BROWN-FORMAN CORP-CLASS B (BF.B) Stock Fundamental Analysis
NYSE:BF.B - New York Stock Exchange, Inc. - US1156372096 - Common Stock - Currency: USD
BF.B gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 32 industry peers in the Beverages industry. BF.B scores excellent on profitability, but there are some minor concerns on its financial health. BF.B has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
BF.B had positive earnings in the past year.
BF.B had a positive operating cash flow in the past year.
BF.B had positive earnings in each of the past 5 years.
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 12.05%. This is amongst the best in the industry. BF.B outperforms 89.66% of its industry peers.
Looking at the Return On Equity, with a value of 27.10%, BF.B is in the better half of the industry, outperforming 79.31% of the companies in the same industry.
With a decent Return On Invested Capital value of 11.99%, BF.B is doing good in the industry, outperforming 62.07% of the companies in the same industry.
BF.B had an Average Return On Invested Capital over the past 3 years of 14.71%. This is in line with the industry average of 13.25%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.05% | ||
| ROE | 27.1% | ||
| ROIC | 11.99% |
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
Looking at the Profit Margin, with a value of 24.61%, BF.B belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of BF.B has remained more or less at the same level.
With an excellent Operating Margin value of 27.51%, BF.B belongs to the best of the industry, outperforming 89.66% of the companies in the same industry.
In the last couple of years the Operating Margin of BF.B has declined.
The Gross Margin of BF.B (59.21%) is better than 82.76% of its industry peers.
BF.B's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.51% | ||
| PM (TTM) | 24.61% | ||
| GM | 59.21% |
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%
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 4.10. This indicates that BF.B is financially healthy and has little risk of bankruptcy at the moment.
BF.B's Altman-Z score of 4.10 is fine compared to the rest of the industry. BF.B outperforms 68.97% of its industry peers.
BF.B has a debt to FCF ratio of 6.99. This is a slightly negative value and a sign of low solvency as BF.B would need 6.99 years to pay back of all of its debts.
BF.B's Debt to FCF ratio of 6.99 is in line compared to the rest of the industry. BF.B outperforms 58.62% of its industry peers.
BF.B has a Debt/Equity ratio of 0.78. This is a neutral value indicating BF.B is somewhat dependend on debt financing.
BF.B has a Debt to Equity ratio (0.78) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 6.99 | ||
| Altman-Z | 4.1 |
ROIC/WACC1.46
WACC8.2%
2.3 Liquidity
A Current Ratio of 2.70 indicates that BF.B has no problem at all paying its short term obligations.
BF.B's Current ratio of 2.70 is fine compared to the rest of the industry. BF.B outperforms 75.86% of its industry peers.
A Quick Ratio of 1.05 indicates that BF.B should not have too much problems paying its short term obligations.
The Quick ratio of BF.B (1.05) is better than 65.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.7 | ||
| Quick Ratio | 1.05 |
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.
The Earnings Per Share has been growing slightly by 4.35% on average over the past years.
BF.B shows a decrease in Revenue. In the last year, the revenue decreased by -4.52%.
Measured over the past years, BF.B shows a small growth in Revenue. The Revenue has been growing by 4.68% on average per year.
EPS 1Y (TTM)27.71%
EPS 3Y10.18%
EPS 5Y4.35%
EPS Q2Q%10%
Revenue 1Y (TTM)-4.52%
Revenue growth 3Y6.48%
Revenue growth 5Y4.68%
Sales Q2Q%-1.08%
3.2 Future
BF.B is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.53% yearly.
The Revenue is expected to grow by 1.81% on average over the next years.
EPS Next Y-14.36%
EPS Next 2Y-5.35%
EPS Next 3Y-0.53%
EPS Next 5YN/A
Revenue Next Year-2.91%
Revenue Next 2Y-0.07%
Revenue Next 3Y1.81%
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
BF.B is valuated correctly with a Price/Earnings ratio of 15.57.
79.31% of the companies in the same industry are more expensive than BF.B, based on the Price/Earnings ratio.
BF.B is valuated rather cheaply when we compare the Price/Earnings ratio to 28.46, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 17.22 indicates a rather expensive valuation of BF.B.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BF.B indicates a somewhat cheap valuation: BF.B is cheaper than 65.52% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 92.56, BF.B is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.57 | ||
| Fwd PE | 17.22 |
4.2 Price Multiples
BF.B's Enterprise Value to EBITDA is on the same level as the industry average.
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 | 34.07 | ||
| EV/EBITDA | 14.75 |
4.3 Compensation for Growth
The decent profitability rating of BF.B may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.58
EPS Next 2Y-5.35%
EPS Next 3Y-0.53%
5. Dividend
5.1 Amount
BF.B has a Yearly Dividend Yield of 2.73%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of BF.B has falen by -24.27%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
BF.B's Dividend Yield is comparable with the industry average which is at 3.20.
BF.B's Dividend Yield is comparable with the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.73% |
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
41.14% of the earnings are spent on dividend by BF.B. This is a bit on the high side, but may be sustainable.
DP41.14%
EPS Next 2Y-5.35%
EPS Next 3Y-0.53%
BROWN-FORMAN CORP-CLASS B
NYSE:BF.B (1/31/2025, 8:13:15 PM)
After market: 33.01 0 (0%)33.01
-0.19 (-0.57%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners58.6%
Inst Owner Change-0.52%
Ins Owners0.4%
Ins Owner ChangeN/A
Market Cap15.60B
Analysts55.2
Price Target46.57 (41.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.73% |
Yearly Dividend0.85
Dividend Growth(5Y)5.58%
DP41.14%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.37%
Min EPS beat(2)-12.45%
Max EPS beat(2)9.71%
EPS beat(4)3
Avg EPS beat(4)7.99%
Min EPS beat(4)-12.45%
Max EPS beat(4)30.61%
EPS beat(8)3
Avg EPS beat(8)-3.99%
EPS beat(12)6
Avg EPS beat(12)-1.28%
EPS beat(16)7
Avg EPS beat(16)-3.01%
Revenue beat(2)0
Avg Revenue beat(2)-3.34%
Min Revenue beat(2)-6.49%
Max Revenue beat(2)-0.18%
Revenue beat(4)0
Avg Revenue beat(4)-5.27%
Min Revenue beat(4)-8.1%
Max Revenue beat(4)-0.18%
Revenue beat(8)2
Avg Revenue beat(8)-2.77%
Revenue beat(12)5
Avg Revenue beat(12)-0.14%
Revenue beat(16)7
Avg Revenue beat(16)0.03%
PT rev (1m)-4.81%
PT rev (3m)-6.5%
EPS NQ rev (1m)-4.21%
EPS NQ rev (3m)-1.61%
EPS NY rev (1m)-0.43%
EPS NY rev (3m)-0.14%
Revenue NQ rev (1m)-1.52%
Revenue NQ rev (3m)-1.52%
Revenue NY rev (1m)-0.36%
Revenue NY rev (3m)-0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.57 | ||
| Fwd PE | 17.22 | ||
| P/S | 3.83 | ||
| P/FCF | 34.07 | ||
| P/OCF | 22.98 | ||
| P/B | 4.21 | ||
| P/tB | 12.61 | ||
| EV/EBITDA | 14.75 |
EPS(TTM)2.12
EY6.42%
EPS(NY)1.92
Fwd EY5.81%
FCF(TTM)0.97
FCFY2.94%
OCF(TTM)1.44
OCFY4.35%
SpS8.63
BVpS7.84
TBVpS2.62
PEG (NY)N/A
PEG (5Y)3.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.05% | ||
| ROE | 27.1% | ||
| ROCE | 16.55% | ||
| ROIC | 11.99% | ||
| ROICexc | 12.72% | ||
| ROICexgc | 19.84% | ||
| OM | 27.51% | ||
| PM (TTM) | 24.61% | ||
| GM | 59.21% | ||
| FCFM | 11.23% |
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 Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 6.99 | ||
| Debt/EBITDA | 2.4 | ||
| Cap/Depr | 245.56% | ||
| Cap/Sales | 5.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 56.02% | ||
| Profit Quality | 45.62% | ||
| Current Ratio | 2.7 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | 4.1 |
F-Score5
WACC8.2%
ROIC/WACC1.46
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-14.36%
EPS Next 2Y-5.35%
EPS Next 3Y-0.53%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.52%
Revenue growth 3Y6.48%
Revenue growth 5Y4.68%
Sales Q2Q%-1.08%
Revenue Next Year-2.91%
Revenue Next 2Y-0.07%
Revenue Next 3Y1.81%
Revenue Next 5YN/A
EBIT growth 1Y-9.66%
EBIT growth 3Y3.56%
EBIT growth 5Y0.07%
EBIT Next Year-2.18%
EBIT Next 3Y3.6%
EBIT Next 5YN/A
FCF growth 1Y-39.9%
FCF growth 3Y-17.71%
FCF growth 5Y-9.2%
OCF growth 1Y-25.95%
OCF growth 3Y-7.48%
OCF growth 5Y-4.16%