BROWN-FORMAN CORP-CLASS B (BF.B) Stock Fundamental Analysis
NYSE:BF.B - New York Stock Exchange, Inc. - US1156372096 - Common Stock - Currency: USD
Overall BF.B gets a fundamental rating of 6 out of 10. We evaluated BF.B 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 is valued correctly, 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
The Return On Assets of BF.B (10.75%) is better than 90.63% of its industry peers.
BF.B has a better Return On Equity (21.76%) than 71.88% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.32%, BF.B is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BF.B is in line with the industry average of 11.61%.
| 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
Looking at the Profit Margin, with a value of 21.86%, BF.B belongs to the top of the industry, outperforming 96.88% of the companies in the same industry.
BF.B's Profit Margin has declined in the last couple of years.
BF.B's Operating Margin of 30.79% is amongst the best of the industry. BF.B outperforms 96.88% 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 has a Gross Margin of 58.94%. This is amongst the best in the industry. BF.B outperforms 87.50% of its industry peers.
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 | 30.79% | ||
| 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
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.
The number of shares outstanding for BF.B has been reduced compared to 5 years ago.
Compared to 1 year ago, BF.B has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.20 indicates that BF.B is not in any danger for bankruptcy at the moment.
BF.B has a better Altman-Z score (4.20) than 71.88% of its industry peers.
The Debt to FCF ratio of BF.B is 6.34, which is on the high side as it means it would take BF.B, 6.34 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 6.34, BF.B is doing good in the industry, outperforming 65.63% of the companies in the same industry.
A Debt/Equity ratio of 0.68 indicates that BF.B is somewhat dependend on debt financing.
The Debt to Equity ratio of BF.B (0.68) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 6.34 | ||
| Altman-Z | 4.2 |
ROIC/WACC1.37
WACC9.69%
2.3 Liquidity
A Current Ratio of 3.88 indicates that BF.B has no problem at all paying its short term obligations.
BF.B has a Current ratio of 3.88. This is amongst the best in the industry. BF.B outperforms 100.00% of its industry peers.
A Quick Ratio of 1.56 indicates that BF.B should not have too much problems paying its short term obligations.
The Quick ratio of BF.B (1.56) is better than 78.13% of its industry peers.
| 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.
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.
Looking at the last year, BF.B shows a decrease in Revenue. The Revenue has decreased by -4.86% in the last year.
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 3.96% on average over the next years.
The Revenue is expected to grow by 0.31% on average over the next years.
EPS Next Y-1.02%
EPS Next 2Y1.98%
EPS Next 3Y3.96%
EPS Next 5YN/A
Revenue Next Year-5.09%
Revenue Next 2Y-1.6%
Revenue Next 3Y0.31%
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.
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
With a Price/Earnings ratio of 16.89, BF.B is valued correctly.
75.00% of the companies in the same industry are more expensive than BF.B, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.28, BF.B is valued a bit 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 the industry average as 68.75% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.76. BF.B is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.89 | ||
| Fwd PE | 17.06 |
4.2 Price Multiples
71.88% of the companies in the same industry are more expensive than BF.B, based on the Enterprise Value to EBITDA ratio.
62.50% of the companies in the same industry are more expensive than BF.B, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.49 | ||
| EV/EBITDA | 11.55 |
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 2Y1.98%
EPS Next 3Y3.96%
5. Dividend
5.1 Amount
BF.B has a Yearly Dividend Yield of 3.46%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.14, BF.B pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, BF.B pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.46% |
5.2 History
The dividend of BF.B has a limited annual growth rate of 5.49%.
BF.B has paid a dividend for at least 10 years, which is 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
48.33% 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.
DP48.33%
EPS Next 2Y1.98%
EPS Next 3Y3.96%
28.71
+0.86 (+3.09%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners65.9%
Inst Owner Change7.29%
Ins Owners0.38%
Ins Owner ChangeN/A
Market Cap13.57B
Analysts56
Price Target32.96 (14.8%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.46% |
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)-18.61%
PT rev (3m)-20.02%
EPS NQ rev (1m)-8.29%
EPS NQ rev (3m)-8.29%
EPS NY rev (1m)-11.53%
EPS NY rev (3m)-11.22%
Revenue NQ rev (1m)-4.41%
Revenue NQ rev (3m)-4.41%
Revenue NY rev (1m)-7.02%
Revenue NY rev (3m)-9.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.89 | ||
| Fwd PE | 17.06 | ||
| P/S | 3.41 | ||
| P/FCF | 31.49 | ||
| P/OCF | 22.69 | ||
| P/B | 3.4 | ||
| P/tB | 9 | ||
| EV/EBITDA | 11.55 |
EPS(TTM)1.7
EY5.92%
EPS(NY)1.68
Fwd EY5.86%
FCF(TTM)0.91
FCFY3.18%
OCF(TTM)1.27
OCFY4.41%
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 | 4.2 |
F-Score3
WACC9.69%
ROIC/WACC1.37
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-1.02%
EPS Next 2Y1.98%
EPS Next 3Y3.96%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.86%
Revenue growth 3Y0.35%
Revenue growth 5Y3.4%
Sales Q2Q%-7.26%
Revenue Next Year-5.09%
Revenue Next 2Y-1.6%
Revenue Next 3Y0.31%
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%