BROWN-FORMAN CORP-CLASS B (BF.B) Stock Fundamental Analysis
NYSE:BF.B - US1156372096 - Common Stock
31.26 USD
+0.8 (+2.63%)
31.26 USD
0 (0%)
Taking everything into account, BF.B scores 6 out of 10 in our fundamental rating. BF.B was compared to 33 industry peers in the Beverages industry. BF.B gets an excellent profitability rating and is at the same time showing great financial health properties. BF.B has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year BF.B was profitable.
BF.B had a positive operating cash flow in the past year.
In the past 5 years BF.B has always been profitable.
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 10.75%, BF.B belongs to the top of the industry, outperforming 87.88% of the companies in the same industry.
BF.B's Return On Equity of 21.76% is fine compared to the rest of the industry. BF.B outperforms 75.76% 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 78.79% 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 11.01%.
| 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
BF.B has a better Profit Margin (21.86%) than 96.97% of its industry peers.
BF.B's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 30.79%, BF.B belongs to the best of the industry, outperforming 96.97% of the companies in the same industry.
BF.B's Operating Margin has been stable in the last couple of years.
BF.B has a better Gross Margin (58.94%) than 87.88% 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
BF.B has an Altman-Z score of 4.38. This indicates that BF.B is financially healthy and has little risk of bankruptcy at the moment.
BF.B's Altman-Z score of 4.38 is fine compared to the rest of the industry. BF.B outperforms 72.73% of its industry peers.
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 69.70% of its industry peers.
A Debt/Equity ratio of 0.68 indicates that BF.B is somewhat dependend on debt financing.
BF.B has a Debt to Equity ratio (0.68) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 6.34 | ||
| Altman-Z | 4.38 |
ROIC/WACC1.67
WACC7.97%
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 has a Current ratio of 3.88. This is amongst the best in the industry. BF.B outperforms 100.00% 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.
With a decent Quick ratio value of 1.56, BF.B is doing good in the industry, outperforming 78.79% 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.
The Revenue has decreased by -4.86% in the past year.
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)-20.56%
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 0.26% on average per year.
EPS Next Y-0.88%
EPS Next 2Y2.09%
EPS Next 3Y4.14%
EPS Next 5YN/A
Revenue Next Year-5.06%
Revenue Next 2Y-1.59%
Revenue Next 3Y0.26%
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
With a Price/Earnings ratio of 18.39, BF.B is valued on the expensive side.
69.70% of the companies in the same industry are more expensive than BF.B, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of BF.B to the average of the S&P500 Index (27.24), we can say BF.B is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 18.55, the valuation of BF.B can be described as rather expensive.
60.61% of the companies in the same industry are more expensive than BF.B, based on the Price/Forward Earnings ratio.
BF.B is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.39 | ||
| Fwd PE | 18.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BF.B is valued a bit cheaper than 66.67% of the companies in the same industry.
BF.B's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BF.B is cheaper than 60.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.29 | ||
| EV/EBITDA | 12.49 |
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 2Y2.09%
EPS Next 3Y4.14%
5. Dividend
5.1 Amount
BF.B has a Yearly Dividend Yield of 2.97%.
Compared to an average industry Dividend Yield of 2.80, 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
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.
The dividend of BF.B decreased 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%
31.26
+0.8 (+2.63%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners66.01%
Inst Owner Change-1.28%
Ins Owners2.1%
Ins Owner ChangeN/A
Market Cap14.78B
Analysts56.15
Price Target32.23 (3.1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
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)0.83%
EPS NQ rev (3m)-8.41%
EPS NY rev (1m)0%
EPS NY rev (3m)-11.41%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)-5.09%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.39 | ||
| Fwd PE | 18.55 | ||
| P/S | 3.72 | ||
| P/FCF | 34.29 | ||
| P/OCF | 24.71 | ||
| P/B | 3.7 | ||
| P/tB | 9.81 | ||
| EV/EBITDA | 12.49 |
EPS(TTM)1.7
EY5.44%
EPS(NY)1.68
Fwd EY5.39%
FCF(TTM)0.91
FCFY2.92%
OCF(TTM)1.26
OCFY4.05%
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 | 4.38 |
F-Score3
WACC7.97%
ROIC/WACC1.67
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-5.06%
Revenue Next 2Y-1.59%
Revenue Next 3Y0.26%
Revenue Next 5YN/A
EBIT growth 1Y6.07%
EBIT growth 3Y0.61%
EBIT growth 5Y1.86%
EBIT Next Year3.35%
EBIT Next 3Y4.44%
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%