BROWN-FORMAN CORP-CLASS B (BF.B) Fundamental Analysis & Valuation
NYSE:BF.B • US1156372096
23.385 USD
-0.83 (-3.45%)
Last: Mar 12, 2026, 01:58 PM
This BF.B fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
We assign a fundamental rating of 6 out of 10 to BF.B. BF.B was compared to 33 industry peers in the Beverages industry. BF.B scores excellent points on both the profitability and health parts. This is a solid base for a good stock. BF.B has a valuation in line with the averages, but it does not seem to be growing.
1. BF.B Profitability Analysis
1.1 Basic Checks
- In the past year BF.B was profitable.
- BF.B had a positive operating cash flow in the past year.
- Each year in the past 5 years BF.B has been profitable.
- BF.B had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- BF.B's Return On Assets of 9.72% is fine compared to the rest of the industry. BF.B outperforms 78.79% of its industry peers.
- BF.B has a better Return On Equity (19.77%) than 69.70% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 13.34%, BF.B is in the better half of the industry, outperforming 78.79% of the companies in the same industry.
- BF.B had an Average Return On Invested Capital over the past 3 years of 13.40%. This is in line with the industry average of 11.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.72% | ||
| ROE | 19.77% | ||
| ROIC | 13.34% |
ROA(3y)11.12%
ROA(5y)12.07%
ROE(3y)24.95%
ROE(5y)27.89%
ROIC(3y)13.4%
ROIC(5y)14.48%
1.3 Margins
- With an excellent Profit Margin value of 20.64%, BF.B belongs to the best of the industry, outperforming 90.91% 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 30.31% is amongst the best of the industry. BF.B outperforms 96.97% of its industry peers.
- BF.B's Operating Margin has declined in the last couple of years.
- BF.B's Gross Margin of 59.34% is amongst the best of the industry. BF.B outperforms 81.82% 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 | 30.31% | ||
| PM (TTM) | 20.64% | ||
| GM | 59.34% |
OM growth 3Y-0.41%
OM growth 5Y-1.88%
PM growth 3Y0.86%
PM growth 5Y-2.33%
GM growth 3Y-1.02%
GM growth 5Y-1.4%
2. BF.B Health Analysis
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.
- 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
- BF.B has an Altman-Z score of 3.78. This indicates that BF.B is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 3.78, BF.B is doing good in the industry, outperforming 69.70% of the companies in the same industry.
- The Debt to FCF ratio of BF.B is 3.76, which is a good value as it means it would take BF.B, 3.76 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 3.76, BF.B is doing good in the industry, outperforming 78.79% of the companies in the same industry.
- A Debt/Equity ratio of 0.59 indicates that BF.B is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.59, BF.B is in line with its industry, outperforming 54.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.76 | ||
| Altman-Z | 3.78 |
ROIC/WACC1.74
WACC7.65%
2.3 Liquidity
- A Current Ratio of 2.77 indicates that BF.B has no problem at all paying its short term obligations.
- With an excellent Current ratio value of 2.77, BF.B belongs to the best of the industry, outperforming 84.85% of the companies in the same industry.
- A Quick Ratio of 1.09 indicates that BF.B should not have too much problems paying its short term obligations.
- With a decent Quick ratio value of 1.09, BF.B is doing good in the industry, outperforming 75.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.77 | ||
| Quick Ratio | 1.09 |
3. BF.B Growth Analysis
3.1 Past
- BF.B shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.79%.
- 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.
- The Revenue has decreased by -3.34% 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)-11.79%
EPS 3Y-0.77%
EPS 5Y-0.35%
EPS Q2Q%34.88%
Revenue 1Y (TTM)-3.34%
Revenue growth 3Y0.35%
Revenue growth 5Y3.4%
Sales Q2Q%2.03%
3.2 Future
- The Earnings Per Share is expected to grow by 3.70% on average over the next years.
- The Revenue is expected to grow by 0.08% on average over the next years.
EPS Next Y-0.91%
EPS Next 2Y2.03%
EPS Next 3Y3.7%
EPS Next 5YN/A
Revenue Next Year-5.01%
Revenue Next 2Y-1.64%
Revenue Next 3Y0.08%
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. BF.B Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 13.60 indicates a correct valuation of BF.B.
- Based on the Price/Earnings ratio, BF.B is valued a bit cheaper than 75.76% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 26.15. BF.B is valued slightly cheaper when compared to this.
- Based on the Price/Forward Earnings ratio of 13.21, the valuation of BF.B can be described as correct.
- 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 75.76% of the companies listed in the same industry.
- BF.B's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.6 | ||
| Fwd PE | 13.21 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BF.B indicates a somewhat cheap valuation: BF.B is cheaper than 72.73% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, BF.B is valued cheaper than 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.84 | ||
| EV/EBITDA | 10.42 |
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 2Y2.03%
EPS Next 3Y3.7%
5. BF.B Dividend Analysis
5.1 Amount
- BF.B has a Yearly Dividend Yield of 3.64%. Purely for dividend investing, there may be better candidates out there.
- The stock price of BF.B dropped by -21.26% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
- BF.B's Dividend Yield is rather good when compared to the industry average which is at 1.69. BF.B pays more dividend than 84.85% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, BF.B pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.64% |
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 53.04% 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.
DP53.04%
EPS Next 2Y2.03%
EPS Next 3Y3.7%
BF.B Fundamentals: All Metrics, Ratios and Statistics
NYSE:BF.B (3/12/2026, 1:58:06 PM)
23.385
-0.83 (-3.45%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)03-04 2026-03-04/bmo
Earnings (Next)06-03 2026-06-03/bmo
Inst Owners75.82%
Inst Owner Change4.43%
Ins Owners1.95%
Ins Owner ChangeN/A
Market Cap10.83B
Revenue(TTM)3.91B
Net Income(TTM)807.00M
Analysts53.33
Price Target31.67 (35.43%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.64% |
Yearly Dividend0.89
Dividend Growth(5Y)5.49%
DP53.04%
Div Incr Years1
Div Non Decr Years1
Ex-Date03-09 2026-03-09 (0.231)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)9.89%
Min EPS beat(2)-2.83%
Max EPS beat(2)22.62%
EPS beat(4)1
Avg EPS beat(4)1.32%
Min EPS beat(4)-11.43%
Max EPS beat(4)22.62%
EPS beat(8)3
Avg EPS beat(8)3.1%
EPS beat(12)4
Avg EPS beat(12)1.05%
EPS beat(16)6
Avg EPS beat(16)-1.86%
Revenue beat(2)1
Avg Revenue beat(2)1.62%
Min Revenue beat(2)-0.38%
Max Revenue beat(2)3.63%
Revenue beat(4)1
Avg Revenue beat(4)-1.63%
Min Revenue beat(4)-9.4%
Max Revenue beat(4)3.63%
Revenue beat(8)1
Avg Revenue beat(8)-3.35%
Revenue beat(12)2
Avg Revenue beat(12)-3.23%
Revenue beat(16)5
Avg Revenue beat(16)-1.06%
PT rev (1m)0%
PT rev (3m)-1.17%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)-1.34%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)0.09%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-0.59%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.6 | ||
| Fwd PE | 13.21 | ||
| P/S | 2.77 | ||
| P/FCF | 14.84 | ||
| P/OCF | 12.58 | ||
| P/B | 2.65 | ||
| P/tB | 7.43 | ||
| EV/EBITDA | 10.42 |
EPS(TTM)1.72
EY7.36%
EPS(NY)1.77
Fwd EY7.57%
FCF(TTM)1.58
FCFY6.74%
OCF(TTM)1.86
OCFY7.95%
SpS8.44
BVpS8.81
TBVpS3.15
PEG (NY)N/A
PEG (5Y)N/A
Graham Number18.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.72% | ||
| ROE | 19.77% | ||
| ROCE | 17.5% | ||
| ROIC | 13.34% | ||
| ROICexc | 14.11% | ||
| ROICexgc | 23.22% | ||
| OM | 30.31% | ||
| PM (TTM) | 20.64% | ||
| GM | 59.34% | ||
| FCFM | 18.67% |
ROA(3y)11.12%
ROA(5y)12.07%
ROE(3y)24.95%
ROE(5y)27.89%
ROIC(3y)13.4%
ROIC(5y)14.48%
ROICexc(3y)14.25%
ROICexc(5y)16.39%
ROICexgc(3y)22.92%
ROICexgc(5y)25.06%
ROCE(3y)17.63%
ROCE(5y)18.8%
ROICexgc growth 3Y-10.76%
ROICexgc growth 5Y-5.03%
ROICexc growth 3Y-13.41%
ROICexc growth 5Y-6.6%
OM growth 3Y-0.41%
OM growth 5Y-1.88%
PM growth 3Y0.86%
PM growth 5Y-2.33%
GM growth 3Y-1.02%
GM growth 5Y-1.4%
F-Score6
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.76 | ||
| Debt/EBITDA | 1.88 | ||
| Cap/Depr | 147.19% | ||
| Cap/Sales | 3.35% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 67.58% | ||
| Profit Quality | 90.46% | ||
| Current Ratio | 2.77 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 3.78 |
F-Score6
WACC7.65%
ROIC/WACC1.74
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)-11.79%
EPS 3Y-0.77%
EPS 5Y-0.35%
EPS Q2Q%34.88%
EPS Next Y-0.91%
EPS Next 2Y2.03%
EPS Next 3Y3.7%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.34%
Revenue growth 3Y0.35%
Revenue growth 5Y3.4%
Sales Q2Q%2.03%
Revenue Next Year-5.01%
Revenue Next 2Y-1.64%
Revenue Next 3Y0.08%
Revenue Next 5YN/A
EBIT growth 1Y3.04%
EBIT growth 3Y-0.06%
EBIT growth 5Y1.46%
EBIT Next Year2.67%
EBIT Next 3Y3.57%
EBIT Next 5YN/A
FCF growth 1Y93.63%
FCF growth 3Y-18.93%
FCF growth 5Y-6.56%
OCF growth 1Y45.44%
OCF growth 3Y-13.87%
OCF growth 5Y-3.75%
BROWN-FORMAN CORP-CLASS B / BF.B FAQ
What is the fundamental rating for BF.B stock?
ChartMill assigns a fundamental rating of 6 / 10 to BF.B.
Can you provide the valuation status for BROWN-FORMAN CORP-CLASS B?
ChartMill assigns a valuation rating of 5 / 10 to BROWN-FORMAN CORP-CLASS B (BF.B). This can be considered as Fairly Valued.
What is the profitability of BF.B stock?
BROWN-FORMAN CORP-CLASS B (BF.B) has a profitability rating of 7 / 10.
What is the financial health of BROWN-FORMAN CORP-CLASS B (BF.B) stock?
The financial health rating of BROWN-FORMAN CORP-CLASS B (BF.B) is 7 / 10.
Can you provide the dividend sustainability for BF.B stock?
The dividend rating of BROWN-FORMAN CORP-CLASS B (BF.B) is 5 / 10 and the dividend payout ratio is 53.04%.