Brown Forman A (BF.A) AI Stock Analysis

• Market Cap: $15.47B
• Dividend Yield: 2.74%
• Average Volume (3M): 166.12K
• Price to Earnings (P/E): 15.5
• Beta (1Y): 0.51
• Revenue Growth: -5.11%
• EPS Growth: 3.64%
• Country: US
• Employees: 5,700
• Sector: Consumer Defensive
• Sector Strength: 78
• Industry: Beverages - Wineries & Distilleries
• EPS (TTM): 2.09
• Shares Outstanding: 169,129,180
• 10 Day Avg. Volume: 149,115
• 30 Day Avg. Volume: 166,119
• PEG Ratio: 4.26
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.98
• Price to Cash Flow (P/CF): 12.70
• P/FCF Ratio: 11.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $36.00
• Price Target Upside: 13.39% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

Brown Forman A exhibits strong financial performance with solid profitability and efficient cash flow management. Despite recent revenue challenges, the company maintains a stable balance sheet. Technical indicators suggest the stock is currently in a bearish phase, but the oversold condition offers potential for recovery. Valuation remains reasonable with a favorable dividend yield, making it a balanced choice for both value and income investors.

Brown Forman A Business Overview & Revenue Model

Company Description

Brown-Forman Corporation, headquartered in Louisville, Kentucky, is a leading American multinational company in the beverage alcohol industry. Established in 1870, the company is renowned for its premium spirits and wines. Its portfolio includes iconic brands such as Jack Daniel's, Woodford Reserve, Old Forester, Finlandia, and el Jimador, among others. Brown-Forman operates in more than 170 countries worldwide, focusing primarily on the production and marketing of whiskey, vodka, tequila, and other spirits.

How the Company Makes Money

Brown-Forman makes money by producing, marketing, and selling alcoholic beverages. The company's revenue model is primarily driven by sales of its premium spirits brands, with Jack Daniel’s Whiskey being its most significant revenue contributor. Revenue streams include direct sales to retailers, distributors, and wholesalers globally. Brown-Forman also engages in strategic partnerships and distribution agreements to expand its market reach. The company's earnings are influenced by factors such as brand strength, market expansion, product innovation, and global consumer demand trends in the spirits industry.

Brown Forman A Financial Statement Overview

Summary

Brown Forman A demonstrates strong financial health with robust margins and efficient cash flow generation. While revenue growth has faced some hurdles, the company's profitability and cash flow metrics remain solid, suggesting resilience in its operations. The balance sheet is stable with moderate leverage, but there is potential for optimizing liabilities and further enhancing equity returns.

Income Statement

Brown Forman A shows stable profitability with a healthy Gross Profit Margin of 59.3% and a Net Profit Margin of 24.5% in TTM (Trailing-Twelve-Months). However, there is a slight decline in revenue from the previous period by 3.2%, which indicates a potential challenge in top-line growth. The EBIT and EBITDA margins remain robust at 31.6% and 33.5% respectively, reflecting strong operational efficiency.

Balance Sheet

The company's Debt-to-Equity Ratio stands at 0.67, indicating a moderate leverage level. The Return on Equity (ROE) is strong at 25.9%, signifying effective management in generating returns on equity. The Equity Ratio of 47.4% suggests a solid equity base, though there is room for improvement in reducing total liabilities.

Cash Flow

The Free Cash Flow Growth Rate is impressive at 27.4%, indicating strong cash generation capability. The Operating Cash Flow to Net Income Ratio is 0.74, showing a solid conversion of net income into cash. The Free Cash Flow to Net Income Ratio is 0.54, which is satisfactory, but highlights opportunities for further cash flow efficiency.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
4.04B	4.18B	4.23B	3.93B	3.46B	3.36B
	Gross Profit
2.40B	2.53B	2.49B	2.39B	2.09B	2.13B
	EBIT
1.28B	1.41B	1.13B	1.20B	1.17B	1.09B
	EBITDA
1.46B	1.51B	1.31B	1.31B	1.09B	1.17B
	Net Income Common Stockholders
989.00M	1.02B	783.00M	838.00M	903.00M	827.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
155.70M	446.00M	374.00M	868.00M	1.15B	675.00M
	Total Assets
3.44B	8.17B	7.78B	6.37B	6.52B	5.78B
	Total Debt
640.60M	3.10B	2.91B	2.27B	2.56B	2.60B
	Net Debt
484.90M	2.65B	2.54B	1.40B	1.41B	1.93B
	Total Liabilities
1.46B	4.65B	4.51B	3.64B	3.87B	3.80B
	Stockholders Equity
1.98B	3.52B	3.27B	2.74B	2.66B	1.98B
Cash Flow		Free Cash Flow
534.00M	419.00M	457.00M	798.00M	755.00M	611.00M
	Operating Cash Flow
731.00M	647.00M	640.00M	936.00M	817.00M	724.00M
	Investing Cash Flow
270.00M	49.00M	-1.35B	-127.00M	98.00M	-141.00M
	Financing Cash Flow
-952.00M	-618.00M	239.00M	-1.04B	-485.00M	-191.00M

Brown Forman A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 31.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BF.A, the sentiment is Negative. The current price of 31.75 is below the 20-day moving average (MA) of 34.05, below the 50-day MA of 33.10, and below the 200-day MA of 40.33, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 43.53 is Neutral, neither overbought nor oversold. The STOCH value of 25.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BF.A.

Brown Forman A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BUD	74 Outperform	$126.01B	21.52	7.31%	1.03%	0.64%	10.02%
TAP	74 Outperform	$12.65B	11.68	8.54%	2.87%	-0.64%	22.45%
BF.B	72 Outperform	$15.47B	15.74	27.99%	2.70%	-5.11%	3.64%
STZ	68 Neutral	$32.80B	48.59	7.94%	2.23%	3.69%	-55.78%
BF.A	64 Neutral	$15.47B	15.50	27.99%	2.74%	-5.11%	3.64%
Sector *	63 Neutral	$20.94B	14.39	-10.05%	3.13%	1.25%	3.11%
SAM	61 Neutral	$2.74B	49.34	5.99%	―	0.21%	-20.69%