BROWN-FORMAN CORP-CLASS B (BF.B) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BF.B - US1156372096 - Common Stock
26.35 USD
-0.27 (-1.01%)
26.35 USD
0 (0%)
BF.B gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 33 industry peers in the Beverages industry. BF.B scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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.
BF.B had a positive operating cash flow in the past year.
Each year in the past 5 years BF.B has been profitable.
Each year in the past 5 years BF.B had a positive operating cash flow.
1.2 Ratios
BF.B's Return On Assets of 9.85% is fine compared to the rest of the industry. BF.B outperforms 78.79% of its industry peers.
Looking at the Return On Equity, with a value of 19.59%, BF.B is in the better half of the industry, outperforming 69.70% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.06%, BF.B is in the better half of the industry, outperforming 78.79% of the companies in the same industry.
BF.B had an Average Return On Invested Capital over the past 3 years of 13.49%. This is above the industry average of 11.45%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.85% | ||
| ROE | 19.59% | ||
| ROIC | 13.06% |
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
Looking at the Profit Margin, with a value of 20.83%, BF.B belongs to the top 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.
BF.B has a Operating Margin of 29.65%. This is amongst the best in the industry. BF.B outperforms 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.
Looking at the Gross Margin, with a value of 59.12%, BF.B belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.
BF.B's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.65% | ||
| PM (TTM) | 20.83% | ||
| GM | 59.12% |
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.
The number of shares outstanding for BF.B remains at a similar level compared to 1 year ago.
BF.B has less shares outstanding than it did 5 years ago.
BF.B has a better debt/assets ratio than last year.
2.2 Solvency
BF.B has an Altman-Z score of 4.02. This indicates that BF.B is financially healthy and has little risk of bankruptcy at the moment.
BF.B has a Altman-Z score of 4.02. This is in the better half of the industry: BF.B outperforms 72.73% of its industry peers.
The Debt to FCF ratio of BF.B is 4.34, which is a neutral value as it means it would take BF.B, 4.34 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.34, BF.B is in the better half of the industry, outperforming 75.76% of the companies in the same industry.
BF.B has a Debt/Equity ratio of 0.56. This is a neutral value indicating BF.B is somewhat dependend on debt financing.
BF.B has a Debt to Equity ratio (0.56) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 4.02 |
ROIC/WACC1.68
WACC7.77%
2.3 Liquidity
A Current Ratio of 2.97 indicates that BF.B has no problem at all paying its short term obligations.
BF.B has a better Current ratio (2.97) than 84.85% of its industry peers.
BF.B has a Quick Ratio of 1.17. This is a normal value and indicates that BF.B is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of BF.B (1.17) is better than 75.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.97 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
BF.B shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.94%.
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.
The Revenue has been growing slightly by 3.40% on average over the past years.
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
The Earnings Per Share is expected to grow by 4.01% on average over the next years.
BF.B is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.13% yearly.
EPS Next Y-0.57%
EPS Next 2Y2.18%
EPS Next 3Y4.01%
EPS Next 5YN/A
Revenue Next Year-5.18%
Revenue Next 2Y-1.75%
Revenue Next 3Y0.13%
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.
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
Based on the Price/Earnings ratio of 16.78, the valuation of BF.B can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of BF.B indicates a somewhat cheap valuation: BF.B is cheaper than 60.61% of the companies listed in the same industry.
BF.B's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.30.
The Price/Forward Earnings ratio is 14.84, which indicates a correct valuation of BF.B.
BF.B's Price/Forward 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.
BF.B's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.78 | ||
| Fwd PE | 14.84 |
4.2 Price Multiples
60.61% of the companies in the same industry are more expensive than BF.B, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, BF.B is valued a bit cheaper than the industry average as 60.61% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.42 | ||
| EV/EBITDA | 11.84 |
4.3 Compensation for Growth
BF.B has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.18%
EPS Next 3Y4.01%
5. Dividend
5.1 Amount
BF.B has a Yearly Dividend Yield of 3.60%. Purely for dividend investing, there may be better candidates out there.
BF.B's Dividend Yield is a higher than the industry average which is at 1.77.
Compared to an average S&P500 Dividend Yield of 1.92, BF.B pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.6% |
5.2 History
The dividend of BF.B has a limited annual growth rate of 5.49%.
BF.B has been paying a dividend for at least 10 years, so it has 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
52.84% 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.
DP52.84%
EPS Next 2Y2.18%
EPS Next 3Y4.01%
26.35
-0.27 (-1.01%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners75.1%
Inst Owner Change0.07%
Ins Owners1.95%
Ins Owner ChangeN/A
Market Cap12.46B
Revenue(TTM)3.89B
Net Income(TTM)810.00M
Analysts54.4
Price Target31.99 (21.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.6% |
Yearly Dividend0.89
Dividend Growth(5Y)5.49%
DP52.84%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.95%
Min EPS beat(2)-3.08%
Max EPS beat(2)-2.83%
EPS beat(4)0
Avg EPS beat(4)-6.42%
Min EPS beat(4)-11.43%
Max EPS beat(4)-2.83%
EPS beat(8)3
Avg EPS beat(8)0.78%
EPS beat(12)3
Avg EPS beat(12)-4.8%
EPS beat(16)6
Avg EPS beat(16)-2.57%
Revenue beat(2)0
Avg Revenue beat(2)-0.38%
Min Revenue beat(2)-0.38%
Max Revenue beat(2)-0.37%
Revenue beat(4)0
Avg Revenue beat(4)-3.91%
Min Revenue beat(4)-9.4%
Max Revenue beat(4)-0.37%
Revenue beat(8)0
Avg Revenue beat(8)-4.59%
Revenue beat(12)2
Avg Revenue beat(12)-3.15%
Revenue beat(16)5
Avg Revenue beat(16)-1.08%
PT rev (1m)-0.17%
PT rev (3m)-1.2%
EPS NQ rev (1m)-0.81%
EPS NQ rev (3m)-1.93%
EPS NY rev (1m)0.44%
EPS NY rev (3m)0.54%
Revenue NQ rev (1m)-0.49%
Revenue NQ rev (3m)-0.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.78 | ||
| Fwd PE | 14.84 | ||
| P/S | 3.2 | ||
| P/FCF | 20.42 | ||
| P/OCF | 16.37 | ||
| P/B | 3.01 | ||
| P/tB | 8.04 | ||
| EV/EBITDA | 11.84 |
EPS(TTM)1.57
EY5.96%
EPS(NY)1.78
Fwd EY6.74%
FCF(TTM)1.29
FCFY4.9%
OCF(TTM)1.61
OCFY6.11%
SpS8.23
BVpS8.74
TBVpS3.28
PEG (NY)N/A
PEG (5Y)N/A
Graham Number17.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.85% | ||
| ROE | 19.59% | ||
| ROCE | 16.94% | ||
| ROIC | 13.06% | ||
| ROICexc | 13.68% | ||
| ROICexgc | 22.24% | ||
| OM | 29.65% | ||
| PM (TTM) | 20.83% | ||
| GM | 59.12% | ||
| FCFM | 15.69% |
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-Score5
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 4.34 | ||
| Debt/EBITDA | 1.85 | ||
| Cap/Depr | 173.56% | ||
| Cap/Sales | 3.88% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 61.37% | ||
| Profit Quality | 75.31% | ||
| Current Ratio | 2.97 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 4.02 |
F-Score5
WACC7.77%
ROIC/WACC1.68
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-0.57%
EPS Next 2Y2.18%
EPS Next 3Y4.01%
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-1.75%
Revenue Next 3Y0.13%
Revenue Next 5YN/A
EBIT growth 1Y2.76%
EBIT growth 3Y0.61%
EBIT growth 5Y1.86%
EBIT Next Year2.67%
EBIT Next 3Y3.84%
EBIT Next 5YN/A
FCF growth 1Y177.27%
FCF growth 3Y-18.93%
FCF growth 5Y-6.56%
OCF growth 1Y80.76%
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.
Can you provide the valuation status for BROWN-FORMAN CORP-CLASS B?
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 7 / 10.
What is the financial health of BROWN-FORMAN CORP-CLASS B (BF.B) stock?
The financial health rating of BROWN-FORMAN CORP-CLASS B (BF.B) is 7 / 10.
Can you provide the dividend sustainability for BF.B stock?
The dividend rating of BROWN-FORMAN CORP-CLASS B (BF.B) is 5 / 10 and the dividend payout ratio is 52.84%.