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Brown-Forman

NYSE:BF.B
Snowflake Description

Proven track record average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BF.B
NYSE
$26B
Market Cap
  1. Home
  2. US
  3. Food, Beverage & Tobacco
Company description

Brown-Forman Corporation manufactures, bottles, imports, exports, markets, and sells various alcoholic beverages worldwide. The last earnings update was 5 days ago. More info.


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BF.B Share Price and Events
7 Day Returns
-5.2%
NYSE:BF.B
-1.4%
US Beverage
0.1%
US Market
1 Year Returns
3.3%
NYSE:BF.B
13%
US Beverage
1.2%
US Market
BF.B Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Brown-Forman (BF.B) -5.2% 4% 7.1% 3.3% 38.6% 43.6%
US Beverage -1.4% 0.8% 8.1% 13% 8.7% 12.2%
US Market 0.1% 0.6% 0.9% 1.2% 36.7% 37.9%
1 Year Return vs Industry and Market
  • BF.B underperformed the Beverage industry which returned 13% over the past year.
  • BF.B outperformed the Market in United States of America which returned 1.2% over the past year.
Price Volatility
BF.B
Industry
5yr Volatility vs Market

BF.B Value

 Is Brown-Forman undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Brown-Forman to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Brown-Forman.

NYSE:BF.B Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 17 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:BF.B
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Beverage Unlevered Beta Simply Wall St/ S&P Global 0.58
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.584 (1 + (1- 21%) (9.48%))
0.75
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%)
7.5%

Discounted Cash Flow Calculation for NYSE:BF.B using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Brown-Forman is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:BF.B DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.5%)
2019 741.29 Analyst x8 689.58
2020 791.34 Analyst x9 684.80
2021 861.89 Analyst x9 693.83
2022 963.13 Analyst x3 721.25
2023 1,278.00 Analyst x1 890.28
2024 1,373.00 Analyst x1 889.75
2025 1,452.99 Est @ 5.83% 875.91
2026 1,524.14 Est @ 4.9% 854.71
2027 1,588.86 Est @ 4.25% 828.86
2028 1,649.11 Est @ 3.79% 800.29
Present value of next 10 years cash flows $7,929.27
NYSE:BF.B DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1,649.11 × (1 + 2.73%) ÷ (7.5% – 2.73%)
$35,531.28
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $35,531.28 ÷ (1 + 7.5%)10
$17,242.77
NYSE:BF.B Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $7,929.27 + $17,242.77
$25,172.03
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $25,172.03 / 477.27
$52.74
NYSE:BF.B Discount to Share Price
Calculation Result
Value per share (USD) From above. $52.74
Current discount Discount to share price of $54.22
= -1 x ($54.22 - $52.74) / $52.74
-2.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Brown-Forman is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Brown-Forman's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Brown-Forman's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:BF.B PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-04-30) in USD $1.74
NYSE:BF.B Share Price ** NYSE (2019-06-18) in USD $54.22
United States of America Beverage Industry PE Ratio Median Figure of 16 Publicly-Listed Beverage Companies 29.26x
United States of America Market PE Ratio Median Figure of 3,092 Publicly-Listed Companies 17.63x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Brown-Forman.

NYSE:BF.B PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:BF.B Share Price ÷ EPS (both in USD)

= 54.22 ÷ 1.74

31.1x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Brown-Forman is overvalued based on earnings compared to the US Beverage industry average.
  • Brown-Forman is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Brown-Forman's expected growth come at a high price?
Raw Data
NYSE:BF.B PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 31.1x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts
5.8%per year
United States of America Beverage Industry PEG Ratio Median Figure of 12 Publicly-Listed Beverage Companies 2.48x
United States of America Market PEG Ratio Median Figure of 2,126 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

NYSE:BF.B PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 31.1x ÷ 5.8%

5.34x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Brown-Forman is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Brown-Forman's assets?
Raw Data
NYSE:BF.B PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-04-30) in USD $3.45
NYSE:BF.B Share Price * NYSE (2019-06-18) in USD $54.22
United States of America Beverage Industry PB Ratio Median Figure of 28 Publicly-Listed Beverage Companies 6.01x
United States of America Market PB Ratio Median Figure of 5,244 Publicly-Listed Companies 1.79x
NYSE:BF.B PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:BF.B Share Price ÷ Book Value per Share (both in USD)

= 54.22 ÷ 3.45

15.71x

* Primary Listing of Brown-Forman.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Brown-Forman is overvalued based on assets compared to the US Beverage industry average.
X
Value checks
We assess Brown-Forman's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Beverage industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Beverage industry average (and greater than 0)? (1 check)
  5. Brown-Forman has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

BF.B Future Performance

 How is Brown-Forman expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Brown-Forman expected to grow at an attractive rate?
  • Brown-Forman's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Brown-Forman's earnings growth is positive but not above the United States of America market average.
  • Brown-Forman's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:BF.B Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:BF.B Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts 5.8%
NYSE:BF.B Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 17 Analysts 5.3%
United States of America Beverage Industry Earnings Growth Rate Market Cap Weighted Average 6.5%
United States of America Beverage Industry Revenue Growth Rate Market Cap Weighted Average 4.5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:BF.B Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:BF.B Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-04-30 4,413 1
2023-04-30 4,176 2
2022-04-30 3,904 963 1,000 8
2021-04-30 3,693 942 923 17
2020-04-30 3,492 859 855 14
NYSE:BF.B Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-04-30 3,324 800 835
2019-01-31 3,313 627 786
2018-10-31 3,287 686 749
2018-07-31 3,291 653 739
2018-04-30 3,248 653 717
2018-01-31 3,210 776 752
2017-10-31 3,140 688 744
2017-07-31 3,056 616 703
2017-04-30 2,994 656 669
2017-01-31 3,028 521 1,046
2016-10-31 3,029 532 1,053
2016-07-31 3,053 505 1,055

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Brown-Forman's earnings are expected to grow by 5.8% yearly, however this is not considered high growth (20% yearly).
  • Brown-Forman's revenue is expected to grow by 5.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:BF.B Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below

All data from Brown-Forman Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:BF.B Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-04-30
2023-04-30
2022-04-30 2.14 2.21 2.09 5.00
2021-04-30 1.94 2.01 1.90 16.00
2020-04-30 1.79 1.82 1.75 17.00
NYSE:BF.B Past Financials Data
Date (Data in USD Millions) EPS *
2019-04-30 1.74
2019-01-31 1.64
2018-10-31 1.56
2018-07-31 1.54
2018-04-30 1.49
2018-01-31 1.57
2017-10-31 1.55
2017-07-31 1.46
2017-04-30 1.38
2017-01-31 2.14
2016-10-31 2.13
2016-07-31 2.11

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Brown-Forman is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Brown-Forman's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Brown-Forman has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

BF.B Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Brown-Forman's growth in the last year to its industry (Beverage).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Brown-Forman's year on year earnings growth rate has been positive over the past 5 years.
  • Brown-Forman's 1-year earnings growth exceeds its 5-year average (16.5% vs 2.6%)
  • Brown-Forman's earnings growth has exceeded the US Beverage industry average in the past year (16.5% vs 6.2%).
Earnings and Revenue History
Brown-Forman's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Brown-Forman Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:BF.B Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-04-30 3,324.00 835.00 1,059.00
2019-01-31 3,313.00 786.00 1,168.00
2018-10-31 3,287.00 749.00 1,188.00
2018-07-31 3,291.00 739.00 1,197.00
2018-04-30 3,248.00 717.00 1,179.00
2018-01-31 3,210.00 752.00 1,082.00
2017-10-31 3,140.00 744.00 1,058.00
2017-07-31 3,056.00 703.00 1,055.00
2017-04-30 2,994.00 669.00 1,050.00
2017-01-31 3,028.00 1,046.00 1,060.00
2016-10-31 3,029.00 1,053.00 1,072.00
2016-07-31 3,053.00 1,055.00 1,087.00
2016-04-30 3,089.00 1,067.00 1,105.00
2016-01-31 3,099.00 686.00 1,112.00
2015-10-31 3,103.00 682.00 1,112.00
2015-07-31 3,126.00 690.00 1,128.00
2015-04-30 3,134.00 684.00 1,134.00
2015-01-31 3,084.00 676.00 1,160.00
2014-10-31 3,053.00 668.00 1,161.00
2014-07-31 3,010.00 666.00 1,132.00
2014-04-30 2,991.00 659.00 1,122.00
2014-01-31 2,962.00 639.00 1,087.00
2013-10-31 2,926.00 620.00 1,083.00
2013-07-31 2,869.00 587.00 1,077.00
2013-04-30 2,849.00 591.00 1,058.00
2013-01-31 2,791.40 582.40 1,053.80
2012-10-31 2,747.10 557.50 1,028.60
2012-07-31 2,751.20 541.90 1,015.20

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Brown-Forman made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
  • Brown-Forman used its assets more efficiently than the US Beverage industry average last year based on Return on Assets.
  • Brown-Forman's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Brown-Forman's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Beverage industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Brown-Forman has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

BF.B Health

 How is Brown-Forman's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Brown-Forman's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Brown-Forman is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Brown-Forman's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Brown-Forman's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Brown-Forman Company Filings, last reported 1 month ago.

NYSE:BF.B Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-04-30 1,647.00 2,440.00 307.00
2019-01-31 1,493.00 2,508.00 260.00
2018-10-31 1,497.00 2,546.00 193.00
2018-07-31 1,368.00 2,486.00 211.00
2018-04-30 1,316.00 2,556.00 239.00
2018-01-31 1,201.00 2,097.00 287.00
2017-10-31 1,647.00 2,204.00 212.00
2017-07-31 1,420.00 2,228.00 238.00
2017-04-30 1,370.00 2,149.00 182.00
2017-01-31 1,184.00 2,226.00 197.00
2016-10-31 1,283.00 2,254.00 211.00
2016-07-31 1,330.00 2,241.00 459.00
2016-04-30 1,562.00 1,501.00 263.00
2016-01-31 1,417.00 1,738.00 317.00
2015-10-31 1,401.00 1,782.00 195.00
2015-07-31 1,707.00 1,492.00 494.00
2015-04-30 1,905.00 1,183.00 370.00
2015-01-31 2,041.00 1,006.00 250.00
2014-10-31 2,075.00 1,122.00 235.00
2014-07-31 2,054.00 1,011.00 460.00
2014-04-30 2,032.00 1,005.00 437.00
2014-01-31 1,889.00 1,006.00 287.00
2013-10-31 1,838.00 1,004.00 192.00
2013-07-31 1,666.00 1,003.00 217.00
2013-04-30 1,628.00 1,002.00 204.00
2013-01-31 1,518.80 1,260.90 388.60
2012-10-31 2,304.80 512.00 368.80
2012-07-31 2,122.00 511.30 362.00
  • Brown-Forman's level of debt (148.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (49.5% vs 148.1% today).
  • Debt is well covered by operating cash flow (32.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 13.8x coverage).
X
Financial health checks
We assess Brown-Forman's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Brown-Forman has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

BF.B Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.22%
Current annual income from Brown-Forman dividends. Estimated to be 1.39% next year.
If you bought $2,000 of Brown-Forman shares you are expected to receive $24 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Brown-Forman's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
  • Brown-Forman's dividend is below the markets top 25% of dividend payers in United States of America (3.72%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:BF.B Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
United States of America Beverage Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 2.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:BF.B Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-04-30
2023-04-30 0.96 1.00
2022-04-30 0.81 9.00
2021-04-30 0.75 15.00
2020-04-30 0.69 14.00
NYSE:BF.B Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-23 0.664 1.234
2019-01-29 0.664 1.304
2018-11-15 0.664 1.424
2018-07-26 0.632 1.258
2018-05-24 0.632 1.210
2018-01-23 0.632 1.147
2017-11-16 0.632 1.217
2017-07-27 0.584 1.368
2017-05-24 0.584 1.479
2017-01-24 0.584 1.538
2016-11-17 0.584 1.613
2016-07-29 0.544 1.442
2016-05-26 0.544 1.391
2016-01-28 0.544 1.401
2015-11-19 0.544 1.375
2015-07-23 0.504 1.220
2015-05-21 0.504 1.271
2015-01-20 0.504 1.381
2014-11-20 0.504 1.396
2014-07-24 0.464 1.279
2014-05-21 0.464 1.239
2014-01-23 0.464 1.351
2013-11-21 0.464 1.534
2013-07-25 0.408 1.435
2013-05-23 0.408 1.458
2013-01-22 0.408 1.491
2012-11-15 0.408 1.569
2012-07-26 0.373 1.456
2012-05-24 0.373 1.522
2012-01-24 0.373 1.681
2011-11-17 0.373 1.773
2011-07-28 0.341 1.800
2011-05-26 0.341 1.746
2011-01-27 0.341 1.854
2010-11-18 0.341 1.880
2010-07-22 0.320 1.947
2010-05-27 0.320 2.034
2010-01-28 0.320 2.151
2009-11-16 0.320 2.287
2009-09-04 0.307 2.355
2009-09-02 0.307 2.509

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Brown-Forman's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.6x coverage).
X
Income/ dividend checks
We assess Brown-Forman's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Brown-Forman afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Brown-Forman has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

BF.B Management

 What is the CEO of Brown-Forman's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Lawson Whiting
COMPENSATION $2,377,605
AGE 50
TENURE AS CEO 0.4 years
CEO Bio

Mr. Lawson E. Whiting has been Chief Executive Officer of Brown-Forman Corporation since January 1, 2019 and its President since March 28, 2019 and served as its President from January 1, 2019 to February 2019. He was Executive Vice President of Brown-Forman Corporation since 2018 until January 1, 2019 and Chief Operating Officer since October 1, 2017 until January 1, 2019. He has been Director of Brown-Forman Corporation since November 15, 2018. Mr. Whiting served as the Chief Brands & Strategy Officer of B-F Brands and Executive Vice President of Brown-Forman Corporation since February 2015 until October 1, 2017. He served as the Chief Brands Officer and Senior Vice President of Brown-Forman Corporation since January 2013 until February 2015. Mr. Whiting served as Senior Vice President of Brown-Forman International and Vice President and Finance Director for Western Europe from 2010 to 2011. He was Managing Director for Western Europe at Brown-Forman Corporation from 2011 to 2013. He was Vice President and Finance Director for North America at Brown-Forman Corporation from 2009 to 2010, was responsible for the coordination, consolidation and analysis of its business performance across North America. Mr. Whiting served as Director of Investor Relations, Director of Finance for wine operations and Director of Global Business Strategy and Analysis for Jack Daniel's brands. Most recently, Mr. Whiting served as Vice President and Director of Global Brands Strategy and Planning of Brown-Forman. He has a Bachelor of Science degree in Finance from Miami University and a Master of Business Administration degree from the University of Chicago.

CEO Compensation
  • Lawson's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • Lawson's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Brown-Forman management team in years:

7.4
Average Tenure
54
Average Age
  • The average tenure for the Brown-Forman management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Lawson Whiting

TITLE
CEO, President & Director
COMPENSATION
$2M
AGE
50
TENURE
0.4 yrs

Jane Morreau

TITLE
Executive VP & CFO
COMPENSATION
$3M
AGE
59
TENURE
5.3 yrs

Mark McCallum

TITLE
Executive VP & Chief Brands Officer
COMPENSATION
$3M
AGE
63
TENURE
15.9 yrs

Kelli Nelson

TITLE
Senior VP & Chief Accounting Officer
AGE
48
TENURE
0.8 yrs

Jay Koval

TITLE
VP &Director of Investor Relations

Matt Hamel

TITLE
Executive VP
COMPENSATION
$2M
AGE
58
TENURE
11.7 yrs

Kirsten Hawley

TITLE
Senior VP and Chief HR & Corporate Communications Officer
AGE
48
TENURE
0.3 yrs

Marshall Farrer

TITLE
Senior VP
AGE
47
TENURE
9.4 yrs

Ralph de Chabert

TITLE
Senior VP and Chief Diversity Inclusion & Global Community Relations Officer
AGE
71
TENURE
11.5 yrs

Jim O'Malley

TITLE
Senior Vice President of Global Government Relations
Board of Directors Tenure

Average tenure and age of the Brown-Forman board of directors in years:

5.3
Average Tenure
57
Average Age
  • The tenure for the Brown-Forman board of directors is about average.
Board of Directors

Geo Brown

TITLE
Chairman of the Board
COMPENSATION
$848K
AGE
49
TENURE
11.8 yrs

Lawson Whiting

TITLE
CEO, President & Director
COMPENSATION
$2M
AGE
50
TENURE
0.6 yrs

Marshall Farrer

TITLE
Senior VP
AGE
47
TENURE
3.1 yrs

Campbell Brown

TITLE
Management Director
AGE
50
TENURE
3.1 yrs

John Cook

TITLE
Lead Independent Director
COMPENSATION
$287K
AGE
65
TENURE
6.8 yrs

Mike Roney

TITLE
Independent Director
COMPENSATION
$240K
AGE
64
TENURE
5.3 yrs

Michael Todman

TITLE
Independent Director
COMPENSATION
$233K
AGE
60
TENURE
5.4 yrs

Paul Varga

TITLE
Director
COMPENSATION
$9M
AGE
54
TENURE
15.7 yrs

Patrick Bousquet-Chavanne

TITLE
Independent Director
COMPENSATION
$225K
AGE
60
TENURE
14.1 yrs

Laura Frazier

TITLE
Director
COMPENSATION
$188K
AGE
60
TENURE
3.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
27. Dec 18 Sell Michael Keyes Individual 21. Dec 18 21. Dec 18 -167 $46.24 $-7,722
06. Sep 18 Buy Matthew Hamel Individual 04. Sep 18 04. Sep 18 990 $52.54 $52,013
21. Jun 18 Sell Thomas Hinrichs Individual 19. Jun 18 19. Jun 18 -31 $52.83 $-1,652
X
Management checks
We assess Brown-Forman's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Brown-Forman has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

BF.B News

Simply Wall St News

Brown-Forman Corporation (NYSE:BF.B): Has Recent Earnings Growth Beaten Long-Term Trend?

When Brown-Forman Corporation (NYSE:BF.B) announced its most recent earnings (30 April 2019), I did two things: looked at its past earnings track record, then look at what is happening in the industry. … View our latest analysis for Brown-Forman How Well Did BF.B Perform? … Companies that have performed well in the past, such as Brown-Forman gives investors conviction.

Simply Wall St -

Brown-Forman Corporation (NYSE:BF.B) Earns Among The Best Returns In Its Industry

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Brown-Forman: 0.24 = US$1.0b ÷ (US$5.2b - US$895m) (Based on the trailing twelve months to January 2019.) Therefore, Brown-Forman has an ROCE of 24%. … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise. … The Bottom Line On Brown-Forman's ROCE With low current liabilities and a high ROCE, Brown-Forman could be worthy of further investigation.

Simply Wall St -

You Have To Love Brown-Forman Corporation's (NYSE:BF.B) Dividend

Is Brown-Forman Corporation (NYSE:BF.B) a good dividend stock? How would you know? Dividend paying companies with growing earnings can be highly rewarding in the long term. If you are hoping to live on the income from dividends, it's important to be a lot more stringent with your investments than the average punter. A 1.3% yield is nothing to get excited about, but investors probably think the long payment history suggests Brown-Forman has some staying power. The company also bought back stock during the year, equivalent to approximately 0.8% of the company's market capitalisation at the time. There are a few simple ways to reduce the risks of buying Brown-Forman for its dividend, and we'll go through these below. Explore this interactive chart for our latest analysis on Brown-Forman! NYSE:BF.B Historical Dividend Yield, May 16th 2019 Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card! Payout ratios Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. Brown-Forman paid out 39% of its profit as dividends, over the trailing twelve month period. This is a middling range that strikes a nice balance between paying dividends to shareholders, and retaining enough earnings to invest in future growth. Plus, there is room to increase the payout ratio over time. We also measure dividends paid against a company's levered free cash flow, to see if enough cash was generated to cover the dividend. The company paid out 57% of its free cash flow, which is not bad per se, but does start to limit the amount of cash Brown-Forman has available to meet other needs. Is Brown-Forman's Balance Sheet Risky? As Brown-Forman has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments on debt. Essentially we check that a) a company does not have too much debt, and b) that it can afford to pay the interest. … Dividend Growth Potential Dividend payments have been consistent over the past few years, but we should always check if earnings per share (EPS) are growing, as this will help maintain the purchasing power of the dividend. Earnings have grown at around 8.1% a year for the past five years, which is better than seeing them shrink! It's good to see decent earnings growth and a low payout ratio. Companies with these characteristics often display the fastest dividend growth over the long term - assuming earnings can be maintained, of course. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. … That said, we were glad to see it growing earnings and paying a fairly consistent dividend.

Simply Wall St -

What Type Of Shareholder Owns Brown-Forman Corporation's (NYSE:BF.B)?

Generally speaking, as a company grows, institutions will increase their ownership. … Brown-Forman is a pretty big company. … Normally institutions would own a significant portion of a company this size.

Simply Wall St -

Should You Be Tempted To Sell Brown-Forman Corporation (NYSE:BF.B) Because Of Its P/E Ratio?

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … We'll look at Brown-Forman Corporation's (NYSE:BF.B) P/E ratio and reflect on what it tells us about the company's share price. … How Do I Calculate Brown-Forman's Price To Earnings Ratio

Simply Wall St -

Read This Before Selling Brown-Forman Corporation (NYSE:BF.B) Shares

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. … So we'll take a look at whether insiders have been buying or selling shares in Brown-Forman Corporation (NYSE:BF.B). … Brown-Forman Insider Transactions Over The Last Year.

Simply Wall St -

Should You Be Impressed By Brown-Forman Corporation's (NYSE:BF.B) ROE?

This article is for those who would like to learn about Return On Equity (ROE). … Our data shows Brown-Forman has a return on equity of 50% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What Kind Of Shareholders Own Brown-Forman Corporation (NYSE:BF.B)?

Generally speaking, as a company grows, institutions will increase their ownership. … We'd expect to see both institutions and retail investors owning a portion of the company. … institutions own shares in the company.

Simply Wall St -

Why Brown-Forman Corporation (NYSE:BF.B) Could Be Worth Watching

saw significant share price movement during recent months on the NYSE, rising to highs of $51.1 and falling to the lows of $45.6. … Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price? … Let’s take a look at Brown-Forman’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Is Brown-Forman Corporation’s (NYSE:BF.B) 24% ROCE Any Good?

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Understanding Return On Capital Employed (ROCE). … How Do You Calculate Return On Capital Employed

Simply Wall St -

BF.B Company Info

Description

Brown-Forman Corporation manufactures, bottles, imports, exports, markets, and sells various alcoholic beverages worldwide. 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, Woodford Reserve, Canadian Mist, GlenDronach, BenRiach, Glenglassaugh, Old Forester, Early Times, Slane Irish Whiskey, Coopers’ Craft, Early Times, el Jimador, Herradura, New Mix, Pepe Lopez, Antiguo, Finlandia, Korbel Champagne, and Sonoma-Cutrer brands. It is also involved in the sale of used barrels, bulk whiskey, and wine; and provision of contract bottling services. The company serves retail customers and consumers through distributors or state governments; and retailers, wholesalers, and provincial governments directly. Brown-Forman Corporation was founded in 1870 and is headquartered in Louisville, Kentucky.

Details
Name: Brown-Forman Corporation
BF.B
Exchange: NYSE
Founded: 1870
$25,725,755,347
477,274,855
Website: http://www.brown-forman.com
Address: Brown-Forman Corporation
850 Dixie Highway,
Louisville,
Kentucky, 40210,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE BF.B Class B Common Shares New York Stock Exchange US USD 02. Jan 1968
DB BF5B Class B Common Shares Deutsche Boerse AG DE EUR 02. Jan 1968
LSE 0HQ3 Class B Common Shares London Stock Exchange GB USD 02. Jan 1968
NYSE BF.A Class A Common Shares New York Stock Exchange US USD 02. Jan 1968
Number of employees
Current staff
Staff numbers
4,700
Brown-Forman employees.
Industry
Distillers and Vintners
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/18 23:33
End of day share price update: 2019/06/18 00:00
Last estimates confirmation: 2019/06/17
Last earnings filing: 2019/06/13
Last earnings reported: 2019/04/30
Last annual earnings reported: 2019/04/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.