BROWN-FORMAN CORP-CLASS B (BF.B) Stock Fundamental Analysis
USA - NYSE:BF.B - US1156372096 - Common Stock
28.175 USD
-0.52 (-1.83%)
Taking everything into account, BF.B scores 6 out of 10 in our fundamental rating. BF.B was compared to 32 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 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.
In the past year BF.B had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 10.33%, BF.B is in the better half of the industry, outperforming 78.13% of the companies in the same industry.
BF.B has a Return On Equity of 21.16%. This is in the better half of the industry: BF.B outperforms 68.75% of its industry peers.
BF.B's Return On Invested Capital of 13.57% is fine compared to the rest of the industry. BF.B outperforms 78.13% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BF.B is above the industry average of 10.90%.
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
BF.B's Profit Margin of 21.38% is amongst the best of the industry. BF.B outperforms 93.75% of its industry peers.
In the last couple of years the Profit Margin of BF.B has declined.
Looking at the Operating Margin, with a value of 30.02%, BF.B belongs to the top of the industry, outperforming 93.75% 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 81.25% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BF.B is 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.
BF.B has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.10 indicates that BF.B is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.10, BF.B is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
BF.B has a debt to FCF ratio of 4.63. This is a neutral value as BF.B would need 4.63 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.63, BF.B is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
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 has a Debt to Equity ratio (0.59) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.63 | ||
| Altman-Z | 4.1 |
ROIC/WACC1.76
WACC7.69%
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.
The Current ratio of BF.B (2.79) is better than 78.13% of its industry peers.
BF.B has a Quick Ratio of 1.06. 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 (1.06) is better than 68.75% 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
The Earnings Per Share is expected to grow by 3.82% 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 0.23% yearly.
EPS Next Y-1.1%
EPS Next 2Y1.82%
EPS Next 3Y3.82%
EPS Next 5YN/A
Revenue Next Year-5.13%
Revenue Next 2Y-1.64%
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
A Price/Earnings ratio of 17.08 indicates a rather expensive valuation of BF.B.
65.63% of the companies in the same industry are more expensive than BF.B, based on the Price/Earnings ratio.
BF.B is valuated rather cheaply when we compare the Price/Earnings ratio to 27.77, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 15.99 indicates a correct valuation of BF.B.
62.50% of the companies in the same industry are more expensive than BF.B, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.23. BF.B is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.08 | ||
| Fwd PE | 15.99 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BF.B.
Based on the Price/Free Cash Flow ratio, BF.B is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.81 | ||
| EV/EBITDA | 12.2 |
4.3 Compensation for Growth
The excellent profitability rating of BF.B may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.82%
EPS Next 3Y3.82%
5. Dividend
5.1 Amount
BF.B has a Yearly Dividend Yield of 3.20%. Purely for dividend investing, there may be better candidates out there.
BF.B's Dividend Yield is rather good when compared to the industry average which is at 2.99. BF.B pays more dividend than 81.25% of the companies in the same industry.
BF.B's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
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
BF.B pays out 50.24% 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.
DP50.24%
EPS Next 2Y1.82%
EPS Next 3Y3.82%
NYSE:BF.B (10/22/2025, 2:52:59 PM)
28.175
-0.52 (-1.83%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners66.8%
Inst Owner Change-0.1%
Ins Owners2.09%
Ins Owner ChangeN/A
Market Cap13.32B
Revenue(TTM)3.95B
Net Income(TTM)844.00M
Analysts56.92
Price Target32.38 (14.92%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
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)-0.44%
PT rev (3m)0.97%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)-3.32%
EPS NY rev (1m)-0.3%
EPS NY rev (3m)-0.22%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)-1.7%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.08 | ||
| Fwd PE | 15.99 | ||
| P/S | 3.37 | ||
| P/FCF | 22.81 | ||
| P/OCF | 17.98 | ||
| P/B | 3.34 | ||
| P/tB | 9.45 | ||
| EV/EBITDA | 12.2 |
EPS(TTM)1.65
EY5.86%
EPS(NY)1.76
Fwd EY6.26%
FCF(TTM)1.24
FCFY4.38%
OCF(TTM)1.57
OCFY5.56%
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 | 4.1 |
F-Score4
WACC7.69%
ROIC/WACC1.76
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-1.1%
EPS Next 2Y1.82%
EPS Next 3Y3.82%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.5%
Revenue growth 3Y0.35%
Revenue growth 5Y3.4%
Sales Q2Q%-2.84%
Revenue Next Year-5.13%
Revenue Next 2Y-1.64%
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%