BROWN-FORMAN CORP-CLASS A (BF.A)
US1156371007 - Common Stock
BF.A gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 33 industry peers in the Beverages industry. BF.A scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, BF.A is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year BF.A was profitable.
In the past year BF.A had a positive cash flow from operations.
Each year in the past 5 years BF.A has been profitable.
BF.A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of BF.A (11.72%) is better than 81.82% of its industry peers.
Looking at the Return On Equity, with a value of 29.74%, BF.A belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.84%, BF.A is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BF.A is above the industry average of 12.16%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.72% | ||
| ROE | 29.74% | ||
| ROIC | 13.84% |
ROA(3y)12.35%
ROA(5y)13.53%
ROE(3y)29.53%
ROE(5y)36.23%
ROIC(3y)14.74%
ROIC(5y)15.92%
1.3 Margins
With an excellent Profit Margin value of 22.65%, BF.A belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
BF.A's Profit Margin has declined in the last couple of years.
BF.A has a better Operating Margin (31.38%) than 93.94% of its industry peers.
In the last couple of years the Operating Margin of BF.A has declined.
The Gross Margin of BF.A (60.85%) is better than 93.94% of its industry peers.
In the last couple of years the Gross Margin of BF.A has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.38% | ||
| PM (TTM) | 22.65% | ||
| GM | 60.85% |
OM growth 3Y-4.53%
OM growth 5Y-2.33%
PM growth 3Y-9.02%
PM growth 5Y-3.45%
GM growth 3Y-2.3%
GM growth 5Y-2.74%
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.
Compared to 1 year ago, BF.A has about the same amount of shares outstanding.
Compared to 5 years ago, BF.A has less shares outstanding
The debt/assets ratio for BF.A is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.92 indicates that BF.A is not in any danger for bankruptcy at the moment.
The Altman-Z score of BF.A (3.92) is better than 69.70% of its industry peers.
BF.A has a debt to FCF ratio of 9.03. This is a negative value and a sign of low solvency as BF.A would need 9.03 years to pay back of all of its debts.
With a Debt to FCF ratio value of 9.03, BF.A is not doing good in the industry: 60.61% of the companies in the same industry are doing better.
A Debt/Equity ratio of 1.05 is on the high side and indicates that BF.A has dependencies on debt financing.
With a Debt to Equity ratio value of 1.05, BF.A is not doing good in the industry: 60.61% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 9.03 | ||
| Altman-Z | 3.92 |
ROIC/WACC1.68
WACC8.22%
2.3 Liquidity
BF.A has a Current Ratio of 2.74. This indicates that BF.A is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.74, BF.A is doing good in the industry, outperforming 75.76% of the companies in the same industry.
A Quick Ratio of 1.17 indicates that BF.A should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.17, BF.A is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.74 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 29.68% over the past year.
The Earnings Per Share has been growing slightly by 1.71% on average over the past years.
The Revenue has been growing slightly by 1.96% in the past year.
BF.A shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.42% yearly.
EPS 1Y (TTM)29.68%
EPS 3Y-1.17%
EPS 5Y1.71%
EPS growth Q2Q140%
Revenue 1Y (TTM)1.96%
Revenue growth 3Y7.93%
Revenue growth 5Y5.42%
Revenue growth Q2Q-1.11%
3.2 Future
The Earnings Per Share is expected to grow by 9.78% on average over the next years. This is quite good.
Based on estimates for the next years, BF.A will show a small growth in Revenue. The Revenue will grow by 3.16% on average per year.
EPS Next Y20.34%
EPS Next 2Y10.22%
EPS Next 3Y9.78%
EPS Next 5YN/A
Revenue Next Year1.6%
Revenue Next 2Y2.19%
Revenue Next 3Y3.16%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 24.30, the valuation of BF.A can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as BF.A.
The average S&P500 Price/Earnings ratio is at 28.28. BF.A is around the same levels.
BF.A is valuated rather expensively with a Price/Forward Earnings ratio of 24.08.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BF.A is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.88, BF.A is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.3 | ||
| Fwd PE | 24.08 |
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 66.67% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BF.A is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.32 | ||
| EV/EBITDA | 11.88 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
BF.A has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.19
PEG (5Y)14.18
EPS Next 2Y10.22%
EPS Next 3Y9.78%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.83%, BF.A has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.77, BF.A pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.41, BF.A is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
5.2 History
The dividend of BF.A decreases each year by -14.06%.
BF.A has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of BF.A decreased recently.
Dividend Growth(5Y)-14.06%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
BF.A pays out 41.35% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP41.35%
EPS Next 2Y10.22%
EPS Next 3Y9.78%
BROWN-FORMAN CORP-CLASS A
NYSE:BF.A (5/3/2024, 7:04:00 PM)
After market: 48.85 0 (0%)48.85
+0.42 (+0.87%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap14.82B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.3 | ||
| Fwd PE | 24.08 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.19
PEG (5Y)14.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.72% | ||
| ROE | 29.74% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 31.38% | ||
| PM (TTM) | 22.65% | ||
| GM | 60.85% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.74 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)29.68%
EPS 3Y-1.17%
EPS 5Y
EPS growth Q2Q
EPS Next Y20.34%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.96%
Revenue growth 3Y7.93%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y