BROWN-FORMAN CORP-CLASS A (BF.A) Stock Fundamental Analysis
NYSE:BF.A - New York Stock Exchange, Inc. - US1156371007 - Common Stock
BF.A gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 31 industry peers in the Beverages industry. BF.A scores excellent on profitability, but there are some minor concerns on its financial health. BF.A 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.A was profitable.
BF.A had a positive operating cash flow in the past year.
In the past 5 years BF.A has always been profitable.
BF.A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of BF.A (12.05%) is better than 89.29% of its industry peers.
BF.A has a better Return On Equity (27.10%) than 78.57% of its industry peers.
With a decent Return On Invested Capital value of 11.99%, BF.A is doing good in the industry, outperforming 60.71% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BF.A is in line with the industry average of 13.61%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.05% | ||
| ROE | 27.1% | ||
| ROIC | 11.99% |
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
BF.A has a better Profit Margin (24.61%) than 100.00% of its industry peers.
In the last couple of years the Profit Margin of BF.A has remained more or less at the same level.
Looking at the Operating Margin, with a value of 27.51%, BF.A belongs to the top of the industry, outperforming 89.29% of the companies in the same industry.
BF.A's Operating Margin has declined in the last couple of years.
The Gross Margin of BF.A (59.21%) is better than 82.14% of its industry peers.
BF.A's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.51% | ||
| PM (TTM) | 24.61% | ||
| GM | 59.21% |
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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BF.A is creating some value.
Compared to 1 year ago, BF.A has less shares outstanding
The number of shares outstanding for BF.A has been reduced compared to 5 years ago.
Compared to 1 year ago, BF.A has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.16 indicates that BF.A is not in any danger for bankruptcy at the moment.
The Altman-Z score of BF.A (4.16) is better than 67.86% of its industry peers.
The Debt to FCF ratio of BF.A is 6.99, which is on the high side as it means it would take BF.A, 6.99 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 6.99, BF.A is doing good in the industry, outperforming 60.71% of the companies in the same industry.
A Debt/Equity ratio of 0.78 indicates that BF.A is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.78, BF.A is in line with its industry, outperforming 53.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 6.99 | ||
| Altman-Z | 4.16 |
ROIC/WACC1.45
WACC8.29%
2.3 Liquidity
A Current Ratio of 2.70 indicates that BF.A has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.70, BF.A is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
BF.A has a Quick Ratio of 1.05. This is a normal value and indicates that BF.A is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.05, BF.A is doing good in the industry, outperforming 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.7 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 27.71% over the past year.
Measured over the past 5 years, BF.A shows a small growth in Earnings Per Share. The EPS has been growing by 4.35% on average per year.
Looking at the last year, BF.A shows a decrease in Revenue. The Revenue has decreased by -4.52% in the last year.
BF.A shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.68% yearly.
EPS 1Y (TTM)27.71%
EPS 3Y10.18%
EPS 5Y4.35%
EPS Q2Q%10%
Revenue 1Y (TTM)-4.52%
Revenue growth 3Y6.48%
Revenue growth 5Y4.68%
Sales Q2Q%-1.08%
3.2 Future
BF.A is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.19% yearly.
Based on estimates for the next years, BF.A will show a small growth in Revenue. The Revenue will grow by 1.96% on average per year.
EPS Next Y-13.98%
EPS Next 2Y-5.16%
EPS Next 3Y-0.19%
EPS Next 5YN/A
Revenue Next Year-2.8%
Revenue Next 2Y0.15%
Revenue Next 3Y1.96%
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.
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. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.84, the valuation of BF.A can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of BF.A indicates a rather cheap valuation: BF.A is cheaper than 82.14% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. BF.A is valued slightly cheaper when compared to this.
BF.A is valuated rather expensively with a Price/Forward Earnings ratio of 17.45.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BF.A indicates a somewhat cheap valuation: BF.A is cheaper than 60.71% of the companies listed in the same industry.
BF.A is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.84 | ||
| Fwd PE | 17.45 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BF.A.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BF.A is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.67 | ||
| EV/EBITDA | 15.13 |
4.3 Compensation for Growth
The decent profitability rating of BF.A may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.65
EPS Next 2Y-5.16%
EPS Next 3Y-0.19%
5. Dividend
5.1 Amount
BF.A has a Yearly Dividend Yield of 2.66%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of BF.A has falen by -29.19%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.21, BF.A has a dividend in line with its industry peers.
BF.A's Dividend Yield is comparable with the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
5.2 History
The dividend of BF.A has a limited annual growth rate of 5.58%.
BF.A has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of BF.A decreased recently.
Dividend Growth(5Y)5.58%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
41.14% of the earnings are spent on dividend by BF.A. This is a bit on the high side, but may be sustainable.
DP41.14%
EPS Next 2Y-5.16%
EPS Next 3Y-0.19%
BROWN-FORMAN CORP-CLASS A
NYSE:BF.A (1/21/2025, 8:04:00 PM)
After market: 33.59 0 (0%)33.59
-0.4 (-1.18%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners58.6%
Inst Owner Change-0.1%
Ins Owners0.4%
Ins Owner ChangeN/A
Market Cap15.88B
Analysts55.2
Price Target47.93 (42.69%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
Yearly Dividend0.85
Dividend Growth(5Y)5.58%
DP41.14%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.47%
Min EPS beat(2)-12.45%
Max EPS beat(2)9.52%
EPS beat(4)3
Avg EPS beat(4)7.94%
Min EPS beat(4)-12.45%
Max EPS beat(4)30.61%
EPS beat(8)3
Avg EPS beat(8)-4.02%
EPS beat(12)6
Avg EPS beat(12)-1.3%
EPS beat(16)7
Avg EPS beat(16)-3.02%
Revenue beat(2)0
Avg Revenue beat(2)-3.34%
Min Revenue beat(2)-6.49%
Max Revenue beat(2)-0.18%
Revenue beat(4)0
Avg Revenue beat(4)-5.27%
Min Revenue beat(4)-8.1%
Max Revenue beat(4)-0.18%
Revenue beat(8)2
Avg Revenue beat(8)-2.77%
Revenue beat(12)5
Avg Revenue beat(12)-0.14%
Revenue beat(16)7
Avg Revenue beat(16)0.03%
PT rev (1m)1.16%
PT rev (3m)-0.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.71%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.84 | ||
| Fwd PE | 17.45 | ||
| P/S | 3.89 | ||
| P/FCF | 34.67 | ||
| P/OCF | 23.38 | ||
| P/B | 4.29 | ||
| P/tB | 12.83 | ||
| EV/EBITDA | 15.13 |
EPS(TTM)2.12
EY6.31%
EPS(NY)1.92
Fwd EY5.73%
FCF(TTM)0.97
FCFY2.88%
OCF(TTM)1.44
OCFY4.28%
SpS8.63
BVpS7.84
TBVpS2.62
PEG (NY)N/A
PEG (5Y)3.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.05% | ||
| ROE | 27.1% | ||
| ROCE | 16.55% | ||
| ROIC | 11.99% | ||
| ROICexc | 12.72% | ||
| ROICexgc | 19.84% | ||
| OM | 27.51% | ||
| PM (TTM) | 24.61% | ||
| GM | 59.21% | ||
| FCFM | 11.23% |
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 Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 6.99 | ||
| Debt/EBITDA | 2.4 | ||
| Cap/Depr | 245.56% | ||
| Cap/Sales | 5.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 56.02% | ||
| Profit Quality | 45.62% | ||
| Current Ratio | 2.7 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | 4.16 |
F-Score5
WACC8.29%
ROIC/WACC1.45
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)27.71%
EPS 3Y10.18%
EPS 5Y4.35%
EPS Q2Q%10%
EPS Next Y-13.98%
EPS Next 2Y-5.16%
EPS Next 3Y-0.19%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.52%
Revenue growth 3Y6.48%
Revenue growth 5Y4.68%
Sales Q2Q%-1.08%
Revenue Next Year-2.8%
Revenue Next 2Y0.15%
Revenue Next 3Y1.96%
Revenue Next 5YN/A
EBIT growth 1Y-9.66%
EBIT growth 3Y3.56%
EBIT growth 5Y0.07%
EBIT Next Year-2.18%
EBIT Next 3Y3.6%
EBIT Next 5YN/A
FCF growth 1Y-39.9%
FCF growth 3Y-17.71%
FCF growth 5Y-9.2%
OCF growth 1Y-25.95%
OCF growth 3Y-7.48%
OCF growth 5Y-4.16%