BROWN-FORMAN CORP-CLASS B (BF.B)
US1156372096 - Common Stock
We assign a fundamental rating of 5 out of 10 to BF.B. BF.B was compared to 33 industry peers in the Beverages industry. BF.B scores excellent on profitability, but there are some minor concerns on its financial health. BF.B is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year BF.B was profitable.
In the past year BF.B had a positive cash flow from operations.
Each year in the past 5 years BF.B has been profitable.
In the past 5 years BF.B always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.72%, BF.B belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.
BF.B's Return On Equity of 29.74% is amongst the best of the industry. BF.B outperforms 84.85% of its industry peers.
With a decent Return On Invested Capital value of 13.84%, BF.B is doing good in the industry, outperforming 75.76% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BF.B is above the industry average of 12.06%.
| 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
BF.B's Profit Margin of 22.65% is amongst the best of the industry. BF.B outperforms 93.94% of its industry peers.
BF.B's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 31.38%, BF.B belongs to the top of the industry, outperforming 96.97% of the companies in the same industry.
In the last couple of years the Operating Margin of BF.B has declined.
BF.B's Gross Margin of 60.85% is amongst the best of the industry. BF.B outperforms 96.97% of its industry peers.
BF.B's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BF.B is creating some value.
BF.B has about the same amout of shares outstanding than it did 1 year ago.
BF.B has less shares outstanding than it did 5 years ago.
BF.B has a worse debt/assets ratio than last year.
2.2 Solvency
BF.B has an Altman-Z score of 3.92. This indicates that BF.B is financially healthy and has little risk of bankruptcy at the moment.
BF.B has a better Altman-Z score (3.92) than 66.67% of its industry peers.
BF.B has a debt to FCF ratio of 9.03. This is a negative value and a sign of low solvency as BF.B would need 9.03 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.03, BF.B is in line with its industry, outperforming 42.42% of the companies in the same industry.
BF.B has a Debt/Equity ratio of 1.05. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of BF.B (1.05) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 9.03 | ||
| Altman-Z | 3.92 |
ROIC/WACC1.67
WACC8.29%
2.3 Liquidity
A Current Ratio of 2.74 indicates that BF.B has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.74, BF.B is in the better half of the industry, outperforming 78.79% of the companies in the same industry.
BF.B has a Quick Ratio of 1.17. This is a normal value and indicates that BF.B is financially healthy and should not expect problems in meeting its short term obligations.
BF.B's Quick ratio of 1.17 is fine compared to the rest of the industry. BF.B outperforms 66.67% of its industry peers.
| 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.
BF.B shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.71% yearly.
Looking at the last year, BF.B shows a small growth in Revenue. The Revenue has grown by 1.96% in the last year.
Measured over the past years, BF.B shows a small growth in Revenue. The Revenue has been growing by 5.42% on average per year.
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
Based on estimates for the next years, BF.B will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.78% on average per year.
BF.B is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.16% yearly.
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
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 24.22, BF.B is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as BF.B.
Compared to an average S&P500 Price/Earnings ratio of 25.02, BF.B is valued at the same level.
A Price/Forward Earnings ratio of 24.00 indicates a rather expensive valuation of BF.B.
The rest of the industry has a similar Price/Forward Earnings ratio as BF.B.
The average S&P500 Price/Forward Earnings ratio is at 21.32. BF.B is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.22 | ||
| Fwd PE | 24 |
4.2 Price Multiples
69.70% of the companies in the same industry are more expensive than BF.B, based on the Enterprise Value to EBITDA ratio.
BF.B's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.19 | ||
| EV/EBITDA | 11.84 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
BF.B has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.19
PEG (5Y)14.14
EPS Next 2Y10.22%
EPS Next 3Y9.78%
5. Dividend
5.1 Amount
BF.B has a Yearly Dividend Yield of 1.81%. Purely for dividend investing, there may be better candidates out there.
BF.B's Dividend Yield is a higher than the industry average which is at 2.56.
Compared to the average S&P500 Dividend Yield of 2.40, BF.B is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
5.2 History
The dividend of BF.B decreases each year by -14.06%.
BF.B has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-14.06%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
41.35% of the earnings are spent on dividend by BF.B. 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 B
NYSE:BF.B (4/29/2024, 7:04:00 PM)
After market: 48.69 0 (0%)48.69
+0.56 (+1.16%)
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 Cap14.77B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
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)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 | 24.22 | ||
| Fwd PE | 24 | ||
| 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)14.14
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