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BF.B

Brown-Forman NYSE:BF.B Stock Report

Last Price

US$66.57

Market Cap

US$32.1b

7D

-2.9%

1Y

-0.9%

Updated

01 Oct, 2022

Data

Company Financials +
BF.B fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance6/6
Financial Health5/6
Dividends4/6

BF.B Stock Overview

Brown-Forman Corporation, together with its subsidiaries, manufactures, distills, bottles, imports, exports, markets, and sells various alcoholic beverages.

Brown-Forman Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Brown-Forman
Historical stock prices
Current Share PriceUS$66.57
52 Week HighUS$78.15
52 Week LowUS$60.23
Beta0.66
1 Month Change-8.19%
3 Month Change-6.99%
1 Year Change-0.91%
3 Year Change5.99%
5 Year Change52.60%
Change since IPO2,018.56%

Recent News & Updates

Sep 01
Brown-Forman (NYSE:BF.B) Is Paying Out A Dividend Of $0.1885

Brown-Forman (NYSE:BF.B) Is Paying Out A Dividend Of $0.1885

The board of Brown-Forman Corporation ( NYSE:BF.B ) has announced that it will pay a dividend on the 3rd of October...

Shareholder Returns

BF.BUS BeverageUS Market
7D-2.9%-3.0%-2.5%
1Y-0.9%4.6%-23.2%

Return vs Industry: BF.B underperformed the US Beverage industry which returned 4.6% over the past year.

Return vs Market: BF.B exceeded the US Market which returned -23.2% over the past year.

Price Volatility

Is BF.B's price volatile compared to industry and market?
BF.B volatility
BF.B Average Weekly Movement2.6%
Beverage Industry Average Movement4.9%
Market Average Movement6.9%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.8%

Stable Share Price: BF.B is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: BF.B's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18705,200Lawson Whitinghttps://www.brown-forman.com

Brown-Forman Corporation, together with its subsidiaries, manufactures, distills, bottles, imports, exports, markets, and sells various alcoholic beverages. It provides spirits, wines, whiskey spirits, whiskey-based flavored liqueurs, ready-to-drink and ready-to-pour products, ready-to-drink cocktails, vodkas, tequilas, champagnes, brandy, bourbons, and liqueurs. The company offers its products primarily under the Jack Daniel's, Reserve, Old Forester, Coopers’ Craft, Herradura, el Jimador, New Mix, Korbel Champagnes, Sonoma-Cutrer, Finlandia, GlenDronach, Benriach, Glenglassaugh, Chambord, Slane, and Fords Gin brands.

Brown-Forman Fundamentals Summary

How do Brown-Forman's earnings and revenue compare to its market cap?
BF.B fundamental statistics
Market CapUS$32.06b
Earnings (TTM)US$895.00m
Revenue (TTM)US$4.03b

35.6x

P/E Ratio

7.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BF.B income statement (TTM)
RevenueUS$4.03b
Cost of RevenueUS$1.57b
Gross ProfitUS$2.46b
Other ExpensesUS$1.57b
EarningsUS$895.00m

Last Reported Earnings

Jul 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.87
Gross Margin60.98%
Net Profit Margin22.19%
Debt/Equity Ratio80.1%

How did BF.B perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

30%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is BF.B undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BF.B?

Other financial metrics that can be useful for relative valuation.

BF.B key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue8.3x
Enterprise Value/EBITDA24.4x
PEG Ratio3.7x

Price to Earnings Ratio vs Peers

How does BF.B's PE Ratio compare to its peers?

BF.B PE Ratio vs Peers
The above table shows the PE ratio for BF.B vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average26x
STZ Constellation Brands
33.3x13.9%US$43.7b
MGPI MGP Ingredients
19.8x8.9%US$2.3b
NAPA Duckhorn Portfolio
27.6x12.7%US$1.7b
KDP Keurig Dr Pepper
23.3x8.8%US$50.7b
BF.B Brown-Forman
35.6x9.5%US$32.1b

Price-To-Earnings vs Peers: BF.B is expensive based on its Price-To-Earnings Ratio (35.6x) compared to the peer average (26x).


Price to Earnings Ratio vs Industry

How does BF.B's PE Ratio compare vs other companies in the Global Beverage Industry?

Price-To-Earnings vs Industry: BF.B is expensive based on its Price-To-Earnings Ratio (35.6x) compared to the Global Beverage industry average (19.8x)


Price to Earnings Ratio vs Fair Ratio

What is BF.B's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BF.B PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio35.6x
Fair PE Ratio26.1x

Price-To-Earnings vs Fair Ratio: BF.B is expensive based on its Price-To-Earnings Ratio (35.6x) compared to the estimated Fair Price-To-Earnings Ratio (26.1x).


Share Price vs Fair Value

What is the Fair Price of BF.B when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BF.B ($66.57) is trading below our estimate of fair value ($75.32)

Significantly Below Fair Value: BF.B is trading below fair value, but not by a significant amount.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is Brown-Forman forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


9.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BF.B's forecast earnings growth (9.5% per year) is above the savings rate (1.9%).

Earnings vs Market: BF.B's earnings (9.5% per year) are forecast to grow slower than the US market (14.8% per year).

High Growth Earnings: BF.B's earnings are forecast to grow, but not significantly.

Revenue vs Market: BF.B's revenue (5.8% per year) is forecast to grow slower than the US market (7.7% per year).

High Growth Revenue: BF.B's revenue (5.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BF.B's Return on Equity is forecast to be high in 3 years time (31.6%)


Discover growth companies

Past Performance

How has Brown-Forman performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


3.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BF.B has high quality earnings.

Growing Profit Margin: BF.B's current net profit margins (22.2%) are higher than last year (21.3%).


Past Earnings Growth Analysis

Earnings Trend: BF.B's earnings have grown by 3.5% per year over the past 5 years.

Accelerating Growth: BF.B's earnings growth over the past year (16.1%) exceeds its 5-year average (3.5% per year).

Earnings vs Industry: BF.B earnings growth over the past year (16.1%) exceeded the Beverage industry 14.4%.


Return on Equity

High ROE: BF.B's Return on Equity (31.9%) is considered high.


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Financial Health

How is Brown-Forman's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: BF.B's short term assets ($3.9B) exceed its short term liabilities ($1.1B).

Long Term Liabilities: BF.B's short term assets ($3.9B) exceed its long term liabilities ($2.6B).


Debt to Equity History and Analysis

Debt Level: BF.B's net debt to equity ratio (48.1%) is considered high.

Reducing Debt: BF.B's debt to equity ratio has reduced from 156.6% to 80.1% over the past 5 years.

Debt Coverage: BF.B's debt is well covered by operating cash flow (41.1%).

Interest Coverage: BF.B's interest payments on its debt are well covered by EBIT (17.4x coverage).


Balance Sheet


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Dividend

What is Brown-Forman current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.13%

Current Dividend Yield

Dividend Yield vs Market

Brown-Forman Dividend Yield vs Market
How does Brown-Forman dividend yield compare to the market?
SegmentDividend Yield
Company (Brown-Forman)1.1%
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (Beverage)2.8%
Analyst forecast in 3 Years (Brown-Forman)1.3%

Notable Dividend: BF.B's dividend (1.13%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: BF.B's dividend (1.13%) is low compared to the top 25% of dividend payers in the US market (4.73%).


Stability and Growth of Payments

Stable Dividend: BF.B's dividends per share have been stable in the past 10 years.

Growing Dividend: BF.B's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (29.8%), BF.B's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (47.1%), BF.B's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.9yrs

Average management tenure


CEO

Lawson Whiting (54 yo)

3.83yrs

Tenure

US$8,364,936

Compensation

Mr. Lawson E. Whiting has been Chief Executive Officer of Brown-Forman Corporation since January 1, 2019 and has been its President since March 28, 2019 and served as its President from January 1, 2019 to...


CEO Compensation Analysis

Lawson Whiting's Compensation vs Brown-Forman Earnings
How has Lawson Whiting's remuneration changed compared to Brown-Forman's earnings?
DateTotal Comp.SalaryCompany Earnings
Jul 31 2022n/an/a

US$895m

Apr 30 2022US$8mUS$1m

US$838m

Jan 31 2022n/an/a

US$807m

Oct 31 2021n/an/a

US$767m

Jul 31 2021n/an/a

US$771m

Apr 30 2021US$9mUS$1m

US$903m

Jan 31 2021n/an/a

US$911m

Oct 31 2020n/an/a

US$923m

Jul 31 2020n/an/a

US$965m

Apr 30 2020US$6mUS$1m

US$827m

Jan 31 2020n/an/a

US$858m

Oct 31 2019n/an/a

US$854m

Jul 31 2019n/an/a

US$821m

Apr 30 2019US$4mUS$872k

US$835m

Jan 31 2019n/an/a

US$786m

Oct 31 2018n/an/a

US$749m

Jul 31 2018n/an/a

US$739m

Apr 30 2018US$2mUS$598k

US$717m

Jan 31 2018n/an/a

US$752m

Oct 31 2017n/an/a

US$744m

Jul 31 2017n/an/a

US$703m

Apr 30 2017US$2mUS$487k

US$669m

Compensation vs Market: Lawson's total compensation ($USD8.36M) is below average for companies of similar size in the US market ($USD13.04M).

Compensation vs Earnings: Lawson's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: BF.B's management team is considered experienced (3.9 years average tenure).


Board Members

Experienced Board: BF.B's board of directors are considered experienced (6.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

What is the ownership structure of BF.B?
Owner TypeNumber of SharesOwnership Percentage
State or Government101,4540.02%
Individual Insiders17,940,4863.7%
Private Companies113,750,10423.7%
Institutions167,277,44634.9%
General Public180,052,49637.6%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 48.97% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
19.94%
Wolf Pen Branch, LP
95,538,120$6.4b0.56%no data
4.68%
The Vanguard Group, Inc.
22,402,364$1.5b1.6%0.03%
4.08%
BlackRock, Inc.
19,532,130$1.3b2.72%0.03%
3.8%
Avish Agincourt, LLC
18,208,304$1.2b0%no data
2.55%
Fundsmith, LLP
12,213,131$813.0m3.64%2.81%
2.23%
State Street Global Advisors, Inc.
10,671,434$710.4m-0.35%0.04%
1.39%
Campbell Brown
6,683,238$444.9m2.96%no data
1.16%
George Brown
5,565,883$370.5m0%no data
0.89%
Geode Capital Management, LLC
4,279,522$284.9m2.52%0.04%
0.84%
Brown Advisory Incorporated
4,027,465$268.1m-6.58%0.48%
0.82%
Fundsmith Investment Services Limited
3,941,664$262.4m2.8%4.51%
0.78%
Gardner Russo & Quinn LLC
3,720,249$247.7m-1.36%3.02%
0.68%
Lindsell Train Limited
3,256,979$216.8m0.23%1.21%
0.54%
Invesco Capital Management LLC
2,602,422$173.2m-1.88%0.14%
0.52%
ProShare Advisors LLC
2,503,538$166.7m5.35%0.57%
0.49%
Legal & General Investment Management Limited
2,354,736$156.8m5.37%0.05%
0.49%
Northern Trust Global Investments
2,326,557$154.9m0.37%0.03%
0.46%
Wells Fargo & Company, Securities and Brokerage Investments
2,183,749$145.4m0.5%0.06%
0.43%
Augusta Holland
2,047,247$136.3m0%no data
0.41%
UBS Asset Management
1,942,405$129.3m4.1%0.03%
0.4%
Stuart Brown
1,939,560$129.1m0%no data
0.36%
Eaton Vance Management
1,712,118$114.0m4.38%0.05%
0.35%
BNY Mellon Asset Management
1,695,666$112.9m13.83%0.02%
0.34%
Franklin Resources, Inc.
1,642,581$109.3m-0.96%0.05%
0.34%
GAMCO Investors, Inc.
1,621,372$107.9m-1.17%0.48%

Company Information

Brown-Forman Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Brown-Forman Corporation
  • Ticker: BF.B
  • Exchange: NYSE
  • Founded: 1870
  • Industry: Distillers and Vintners
  • Sector: Food, Beverage & Tobacco
  • Implied Market Cap: US$32.063b
  • Shares outstanding: 479.12m
  • Website: https://www.brown-forman.com

Number of Employees


Location

  • Brown-Forman Corporation
  • 850 Dixie Highway
  • Louisville
  • Kentucky
  • 40210
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BF.ANYSE (New York Stock Exchange)Class A Common SharesUSUSDJan 1968
BF.BNYSE (New York Stock Exchange)YesClass B Common SharesUSUSDJan 1968
BF5BDB (Deutsche Boerse AG)YesClass B Common SharesDEEURJan 1968
0HQ3LSE (London Stock Exchange)YesClass B Common SharesGBUSDJan 1968
BF5ADB (Deutsche Boerse AG)Class A Common SharesDEEURJan 1968
0SGNLSE (London Stock Exchange)Class A Common SharesGBUSDJan 1968
B1FC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REPR 1 COMBRBRLJan 2020

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/01 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/07/31
Annual Earnings2022/04/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.