BROWN-FORMAN CORP-CLASS B (BF.B) Stock Fundamental Analysis
NYSE:BF.B - New York Stock Exchange, Inc. - US1156372096 - Common Stock - Currency: USD
Taking everything into account, BF.B scores 5 out of 10 in our fundamental rating. BF.B was compared to 32 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 is valued expensive and 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.
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
BF.B has a better Return On Assets (12.25%) than 87.50% of its industry peers.
BF.B's Return On Equity of 25.87% is fine compared to the rest of the industry. BF.B outperforms 75.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.72%, BF.B is in the better half of the industry, outperforming 65.63% 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 11.91%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.25% | ||
| ROE | 25.87% | ||
| ROIC | 12.72% |
ROA(3y)11.92%
ROA(5y)12.79%
ROE(3y)27.9%
ROE(5y)31.91%
ROIC(3y)14.71%
ROIC(5y)14.95%
1.3 Margins
With an excellent Profit Margin value of 24.45%, BF.B belongs to the best of the industry, outperforming 96.88% of the companies in the same industry.
In the last couple of years the Profit Margin of BF.B has remained more or less at the same level.
BF.B's Operating Margin of 28.43% is amongst the best of the industry. BF.B outperforms 90.63% of its industry peers.
In the last couple of years the Operating Margin of BF.B has declined.
BF.B has a better Gross Margin (59.31%) than 81.25% 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 | 28.43% | ||
| PM (TTM) | 24.45% | ||
| GM | 59.31% |
OM growth 3Y-2.74%
OM growth 5Y-4.4%
PM growth 3Y-2.06%
PM growth 5Y-0.49%
GM growth 3Y-0.02%
GM growth 5Y-1.49%
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.
The number of shares outstanding for BF.B has been reduced compared to 1 year ago.
The number of shares outstanding for BF.B has been reduced compared to 5 years ago.
BF.B has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.60 indicates that BF.B is not in any danger for bankruptcy at the moment.
BF.B's Altman-Z score of 4.60 is fine compared to the rest of the industry. BF.B outperforms 78.13% of its industry peers.
The Debt to FCF ratio of BF.B is 5.36, which is a neutral value as it means it would take BF.B, 5.36 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.36, 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/Equity ratio of 0.67. This is a neutral value indicating BF.B is somewhat dependend on debt financing.
BF.B has a Debt to Equity ratio (0.67) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 5.36 | ||
| Altman-Z | 4.6 |
ROIC/WACC1.55
WACC8.21%
2.3 Liquidity
BF.B has a Current Ratio of 3.49. This indicates that BF.B is financially healthy and has no problem in meeting its short term obligations.
BF.B has a better Current ratio (3.49) than 90.63% of its industry peers.
BF.B has a Quick Ratio of 1.49. This is a normal value and indicates that BF.B is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of BF.B (1.49) is better than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.49 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
BF.B shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.99%.
The Earnings Per Share has been growing slightly by 4.35% on average over the past years.
Looking at the last year, BF.B shows a decrease in Revenue. The Revenue has decreased by -5.05% in the last year.
Measured over the past years, BF.B shows a small growth in Revenue. The Revenue has been growing by 4.68% on average per year.
EPS 1Y (TTM)-2.99%
EPS 3Y10.18%
EPS 5Y4.35%
EPS Q2Q%-28.33%
Revenue 1Y (TTM)-5.05%
Revenue growth 3Y6.48%
Revenue growth 5Y4.68%
Sales Q2Q%-3.18%
3.2 Future
Based on estimates for the next years, BF.B will show a decrease in Earnings Per Share. The EPS will decrease by -1.23% 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 0.47% on average per year.
EPS Next Y-13.22%
EPS Next 2Y-5.73%
EPS Next 3Y-1.23%
EPS Next 5YN/A
Revenue Next Year-4.6%
Revenue Next 2Y-1.33%
Revenue Next 3Y0.47%
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 decreasing.
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
The Price/Earnings ratio is 18.14, which indicates a rather expensive current valuation of BF.B.
65.63% of the companies in the same industry are more expensive than BF.B, based on the Price/Earnings ratio.
BF.B is valuated rather cheaply when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 18.60 indicates a rather expensive valuation of BF.B.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BF.B indicates a somewhat cheap valuation: BF.B is cheaper than 65.63% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.43, BF.B is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.14 | ||
| Fwd PE | 18.6 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BF.B is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as BF.B.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.32 | ||
| EV/EBITDA | 15.19 |
4.3 Compensation for Growth
The decent profitability rating of BF.B may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.18
EPS Next 2Y-5.73%
EPS Next 3Y-1.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.55%, BF.B has a reasonable but not impressive dividend return.
BF.B's Dividend Yield is a higher than the industry average which is at 2.84.
Compared to an average S&P500 Dividend Yield of 2.36, BF.B has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
5.2 History
The dividend of BF.B has a limited annual growth rate of 5.58%.
BF.B has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.58%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
BF.B pays out 42.16% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP42.16%
EPS Next 2Y-5.73%
EPS Next 3Y-1.23%
35.38
-0.27 (-0.76%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners61.05%
Inst Owner Change7.13%
Ins Owners0.39%
Ins Owner ChangeN/A
Market Cap16.72B
Analysts56
Price Target40.5 (14.47%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
Yearly Dividend0.85
Dividend Growth(5Y)5.58%
DP42.16%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.68%
Min EPS beat(2)-8.35%
Max EPS beat(2)9.71%
EPS beat(4)2
Avg EPS beat(4)4.88%
Min EPS beat(4)-12.45%
Max EPS beat(4)30.61%
EPS beat(8)3
Avg EPS beat(8)0.91%
EPS beat(12)5
Avg EPS beat(12)-2.92%
EPS beat(16)6
Avg EPS beat(16)-3.66%
Revenue beat(2)0
Avg Revenue beat(2)-2.83%
Min Revenue beat(2)-5.48%
Max Revenue beat(2)-0.18%
Revenue beat(4)0
Avg Revenue beat(4)-5.06%
Min Revenue beat(4)-8.1%
Max Revenue beat(4)-0.18%
Revenue beat(8)1
Avg Revenue beat(8)-4.03%
Revenue beat(12)4
Avg Revenue beat(12)-0.88%
Revenue beat(16)7
Avg Revenue beat(16)-0.25%
PT rev (1m)-1.58%
PT rev (3m)-13.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.76%
EPS NY rev (1m)0%
EPS NY rev (3m)1.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.31%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-1.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.14 | ||
| Fwd PE | 18.6 | ||
| P/S | 4.13 | ||
| P/FCF | 31.32 | ||
| P/OCF | 22.88 | ||
| P/B | 4.37 | ||
| P/tB | 11.82 | ||
| EV/EBITDA | 15.19 |
EPS(TTM)1.95
EY5.51%
EPS(NY)1.9
Fwd EY5.38%
FCF(TTM)1.13
FCFY3.19%
OCF(TTM)1.55
OCFY4.37%
SpS8.56
BVpS8.09
TBVpS2.99
PEG (NY)N/A
PEG (5Y)4.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.25% | ||
| ROE | 25.87% | ||
| ROCE | 16.8% | ||
| ROIC | 12.72% | ||
| ROICexc | 13.9% | ||
| ROICexgc | 22.19% | ||
| OM | 28.43% | ||
| PM (TTM) | 24.45% | ||
| GM | 59.31% | ||
| FCFM | 13.2% |
ROA(3y)11.92%
ROA(5y)12.79%
ROE(3y)27.9%
ROE(5y)31.91%
ROIC(3y)14.71%
ROIC(5y)14.95%
ROICexc(3y)16.39%
ROICexc(5y)17.15%
ROICexgc(3y)25.33%
ROICexgc(5y)25.78%
ROCE(3y)19.43%
ROCE(5y)19.94%
ROICexcg growth 3Y-4.95%
ROICexcg growth 5Y-6.95%
ROICexc growth 3Y-7.74%
ROICexc growth 5Y-8.21%
OM growth 3Y-2.74%
OM growth 5Y-4.4%
PM growth 3Y-2.06%
PM growth 5Y-0.49%
GM growth 3Y-0.02%
GM growth 5Y-1.49%
F-Score5
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 5.36 | ||
| Debt/EBITDA | 2.07 | ||
| Cap/Depr | 226.44% | ||
| Cap/Sales | 4.87% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 59.09% | ||
| Profit Quality | 53.99% | ||
| Current Ratio | 3.49 | ||
| Quick Ratio | 1.49 | ||
| Altman-Z | 4.6 |
F-Score5
WACC8.21%
ROIC/WACC1.55
Cap/Depr(3y)217.19%
Cap/Depr(5y)179.36%
Cap/Sales(3y)4.34%
Cap/Sales(5y)3.69%
Profit Quality(3y)65.27%
Profit Quality(5y)70.45%
High Growth Momentum
Growth
EPS 1Y (TTM)-2.99%
EPS 3Y10.18%
EPS 5Y4.35%
EPS Q2Q%-28.33%
EPS Next Y-13.22%
EPS Next 2Y-5.73%
EPS Next 3Y-1.23%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.05%
Revenue growth 3Y6.48%
Revenue growth 5Y4.68%
Sales Q2Q%-3.18%
Revenue Next Year-4.6%
Revenue Next 2Y-1.33%
Revenue Next 3Y0.47%
Revenue Next 5YN/A
EBIT growth 1Y-7.78%
EBIT growth 3Y3.56%
EBIT growth 5Y0.07%
EBIT Next Year-5.19%
EBIT Next 3Y2.59%
EBIT Next 5YN/A
FCF growth 1Y10.79%
FCF growth 3Y-17.71%
FCF growth 5Y-9.2%
OCF growth 1Y10.26%
OCF growth 3Y-7.48%
OCF growth 5Y-4.16%