BROWN-FORMAN CORP-CLASS B (BF.B) Stock Fundamental Analysis
USA - NYSE:BF.B - US1156372096 - Common Stock
28.05 USD
+0.7 (+2.56%)
28.05 USD
0 (0%)
Taking everything into account, BF.B scores 6 out of 10 in our fundamental rating. BF.B was compared to 33 industry peers in the Beverages industry. Both the health and profitability get an excellent rating, making BF.B a very profitable company, without any liquidiy or solvency issues. BF.B has a valuation in line with the averages, 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.
Each year in the past 5 years BF.B has 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 10.33%. This is in the better half of the industry: BF.B outperforms 78.79% of its industry peers.
With a decent Return On Equity value of 21.16%, BF.B is doing good in the industry, outperforming 69.70% of the companies in the same industry.
With a decent Return On Invested Capital value of 13.57%, BF.B is doing good in the industry, outperforming 75.76% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BF.B is above the industry average of 10.84%.
The last Return On Invested Capital (13.57%) for BF.B is above the 3 year average (13.49%), which is a sign of increasing profitability.
| 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
With an excellent Profit Margin value of 21.38%, BF.B belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
BF.B's Profit Margin has declined in the last couple of years.
The Operating Margin of BF.B (30.02%) is better than 90.91% of its industry peers.
In the last couple of years the Operating Margin of BF.B has remained more or less at the same level.
BF.B has a Gross Margin of 59.02%. 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 | 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BF.B is still 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.
Compared to 1 year ago, BF.B has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.01 indicates that BF.B is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.01, BF.B is in the better half of the industry, outperforming 69.70% 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.
BF.B's Debt to FCF ratio of 4.63 is fine compared to the rest of the industry. BF.B outperforms 72.73% of its industry peers.
BF.B has a Debt/Equity ratio of 0.59. This is a neutral value indicating BF.B is somewhat dependend on debt financing.
BF.B's Debt to Equity ratio of 0.59 is in line compared to the rest of the industry. BF.B outperforms 48.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.63 | ||
| Altman-Z | 4.01 |
ROIC/WACC1.75
WACC7.75%
2.3 Liquidity
BF.B has a Current Ratio of 2.79. This indicates that BF.B is financially healthy and has no problem in meeting its short term obligations.
BF.B's Current ratio of 2.79 is amongst the best of the industry. BF.B outperforms 81.82% of its industry peers.
A Quick Ratio of 1.06 indicates that BF.B should not have too much problems paying its short term obligations.
BF.B has a better Quick ratio (1.06) than 69.70% 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.B have decreased strongly by -20.29% in the last year.
Measured over the past years, BF.B shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.35% on average per year.
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
Based on estimates for the next years, BF.B will show a small growth in Earnings Per Share. The EPS will grow by 3.89% on average per year.
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 17.00, BF.B is valued on the expensive side.
Based on the Price/Earnings ratio, BF.B is valued a bit cheaper than the industry average as 60.61% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.34, BF.B is valued a bit cheaper.
The Price/Forward Earnings ratio is 15.89, which indicates a correct valuation of BF.B.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BF.B is on the same level as its industry peers.
BF.B's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17 | ||
| Fwd PE | 15.89 |
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 indicates a somewhat cheap valuation: BF.B is cheaper than 60.61% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.71 | ||
| EV/EBITDA | 11.7 |
4.3 Compensation for Growth
BF.B has an outstanding profitability rating, which 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 3.42%, BF.B has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.11, BF.B pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, BF.B pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
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.
BF.B has decreased its dividend recently.
Dividend Growth(5Y)5.49%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
50.24% of the earnings are spent on dividend by BF.B. 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%
28.05
+0.7 (+2.56%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners66.8%
Inst Owner Change2.66%
Ins Owners2.09%
Ins Owner ChangeN/A
Market Cap13.26B
Revenue(TTM)3.95B
Net Income(TTM)844.00M
Analysts56.8
Price Target32.12 (14.51%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
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)0.18%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.86%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-0.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.7%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17 | ||
| Fwd PE | 15.89 | ||
| P/S | 3.36 | ||
| P/FCF | 22.71 | ||
| P/OCF | 17.9 | ||
| P/B | 3.33 | ||
| P/tB | 9.4 | ||
| EV/EBITDA | 11.7 |
EPS(TTM)1.65
EY5.88%
EPS(NY)1.77
Fwd EY6.29%
FCF(TTM)1.24
FCFY4.4%
OCF(TTM)1.57
OCFY5.59%
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 | 4.01 |
F-Score4
WACC7.75%
ROIC/WACC1.75
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 5 / 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 8 / 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%.