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

NYSE:BF.A • US1156371007

Current stock price

23.46 USD
+0.09 (+0.39%)
Last:

This BF.A fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. BF.A Profitability Analysis

1.1 Basic Checks

  • BF.A had positive earnings in the past year.
  • BF.A had a positive operating cash flow in the past year.
  • In the past 5 years BF.A has always been profitable.
  • Each year in the past 5 years BF.A had a positive operating cash flow.
BF.A Yearly Net Income VS EBIT VS OCF VS FCFBF.A Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

1.2 Ratios

  • BF.A has a Return On Assets of 9.72%. This is in the better half of the industry: BF.A outperforms 76.47% of its industry peers.
  • BF.A's Return On Equity of 19.77% is fine compared to the rest of the industry. BF.A outperforms 67.65% of its industry peers.
  • With a decent Return On Invested Capital value of 13.34%, BF.A is doing good in the industry, outperforming 76.47% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for BF.A is in line with the industry average of 11.81%.
Industry RankSector Rank
ROA 9.72%
ROE 19.77%
ROIC 13.34%
ROA(3y)11.12%
ROA(5y)12.07%
ROE(3y)24.95%
ROE(5y)27.89%
ROIC(3y)13.4%
ROIC(5y)14.48%
BF.A Yearly ROA, ROE, ROICBF.A Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

1.3 Margins

  • BF.A has a better Profit Margin (20.64%) than 88.24% of its industry peers.
  • BF.A's Profit Margin has declined in the last couple of years.
  • With an excellent Operating Margin value of 30.31%, BF.A belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
  • BF.A's Operating Margin has declined in the last couple of years.
  • The Gross Margin of BF.A (59.34%) is better than 79.41% 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 RankSector Rank
OM 30.31%
PM (TTM) 20.64%
GM 59.34%
OM growth 3Y-0.41%
OM growth 5Y-1.88%
PM growth 3Y0.86%
PM growth 5Y-2.33%
GM growth 3Y-1.02%
GM growth 5Y-1.4%
BF.A Yearly Profit, Operating, Gross MarginsBF.A Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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7

2. BF.A Health Analysis

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.
BF.A Yearly Shares OutstandingBF.A Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M
BF.A Yearly Total Debt VS Total AssetsBF.A Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

2.2 Solvency

  • An Altman-Z score of 3.71 indicates that BF.A is not in any danger for bankruptcy at the moment.
  • BF.A's Altman-Z score of 3.71 is fine compared to the rest of the industry. BF.A outperforms 76.47% of its industry peers.
  • The Debt to FCF ratio of BF.A is 3.76, which is a good value as it means it would take BF.A, 3.76 years of fcf income to pay off all of its debts.
  • BF.A's Debt to FCF ratio of 3.76 is fine compared to the rest of the industry. BF.A outperforms 76.47% of its industry peers.
  • BF.A has a Debt/Equity ratio of 0.59. This is a neutral value indicating BF.A is somewhat dependend on debt financing.
  • BF.A's Debt to Equity ratio of 0.59 is in line compared to the rest of the industry. BF.A outperforms 50.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.59
Debt/FCF 3.76
Altman-Z 3.71
ROIC/WACC1.71
WACC7.79%
BF.A Yearly LT Debt VS Equity VS FCFBF.A Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

2.3 Liquidity

  • A Current Ratio of 2.77 indicates that BF.A has no problem at all paying its short term obligations.
  • Looking at the Current ratio, with a value of 2.77, BF.A belongs to the top of the industry, outperforming 82.35% of the companies in the same industry.
  • A Quick Ratio of 1.09 indicates that BF.A should not have too much problems paying its short term obligations.
  • BF.A has a better Quick ratio (1.09) than 73.53% of its industry peers.
Industry RankSector Rank
Current Ratio 2.77
Quick Ratio 1.09
BF.A Yearly Current Assets VS Current LiabilitesBF.A Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. BF.A Growth Analysis

3.1 Past

  • BF.A shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.79%.
  • 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 -3.34%.
  • 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)-11.79%
EPS 3Y-0.77%
EPS 5Y-0.35%
EPS Q2Q%34.88%
Revenue 1Y (TTM)-3.34%
Revenue growth 3Y0.35%
Revenue growth 5Y3.4%
Sales Q2Q%2.03%

3.2 Future

  • The Earnings Per Share is expected to grow by 3.70% 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 0.01% yearly.
EPS Next Y-0.91%
EPS Next 2Y2.03%
EPS Next 3Y3.7%
EPS Next 5YN/A
Revenue Next Year-3.83%
Revenue Next 2Y-1.34%
Revenue Next 3Y0.01%
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.
BF.A Yearly Revenue VS EstimatesBF.A Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1B 2B 3B 4B
BF.A Yearly EPS VS EstimatesBF.A Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0.5 1 1.5 2

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5

4. BF.A Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 13.64 indicates a correct valuation of BF.A.
  • Compared to the rest of the industry, the Price/Earnings ratio of BF.A indicates a somewhat cheap valuation: BF.A is cheaper than 70.59% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 25.54, BF.A is valued a bit cheaper.
  • Based on the Price/Forward Earnings ratio of 13.26, the valuation of BF.A can be described as correct.
  • 70.59% 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 22.70.
Industry RankSector Rank
PE 13.64
Fwd PE 13.26
BF.A Price Earnings VS Forward Price EarningsBF.A Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BF.A indicates a somewhat cheap valuation: BF.A is cheaper than 70.59% of the companies listed in the same industry.
  • BF.A's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BF.A is cheaper than 79.41% of the companies in the same industry.
Industry RankSector Rank
P/FCF 14.74
EV/EBITDA 10.03
BF.A Per share dataBF.A EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8

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 2Y2.03%
EPS Next 3Y3.7%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. BF.A Dividend Analysis

5.1 Amount

  • BF.A has a Yearly Dividend Yield of 3.96%.
  • BF.A's Dividend Yield is rather good when compared to the industry average which is at 1.85. BF.A pays more dividend than 88.24% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.89, BF.A pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.96%

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
BF.A Yearly Dividends per shareBF.A Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5

5.3 Sustainability

  • 53.04% 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.
DP53.04%
EPS Next 2Y2.03%
EPS Next 3Y3.7%
BF.A Yearly Income VS Free CF VS DividendBF.A Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B
BF.A Dividend Payout.BF.A Dividend Payout, showing the Payout Ratio.BF.A Dividend Payout.PayoutRetained Earnings

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BF.A Fundamentals: All Metrics, Ratios and Statistics

BROWN-FORMAN CORP-CLASS A

NYSE:BF.A (3/24/2026, 11:44:33 AM)

23.46

+0.09 (+0.39%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)03-04
Earnings (Next)06-03
Inst Owners75.82%
Inst Owner Change-0.02%
Ins Owners1.95%
Ins Owner ChangeN/A
Market Cap10.76B
Revenue(TTM)3.91B
Net Income(TTM)807.00M
Analysts53.33
Price Target32.19 (37.21%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.96%
Yearly Dividend0.89
Dividend Growth(5Y)5.49%
DP53.04%
Div Incr Years2
Div Non Decr Years2
Ex-Date03-09
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)9.89%
Min EPS beat(2)-2.83%
Max EPS beat(2)22.62%
EPS beat(4)1
Avg EPS beat(4)1.32%
Min EPS beat(4)-11.43%
Max EPS beat(4)22.62%
EPS beat(8)3
Avg EPS beat(8)3.1%
EPS beat(12)4
Avg EPS beat(12)1.05%
EPS beat(16)6
Avg EPS beat(16)-1.86%
Revenue beat(2)1
Avg Revenue beat(2)1.62%
Min Revenue beat(2)-0.38%
Max Revenue beat(2)3.63%
Revenue beat(4)1
Avg Revenue beat(4)-1.63%
Min Revenue beat(4)-9.4%
Max Revenue beat(4)3.63%
Revenue beat(8)1
Avg Revenue beat(8)-3.35%
Revenue beat(12)2
Avg Revenue beat(12)-3.23%
Revenue beat(16)5
Avg Revenue beat(16)-1.06%
PT rev (1m)-0.04%
PT rev (3m)0.95%
EPS NQ rev (1m)-2.31%
EPS NQ rev (3m)-2.04%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)0.09%
Revenue NQ rev (1m)-0.45%
Revenue NQ rev (3m)-0.34%
Revenue NY rev (1m)1.28%
Revenue NY rev (3m)1.43%
Valuation
Industry RankSector Rank
PE 13.64
Fwd PE 13.26
P/S 2.75
P/FCF 14.74
P/OCF 12.5
P/B 2.64
P/tB 7.38
EV/EBITDA 10.03
EPS(TTM)1.72
EY7.33%
EPS(NY)1.77
Fwd EY7.54%
FCF(TTM)1.59
FCFY6.78%
OCF(TTM)1.88
OCFY8%
SpS8.52
BVpS8.9
TBVpS3.18
PEG (NY)N/A
PEG (5Y)N/A
Graham Number18.56
Profitability
Industry RankSector Rank
ROA 9.72%
ROE 19.77%
ROCE 17.5%
ROIC 13.34%
ROICexc 14.11%
ROICexgc 23.22%
OM 30.31%
PM (TTM) 20.64%
GM 59.34%
FCFM 18.67%
ROA(3y)11.12%
ROA(5y)12.07%
ROE(3y)24.95%
ROE(5y)27.89%
ROIC(3y)13.4%
ROIC(5y)14.48%
ROICexc(3y)14.25%
ROICexc(5y)16.39%
ROICexgc(3y)22.92%
ROICexgc(5y)25.06%
ROCE(3y)17.63%
ROCE(5y)18.8%
ROICexgc growth 3Y-10.76%
ROICexgc growth 5Y-5.03%
ROICexc growth 3Y-13.41%
ROICexc growth 5Y-6.6%
OM growth 3Y-0.41%
OM growth 5Y-1.88%
PM growth 3Y0.86%
PM growth 5Y-2.33%
GM growth 3Y-1.02%
GM growth 5Y-1.4%
F-Score6
Asset Turnover0.47
Health
Industry RankSector Rank
Debt/Equity 0.59
Debt/FCF 3.76
Debt/EBITDA 1.88
Cap/Depr 147.19%
Cap/Sales 3.35%
Interest Coverage 250
Cash Conversion 67.58%
Profit Quality 90.46%
Current Ratio 2.77
Quick Ratio 1.09
Altman-Z 3.71
F-Score6
WACC7.79%
ROIC/WACC1.71
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)-11.79%
EPS 3Y-0.77%
EPS 5Y-0.35%
EPS Q2Q%34.88%
EPS Next Y-0.91%
EPS Next 2Y2.03%
EPS Next 3Y3.7%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.34%
Revenue growth 3Y0.35%
Revenue growth 5Y3.4%
Sales Q2Q%2.03%
Revenue Next Year-3.83%
Revenue Next 2Y-1.34%
Revenue Next 3Y0.01%
Revenue Next 5YN/A
EBIT growth 1Y3.04%
EBIT growth 3Y-0.06%
EBIT growth 5Y1.46%
EBIT Next Year2.67%
EBIT Next 3Y3.57%
EBIT Next 5YN/A
FCF growth 1Y93.63%
FCF growth 3Y-18.93%
FCF growth 5Y-6.56%
OCF growth 1Y45.44%
OCF growth 3Y-13.87%
OCF growth 5Y-3.75%

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

What is the fundamental rating for BF.A stock?

ChartMill assigns a fundamental rating of 5 / 10 to BF.A.


What is the valuation status for 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 6 / 10.


What is the earnings growth outlook for BROWN-FORMAN CORP-CLASS A?

The Earnings per Share (EPS) of BROWN-FORMAN CORP-CLASS A (BF.A) is expected to decline by -0.91% in the next year.


Is the dividend of BROWN-FORMAN CORP-CLASS A sustainable?

The dividend rating of BROWN-FORMAN CORP-CLASS A (BF.A) is 5 / 10 and the dividend payout ratio is 53.04%.