BROWN-FORMAN CORP-CLASS B (BF.B) Stock Fundamental Analysis
USA - NYSE:BF.B - US1156372096 - Common Stock
27.51 USD
+0.07 (+0.26%)
27.51 USD
0 (0%)
BF.B gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 32 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 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.
BF.B had a positive operating cash flow in the past year.
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 10.33%, BF.B belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
Looking at the Return On Equity, with a value of 21.16%, BF.B is in the better half of the industry, outperforming 71.88% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.57%, BF.B is in the better half of the industry, outperforming 78.13% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BF.B is above the industry average of 11.08%.
The 3 year average ROIC (13.49%) for BF.B is below the current ROIC(13.57%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.33% | ||
| ROE | 21.16% | ||
| ROIC | 13.57% |
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
BF.B has a Profit Margin of 21.38%. This is amongst the best in the industry. BF.B outperforms 96.88% of its industry peers.
In the last couple of years the Profit Margin of BF.B has declined.
The Operating Margin of BF.B (30.02%) is better than 96.88% of its industry peers.
BF.B's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 59.02%, BF.B belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
In the last couple of years the Gross Margin of BF.B has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.02% | ||
| PM (TTM) | 21.38% | ||
| GM | 59.02% |
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
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.
Compared to 5 years ago, BF.B has less shares outstanding
BF.B has a better debt/assets ratio than last year.
2.2 Solvency
BF.B has an Altman-Z score of 4.02. 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 4.02, BF.B is in the better half of the industry, outperforming 65.63% of the companies in the same industry.
BF.B has a debt to FCF ratio of 4.63. This is a neutral value as BF.B would need 4.63 years to pay back of all of its debts.
The Debt to FCF ratio of BF.B (4.63) is better than 78.13% of its industry peers.
A Debt/Equity ratio of 0.59 indicates that BF.B is somewhat dependend on debt financing.
BF.B has a Debt to Equity ratio of 0.59. This is comparable to the rest of the industry: BF.B outperforms 53.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.63 | ||
| Altman-Z | 4.02 |
ROIC/WACC1.76
WACC7.7%
2.3 Liquidity
BF.B has a Current Ratio of 2.79. This indicates that BF.B is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of BF.B (2.79) is better than 81.25% of its industry peers.
A Quick Ratio of 1.06 indicates that BF.B should not have too much problems paying its short term obligations.
BF.B has a Quick ratio of 1.06. This is in the better half of the industry: BF.B outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.79 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
BF.B shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.29%.
Measured over the past years, BF.B shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.35% on average per year.
BF.B shows a decrease in Revenue. In the last year, the revenue decreased by -3.50%.
BF.B shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.40% yearly.
EPS 1Y (TTM)-20.29%
EPS 3Y-0.77%
EPS 5Y-0.35%
EPS Q2Q%-12.2%
Revenue 1Y (TTM)-3.5%
Revenue growth 3Y0.35%
Revenue growth 5Y3.4%
Sales Q2Q%-2.84%
3.2 Future
Based on estimates for the next years, BF.B 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.B will show a small growth in Revenue. The Revenue will grow by 0.23% on average per year.
EPS Next Y-0.8%
EPS Next 2Y1.91%
EPS Next 3Y4.14%
EPS Next 5YN/A
Revenue Next Year-5.16%
Revenue Next 2Y-1.64%
Revenue Next 3Y0.23%
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
A Price/Earnings ratio of 16.67 indicates a correct valuation of BF.B.
Based on the Price/Earnings ratio, BF.B is valued a bit cheaper than 71.88% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, BF.B is valued a bit cheaper.
A Price/Forward Earnings ratio of 15.58 indicates a correct valuation of BF.B.
Based on the Price/Forward Earnings ratio, BF.B is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.
BF.B's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.67 | ||
| Fwd PE | 15.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BF.B is valued a bit cheaper than the industry average as 71.88% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BF.B indicates a somewhat cheap valuation: BF.B is cheaper than 68.75% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.27 | ||
| EV/EBITDA | 11.76 |
4.3 Compensation for Growth
BF.B has an outstanding 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%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.30%, BF.B has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.83, 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 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.3% |
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
50.24% of the earnings are spent on dividend by BF.B. 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.
DP50.24%
EPS Next 2Y1.91%
EPS Next 3Y4.14%
27.51
+0.07 (+0.26%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners66.01%
Inst Owner Change-1.23%
Ins Owners2.1%
Ins Owner ChangeN/A
Market Cap13.01B
Analysts56.15
Price Target32.52 (18.21%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.3% |
Yearly Dividend0.89
Dividend Growth(5Y)5.49%
DP50.24%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.25%
Min EPS beat(2)-11.43%
Max EPS beat(2)-3.08%
EPS beat(4)1
Avg EPS beat(4)-3.29%
Min EPS beat(4)-11.43%
Max EPS beat(4)9.71%
EPS beat(8)3
Avg EPS beat(8)0.74%
EPS beat(12)3
Avg EPS beat(12)-5.91%
EPS beat(16)6
Avg EPS beat(16)-2.93%
Revenue beat(2)0
Avg Revenue beat(2)-4.88%
Min Revenue beat(2)-9.4%
Max Revenue beat(2)-0.37%
Revenue beat(4)0
Avg Revenue beat(4)-3.86%
Min Revenue beat(4)-9.4%
Max Revenue beat(4)-0.18%
Revenue beat(8)0
Avg Revenue beat(8)-5.28%
Revenue beat(12)2
Avg Revenue beat(12)-3.24%
Revenue beat(16)5
Avg Revenue beat(16)-1.49%
PT rev (1m)1.41%
PT rev (3m)-19.47%
EPS NQ rev (1m)-3.01%
EPS NQ rev (3m)-4.17%
EPS NY rev (1m)0.08%
EPS NY rev (3m)-11.34%
Revenue NQ rev (1m)-1.89%
Revenue NQ rev (3m)-2.63%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-6.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.67 | ||
| Fwd PE | 15.58 | ||
| P/S | 3.29 | ||
| P/FCF | 22.27 | ||
| P/OCF | 17.55 | ||
| P/B | 3.26 | ||
| P/tB | 9.22 | ||
| EV/EBITDA | 11.76 |
EPS(TTM)1.65
EY6%
EPS(NY)1.77
Fwd EY6.42%
FCF(TTM)1.24
FCFY4.49%
OCF(TTM)1.57
OCFY5.7%
SpS8.35
BVpS8.44
TBVpS2.98
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.33% | ||
| ROE | 21.16% | ||
| ROCE | 17.76% | ||
| ROIC | 13.57% | ||
| ROICexc | 14.55% | ||
| ROICexgc | 24.15% | ||
| OM | 30.02% | ||
| PM (TTM) | 21.38% | ||
| GM | 59.02% | ||
| FCFM | 14.79% |
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-Score4
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.63 | ||
| Debt/EBITDA | 1.85 | ||
| Cap/Depr | 180.46% | ||
| Cap/Sales | 3.98% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 58.25% | ||
| Profit Quality | 69.19% | ||
| Current Ratio | 2.79 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 4.02 |
F-Score4
WACC7.7%
ROIC/WACC1.76
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)-20.29%
EPS 3Y-0.77%
EPS 5Y-0.35%
EPS Q2Q%-12.2%
EPS Next Y-0.8%
EPS Next 2Y1.91%
EPS Next 3Y4.14%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.5%
Revenue growth 3Y0.35%
Revenue growth 5Y3.4%
Sales Q2Q%-2.84%
Revenue Next Year-5.16%
Revenue Next 2Y-1.64%
Revenue Next 3Y0.23%
Revenue Next 5YN/A
EBIT growth 1Y5.8%
EBIT growth 3Y0.61%
EBIT growth 5Y1.86%
EBIT Next Year3.35%
EBIT Next 3Y4.44%
EBIT Next 5YN/A
FCF growth 1Y90.85%
FCF growth 3Y-18.93%
FCF growth 5Y-6.56%
OCF growth 1Y46.73%
OCF growth 3Y-13.87%
OCF growth 5Y-3.75%