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 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 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.
In the past year BF.A had a positive cash flow from operations.
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
With an excellent Return On Assets value of 10.75%, BF.A belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
BF.A's Return On Equity of 21.76% is fine compared to the rest of the industry. BF.A outperforms 71.88% of its industry peers.
With a decent Return On Invested Capital value of 13.32%, BF.A is doing good in the industry, outperforming 75.00% 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 in line with the industry average of 11.51%.
| 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
BF.A has a better Profit Margin (21.86%) than 96.88% of its industry peers.
BF.A's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 30.79%, 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 Operating Margin of BF.A has remained more or less at the same level.
Looking at the Gross Margin, with a value of 58.94%, BF.A belongs to the top of the industry, outperforming 87.50% 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 | 30.79% | ||
| 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.
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 4.30. This indicates that BF.A is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.30, BF.A is in the better half of the industry, outperforming 71.88% of the companies in the same industry.
BF.A has a debt to FCF ratio of 6.34. This is a slightly negative value and a sign of low solvency as BF.A would need 6.34 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 6.34, BF.A is doing good in the industry, outperforming 65.63% of the companies in the same industry.
A Debt/Equity ratio of 0.68 indicates that BF.A is somewhat dependend on debt financing.
BF.A has a Debt to Equity ratio (0.68) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 6.34 | ||
| Altman-Z | 4.3 |
ROIC/WACC1.69
WACC7.89%
2.3 Liquidity
A Current Ratio of 3.88 indicates that BF.A has no problem at all paying its short term obligations.
BF.A has a Current ratio of 3.88. This is amongst the best in the industry. BF.A outperforms 100.00% of its industry peers.
BF.A has a Quick Ratio of 1.56. 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 better Quick ratio (1.56) than 78.13% 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%.
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)-20.56%
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
BF.A is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.14% yearly.
Based on estimates for the next years, BF.A will show a small growth in Revenue. The Revenue will grow by 0.26% on average per year.
EPS Next Y-0.88%
EPS Next 2Y2.09%
EPS Next 3Y4.14%
EPS Next 5YN/A
Revenue Next Year-5.06%
Revenue Next 2Y-1.59%
Revenue Next 3Y0.26%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
BF.A is valuated rather expensively with a Price/Earnings ratio of 17.46.
Compared to the rest of the industry, the Price/Earnings ratio of BF.A indicates a somewhat cheap valuation: BF.A is cheaper than 71.88% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.24. BF.A is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 17.62, which indicates a rather expensive current valuation of BF.A.
Based on the Price/Forward Earnings ratio, BF.A is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
BF.A's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.46 | ||
| Fwd PE | 17.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BF.A is valued a bit cheaper than 65.63% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BF.A is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.57 | ||
| EV/EBITDA | 12.07 |
4.3 Compensation for Growth
BF.A has a very decent profitability rating, which 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
BF.A has a Yearly Dividend Yield of 3.14%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.83, BF.A pays a better dividend. On top of this BF.A pays more dividend than 81.25% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, BF.A pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
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.
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
48.33% 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.
DP48.33%
EPS Next 2Y2.09%
EPS Next 3Y4.14%
NYSE:BF.A (8/5/2025, 10:34:01 AM)
29.69
+0.4 (+1.37%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners65.9%
Inst Owner Change-1.83%
Ins Owners0.38%
Ins Owner ChangeN/A
Market Cap14.04B
Analysts55.38
Price Target32.5 (9.46%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
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)-4.22%
PT rev (3m)-19.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.17%
EPS NY rev (1m)0.14%
EPS NY rev (3m)-11.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.96%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.46 | ||
| Fwd PE | 17.62 | ||
| P/S | 3.53 | ||
| P/FCF | 32.57 | ||
| P/OCF | 23.47 | ||
| P/B | 3.52 | ||
| P/tB | 9.31 | ||
| EV/EBITDA | 12.07 |
EPS(TTM)1.7
EY5.73%
EPS(NY)1.68
Fwd EY5.68%
FCF(TTM)0.91
FCFY3.07%
OCF(TTM)1.26
OCFY4.26%
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
WACC7.89%
ROIC/WACC1.69
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-5.06%
Revenue Next 2Y-1.59%
Revenue Next 3Y0.26%
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%