BROWN-FORMAN CORP-CLASS B (BF.B)
US1156372096 - Common Stock
Overall BF.B gets a fundamental rating of 5 out of 10. We evaluated BF.B against 33 industry peers in the Beverages industry. While BF.B belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. BF.B does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year BF.B was profitable.
In the past year BF.B had a positive cash flow from operations.
In the past 5 years BF.B has always been profitable.
BF.B had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BF.B has a Return On Assets of 12.04%. This is amongst the best in the industry. BF.B outperforms 87.88% of its industry peers.
The Return On Equity of BF.B (28.51%) is better than 81.82% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.41%, BF.B is in line with its industry, outperforming 57.58% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BF.B is in line with the industry average of 13.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.04% | ||
| ROE | 28.51% | ||
| ROIC | 12.41% |
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
With an excellent Profit Margin value of 24.15%, BF.B belongs to the best of the industry, outperforming 96.97% of the companies in the same industry.
BF.B's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 27.40%, BF.B belongs to the top of the industry, outperforming 87.88% of the companies in the same industry.
In the last couple of years the Operating Margin of BF.B has declined.
BF.B has a Gross Margin of 59.64%. This is amongst the best in the industry. BF.B outperforms 81.82% of its industry peers.
In the last couple of years the Gross Margin of BF.B has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.4% | ||
| PM (TTM) | 24.15% | ||
| GM | 59.64% |
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
BF.B 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.B has less shares outstanding
Compared to 5 years ago, BF.B has less shares outstanding
Compared to 1 year ago, BF.B has a worse debt to assets ratio.
2.2 Solvency
BF.B has an Altman-Z score of 4.42. This indicates that BF.B is financially healthy and has little risk of bankruptcy at the moment.
BF.B's Altman-Z score of 4.42 is fine compared to the rest of the industry. BF.B outperforms 78.79% of its industry peers.
BF.B has a debt to FCF ratio of 7.80. This is a slightly negative value and a sign of low solvency as BF.B would need 7.80 years to pay back of all of its debts.
BF.B has a Debt to FCF ratio (7.80) which is comparable to the rest of the industry.
BF.B has a Debt/Equity ratio of 0.83. This is a neutral value indicating BF.B is somewhat dependend on debt financing.
BF.B has a Debt to Equity ratio (0.83) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 7.8 | ||
| Altman-Z | 4.42 |
ROIC/WACC1.48
WACC8.41%
2.3 Liquidity
BF.B has a Current Ratio of 2.47. This indicates that BF.B is financially healthy and has no problem in meeting its short term obligations.
BF.B's Current ratio of 2.47 is fine compared to the rest of the industry. BF.B outperforms 72.73% of its industry peers.
BF.B has a Quick Ratio of 2.47. This is a bad value and indicates that BF.B is not financially healthy enough and could expect problems in meeting its short term obligations.
BF.B's Quick ratio of 0.90 is in line compared to the rest of the industry. BF.B outperforms 57.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.47 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
BF.B shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.71%, which is quite impressive.
BF.B shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.35% yearly.
The Revenue has decreased by -1.18% in the past year.
The Revenue has been growing slightly by 4.68% on average over the past years.
EPS 1Y (TTM)27.71%
EPS 3Y10.18%
EPS 5Y4.35%
EPS Q2Q%10%
Revenue 1Y (TTM)-1.18%
Revenue growth 3Y6.48%
Revenue growth 5Y4.68%
Sales Q2Q%-1.08%
3.2 Future
Based on estimates for the next years, BF.B will show a decrease in Earnings Per Share. The EPS will decrease by -0.19% on average per year.
Based on estimates for the next years, BF.B will show a small growth in Revenue. The Revenue will grow by 2.21% 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-2.56%
Revenue Next 2Y0.31%
Revenue Next 3Y2.21%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 18.59 indicates a rather expensive valuation of BF.B.
BF.B's Price/Earnings ratio is a bit cheaper when compared to the industry. BF.B is cheaper than 66.67% of the companies in the same industry.
When comparing the Price/Earnings ratio of BF.B to the average of the S&P500 Index (27.54), we can say BF.B is valued slightly cheaper.
BF.B is valuated rather expensively with a Price/Forward Earnings ratio of 20.47.
BF.B's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of BF.B to the average of the S&P500 Index (23.99), we can say BF.B is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.59 | ||
| Fwd PE | 20.47 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BF.B.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BF.B is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.87 | ||
| EV/EBITDA | 17.47 |
4.3 Compensation for Growth
The decent profitability rating of BF.B may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.28
EPS Next 2Y-5.16%
EPS Next 3Y-0.19%
5. Dividend
5.1 Amount
BF.B has a Yearly Dividend Yield of 2.19%.
BF.B's Dividend Yield is a higher than the industry average which is at 3.05.
Compared to an average S&P500 Dividend Yield of 2.36, BF.B has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.19% |
5.2 History
The dividend of BF.B has a limited annual growth rate of 5.58%.
BF.B has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)5.58%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
41.30% of the earnings are spent on dividend by BF.B. This is a bit on the high side, but may be sustainable.
DP41.3%
EPS Next 2Y-5.16%
EPS Next 3Y-0.19%
BROWN-FORMAN CORP-CLASS B
NYSE:BF.B (12/26/2024, 2:16:06 PM)
39.4008
-0.48 (-1.2%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners58.6%
Inst Owner Change7.76%
Ins Owners0.4%
Ins Owner ChangeN/A
Market Cap18.62B
Analysts56.67
Price Target48.2 (22.33%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.19% |
Dividend Growth(5Y)5.58%
DP41.3%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)9.08%
Min EPS beat(2)-12.45%
Max EPS beat(2)30.61%
EPS beat(4)2
Avg EPS beat(4)4.77%
Min EPS beat(4)-12.45%
Max EPS beat(4)30.61%
EPS beat(8)2
Avg EPS beat(8)-7.22%
EPS beat(12)5
Avg EPS beat(12)-2.81%
EPS beat(16)6
Avg EPS beat(16)-3.89%
Revenue beat(2)0
Avg Revenue beat(2)-7.3%
Min Revenue beat(2)-8.1%
Max Revenue beat(2)-6.49%
Revenue beat(4)0
Avg Revenue beat(4)-6.71%
Min Revenue beat(4)-8.1%
Max Revenue beat(4)-5.95%
Revenue beat(8)2
Avg Revenue beat(8)-2.93%
Revenue beat(12)5
Avg Revenue beat(12)-0.71%
Revenue beat(16)7
Avg Revenue beat(16)0.03%
PT rev (1m)-3.23%
PT rev (3m)-1.98%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.03%
EPS NY rev (1m)0.48%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.09%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)-0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.59 | ||
| Fwd PE | 20.47 | ||
| P/S | 4.55 | ||
| P/FCF | 45.87 | ||
| P/OCF | 29.75 | ||
| P/B | 5.37 | ||
| P/tB | 18.55 | ||
| EV/EBITDA | 17.47 |
EPS(TTM)2.12
EY5.38%
EPS(NY)1.92
Fwd EY4.89%
FCF(TTM)0.86
FCFY2.18%
OCF(TTM)1.32
OCFY3.36%
SpS8.66
BVpS7.33
TBVpS2.12
PEG (NY)N/A
PEG (5Y)4.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.04% | ||
| ROE | 28.51% | ||
| ROCE | 17.1% | ||
| ROIC | 12.41% | ||
| ROICexc | 13.19% | ||
| ROICexgc | 20.99% | ||
| OM | 27.4% | ||
| PM (TTM) | 24.15% | ||
| GM | 59.64% | ||
| FCFM | 9.92% |
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 Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 7.8 | ||
| Debt/EBITDA | 2.37 | ||
| Cap/Depr | 250% | ||
| Cap/Sales | 5.38% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 51.78% | ||
| Profit Quality | 41.09% | ||
| Current Ratio | 2.47 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 4.42 |
F-Score5
WACC8.41%
ROIC/WACC1.48
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)-1.18%
Revenue growth 3Y6.48%
Revenue growth 5Y4.68%
Sales Q2Q%-1.08%
Revenue Next Year-2.56%
Revenue Next 2Y0.31%
Revenue Next 3Y2.21%
Revenue Next 5YN/A
EBIT growth 1Y-7.81%
EBIT growth 3Y3.56%
EBIT growth 5Y0.07%
EBIT Next Year-2.63%
EBIT Next 3Y3.04%
EBIT Next 5YN/A
FCF growth 1Y-47.81%
FCF growth 3Y-17.71%
FCF growth 5Y-9.2%
OCF growth 1Y-32.25%
OCF growth 3Y-7.48%
OCF growth 5Y-4.16%