BROWN-FORMAN CORP-CLASS B (BF.B) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BF.B - US1156372096 - Common Stock
30.76 USD
-0.12 (-0.39%)
30.76 USD
0 (0%)
BF.B gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 34 industry peers in the Beverages industry. BF.B has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. BF.B has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
BF.B had positive earnings in the past year.
BF.B had a positive operating cash flow in the past year.
BF.B had positive earnings in each of the past 5 years.
BF.B had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.85%, BF.B is in the better half of the industry, outperforming 79.41% of the companies in the same industry.
With a decent Return On Equity value of 19.59%, BF.B is doing good in the industry, outperforming 70.59% of the companies in the same industry.
The Return On Invested Capital of BF.B (13.06%) is better than 73.53% of its industry peers.
BF.B had an Average Return On Invested Capital over the past 3 years of 13.49%. This is in line with the industry average of 11.55%.
| 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
The Profit Margin of BF.B (20.83%) is better than 91.18% of its industry peers.
In the last couple of years the Profit Margin of BF.B has declined.
BF.B has a Operating Margin of 29.65%. This is amongst the best in the industry. BF.B outperforms 88.24% of its industry peers.
In the last couple of years the Operating Margin of BF.B has remained more or less at the same level.
BF.B's Gross Margin of 59.12% is amongst the best of the industry. BF.B outperforms 82.35% of its industry peers.
BF.B's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BF.B is still creating some value.
The number of shares outstanding for BF.B remains at a similar level compared to 1 year ago.
BF.B has less shares outstanding than it did 5 years ago.
The debt/assets ratio for BF.B has been reduced compared to a year ago.
2.2 Solvency
BF.B has an Altman-Z score of 4.32. This indicates that BF.B is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.32, BF.B is in the better half of the industry, outperforming 79.41% of the companies in the same industry.
BF.B has a debt to FCF ratio of 4.34. This is a neutral value as BF.B would need 4.34 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 4.34, BF.B is doing good in the industry, outperforming 73.53% of the companies in the same industry.
A Debt/Equity ratio of 0.56 indicates that BF.B is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.56, BF.B perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 4.32 |
ROIC/WACC1.65
WACC7.9%
2.3 Liquidity
BF.B has a Current Ratio of 2.97. This indicates that BF.B is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of BF.B (2.97) is better than 82.35% of its industry peers.
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 has a better Quick ratio (1.17) than 73.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.97 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The earnings per share for BF.B have decreased strongly by -25.94% in the last year.
The Earnings Per Share has been decreasing by -0.35% on average over the past years.
The Revenue has decreased by -4.66% in the past year.
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
The Earnings Per Share is expected to grow by 4.14% on average over the next years.
Based on estimates for the next years, BF.B will show a small growth in Revenue. The Revenue will grow by 0.21% on average per year.
EPS Next Y-1%
EPS Next 2Y2.11%
EPS Next 3Y4.14%
EPS Next 5YN/A
Revenue Next Year-5.18%
Revenue Next 2Y-1.65%
Revenue Next 3Y0.21%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.59, the valuation of BF.B can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as BF.B.
When comparing the Price/Earnings ratio of BF.B to the average of the S&P500 Index (26.54), we can say BF.B is valued slightly cheaper.
With a Price/Forward Earnings ratio of 17.35, BF.B is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BF.B is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 23.78. BF.B is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.59 | ||
| Fwd PE | 17.35 |
4.2 Price Multiples
BF.B's Enterprise Value to EBITDA ratio is in line with the industry average.
BF.B's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.84 | ||
| EV/EBITDA | 13.47 |
4.3 Compensation for Growth
BF.B has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.11%
EPS Next 3Y4.14%
5. Dividend
5.1 Amount
BF.B has a Yearly Dividend Yield of 2.99%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.90, BF.B pays a bit more dividend than its industry peers.
BF.B's Dividend Yield is a higher than the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
5.2 History
The dividend of BF.B has a limited annual growth rate of 5.49%.
BF.B has been paying a dividend for at least 10 years, so it has a reliable track record.
BF.B has decreased its dividend recently.
Dividend Growth(5Y)5.49%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
BF.B pays out 52.84% of its income as dividend. This is a bit on the high side, but may be sustainable.
BF.B's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP52.84%
EPS Next 2Y2.11%
EPS Next 3Y4.14%
30.76
-0.12 (-0.39%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners72.77%
Inst Owner Change9.92%
Ins Owners1.9%
Ins Owner ChangeN/A
Market Cap14.54B
Revenue(TTM)3.89B
Net Income(TTM)810.00M
Analysts56.8
Price Target32.04 (4.16%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
Yearly Dividend0.89
Dividend Growth(5Y)5.49%
DP52.84%
Div Incr Years1
Div Non Decr Years1
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)-0.25%
PT rev (3m)-1.47%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)-0.32%
EPS NY rev (1m)0.14%
EPS NY rev (3m)-0.2%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.59 | ||
| Fwd PE | 17.35 | ||
| P/S | 3.74 | ||
| P/FCF | 23.84 | ||
| P/OCF | 19.11 | ||
| P/B | 3.52 | ||
| P/tB | 9.39 | ||
| EV/EBITDA | 13.47 |
EPS(TTM)1.57
EY5.1%
EPS(NY)1.77
Fwd EY5.76%
FCF(TTM)1.29
FCFY4.19%
OCF(TTM)1.61
OCFY5.23%
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 | 4.32 |
F-Score5
WACC7.9%
ROIC/WACC1.65
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-1%
EPS Next 2Y2.11%
EPS Next 3Y4.14%
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-1.65%
Revenue Next 3Y0.21%
Revenue Next 5YN/A
EBIT growth 1Y2.76%
EBIT growth 3Y0.61%
EBIT growth 5Y1.86%
EBIT Next Year3.53%
EBIT Next 3Y4.02%
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 B / BF.B FAQ
What is the fundamental rating for BF.B stock?
ChartMill assigns a fundamental rating of 5 / 10 to BF.B.
What is the valuation status for BF.B stock?
ChartMill assigns a valuation rating of 3 / 10 to BROWN-FORMAN CORP-CLASS B (BF.B). This can be considered as Overvalued.
What is the profitability of BF.B stock?
BROWN-FORMAN CORP-CLASS B (BF.B) has a profitability rating of 7 / 10.
How financially healthy is BROWN-FORMAN CORP-CLASS B?
The financial health rating of BROWN-FORMAN CORP-CLASS B (BF.B) is 7 / 10.
Is the dividend of BROWN-FORMAN CORP-CLASS B sustainable?
The dividend rating of BROWN-FORMAN CORP-CLASS B (BF.B) is 5 / 10 and the dividend payout ratio is 52.84%.