BROWN-FORMAN CORP-CLASS A (BF.A) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BF.A - US1156371007 - Common Stock
26.85 USD
+0.72 (+2.76%)
26.85 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 is valued correctly, 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.
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
BF.A has a Return On Assets of 9.85%. This is in the better half of the industry: BF.A outperforms 75.76% of its industry peers.
With a decent Return On Equity value of 19.59%, BF.A is doing good in the industry, outperforming 66.67% of the companies in the same industry.
With a decent Return On Invested Capital value of 13.06%, BF.A is doing good in the industry, outperforming 75.76% of the companies in the same industry.
BF.A had an Average Return On Invested Capital over the past 3 years of 13.49%. This is above the industry average of 11.45%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.85% | ||
| ROE | 19.59% | ||
| ROIC | 13.06% |
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
With an excellent Profit Margin value of 20.83%, BF.A belongs to the best of the industry, outperforming 87.88% of the companies in the same industry.
In the last couple of years the Profit Margin of BF.A has declined.
The Operating Margin of BF.A (29.65%) is better than 87.88% of its industry peers.
BF.A's Operating Margin has been stable in the last couple of years.
BF.A has a better Gross Margin (59.12%) than 81.82% of its industry peers.
In the last couple of years the Gross Margin of BF.A has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.65% | ||
| PM (TTM) | 20.83% | ||
| GM | 59.12% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BF.A is still creating some value.
The number of shares outstanding for BF.A remains at a similar level compared to 1 year ago.
BF.A has less shares outstanding than it did 5 years ago.
BF.A has a better debt/assets ratio than last year.
2.2 Solvency
BF.A has an Altman-Z score of 3.99. This indicates that BF.A is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of BF.A (3.99) is better than 75.76% of its industry peers.
The Debt to FCF ratio of BF.A is 4.34, which is a neutral value as it means it would take BF.A, 4.34 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.34, BF.A is doing good in the industry, outperforming 72.73% of the companies in the same industry.
A Debt/Equity ratio of 0.56 indicates that BF.A is somewhat dependend on debt financing.
BF.A's Debt to Equity ratio of 0.56 is in line compared to the rest of the industry. BF.A outperforms 48.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 3.99 |
ROIC/WACC1.68
WACC7.78%
2.3 Liquidity
A Current Ratio of 2.97 indicates that BF.A has no problem at all paying its short term obligations.
BF.A has a better Current ratio (2.97) than 81.82% of its industry peers.
BF.A has a Quick Ratio of 1.17. 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 1.17 is fine compared to the rest of the industry. BF.A outperforms 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.97 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
BF.A shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.94%.
Measured over the past years, BF.A shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.35% on average per year.
BF.A shows a decrease in Revenue. In the last year, the revenue decreased by -4.66%.
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)-25.94%
EPS 3Y-0.77%
EPS 5Y-0.35%
EPS Q2Q%-14.55%
Revenue 1Y (TTM)-4.66%
Revenue growth 3Y0.35%
Revenue growth 5Y3.4%
Sales Q2Q%-5.39%
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 4.01% yearly.
Based on estimates for the next years, BF.A will show a small growth in Revenue. The Revenue will grow by 0.13% on average per year.
EPS Next Y-0.57%
EPS Next 2Y2.18%
EPS Next 3Y4.01%
EPS Next 5YN/A
Revenue Next Year-5.18%
Revenue Next 2Y-1.75%
Revenue Next 3Y0.13%
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
With a Price/Earnings ratio of 17.10, BF.A is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as BF.A.
BF.A is valuated rather cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
BF.A is valuated correctly with a Price/Forward Earnings ratio of 15.13.
Based on the Price/Forward Earnings ratio, BF.A is valued a bit cheaper than 63.64% of the companies in the same industry.
BF.A's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.1 | ||
| Fwd PE | 15.13 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BF.A.
BF.A's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.81 | ||
| EV/EBITDA | 11.66 |
4.3 Compensation for Growth
The decent profitability rating of BF.A may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.18%
EPS Next 3Y4.01%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.60%, BF.A has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.77, BF.A pays a better dividend. On top of this BF.A pays more dividend than 81.82% of the companies listed in the same industry.
BF.A's Dividend Yield is rather good when compared to the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.6% |
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 52.84% 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.
DP52.84%
EPS Next 2Y2.18%
EPS Next 3Y4.01%
26.85
+0.72 (+2.76%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners75.1%
Inst Owner Change0.24%
Ins Owners1.95%
Ins Owner ChangeN/A
Market Cap12.69B
Revenue(TTM)3.89B
Net Income(TTM)810.00M
Analysts54.4
Price Target31.72 (18.14%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.6% |
Yearly Dividend0.89
Dividend Growth(5Y)5.49%
DP52.84%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.95%
Min EPS beat(2)-3.08%
Max EPS beat(2)-2.83%
EPS beat(4)0
Avg EPS beat(4)-6.42%
Min EPS beat(4)-11.43%
Max EPS beat(4)-2.83%
EPS beat(8)3
Avg EPS beat(8)0.78%
EPS beat(12)3
Avg EPS beat(12)-4.8%
EPS beat(16)6
Avg EPS beat(16)-2.57%
Revenue beat(2)0
Avg Revenue beat(2)-0.38%
Min Revenue beat(2)-0.38%
Max Revenue beat(2)-0.37%
Revenue beat(4)0
Avg Revenue beat(4)-3.91%
Min Revenue beat(4)-9.4%
Max Revenue beat(4)-0.37%
Revenue beat(8)0
Avg Revenue beat(8)-4.59%
Revenue beat(12)2
Avg Revenue beat(12)-3.15%
Revenue beat(16)5
Avg Revenue beat(16)-1.08%
PT rev (1m)-0.54%
PT rev (3m)-0.71%
EPS NQ rev (1m)-0.81%
EPS NQ rev (3m)-1.93%
EPS NY rev (1m)0.44%
EPS NY rev (3m)0.54%
Revenue NQ rev (1m)-0.49%
Revenue NQ rev (3m)-0.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.1 | ||
| Fwd PE | 15.13 | ||
| P/S | 3.26 | ||
| P/FCF | 20.81 | ||
| P/OCF | 16.68 | ||
| P/B | 3.07 | ||
| P/tB | 8.19 | ||
| EV/EBITDA | 11.66 |
EPS(TTM)1.57
EY5.85%
EPS(NY)1.78
Fwd EY6.61%
FCF(TTM)1.29
FCFY4.81%
OCF(TTM)1.61
OCFY6%
SpS8.23
BVpS8.74
TBVpS3.28
PEG (NY)N/A
PEG (5Y)N/A
Graham Number17.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.85% | ||
| ROE | 19.59% | ||
| ROCE | 16.94% | ||
| ROIC | 13.06% | ||
| ROICexc | 13.68% | ||
| ROICexgc | 22.24% | ||
| OM | 29.65% | ||
| PM (TTM) | 20.83% | ||
| GM | 59.12% | ||
| FCFM | 15.69% |
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-Score5
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 4.34 | ||
| Debt/EBITDA | 1.85 | ||
| Cap/Depr | 173.56% | ||
| Cap/Sales | 3.88% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 61.37% | ||
| Profit Quality | 75.31% | ||
| Current Ratio | 2.97 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 3.99 |
F-Score5
WACC7.78%
ROIC/WACC1.68
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)-25.94%
EPS 3Y-0.77%
EPS 5Y-0.35%
EPS Q2Q%-14.55%
EPS Next Y-0.57%
EPS Next 2Y2.18%
EPS Next 3Y4.01%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.66%
Revenue growth 3Y0.35%
Revenue growth 5Y3.4%
Sales Q2Q%-5.39%
Revenue Next Year-5.18%
Revenue Next 2Y-1.75%
Revenue Next 3Y0.13%
Revenue Next 5YN/A
EBIT growth 1Y2.76%
EBIT growth 3Y0.61%
EBIT growth 5Y1.86%
EBIT Next Year2.67%
EBIT Next 3Y3.84%
EBIT Next 5YN/A
FCF growth 1Y177.27%
FCF growth 3Y-18.93%
FCF growth 5Y-6.56%
OCF growth 1Y80.76%
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 for 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 7 / 10.
What is the earnings growth outlook for BROWN-FORMAN CORP-CLASS A?
The Earnings per Share (EPS) of BROWN-FORMAN CORP-CLASS A (BF.A) is expected to decline by -0.57% in the next year.
Is the dividend of BROWN-FORMAN CORP-CLASS A sustainable?
The dividend rating of BROWN-FORMAN CORP-CLASS A (BF.A) is 5 / 10 and the dividend payout ratio is 52.84%.