Morningstar

Brown-Forman Corp Registered Shs -B- Non Vtg BF.B

Morningstar Rating
Unlock
Stock XNYS Rating as of
—
View Full Chart
As of Delayed Price

Company Report

View Archive

Brown-Forman Earnings: Weak Consumer Sentiment Weighed on Sales but Premiumization Still a Tailwind

Dan Su

We plan to maintain our $55 fair value estimate for wide-moat Brown-Forman after absorbing its fiscal 2025 first-quarter results. While organic sales fell by 4% and earnings per share contracted 14%, we expect performance to improve in the second half due to product innovation and stepped-up marketing. We see no need to change our 2025 estimates, which align with management’s outlook for 2%-4% organic growth in sales and operating income and our 10-year forecasts for mid-single-digit annual sales growth and low-30s average operating margins. Shares look undervalued.

Read Full Report

Price vs Fair Value

View History
BF.B is trading at a 388% premium.
Price
$48.33
Fair Value
$49.00
Uncertainty
Medium
1-Star Price
$59.26
5-Star Price
$44.10
Economic Moat
Rtc
Capital Allocation
Klpjwcjhy

Bulls Say, Bears Say

Bulls

Premiumization trends in spirits consumption, coupled with Brown-Forman’s strong innovation pipeline, bode well for mid- to high-single-digit top-line growth in the coming years.

Bears

Brown-Forman is less diversified in category exposure compared with larger rivals Diageo and Pernod and could therefore be more susceptible to volume swings should demand soften for its core American whiskey products.

Show More

News

View All

Trading Information

Previous Close Price
—
Day Range
—–—
52-Week Range
—–—
Bid/Ask
— / —
Market Cap
—
Volume/Avg
— / —

Key Statistics

Price/Earnings (Normalized)
23.35
Price/Sales
5.62
Dividend Yield (Trailing)
1.80%
Dividend Yield (Forward)
1.80%
Total Yield
3.57%

Company Profile

Brown-Forman is a us-based manufacturer of premium distilled spirits that generates close to 70% of revenues in the whiskey category, under well-known Tennessee whiskey brand Jack Daniel’s and bourbon brands Woodford Reserve and Old Forester. It also manufactures and distributes tequila, vodka, rum, gin, and premium wines. The company generates 45% of sales from its home market, while the bulk of international revenues come from Europe, Australia, and Latin America. The Brown family controls over 50% of the economic interests and a 67% voting power of the company.
Sector
Consumer Defensive
Industry
Beverages - Wineries & Distilleries
Stock Style Box
Mid Core
Total Number of Employees
5,700
Website
https://www.brown-forman.com

Competitors

Valuation

View More
Metric
BF.B
RI
DGE
Price/Earnings (Normalized)
 23.3519.2319.40
Price/Book Value
 6.592.167.32
Price/Sales
 5.622.953.64
Price/Cash Flow
 26.6813.7215.13
Price/Earnings
BF.B
RI
DGE

Financial Strength

Metric
BF.B
RI
DGE
Quick Ratio
 0.740.640.50
Current Ratio
 2.471.861.53
Interest Coverage
 10.515.855.64
Quick Ratio
BF.B
RI
DGE

Profitability

Metric
BF.B
RI
DGE
Return on Assets (Normalized)
 9.77%5.19%8.78%
Return on Equity (Normalized)
 23.42%12.59%40.55%
Return on Invested Capital (Normalized)
 13.49%7.60%14.13%
Return on Assets
BF.B
RI
DGE

Beverages - Wineries & Distilleries Industry Comparables

Screen With Investor
1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Diageo PLC
DGEAF
—Znjj$77.1 Bil
 Diageo PLC ADR
DEO
PntbtpbsQrgw$77.1 Bil
 Pernod Ricard SA
PDRDF
—Ttnp$37.6 Bil
 Pernod Ricard SA ADR
PRNDY
—Kynh$37.6 Bil
 Brown-Forman Corp Class A
BF.A
QhzlljfsPrpj$22.6 Bil
 Thai Beverage PLC
TBVPF
—Kwmjj$10.4 Bil
 Davide Campari-Milano NV Az nom Post Frazionamento
DVDCF
—Dkqlmf$10.1 Bil
 Davide Campari-Milano NV ADR
DVCMY
—Nzdfsc$10.1 Bil
 Treasury Wine Estates Ltd ADR
TSRYY
—Zwhvn$6.7 Bil

Sponsor Center