BROWN-FORMAN CORP-CLASS A (BF.A) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BF.A - US1156371007 - Common Stock
26.53 USD
+0.43 (+1.65%)
26.53 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. 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
In the past year BF.A was profitable.
In the past year BF.A had a positive cash flow from operations.
In the past 5 years BF.A has always been profitable.
BF.A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BF.A's Return On Assets of 9.85% is fine compared to the rest of the industry. BF.A outperforms 78.13% of its industry peers.
BF.A's Return On Equity of 19.59% is fine compared to the rest of the industry. BF.A outperforms 68.75% of its industry peers.
BF.A has a better Return On Invested Capital (13.06%) than 75.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BF.A is in line with the industry average of 11.65%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.85% | ||
| ROE | 19.59% | ||
| ROIC | 13.06% |
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
Looking at the Profit Margin, with a value of 20.83%, BF.A belongs to the top of the industry, outperforming 90.63% of the companies in the same industry.
In the last couple of years the Profit Margin of BF.A has declined.
The Operating Margin of BF.A (29.65%) is better than 90.63% 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 59.12%. This is amongst the best in the industry. BF.A outperforms 84.38% of its industry peers.
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 | 29.65% | ||
| PM (TTM) | 20.83% | ||
| GM | 59.12% |
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.
BF.A has less shares outstanding than it did 5 years ago.
The debt/assets ratio for BF.A has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.99 indicates that BF.A is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.99, 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 4.34. This is a neutral value as BF.A would need 4.34 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.34, BF.A is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
BF.A has a Debt/Equity ratio of 0.56. This is a neutral value indicating BF.A is somewhat dependend on debt financing.
BF.A has a Debt to Equity ratio (0.56) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 3.99 |
ROIC/WACC1.69
WACC7.72%
2.3 Liquidity
BF.A has a Current Ratio of 2.97. This indicates that BF.A is financially healthy and has no problem in meeting its short term obligations.
BF.A's Current ratio of 2.97 is amongst the best of the industry. BF.A outperforms 84.38% of its industry peers.
BF.A has a Quick Ratio of 1.17. This is a normal value and indicates that BF.A is financially healthy and should not expect problems in meeting 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 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.97 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
BF.A shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.94%.
The Earnings Per Share has been decreasing by -0.35% on average over the past years.
BF.A shows a decrease in Revenue. In the last year, the revenue decreased by -4.66%.
The Revenue has been growing slightly by 3.40% on average over the past years.
EPS 1Y (TTM)-25.94%
EPS 3Y-0.77%
EPS 5Y-0.35%
EPS Q2Q%-14.55%
Revenue 1Y (TTM)-4.66%
Revenue growth 3Y0.35%
Revenue growth 5Y3.4%
Sales Q2Q%-5.39%
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 4.01% yearly.
The Revenue is expected to grow by 0.13% on average over the next years.
EPS Next Y-0.57%
EPS Next 2Y2.18%
EPS Next 3Y4.01%
EPS Next 5YN/A
Revenue Next Year-5.18%
Revenue Next 2Y-1.75%
Revenue Next 3Y0.13%
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
With a Price/Earnings ratio of 16.90, BF.A is valued correctly.
Based on the Price/Earnings ratio, BF.A is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.77, BF.A is valued a bit cheaper.
BF.A is valuated correctly with a Price/Forward Earnings ratio of 14.95.
68.75% of the companies in the same industry are more expensive than BF.A, based on the Price/Forward Earnings ratio.
BF.A's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.9 | ||
| Fwd PE | 14.95 |
4.2 Price Multiples
62.50% of the companies in the same industry are more expensive than BF.A, based on the Enterprise Value to EBITDA ratio.
62.50% of the companies in the same industry are more expensive than BF.A, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.56 | ||
| EV/EBITDA | 11.64 |
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 2Y2.18%
EPS Next 3Y4.01%
5. Dividend
5.1 Amount
BF.A has a Yearly Dividend Yield of 3.44%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.69, 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 2.00, BF.A pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
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
52.84% of the earnings are spent on dividend by BF.A. This is a bit on the high side, but may be sustainable.
The dividend of BF.A is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP52.84%
EPS Next 2Y2.18%
EPS Next 3Y4.01%
26.53
+0.43 (+1.65%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners72.77%
Inst Owner Change1.64%
Ins Owners1.9%
Ins Owner ChangeN/A
Market Cap12.54B
Revenue(TTM)3.89B
Net Income(TTM)810.00M
Analysts56.8
Price Target31.72 (19.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
Yearly Dividend0.89
Dividend Growth(5Y)5.49%
DP52.84%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.95%
Min EPS beat(2)-3.08%
Max EPS beat(2)-2.83%
EPS beat(4)0
Avg EPS beat(4)-6.42%
Min EPS beat(4)-11.43%
Max EPS beat(4)-2.83%
EPS beat(8)3
Avg EPS beat(8)0.78%
EPS beat(12)3
Avg EPS beat(12)-4.8%
EPS beat(16)6
Avg EPS beat(16)-2.57%
Revenue beat(2)0
Avg Revenue beat(2)-0.38%
Min Revenue beat(2)-0.38%
Max Revenue beat(2)-0.37%
Revenue beat(4)0
Avg Revenue beat(4)-3.91%
Min Revenue beat(4)-9.4%
Max Revenue beat(4)-0.37%
Revenue beat(8)0
Avg Revenue beat(8)-4.59%
Revenue beat(12)2
Avg Revenue beat(12)-3.15%
Revenue beat(16)5
Avg Revenue beat(16)-1.08%
PT rev (1m)-0.86%
PT rev (3m)-4.58%
EPS NQ rev (1m)-1.85%
EPS NQ rev (3m)-1.78%
EPS NY rev (1m)0.58%
EPS NY rev (3m)0.54%
Revenue NQ rev (1m)-0.49%
Revenue NQ rev (3m)-0.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.9 | ||
| Fwd PE | 14.95 | ||
| P/S | 3.23 | ||
| P/FCF | 20.56 | ||
| P/OCF | 16.48 | ||
| P/B | 3.03 | ||
| P/tB | 8.1 | ||
| EV/EBITDA | 11.64 |
EPS(TTM)1.57
EY5.92%
EPS(NY)1.78
Fwd EY6.69%
FCF(TTM)1.29
FCFY4.86%
OCF(TTM)1.61
OCFY6.07%
SpS8.23
BVpS8.74
TBVpS3.28
PEG (NY)N/A
PEG (5Y)N/A
Graham Number17.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.85% | ||
| ROE | 19.59% | ||
| ROCE | 16.94% | ||
| ROIC | 13.06% | ||
| ROICexc | 13.68% | ||
| ROICexgc | 22.24% | ||
| OM | 29.65% | ||
| PM (TTM) | 20.83% | ||
| GM | 59.12% | ||
| FCFM | 15.69% |
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-Score5
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 4.34 | ||
| Debt/EBITDA | 1.85 | ||
| Cap/Depr | 173.56% | ||
| Cap/Sales | 3.88% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 61.37% | ||
| Profit Quality | 75.31% | ||
| Current Ratio | 2.97 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 3.99 |
F-Score5
WACC7.72%
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)-25.94%
EPS 3Y-0.77%
EPS 5Y-0.35%
EPS Q2Q%-14.55%
EPS Next Y-0.57%
EPS Next 2Y2.18%
EPS Next 3Y4.01%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.66%
Revenue growth 3Y0.35%
Revenue growth 5Y3.4%
Sales Q2Q%-5.39%
Revenue Next Year-5.18%
Revenue Next 2Y-1.75%
Revenue Next 3Y0.13%
Revenue Next 5YN/A
EBIT growth 1Y2.76%
EBIT growth 3Y0.61%
EBIT growth 5Y1.86%
EBIT Next Year2.67%
EBIT Next 3Y3.84%
EBIT Next 5YN/A
FCF growth 1Y177.27%
FCF growth 3Y-18.93%
FCF growth 5Y-6.56%
OCF growth 1Y80.76%
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 7 / 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 16.9 and the Price/Book (PB) ratio is 3.03.
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 52.84%.