BROWN-FORMAN CORP-CLASS B (BF.B) Stock Fundamental Analysis
USA - NYSE:BF.B - US1156372096 - Common Stock
27.565 USD
+0.09 (+0.31%)
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 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
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
BF.B's Return On Assets of 10.33% is amongst the best of the industry. BF.B outperforms 81.25% of its industry peers.
Looking at the Return On Equity, with a value of 21.16%, BF.B is in the better half of the industry, outperforming 71.88% of the companies in the same industry.
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.
BF.B had an Average Return On Invested Capital over the past 3 years of 13.49%. This is above the industry average of 10.95%.
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
Looking at the Profit Margin, with a value of 21.38%, BF.B belongs to the top of the industry, outperforming 96.88% of the companies in the same industry.
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 96.88% of the companies in the same industry.
BF.B's Operating Margin has been stable in the last couple of years.
BF.B's Gross Margin of 59.02% is amongst the best of the industry. BF.B outperforms 87.50% of its industry peers.
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.
Compared to 1 year ago, BF.B has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.02 indicates that BF.B is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.02, BF.B is doing good in the industry, outperforming 68.75% 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.
With a decent Debt to FCF ratio value of 4.63, BF.B is doing good in the industry, outperforming 78.13% of the companies in the same industry.
A Debt/Equity ratio of 0.59 indicates that BF.B is somewhat dependend on debt financing.
BF.B's Debt to Equity ratio of 0.59 is in line compared to the rest of the industry. BF.B outperforms 53.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.63 | ||
| Altman-Z | 4.02 |
ROIC/WACC1.76
WACC7.7%
2.3 Liquidity
A Current Ratio of 2.79 indicates that BF.B has no problem at all paying its short term obligations.
BF.B's Current ratio of 2.79 is amongst the best of the industry. BF.B outperforms 81.25% of its industry peers.
A Quick Ratio of 1.06 indicates that BF.B should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.06, BF.B is doing good in the industry, outperforming 75.00% of the companies in the same industry.
| 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%.
The Earnings Per Share has been decreasing by -0.35% on average over the past years.
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
BF.B is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.14% yearly.
The Revenue is expected to grow by 0.23% on average over the next years.
EPS Next Y-0.8%
EPS Next 2Y1.91%
EPS Next 3Y4.14%
EPS Next 5YN/A
Revenue Next Year-5.16%
Revenue Next 2Y-1.64%
Revenue Next 3Y0.23%
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.
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 16.71.
Compared to the rest of the industry, the Price/Earnings ratio of BF.B indicates a somewhat cheap valuation: BF.B is cheaper than 71.88% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.41. BF.B is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 15.61, the valuation of BF.B can be described as correct.
BF.B's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BF.B is cheaper than 68.75% of the companies in the same industry.
BF.B's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.71 | ||
| Fwd PE | 15.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BF.B is valued a bit cheaper than 68.75% of the companies in the same industry.
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 | 22.31 | ||
| EV/EBITDA | 11.74 |
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 2Y1.91%
EPS Next 3Y4.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.30%, BF.B has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.84, BF.B pays a bit more dividend than its industry peers.
BF.B's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.3% |
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
50.24% 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.
DP50.24%
EPS Next 2Y1.91%
EPS Next 3Y4.14%
NYSE:BF.B (9/19/2025, 3:18:09 PM)
27.565
+0.09 (+0.31%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners66.01%
Inst Owner Change-1.23%
Ins Owners2.1%
Ins Owner ChangeN/A
Market Cap13.03B
Analysts56.15
Price Target32.52 (17.98%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.3% |
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)1.41%
PT rev (3m)-19.47%
EPS NQ rev (1m)-3.01%
EPS NQ rev (3m)-4.17%
EPS NY rev (1m)0.08%
EPS NY rev (3m)-11.34%
Revenue NQ rev (1m)-1.89%
Revenue NQ rev (3m)-2.63%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-6.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.71 | ||
| Fwd PE | 15.61 | ||
| P/S | 3.3 | ||
| P/FCF | 22.31 | ||
| P/OCF | 17.59 | ||
| P/B | 3.27 | ||
| P/tB | 9.24 | ||
| EV/EBITDA | 11.74 |
EPS(TTM)1.65
EY5.99%
EPS(NY)1.77
Fwd EY6.4%
FCF(TTM)1.24
FCFY4.48%
OCF(TTM)1.57
OCFY5.69%
SpS8.35
BVpS8.44
TBVpS2.98
PEG (NY)N/A
PEG (5Y)N/A
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%
ROICexcg growth 3Y-10.17%
ROICexcg 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 | 4.02 |
F-Score4
WACC7.7%
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-0.8%
EPS Next 2Y1.91%
EPS Next 3Y4.14%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.5%
Revenue growth 3Y0.35%
Revenue growth 5Y3.4%
Sales Q2Q%-2.84%
Revenue Next Year-5.16%
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 Year3.35%
EBIT Next 3Y4.44%
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%