BROWN-FORMAN CORP-CLASS B (BF.B) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BF.B - US1156372096 - Common Stock
27.93 USD
-0.08 (-0.29%)
27.93 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
- Each year in the past 5 years BF.B has been profitable.
- In the past 5 years BF.B always reported a positive cash flow from operatings.
1.2 Ratios
- BF.B has a better Return On Assets (9.85%) than 78.79% of its industry peers.
- BF.B has a Return On Equity of 19.59%. This is in the better half of the industry: BF.B outperforms 69.70% of its industry peers.
- With a decent Return On Invested Capital value of 13.06%, BF.B is doing good in the industry, outperforming 78.79% 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 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
- BF.B has a Profit Margin of 20.83%. This is amongst the best in the industry. BF.B outperforms 90.91% of its industry peers.
- In the last couple of years the Profit Margin of BF.B has declined.
- 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.
- BF.B has a Gross Margin of 59.12%. This is amongst the best in the industry. BF.B outperforms 84.85% of its industry peers.
- 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.
- BF.B has about the same amout of shares outstanding than it did 1 year ago.
- 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 4.12 indicates that BF.B is not in any danger for bankruptcy at the moment.
- The Altman-Z score of BF.B (4.12) is better than 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.
- The Debt to FCF ratio of BF.B (4.34) is better than 75.76% of its industry peers.
- 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 | 4.12 |
ROIC/WACC1.66
WACC7.88%
2.3 Liquidity
- BF.B has a Current Ratio of 2.97. This indicates that BF.B is financially healthy and has no problem in meeting its short term obligations.
- BF.B has a Current ratio of 2.97. This is amongst the best in the industry. BF.B outperforms 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.
- Looking at the Quick ratio, with a value of 1.17, BF.B is in the better half of the industry, outperforming 75.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.97 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
- The earnings per share for BF.B have decreased strongly by -25.94% in the last year.
- BF.B shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.35% yearly.
- The Revenue has decreased by -4.66% in the past year.
- 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)-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.
- Based on estimates for the next years, BF.B will show a small growth in Revenue. The Revenue will grow by 0.13% on average per year.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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 17.79, the valuation of BF.B can be described as rather expensive.
- BF.B's Price/Earnings ratio is a bit cheaper when compared to the industry. BF.B is cheaper than 60.61% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.32, BF.B is valued a bit cheaper.
- The Price/Forward Earnings ratio is 15.73, which indicates a correct 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 66.67% of the companies listed in the same industry.
- BF.B is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.79 | ||
| Fwd PE | 15.73 |
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 | 21.65 | ||
| EV/EBITDA | 12.37 |
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
- With a Yearly Dividend Yield of 3.37%, BF.B has a reasonable but not impressive dividend return.
- BF.B's Dividend Yield is a higher than the industry average which is at 1.73.
- Compared to an average S&P500 Dividend Yield of 1.83, BF.B pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
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.
- 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 52.84% of its income as dividend. This is a bit on the high side, but may be sustainable.
- BF.B's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP52.84%
EPS Next 2Y2.18%
EPS Next 3Y4.01%
27.93
-0.08 (-0.29%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)12-04 2025-12-04/bmo
Earnings (Next)03-03 2026-03-03/bmo
Inst Owners75.1%
Inst Owner Change0.14%
Ins Owners1.95%
Ins Owner ChangeN/A
Market Cap13.20B
Revenue(TTM)3.89B
Net Income(TTM)810.00M
Analysts54.4
Price Target31.99 (14.54%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
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%
EPS NQ rev (3m)-1.93%
EPS NY rev (1m)0.44%
EPS NY rev (3m)0.54%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-0.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.79 | ||
| Fwd PE | 15.73 | ||
| P/S | 3.4 | ||
| P/FCF | 21.65 | ||
| P/OCF | 17.35 | ||
| P/B | 3.19 | ||
| P/tB | 8.52 | ||
| EV/EBITDA | 12.37 |
EPS(TTM)1.57
EY5.62%
EPS(NY)1.78
Fwd EY6.36%
FCF(TTM)1.29
FCFY4.62%
OCF(TTM)1.61
OCFY5.76%
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 | 4.12 |
F-Score5
WACC7.88%
ROIC/WACC1.66
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 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.
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%.