BROWN-FORMAN CORP-CLASS B (BF.B) Stock Fundamental Analysis
NYSE:BF.B - New York Stock Exchange, Inc. - US1156372096 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to BF.B. 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
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
With an excellent Return On Assets value of 10.75%, BF.B belongs to the best of the industry, outperforming 90.63% of the companies in the same industry.
With a decent Return On Equity value of 21.76%, BF.B is doing good in the industry, outperforming 71.88% of the companies in the same industry.
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.
The Average Return On Invested Capital over the past 3 years 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
BF.B has a better Profit Margin (21.86%) than 96.88% of its industry peers.
In the last couple of years the Profit Margin of BF.B has declined.
Looking at the Operating Margin, with a value of 30.79%, BF.B belongs to the top of the industry, outperforming 96.88% 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 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
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 remains at a similar level compared to 1 year ago.
BF.B has less shares outstanding than it did 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 4.26. 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 4.26, BF.B is in the better half of the industry, outperforming 71.88% of the companies in the same industry.
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.
BF.B has a better Debt to FCF ratio (6.34) than 65.63% of its industry peers.
BF.B has a Debt/Equity ratio of 0.68. This is a neutral value indicating BF.B is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.68, BF.B perfoms like the industry average, outperforming 53.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 6.34 | ||
| Altman-Z | 4.26 |
ROIC/WACC1.37
WACC9.69%
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.
Looking at the Current ratio, with a value of 3.88, BF.B belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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.
BF.B has a better Quick ratio (1.56) 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.
The Earnings Per Share has been decreasing by -0.35% on average over the past years.
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
Based on estimates for the next years, BF.B will show a small growth in Earnings Per Share. The EPS will grow by 3.96% on average per year.
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
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 16.76, BF.B is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of BF.B indicates a somewhat cheap valuation: BF.B is cheaper than 75.00% of the companies listed in the same industry.
BF.B is valuated rather cheaply when we compare the Price/Earnings ratio to 27.28, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 16.93, BF.B is valued correctly.
68.75% 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 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.76 | ||
| Fwd PE | 16.93 |
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.
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 62.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.24 | ||
| EV/EBITDA | 11.86 |
4.3 Compensation for Growth
The decent profitability rating of BF.B 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 3.13, 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.
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 2Y1.98%
EPS Next 3Y3.96%
NYSE:BF.B (7/3/2025, 9:38:04 AM)
28.485
-0.23 (-0.78%)
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 Cap13.46B
Analysts56
Price Target32.96 (15.71%)
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 | 16.76 | ||
| Fwd PE | 16.93 | ||
| P/S | 3.39 | ||
| P/FCF | 31.24 | ||
| P/OCF | 22.52 | ||
| P/B | 3.37 | ||
| P/tB | 8.93 | ||
| EV/EBITDA | 11.86 |
EPS(TTM)1.7
EY5.97%
EPS(NY)1.68
Fwd EY5.91%
FCF(TTM)0.91
FCFY3.2%
OCF(TTM)1.27
OCFY4.44%
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 | 4.26 |
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%