BROWN-FORMAN CORP-CLASS B (BF.B) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BF.B - US1156372096 - Common Stock
27.57 USD
-0.36 (-1.29%)
27.57 USD
0 (0%)
Overall BF.B gets a fundamental rating of 6 out of 10. We evaluated BF.B against 33 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
- 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
- With a decent Return On Assets value of 9.85%, 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 (19.59%) is better than 69.70% of its industry peers.
- BF.B has a better Return On Invested Capital (13.06%) than 78.79% of its industry peers.
- 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's Profit Margin of 20.83% is amongst the best of the industry. BF.B outperforms 90.91% of its industry peers.
- 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.
- BF.B's Operating Margin has been stable in the last couple of years.
- BF.B has a better Gross Margin (59.12%) than 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
- BF.B has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, BF.B has about the same amount of shares outstanding.
- Compared to 5 years ago, BF.B has less shares outstanding
- The debt/assets ratio for BF.B has been reduced compared to a year ago.
2.2 Solvency
- BF.B has an Altman-Z score of 4.09. This indicates that BF.B is financially healthy and has little risk of bankruptcy at the moment.
- BF.B has a better Altman-Z score (4.09) 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.
- Looking at the Debt to Equity ratio, with a value of 0.56, BF.B is in line with its industry, outperforming 51.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 4.09 |
ROIC/WACC1.66
WACC7.85%
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.
- With an excellent Current ratio value of 2.97, BF.B belongs to the best of the industry, outperforming 84.85% 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 75.76% of its industry peers.
| 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.
- The Earnings Per Share has been decreasing by -0.35% on average over the past years.
- Looking at the last year, BF.B shows a decrease in Revenue. The Revenue has decreased by -4.66% in the last 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
- 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.
- Based on estimates for the next years, BF.B will show a small growth in Revenue. The Revenue will grow by 0.01% on average per year.
EPS Next Y-0.66%
EPS Next 2Y2.18%
EPS Next 3Y4.01%
EPS Next 5YN/A
Revenue Next Year-5.06%
Revenue Next 2Y-1.73%
Revenue Next 3Y0.01%
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 17.56, 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.
- When comparing the Price/Earnings ratio of BF.B to the average of the S&P500 Index (27.21), we can say BF.B is valued slightly cheaper.
- The Price/Forward Earnings ratio is 15.53, which indicates a correct valuation of BF.B.
- Based on the Price/Forward Earnings ratio, BF.B is valued a bit cheaper than 66.67% of the companies in the same industry.
- BF.B is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.56 | ||
| Fwd PE | 15.53 |
4.2 Price Multiples
- BF.B's Enterprise Value to EBITDA is on the same level as the industry average.
- BF.B's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BF.B is cheaper than 60.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.37 | ||
| EV/EBITDA | 12.2 |
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 3.31%.
- BF.B's Dividend Yield is a higher than the industry average which is at 1.72.
- Compared to an average S&P500 Dividend Yield of 1.81, BF.B pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
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
- 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%
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%.