NYSE:BF.B

Stock Analysis Report

Executive Summary

Brown-Forman Corporation manufactures, bottles, imports, exports, markets, and sells various alcoholic beverages worldwide.

Snowflake

Fundamentals

Proven track record average dividend payer.


Similar Companies

Share Price & News

How has Brown-Forman's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.3%

NYSE:BF.B

1.3%

US Beverage

2.1%

US Market


1 Year Return

10.4%

NYSE:BF.B

12.7%

US Beverage

-0.04%

US Market

BF.B underperformed the Beverage industry which returned 12.2% over the past year.

BF.B outperformed the Market in United States of America which returned 0.2% over the past year.


Share holder returns

BF.BIndustryMarket
7 Day2.3%1.3%2.1%
30 Day4.4%-0.1%-3.2%
90 Day11.9%3.7%2.8%
1 Year11.9%10.4%15.7%12.7%2.2%-0.04%
3 Year51.6%42.9%28.8%18.8%41.5%32.3%
5 Year73.6%59.4%57.0%37.1%55.0%37.8%

Price Volatility Vs. Market

How volatile is Brown-Forman's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

33.47x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Brown-Forman's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Brown-Forman's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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

Brown-Forman is poor value based on expected growth next year.


Price Based on Value of Assets

Brown-Forman is overvalued based on assets compared to the US Beverage industry average.


Next Steps

Future Growth

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

5.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Brown-Forman's revenue is expected to grow by 5.2% yearly, however this is not considered high growth (20% yearly).

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 growth is positive but not above the United States of America market average.

Brown-Forman's earnings growth is positive but not above the United States of America market average.

Brown-Forman's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Brown-Forman is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

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

2.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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 0.3%).


Return on Equity

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.


Return on Assets

Brown-Forman used its assets more efficiently than the US Beverage industry average last year based on Return on Assets.


Return on Capital Employed

Brown-Forman's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Brown-Forman's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

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).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.1x debt.


Next Steps

Dividend

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

1.29%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Brown-Forman before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Brown-Forman's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Brown-Forman's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

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

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).


Next Steps

Management

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

5.5yrs

Average management tenure


CEO

Lawson Whiting (51yo)

0.6yrs

Tenure

US$3,695,893

Compensation

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  ...


CEO Compensation Analysis

Lawson's remuneration is lower than average for companies of similar size in United States of America.

Lawson's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

5.5yrs

Average Tenure

57yo

Average Age

The average tenure for the Brown-Forman management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

5.5yrs

Average Tenure

61yo

Average Age

The tenure for the Brown-Forman board of directors is about average.


Insider Trading

Brown-Forman individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$100,02703 Jul 19
John Hayes
EntityIndividual
Shares1,770
Max PriceUS$56.51
SellUS$7,72227 Dec 18
Michael Keyes
EntityIndividual
Shares167
Max PriceUS$46.24
BuyUS$52,01306 Sep 18
Matthew Hamel
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares990
Max PriceUS$52.54

Ownership Breakdown


Management Team

  • Mark McCallum (64yo)

    Executive VP & Chief Brands Officer

    • Tenure: 16.1yrs
    • Compensation: US$2.58m
  • Jane Morreau (60yo)

    Executive VP & CFO

    • Tenure: 5.5yrs
    • Compensation: US$3.07m
  • Matt Hamel (59yo)

    Executive VP

    • Tenure: 11.8yrs
    • Compensation: US$1.86m
  • Marshall Farrer (48yo)

    Senior VP

    • Tenure: 3.3yrs
  • Ralph de Chabert (72yo)

    Senior VP and Chief Diversity Inclusion & Global Community Relations Officer

    • Tenure: 11.7yrs
  • Jim O'Malley

    Senior Vice President of Global Government Relations

    • Tenure: 0.0yrs
  • Lawson Whiting (51yo)

    CEO, President & Director

    • Tenure: 0.6yrs
    • Compensation: US$3.70m
  • Kirsten Hawley (49yo)

    Senior VP

    • Tenure: 0.4yrs
  • Thomas Hinrichs (57yo)

    Senior Vice President of the International Division

    • Tenure: 1.2yrs
    • Compensation: US$1.47m
  • Kelli Nelson (49yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 1.0yrs

Board Members

  • Bruce Byrnes (70yo)

    Independent Director

    • Tenure: 8.9yrs
    • Compensation: US$230.00k
  • Patrick Bousquet-Chavanne (61yo)

    Independent Director

    • Tenure: 14.3yrs
    • Compensation: US$290.32k
  • Mike Roney (65yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$228.00k
  • Michael Todman (61yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$230.00k
  • Geo Brown (50yo)

    Chairman of the Board

    • Tenure: 13.3yrs
    • Compensation: US$863.00k
  • Marshall Farrer (48yo)

    Senior VP

    • Tenure: 3.3yrs
  • Laura Frazier (61yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: US$200.00k
  • Campbell Brown (51yo)

    Senior VP

    • Tenure: 3.3yrs
  • John Cook (66yo)

    Lead Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$257.50k
  • Lawson Whiting (51yo)

    CEO, President & Director

    • Tenure: 0.6yrs
    • Compensation: US$3.70m

Company Information

Brown-Forman Corporation's company bio, 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
  • Market Cap: US$27.636b
  • Shares outstanding: 477.53m
  • 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

Biography

Brown-Forman Corporation manufactures, bottles, imports, exports, markets, and sells various alcoholic beverages worldwide. It provides spirits, wines, whiskey spirits, whiskey-based flavored liqueurs, rea ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 23:33
End of Day Share Price2019/08/22 00:00
Earnings2019/04/30
Annual Earnings2019/04/30


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.