BROWN-FORMAN CORP-CLASS A (BF.A) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BF.A - US1156371007 - Common Stock
28.05 USD
+0.06 (+0.21%)
28.05 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to BF.A. BF.A was compared to 33 industry peers in the Beverages industry. BF.A gets an excellent profitability rating and is at the same time showing great financial health properties. BF.A has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year BF.A was profitable.
In the past year BF.A had a positive cash flow from operations.
Each year in the past 5 years BF.A has been profitable.
BF.A 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 10.33%, BF.A belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
BF.A's Return On Equity of 21.16% is fine compared to the rest of the industry. BF.A outperforms 72.73% of its industry peers.
BF.A's Return On Invested Capital of 13.57% is fine compared to the rest of the industry. BF.A outperforms 78.79% of its industry peers.
BF.A had an Average Return On Invested Capital over the past 3 years of 13.49%. This is in line with the industry average of 11.60%.
The 3 year average ROIC (13.49%) for BF.A is below the current ROIC(13.57%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.33% | ||
| ROE | 21.16% | ||
| ROIC | 13.57% |
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
Looking at the Profit Margin, with a value of 21.38%, BF.A belongs to the top of the industry, outperforming 93.94% of the companies in the same industry.
BF.A's Profit Margin has declined in the last couple of years.
The Operating Margin of BF.A (30.02%) is better than 93.94% of its industry peers.
In the last couple of years the Operating Margin of BF.A has remained more or less at the same level.
BF.A has a better Gross Margin (59.02%) than 84.85% of its industry peers.
BF.A's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.02% | ||
| PM (TTM) | 21.38% | ||
| GM | 59.02% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BF.A is creating some value.
The number of shares outstanding for BF.A remains at a similar level compared to 1 year ago.
Compared to 5 years ago, BF.A has less shares outstanding
Compared to 1 year ago, BF.A has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.06 indicates that BF.A is not in any danger for bankruptcy at the moment.
BF.A has a Altman-Z score of 4.06. This is in the better half of the industry: BF.A outperforms 69.70% of its industry peers.
The Debt to FCF ratio of BF.A is 4.63, which is a neutral value as it means it would take BF.A, 4.63 years of fcf income to pay off all of its debts.
BF.A has a better Debt to FCF ratio (4.63) than 75.76% of its industry peers.
A Debt/Equity ratio of 0.59 indicates that BF.A is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.59, BF.A perfoms like the industry average, outperforming 51.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.63 | ||
| Altman-Z | 4.06 |
ROIC/WACC1.76
WACC7.72%
2.3 Liquidity
BF.A has a Current Ratio of 2.79. This indicates that BF.A is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.79, BF.A belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.
A Quick Ratio of 1.06 indicates that BF.A should not have too much problems paying its short term obligations.
BF.A has a better Quick ratio (1.06) than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.79 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
BF.A shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.29%.
The Earnings Per Share has been decreasing by -0.35% on average over the past years.
BF.A shows a decrease in Revenue. In the last year, the revenue decreased by -3.50%.
Measured over the past years, BF.A shows a small growth in Revenue. The Revenue has been growing by 3.40% on average per year.
EPS 1Y (TTM)-20.29%
EPS 3Y-0.77%
EPS 5Y-0.35%
EPS Q2Q%-12.2%
Revenue 1Y (TTM)-3.5%
Revenue growth 3Y0.35%
Revenue growth 5Y3.4%
Sales Q2Q%-2.84%
3.2 Future
BF.A is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.89% yearly.
BF.A is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.23% yearly.
EPS Next Y-1.13%
EPS Next 2Y1.9%
EPS Next 3Y3.89%
EPS Next 5YN/A
Revenue Next Year-5.18%
Revenue Next 2Y-1.62%
Revenue Next 3Y0.23%
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.
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 17.00, BF.A is valued on the expensive side.
BF.A's Price/Earnings ratio is a bit cheaper when compared to the industry. BF.A is cheaper than 60.61% of the companies in the same industry.
When comparing the Price/Earnings ratio of BF.A to the average of the S&P500 Index (25.65), we can say BF.A is valued slightly cheaper.
A Price/Forward Earnings ratio of 15.89 indicates a correct valuation of BF.A.
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 60.61% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.45. BF.A is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17 | ||
| Fwd PE | 15.89 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BF.A is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as BF.A.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.71 | ||
| EV/EBITDA | 11.96 |
4.3 Compensation for Growth
The excellent profitability rating of BF.A may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.9%
EPS Next 3Y3.89%
5. Dividend
5.1 Amount
BF.A has a Yearly Dividend Yield of 3.31%. Purely for dividend investing, there may be better candidates out there.
BF.A's Dividend Yield is a higher than the industry average which is at 3.12.
BF.A's Dividend Yield is a higher than the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
5.2 History
The dividend of BF.A has a limited annual growth rate of 5.49%.
BF.A has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of BF.A decreased in the last 3 years.
Dividend Growth(5Y)5.49%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
BF.A pays out 50.24% of its income as dividend. This is a bit on the high side, but may be sustainable.
BF.A's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP50.24%
EPS Next 2Y1.9%
EPS Next 3Y3.89%
28.05
+0.06 (+0.21%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners66.8%
Inst Owner Change1.64%
Ins Owners2.09%
Ins Owner ChangeN/A
Market Cap13.26B
Revenue(TTM)3.95B
Net Income(TTM)844.00M
Analysts56.8
Price Target31.99 (14.05%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
Yearly Dividend0.89
Dividend Growth(5Y)5.49%
DP50.24%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.25%
Min EPS beat(2)-11.43%
Max EPS beat(2)-3.08%
EPS beat(4)1
Avg EPS beat(4)-3.29%
Min EPS beat(4)-11.43%
Max EPS beat(4)9.71%
EPS beat(8)3
Avg EPS beat(8)0.74%
EPS beat(12)3
Avg EPS beat(12)-5.91%
EPS beat(16)6
Avg EPS beat(16)-2.93%
Revenue beat(2)0
Avg Revenue beat(2)-4.88%
Min Revenue beat(2)-9.4%
Max Revenue beat(2)-0.37%
Revenue beat(4)0
Avg Revenue beat(4)-3.86%
Min Revenue beat(4)-9.4%
Max Revenue beat(4)-0.18%
Revenue beat(8)0
Avg Revenue beat(8)-5.28%
Revenue beat(12)2
Avg Revenue beat(12)-3.24%
Revenue beat(16)5
Avg Revenue beat(16)-1.49%
PT rev (1m)0.15%
PT rev (3m)-0.68%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)-2.58%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.33%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)-1.7%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17 | ||
| Fwd PE | 15.89 | ||
| P/S | 3.36 | ||
| P/FCF | 22.71 | ||
| P/OCF | 17.9 | ||
| P/B | 3.33 | ||
| P/tB | 9.4 | ||
| EV/EBITDA | 11.96 |
EPS(TTM)1.65
EY5.88%
EPS(NY)1.77
Fwd EY6.29%
FCF(TTM)1.24
FCFY4.4%
OCF(TTM)1.57
OCFY5.59%
SpS8.35
BVpS8.44
TBVpS2.98
PEG (NY)N/A
PEG (5Y)N/A
Graham Number17.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.33% | ||
| ROE | 21.16% | ||
| ROCE | 17.76% | ||
| ROIC | 13.57% | ||
| ROICexc | 14.55% | ||
| ROICexgc | 24.15% | ||
| OM | 30.02% | ||
| PM (TTM) | 21.38% | ||
| GM | 59.02% | ||
| FCFM | 14.79% |
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%
ROICexgc growth 3Y-10.17%
ROICexgc 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-Score4
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.63 | ||
| Debt/EBITDA | 1.85 | ||
| Cap/Depr | 180.46% | ||
| Cap/Sales | 3.98% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 58.25% | ||
| Profit Quality | 69.19% | ||
| Current Ratio | 2.79 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 4.06 |
F-Score4
WACC7.72%
ROIC/WACC1.76
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)-20.29%
EPS 3Y-0.77%
EPS 5Y-0.35%
EPS Q2Q%-12.2%
EPS Next Y-1.13%
EPS Next 2Y1.9%
EPS Next 3Y3.89%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.5%
Revenue growth 3Y0.35%
Revenue growth 5Y3.4%
Sales Q2Q%-2.84%
Revenue Next Year-5.18%
Revenue Next 2Y-1.62%
Revenue Next 3Y0.23%
Revenue Next 5YN/A
EBIT growth 1Y5.8%
EBIT growth 3Y0.61%
EBIT growth 5Y1.86%
EBIT Next Year3.53%
EBIT Next 3Y4.23%
EBIT Next 5YN/A
FCF growth 1Y90.85%
FCF growth 3Y-18.93%
FCF growth 5Y-6.56%
OCF growth 1Y46.73%
OCF growth 3Y-13.87%
OCF growth 5Y-3.75%
BROWN-FORMAN CORP-CLASS A / BF.A FAQ
What is the fundamental rating for BF.A stock?
ChartMill assigns a fundamental rating of 6 / 10 to BF.A.
What is the valuation status of BROWN-FORMAN CORP-CLASS A (BF.A) stock?
ChartMill assigns a valuation rating of 4 / 10 to BROWN-FORMAN CORP-CLASS A (BF.A). This can be considered as Fairly Valued.
Can you provide the profitability details for BROWN-FORMAN CORP-CLASS A?
BROWN-FORMAN CORP-CLASS A (BF.A) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for BF.A stock?
The Price/Earnings (PE) ratio for BROWN-FORMAN CORP-CLASS A (BF.A) is 17 and the Price/Book (PB) ratio is 3.33.
How sustainable is the dividend of BROWN-FORMAN CORP-CLASS A (BF.A) stock?
The dividend rating of BROWN-FORMAN CORP-CLASS A (BF.A) is 5 / 10 and the dividend payout ratio is 50.24%.