BROWN-FORMAN CORP-CLASS B (BF.B) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BF.B - US1156372096 - Common Stock
26.06 USD
-0.27 (-1.03%)
26 USD
-0.06 (-0.23%)
BF.B gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 32 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.
BF.B had a positive operating cash flow in the past year.
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
BF.B has a better Return On Assets (9.85%) than 78.13% 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 68.75% of its industry peers.
BF.B has a better Return On Invested Capital (13.06%) than 75.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BF.B is in line with the industry average of 11.65%.
| 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
The Profit Margin of BF.B (20.83%) is better than 90.63% 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 90.63% of its industry peers.
BF.B's Operating Margin has been stable in the last couple of years.
BF.B's Gross Margin of 59.12% is amongst the best of the industry. BF.B outperforms 84.38% 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.
Compared to 5 years ago, BF.B has less shares outstanding
BF.B has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.99 indicates that BF.B is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.99, BF.B is doing good in the industry, outperforming 71.88% of the companies in the same industry.
BF.B has a debt to FCF ratio of 4.34. This is a neutral value as BF.B would need 4.34 years to pay back of all of its debts.
BF.B has a better Debt to FCF ratio (4.34) than 75.00% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that 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 | 3.99 |
ROIC/WACC1.68
WACC7.75%
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.
Looking at the Current ratio, with a value of 2.97, BF.B belongs to the top of the industry, outperforming 84.38% of the companies in the same industry.
A Quick Ratio of 1.17 indicates that BF.B should not have too much problems paying its short term obligations.
BF.B has a Quick ratio of 1.17. This is in the better half of the industry: BF.B outperforms 75.00% 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%.
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 -4.66%.
Measured over the past years, BF.B shows a small growth in Revenue. The Revenue has been growing by 3.40% on average per year.
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
Based on estimates for the next years, BF.B will show a small growth in Earnings Per Share. The EPS will grow by 4.01% on average per year.
The Revenue is expected to grow by 0.13% on average over the next years.
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.
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
BF.B is valuated correctly with a Price/Earnings ratio of 16.60.
Compared to the rest of the industry, the Price/Earnings ratio of BF.B indicates a somewhat cheap valuation: BF.B is cheaper than 62.50% of the companies listed in the same industry.
BF.B is valuated rather cheaply when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 14.68 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 68.75% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of BF.B to the average of the S&P500 Index (23.13), we can say BF.B is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.6 | ||
| Fwd PE | 14.68 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BF.B indicates a somewhat cheap valuation: BF.B is cheaper than 62.50% of the companies listed in the same industry.
62.50% of the companies in the same industry are more expensive than BF.B, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.2 | ||
| EV/EBITDA | 11.63 |
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 3.44%, BF.B has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.69, BF.B pays a better dividend. On top of this BF.B pays more dividend than 81.25% of the companies listed in the same industry.
BF.B's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
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
52.84% of the earnings are spent on dividend by BF.B. 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%
26.06
-0.27 (-1.03%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners72.77%
Inst Owner Change9.92%
Ins Owners1.9%
Ins Owner ChangeN/A
Market Cap12.32B
Revenue(TTM)3.89B
Net Income(TTM)810.00M
Analysts56.8
Price Target31.99 (22.76%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
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)-0.42%
PT rev (3m)-1.63%
EPS NQ rev (1m)-1.85%
EPS NQ rev (3m)-1.78%
EPS NY rev (1m)0.58%
EPS NY rev (3m)0.54%
Revenue NQ rev (1m)-0.49%
Revenue NQ rev (3m)-0.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.6 | ||
| Fwd PE | 14.68 | ||
| P/S | 3.17 | ||
| P/FCF | 20.2 | ||
| P/OCF | 16.19 | ||
| P/B | 2.98 | ||
| P/tB | 7.95 | ||
| EV/EBITDA | 11.63 |
EPS(TTM)1.57
EY6.02%
EPS(NY)1.78
Fwd EY6.81%
FCF(TTM)1.29
FCFY4.95%
OCF(TTM)1.61
OCFY6.18%
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 | 3.99 |
F-Score5
WACC7.75%
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%.