BROWN-FORMAN CORP-CLASS B (BF.B) Stock Fundamental Analysis
NYSE:BF.B - New York Stock Exchange, Inc. - US1156372096 - Common Stock - Currency: USD
BF.B gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 32 industry peers in the Beverages industry. Both the health and profitability get an excellent rating, making BF.B a very profitable company, without any liquidiy or solvency issues. BF.B has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
BF.B had positive earnings in the past year.
In the past year BF.B had a positive cash flow from operations.
In the past 5 years BF.B has always been profitable.
Each year in the past 5 years BF.B had a positive operating cash flow.
1.2 Ratios
BF.B's Return On Assets of 10.75% is amongst the best of the industry. BF.B outperforms 84.38% of its industry peers.
Looking at the Return On Equity, with a value of 21.76%, BF.B is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
The Return On Invested Capital of BF.B (13.32%) is better than 71.88% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BF.B is in line with the industry average of 11.51%.
| 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.B 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.B has declined.
BF.B's Operating Margin of 30.79% is amongst the best of the industry. BF.B outperforms 93.75% of its industry peers.
BF.B's Operating Margin has been stable in the last couple of years.
BF.B's Gross Margin of 58.94% is amongst the best of the industry. BF.B outperforms 84.38% of its industry peers.
BF.B'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%
2. Health
2.1 Basic Checks
BF.B has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, BF.B has about the same amount of shares outstanding.
Compared to 5 years ago, BF.B has less shares outstanding
The debt/assets ratio for BF.B has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.27 indicates that BF.B is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.27, BF.B is doing good in the industry, outperforming 75.00% of the companies in the same industry.
BF.B has a debt to FCF ratio of 6.34. This is a slightly negative value and a sign of low solvency as BF.B would need 6.34 years to pay back of all of its debts.
BF.B has a Debt to FCF ratio of 6.34. This is in the better half of the industry: BF.B outperforms 62.50% of its industry peers.
BF.B has a Debt/Equity ratio of 0.68. This is a neutral value indicating BF.B is somewhat dependend on debt financing.
BF.B's Debt to Equity ratio of 0.68 is in line compared to the rest of the industry. BF.B outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 6.34 | ||
| Altman-Z | 4.27 |
ROIC/WACC1.69
WACC7.88%
2.3 Liquidity
BF.B has a Current Ratio of 3.88. This indicates that BF.B is financially healthy and has no problem in meeting its short term obligations.
BF.B's Current ratio of 3.88 is amongst the best of the industry. BF.B outperforms 96.88% of its industry peers.
BF.B has a Quick Ratio of 1.56. This is a normal value and indicates that BF.B is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.56, BF.B is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.88 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
The earnings per share for BF.B have decreased strongly by -20.56% in the last year.
The Earnings Per Share has been decreasing by -0.35% on average over the past years.
BF.B shows a decrease in Revenue. In the last year, the revenue decreased by -4.86%.
Measured over the past years, BF.B shows a small growth in Revenue. The Revenue has been growing by 3.40% on average per year.
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
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 0.30% on average per year.
EPS Next Y-0.88%
EPS Next 2Y2.09%
EPS Next 3Y4.14%
EPS Next 5YN/A
Revenue Next Year-5.04%
Revenue Next 2Y-1.56%
Revenue Next 3Y0.3%
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
A Price/Earnings ratio of 16.91 indicates a correct valuation of BF.B.
BF.B's Price/Earnings ratio is a bit cheaper when compared to the industry. BF.B is cheaper than 68.75% of the companies in the same industry.
When comparing the Price/Earnings ratio of BF.B to the average of the S&P500 Index (26.82), we can say BF.B is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 17.06, the valuation of BF.B can be described as rather expensive.
Based on the Price/Forward Earnings ratio, BF.B is valued a bit cheaper than 62.50% of the companies in the same industry.
BF.B's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.91 | ||
| Fwd PE | 17.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BF.B is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
BF.B's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.53 | ||
| EV/EBITDA | 11.91 |
4.3 Compensation for Growth
The decent profitability rating of BF.B may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.09%
EPS Next 3Y4.14%
5. Dividend
5.1 Amount
BF.B has a Yearly Dividend Yield of 3.14%.
Compared to an average industry Dividend Yield of 2.70, BF.B pays a better dividend. On top of this BF.B pays more dividend than 81.25% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, BF.B pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
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 48.33% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of BF.B is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP48.33%
EPS Next 2Y2.09%
EPS Next 3Y4.14%
28.75
-0.1 (-0.35%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners65.9%
Inst Owner Change-0.88%
Ins Owners0.38%
Ins Owner ChangeN/A
Market Cap13.59B
Analysts55.38
Price Target32.06 (11.51%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
Yearly Dividend0.89
Dividend Growth(5Y)5.49%
DP48.33%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)-2.73%
PT rev (3m)-20.83%
EPS NQ rev (1m)-0.96%
EPS NQ rev (3m)-9.17%
EPS NY rev (1m)0.14%
EPS NY rev (3m)-11.07%
Revenue NQ rev (1m)-0.58%
Revenue NQ rev (3m)-4.96%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-6.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.91 | ||
| Fwd PE | 17.06 | ||
| P/S | 3.42 | ||
| P/FCF | 31.53 | ||
| P/OCF | 22.73 | ||
| P/B | 3.4 | ||
| P/tB | 9.02 | ||
| EV/EBITDA | 11.91 |
EPS(TTM)1.7
EY5.91%
EPS(NY)1.68
Fwd EY5.86%
FCF(TTM)0.91
FCFY3.17%
OCF(TTM)1.26
OCFY4.4%
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 | 4.27 |
F-Score3
WACC7.88%
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-0.88%
EPS Next 2Y2.09%
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-5.04%
Revenue Next 2Y-1.56%
Revenue Next 3Y0.3%
Revenue Next 5YN/A
EBIT growth 1Y6.07%
EBIT growth 3Y0.61%
EBIT growth 5Y1.86%
EBIT Next Year15.38%
EBIT Next 3YN/A
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%