BROWN-FORMAN CORP-CLASS A (BF.A) Stock Fundamental Analysis
USA - NYSE:BF.A - US1156371007 - Common Stock
27.22 USD
+0.1 (+0.37%)
27.22 USD
0 (0%)
BF.A gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 33 industry peers in the Beverages industry. BF.A has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. BF.A has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
BF.A had positive earnings in the past year.
BF.A had a positive operating cash flow in the past year.
In the past 5 years BF.A has always been profitable.
In the past 5 years BF.A always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 10.33%, BF.A belongs to the best 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 has a better Return On Invested Capital (13.57%) than 78.79% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BF.A is above the industry average of 10.75%.
The last Return On Invested Capital (13.57%) for BF.A is above the 3 year average (13.49%), which is a sign of increasing profitability.
| 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
BF.A's Profit Margin of 21.38% is amongst the best of the industry. BF.A outperforms 96.97% of its industry peers.
In the last couple of years the Profit Margin of BF.A has declined.
BF.A's Operating Margin of 30.02% is amongst the best of the industry. BF.A outperforms 93.94% of its industry peers.
BF.A's Operating Margin has been stable in the last couple of years.
The Gross Margin of BF.A (59.02%) is better 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
BF.A has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, BF.A has about the same amount of shares outstanding.
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 3.99 indicates that BF.A is not in any danger for bankruptcy at the moment.
The Altman-Z score of BF.A (3.99) is better than 69.70% of its industry peers.
BF.A has a debt to FCF ratio of 4.63. This is a neutral value as BF.A would need 4.63 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.63, BF.A is in the better half of the industry, outperforming 75.76% of the companies in the same industry.
A Debt/Equity ratio of 0.59 indicates that BF.A is somewhat dependend on debt financing.
BF.A has a Debt to Equity ratio (0.59) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.63 | ||
| Altman-Z | 3.99 |
ROIC/WACC1.76
WACC7.73%
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.
With an excellent Current ratio value of 2.79, BF.A belongs to the best of the industry, outperforming 84.85% of the companies in the same industry.
BF.A has a Quick Ratio of 1.06. This is a normal value and indicates that BF.A is financially healthy and should not expect problems in meeting its short term obligations.
BF.A's Quick ratio of 1.06 is fine compared to the rest of the industry. BF.A outperforms 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.79 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
The earnings per share for BF.A have decreased strongly by -20.29% in the last year.
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%.
The Revenue has been growing slightly by 3.40% on average over the past years.
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
The Earnings Per Share is expected to grow by 3.89% on average over the next years.
Based on estimates for the next years, BF.A will show a small growth in Revenue. The Revenue will grow by 0.23% on average per year.
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.
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
A Price/Earnings ratio of 16.50 indicates a correct valuation of BF.A.
66.67% of the companies in the same industry are more expensive than BF.A, based on the Price/Earnings ratio.
BF.A is valuated rather cheaply when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 15.42, which indicates a correct valuation of BF.A.
63.64% of the companies in the same industry are more expensive than BF.A, based on the Price/Forward Earnings ratio.
BF.A's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.53.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.5 | ||
| Fwd PE | 15.42 |
4.2 Price Multiples
BF.A's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BF.A is cheaper than 60.61% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BF.A is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.03 | ||
| EV/EBITDA | 11.61 |
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
With a Yearly Dividend Yield of 3.40%, BF.A has a reasonable but not impressive dividend return.
BF.A's Dividend Yield is a higher than the industry average which is at 3.05.
BF.A's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.4% |
5.2 History
The dividend of BF.A has a limited annual growth rate of 5.49%.
BF.A has been paying a dividend for at least 10 years, so it has 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%
27.22
+0.1 (+0.37%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners66.8%
Inst Owner Change0.73%
Ins Owners2.09%
Ins Owner ChangeN/A
Market Cap12.87B
Revenue(TTM)3.95B
Net Income(TTM)844.00M
Analysts56.92
Price Target31.92 (17.27%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.4% |
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)-3.98%
PT rev (3m)-1.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.32%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-0.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.7%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.5 | ||
| Fwd PE | 15.42 | ||
| P/S | 3.26 | ||
| P/FCF | 22.03 | ||
| P/OCF | 17.37 | ||
| P/B | 3.23 | ||
| P/tB | 9.13 | ||
| EV/EBITDA | 11.61 |
EPS(TTM)1.65
EY6.06%
EPS(NY)1.77
Fwd EY6.48%
FCF(TTM)1.24
FCFY4.54%
OCF(TTM)1.57
OCFY5.76%
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 | 3.99 |
F-Score4
WACC7.73%
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 5 / 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 16.5 and the Price/Book (PB) ratio is 3.23.
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%.