BROWN-FORMAN CORP-CLASS A (BF.A) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BF.A - US1156371007 - Common Stock
29.99 USD
-0.26 (-0.86%)
29.99 USD
0 (0%)
Overall BF.A gets a fundamental rating of 6 out of 10. We evaluated BF.A against 34 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
BF.A had positive earnings in the past year.
BF.A had a positive operating cash flow in the past year.
BF.A had positive earnings in each of the past 5 years.
In the past 5 years BF.A always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of BF.A (10.33%) is better than 82.35% of its industry peers.
BF.A's Return On Equity of 21.16% is fine compared to the rest of the industry. BF.A outperforms 73.53% of its industry peers.
With a decent Return On Invested Capital value of 13.57%, BF.A is doing good in the industry, outperforming 79.41% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BF.A 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
BF.A's Profit Margin of 21.38% is amongst the best of the industry. BF.A outperforms 94.12% of its industry peers.
In the last couple of years the Profit Margin of BF.A has declined.
With an excellent Operating Margin value of 30.02%, BF.A belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
BF.A's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 59.02%, BF.A belongs to the top of the industry, outperforming 85.29% of the companies in the same industry.
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.
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 4.21. This indicates that BF.A is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.21, BF.A is doing good in the industry, outperforming 76.47% of the companies in the same industry.
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's Debt to FCF ratio of 4.63 is fine compared to the rest of the industry. BF.A outperforms 76.47% of its industry peers.
BF.A has a Debt/Equity ratio of 0.59. This is a neutral value indicating BF.A is somewhat dependend on debt financing.
BF.A has a Debt to Equity ratio of 0.59. This is comparable to the rest of the industry: BF.A outperforms 52.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.63 | ||
| Altman-Z | 4.21 |
ROIC/WACC1.73
WACC7.84%
2.3 Liquidity
A Current Ratio of 2.79 indicates that BF.A has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.79, BF.A belongs to the best of the industry, outperforming 85.29% 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.
The Quick ratio of BF.A (1.06) is better than 76.47% 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 -25.94% in the last year.
The Earnings Per Share has been decreasing by -0.35% on average over the past years.
The Revenue has decreased by -4.66% in the past year.
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 4.14% yearly.
Based on estimates for the next years, BF.A will show a small growth in Revenue. The Revenue will grow by 0.21% on average per year.
EPS Next Y-1%
EPS Next 2Y2.11%
EPS Next 3Y4.14%
EPS Next 5YN/A
Revenue Next Year-5.18%
Revenue Next 2Y-1.65%
Revenue Next 3Y0.21%
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.
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 19.10, BF.A is valued on the expensive side.
BF.A's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.34. BF.A is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 16.92 indicates a correct valuation of BF.A.
The rest of the industry has a similar Price/Forward Earnings ratio as BF.A.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.56, BF.A is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.1 | ||
| Fwd PE | 16.92 |
4.2 Price Multiples
BF.A's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as BF.A.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.28 | ||
| EV/EBITDA | 12.77 |
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 2Y2.11%
EPS Next 3Y4.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.04%, BF.A has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.05, BF.A pays a bit more dividend than its industry peers.
BF.A's Dividend Yield is a higher than the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
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.
The dividend of BF.A is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP50.24%
EPS Next 2Y2.11%
EPS Next 3Y4.14%
29.99
-0.26 (-0.86%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners72.77%
Inst Owner Change1.64%
Ins Owners1.9%
Ins Owner ChangeN/A
Market Cap14.18B
Revenue(TTM)3.89B
Net Income(TTM)844.00M
Analysts56.8
Price Target31.89 (6.34%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
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)-0.08%
PT rev (3m)-1%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)-0.32%
EPS NY rev (1m)0.14%
EPS NY rev (3m)-0.2%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.1 | ||
| Fwd PE | 16.92 | ||
| P/S | 3.59 | ||
| P/FCF | 24.28 | ||
| P/OCF | 19.13 | ||
| P/B | 3.56 | ||
| P/tB | 10.06 | ||
| EV/EBITDA | 12.77 |
EPS(TTM)1.57
EY5.24%
EPS(NY)1.77
Fwd EY5.91%
FCF(TTM)1.24
FCFY4.12%
OCF(TTM)1.57
OCFY5.23%
SpS8.35
BVpS8.44
TBVpS2.98
PEG (NY)N/A
PEG (5Y)N/A
Graham Number17.26
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 | 4.21 |
F-Score4
WACC7.84%
ROIC/WACC1.73
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-1%
EPS Next 2Y2.11%
EPS Next 3Y4.14%
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-1.65%
Revenue Next 3Y0.21%
Revenue Next 5YN/A
EBIT growth 1Y5.8%
EBIT growth 3Y0.61%
EBIT growth 5Y1.86%
EBIT Next Year3.53%
EBIT Next 3Y4.02%
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 19.1 and the Price/Book (PB) ratio is 3.56.
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%.