BROWN-FORMAN CORP-CLASS B (BF.B) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BF.B - US1156372096 - Common Stock
28.64 USD
-0.16 (-0.56%)
28.64 USD
0 (0%)
Overall BF.B gets a fundamental rating of 6 out of 10. We evaluated BF.B against 33 industry peers in the Beverages industry. BF.B gets an excellent profitability rating and is at the same time showing great financial health properties. BF.B is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
BF.B had positive earnings in the past year.
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
With a decent Return On Assets value of 10.33%, BF.B is doing good in the industry, outperforming 78.79% of the companies in the same industry.
BF.B has a Return On Equity of 21.16%. This is in the better half of the industry: BF.B outperforms 69.70% of its industry peers.
The Return On Invested Capital of BF.B (13.57%) is better than 75.76% of its industry peers.
BF.B had an Average Return On Invested Capital over the past 3 years of 13.49%. This is in line with the industry average of 11.60%.
The 3 year average ROIC (13.49%) for BF.B 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.B's Profit Margin of 21.38% is amongst the best of the industry. BF.B outperforms 90.91% of its industry peers.
BF.B's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 30.02%, BF.B belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
BF.B's Operating Margin has been stable in the last couple of years.
BF.B's Gross Margin of 59.02% is amongst the best of the industry. BF.B outperforms 81.82% of its industry peers.
BF.B'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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BF.B is creating some value.
Compared to 1 year ago, BF.B has about the same amount of shares outstanding.
The number of shares outstanding for BF.B has been reduced compared to 5 years ago.
The debt/assets ratio for BF.B has been reduced compared to a year ago.
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.
With a decent Altman-Z score value of 4.10, BF.B is doing good in the industry, outperforming 75.76% of the companies in the same industry.
The Debt to FCF ratio of BF.B is 4.63, which is a neutral value as it means it would take BF.B, 4.63 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.63, BF.B is doing good in the industry, outperforming 72.73% of the companies in the same industry.
BF.B has a Debt/Equity ratio of 0.59. This is a neutral value indicating BF.B is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.59, BF.B perfoms like the industry average, outperforming 48.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.63 | ||
| Altman-Z | 4.1 |
ROIC/WACC1.77
WACC7.68%
2.3 Liquidity
A Current Ratio of 2.79 indicates that BF.B has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.79, BF.B belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
BF.B has a Quick Ratio of 1.06. This is a normal value and indicates that BF.B is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.06, BF.B is doing good in the industry, outperforming 69.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.79 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
The earnings per share for BF.B 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.B shows a decrease in Revenue. In the last year, the revenue decreased by -3.50%.
BF.B shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.40% yearly.
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
BF.B is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.89% yearly.
The Revenue is expected to grow by 0.23% on average over the next years.
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
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 17.36, BF.B is valued on the expensive side.
BF.B's Price/Earnings is on the same level as the industry average.
BF.B's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.15.
A Price/Forward Earnings ratio of 16.23 indicates a correct valuation of BF.B.
BF.B's Price/Forward Earnings ratio is in line with the industry average.
BF.B is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.36 | ||
| Fwd PE | 16.23 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BF.B.
The rest of the industry has a similar Price/Free Cash Flow ratio as BF.B.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.18 | ||
| EV/EBITDA | 12.18 |
4.3 Compensation for Growth
The decent profitability rating of BF.B 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 3.31%, BF.B has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.12, BF.B pays a bit more dividend than its industry peers.
BF.B's Dividend Yield is a higher than the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
5.2 History
The dividend of BF.B has a limited annual growth rate of 5.49%.
BF.B has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of BF.B decreased recently.
Dividend Growth(5Y)5.49%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
BF.B 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.B is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP50.24%
EPS Next 2Y1.9%
EPS Next 3Y3.89%
28.64
-0.16 (-0.56%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners66.8%
Inst Owner Change9.92%
Ins Owners2.09%
Ins Owner ChangeN/A
Market Cap13.54B
Revenue(TTM)3.95B
Net Income(TTM)844.00M
Analysts56.8
Price Target32.12 (12.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
Yearly Dividend0.89
Dividend Growth(5Y)5.49%
DP50.24%
Div Incr Years1
Div Non Decr Years1
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)-0.79%
PT rev (3m)-0.35%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)-2.58%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.33%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)-1.7%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.36 | ||
| Fwd PE | 16.23 | ||
| P/S | 3.43 | ||
| P/FCF | 23.18 | ||
| P/OCF | 18.27 | ||
| P/B | 3.4 | ||
| P/tB | 9.6 | ||
| EV/EBITDA | 12.18 |
EPS(TTM)1.65
EY5.76%
EPS(NY)1.77
Fwd EY6.16%
FCF(TTM)1.24
FCFY4.31%
OCF(TTM)1.57
OCFY5.47%
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 | 4.1 |
F-Score4
WACC7.68%
ROIC/WACC1.77
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 B / BF.B FAQ
What is the fundamental rating for BF.B stock?
ChartMill assigns a fundamental rating of 6 / 10 to BF.B.
What is the valuation status for BF.B stock?
ChartMill assigns a valuation rating of 4 / 10 to BROWN-FORMAN CORP-CLASS B (BF.B). This can be considered as Fairly Valued.
What is the profitability of BF.B stock?
BROWN-FORMAN CORP-CLASS B (BF.B) has a profitability rating of 7 / 10.
How financially healthy is BROWN-FORMAN CORP-CLASS B?
The financial health rating of BROWN-FORMAN CORP-CLASS B (BF.B) is 7 / 10.
Is the dividend of BROWN-FORMAN CORP-CLASS B sustainable?
The dividend rating of BROWN-FORMAN CORP-CLASS B (BF.B) is 5 / 10 and the dividend payout ratio is 50.24%.