-15.7%
PT rev (3m)-16.39%
EPS NQ rev (1m)-0.96%
EPS NQ rev (3m)-9.17%
EPS NY rev (1m)-11.41%
EPS NY rev (3m)-11.1%
Revenue NQ rev (1m)-0.58%
Revenue NQ rev (3m)-4.96%
Revenue NY rev (1m)-6.64%
Revenue NY rev (3m)-7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.76 | ||
| Fwd PE | 16.91 | ||
| P/S | 3.39 | ||
| P/FCF | 31.26 | ||
| P/OCF | 22.53 | ||
| P/B | 3.37 | ||
| P/tB | 8.94 | ||
| EV/EBITDA | 12.06 |
EPS(TTM)1.7
EY5.97%
EPS(NY)1.68
Fwd EY5.91%
FCF(TTM)0.91
FCFY3.2%
OCF(TTM)1.26
OCFY4.44%
SpS8.41
BVpS8.45
TBVpS3.19
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.75% | ||
| ROE | 21.76% | ||
| ROCE | 17.47% | ||
| ROIC | 13.32% | ||
| ROICexc | 14.18% | ||
| ROICexgc | 22.21% | ||
| OM | 30.79% | ||
| PM (TTM) | 21.86% | ||
| GM | 58.94% | ||
| FCFM | 10.84% |
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%
ROICexcg growth 3Y-10.17%
ROICexcg 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-Score3
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 6.34 | ||
| Debt/EBITDA | 2.08 | ||
| Cap/Depr | 191.95% | ||
| Cap/Sales | 4.2% | ||
| Interest Coverage | 10.29 | ||
| Cash Conversion | 45.61% | ||
| Profit Quality | 49.6% | ||
| Current Ratio | 3.88 | ||
| Quick Ratio | 1.56 | ||
| Altman-Z | 4.3 |
F-Score3
WACC8.06%
ROIC/WACC1.65
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)-20.56%
EPS 3Y-0.77%
EPS 5Y-0.35%
EPS Q2Q%-44.64%
EPS Next Y-0.88%
EPS Next 2Y2.09%
EPS Next 3Y4.14%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.86%
Revenue growth 3Y0.35%
Revenue growth 5Y3.4%
Sales Q2Q%-7.26%
Revenue Next Year-5.04%
Revenue Next 2Y-1.56%
Revenue Next 3Y0.3%
Revenue Next 5YN/A
EBIT growth 1Y6.07%
EBIT growth 3Y0.61%
EBIT growth 5Y1.86%
EBIT Next Year15.38%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y2.86%
FCF growth 3Y-18.93%
FCF growth 5Y-6.56%
OCF growth 1Y-7.57%
OCF growth 3Y-13.87%
OCF growth 5Y-3.75%