BF.A Fundamental Analysis - BROWN-FORMAN CORP-CLASS A

Fundamental Rating

Overall BF.A gets a fundamental rating of 6 out of 10. We evaluated BF.A against 32 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 on the other hand it scores bad on growth.

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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

BF.A has a Return On Assets of 10.75%. This is amongst the best in the industry. BF.A outperforms 84.38% of its industry peers.

The Return On Equity of BF.A (21.76%) is better than 75.00% of its industry peers.

BF.A's Return On Invested Capital of 13.32% is fine compared to the rest of the industry. BF.A outperforms 75.00% 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 11.07%.

		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 93.75% 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 (30.79%) is better than 93.75% of its industry peers.

BF.A's Operating Margin has been stable in the last couple of years.

BF.A has a better Gross Margin (58.94%) than 84.38% 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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 has been reduced compared to a year ago.

2.2 Solvency

BF.A has an Altman-Z score of 4.40. This indicates that BF.A is financially healthy and has little risk of bankruptcy at the moment.

BF.A's Altman-Z score of 4.40 is fine compared to the rest of the industry. BF.A outperforms 78.13% of its industry peers.

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.

BF.A has a better Debt to FCF ratio (6.34) than 65.63% of its industry peers.

BF.A has a Debt/Equity ratio of 0.68. This is a neutral value indicating BF.A is somewhat dependend on debt financing.

With a Debt to Equity ratio value of 0.68, BF.A perfoms like the industry average, outperforming 46.88% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.68
Debt/FCF	6.34
Altman-Z	4.4

ROIC/WACC1.69

WACC7.9%

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.

Looking at the Current ratio, with a value of 3.88, BF.A belongs to the top of the industry, outperforming 96.88% of the companies in the same industry.

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 75.00% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	3.88
Quick Ratio	1.56

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The earnings per share for BF.A have decreased strongly by -20.56% in the last year.

BF.A shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.35% yearly.

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

Based on estimates for the next years, BF.A will show a small growth in Earnings Per Share. The EPS will grow by 4.14% on average per year.

Based on estimates for the next years, BF.A will show a small growth in Revenue. The Revenue will grow by 0.28% on average per year.

EPS Next Y-0.8%

EPS Next 2Y1.91%

EPS Next 3Y4.14%

EPS Next 5YN/A

Revenue Next Year-4.89%

Revenue Next 2Y-1.48%

Revenue Next 3Y0.28%

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.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 17.25, BF.A is valued on the expensive side.

Compared to the rest of the industry, the Price/Earnings ratio of BF.A indicates a somewhat cheap valuation: BF.A is cheaper than 68.75% of the companies listed in the same industry.

Compared to an average S&P500 Price/Earnings ratio of 27.17, BF.A is valued a bit cheaper.

BF.A is valuated rather expensively with a Price/Forward Earnings ratio of 17.39.

The rest of the industry has a similar Price/Forward Earnings ratio as BF.A.

The average S&P500 Price/Forward Earnings ratio is at 22.78. BF.A is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	17.25
Fwd PE	17.39

4.2 Price Multiples

65.63% of the companies in the same industry are more expensive than BF.A, based on the Enterprise Value to EBITDA ratio.

BF.A's Price/Free Cash Flow is on the same level as the industry average.

		Industry Rank	Sector Rank
P/FCF	32.16
EV/EBITDA	12.61

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 2Y1.91%

EPS Next 3Y4.14%

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5. Dividend

5.1 Amount

BF.A has a Yearly Dividend Yield of 2.97%. Purely for dividend investing, there may be better candidates out there.

BF.A's Dividend Yield is rather good when compared to the industry average which is at 2.73. BF.A pays more dividend than 84.38% of the companies in the same industry.

BF.A's Dividend Yield is a higher than the S&P500 average which is at 2.34.

		Industry Rank	Sector Rank
Dividend Yield	2.97%

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

48.33% 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.

DP48.33%

EPS Next 2Y1.91%

EPS Next 3Y4.14%

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BROWN-FORMAN CORP-CLASS A

NYSE:BF.A (8/28/2025, 8:04:00 PM)

After market: 29.32 0 (0%)

29.32

-1.46 (-4.74%)

Chartmill FA Rating

GICS SectorConsumer Staples

GICS IndustryGroupFood, Beverage & Tobacco

GICS IndustryBeverages

Earnings (Last)06-05 2025-06-05/bmo

Earnings (Next)08-28 2025-08-28/bmo

Inst Owners66.01%

Inst Owner Change-5.57%

Ins Owners2.1%

Ins Owner ChangeN/A

Market Cap13.86B

Analysts56.15

Price Target32.21 (9.86%)

Short Float %N/A

Short RatioN/A

Dividend

		Industry Rank	Sector Rank
Dividend Yield	2.97%

Yearly Dividend0.89

Dividend Growth(5Y)5.49%

DP48.33%

Div Incr Years2

Div Non Decr Years2

Ex-Date09-03 2025-09-03 (0.2265)

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)-0.87%

PT rev (3m)-20.16%

EPS NQ rev (1m)-0.11%

EPS NQ rev (3m)-9.26%

EPS NY rev (1m)0.08%

EPS NY rev (3m)-11.34%

Revenue NQ rev (1m)-0.59%

Revenue NQ rev (3m)-5.52%

Revenue NY rev (1m)0.15%

Revenue NY rev (3m)-6.83%

Valuation

		Industry Rank	Sector Rank
PE	17.25
Fwd PE	17.39
P/S	3.49
P/FCF	32.16
P/OCF	23.18
P/B	3.47
P/tB	9.2
EV/EBITDA	12.61

EPS(TTM)1.7

EY5.8%

EPS(NY)1.69

Fwd EY5.75%

FCF(TTM)0.91

FCFY3.11%

OCF(TTM)1.26

OCFY4.31%

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	4.4

F-Score3

WACC7.9%

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-0.8%

EPS Next 2Y1.91%

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-4.89%

Revenue Next 2Y-1.48%

Revenue Next 3Y0.28%

Revenue Next 5YN/A

EBIT growth 1Y6.07%

EBIT growth 3Y0.61%

EBIT growth 5Y1.86%

EBIT Next Year3.35%

EBIT Next 3Y4.44%

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%

BROWN-FORMAN CORP-CLASS A (BF.A) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

More info and screens