BROWN-FORMAN CORP-CLASS B (BF.B) Stock Fundamental Analysis
USA - NYSE:BF.B - US1156372096 - Common Stock
27.87 USD
-0.18 (-0.64%)
27.87 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to BF.B. BF.B was compared to 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 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.
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
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.
The Return On Equity of BF.B (21.16%) is better than 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 above the industry average of 10.84%.
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 has a Profit Margin of 21.38%. This is amongst the best in 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.
With an excellent Gross Margin value of 59.02%, BF.B belongs to the best of the industry, outperforming 81.82% 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 | 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.
Compared to 1 year ago, BF.B has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.04 indicates that BF.B is not in any danger for bankruptcy at the moment.
BF.B's Altman-Z score of 4.04 is fine compared to the rest of the industry. BF.B outperforms 69.70% of its industry peers.
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.
The Debt to FCF ratio of BF.B (4.63) is better than 72.73% of its industry peers.
A Debt/Equity ratio of 0.59 indicates that BF.B is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.59, BF.B is in line with its industry, outperforming 48.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.63 | ||
| Altman-Z | 4.04 |
ROIC/WACC1.74
WACC7.78%
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.
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
BF.B shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.29%.
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 -3.50% in the past year.
The Revenue has been growing slightly by 3.40% on average over the past years.
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.
BF.B is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.23% yearly.
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.
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
A Price/Earnings ratio of 16.89 indicates a correct valuation of BF.B.
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.
The average S&P500 Price/Earnings ratio is at 25.89. BF.B is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 15.79, BF.B is valued correctly.
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 is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.89 | ||
| Fwd PE | 15.79 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BF.B is on the same level as its industry peers.
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 | 22.56 | ||
| EV/EBITDA | 11.89 |
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
BF.B has a Yearly Dividend Yield of 3.23%.
Compared to an average industry Dividend Yield of 3.05, BF.B pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, BF.B pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
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%
27.87
-0.18 (-0.64%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners66.8%
Inst Owner Change9.72%
Ins Owners2.09%
Ins Owner ChangeN/A
Market Cap13.18B
Revenue(TTM)3.95B
Net Income(TTM)844.00M
Analysts56.8
Price Target32.12 (15.25%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
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 | 16.89 | ||
| Fwd PE | 15.79 | ||
| P/S | 3.34 | ||
| P/FCF | 22.56 | ||
| P/OCF | 17.78 | ||
| P/B | 3.3 | ||
| P/tB | 9.34 | ||
| EV/EBITDA | 11.89 |
EPS(TTM)1.65
EY5.92%
EPS(NY)1.77
Fwd EY6.33%
FCF(TTM)1.24
FCFY4.43%
OCF(TTM)1.57
OCFY5.62%
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 | 4.04 |
F-Score4
WACC7.78%
ROIC/WACC1.74
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%.