Brown Forman A (BF.A) AI Stock Analysis

• Market Cap: $13.76B
• Dividend Yield: 3.1%
• Average Volume (3M): 238.67K
• Price to Earnings (P/E): 15.9
• Beta (1Y): 0.58
• Revenue Growth: -4.90%
• EPS Growth: -14.49%
• Country: US
• Employees: 5,700
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Beverages - Wineries & Distilleries
• EPS (TTM): 0.31
• Shares Outstanding: 169,143,810
• 10 Day Avg. Volume: 170,618
• 30 Day Avg. Volume: 238,666
• PEG Ratio: -1.17
• Price to Book (P/B): 3.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.43
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 0.90
• Enterprise Value/Gross Profit: 6.21
• Enterprise Value/Ebitda: 2.59
• 1Y Price Target: $29.00
• Price Target Upside: -0.92% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 4

• Rating: 68 Neutral
• Price Target: $32.00 ▲(9.33%Upside)

Brown Forman A's strong financial performance, characterized by profitability and cash management, is a key strength. However, the stock faces challenges with declining revenue and profitability efficiency. The technical indicators suggest a bearish trend, which could impact future performance. The fair valuation with a reasonable P/E ratio and attractive dividend yield supports the stock's appeal for income investors.

Brown Forman A Business Overview & Revenue Model

Company Description

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. 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. It has operations in the United States, Germany, Australia, the United Kingdom, Mexico, and internationally. The company was founded in 1870 and is headquartered in Louisville, Kentucky.

How the Company Makes Money

Brown-Forman generates revenue through the production, marketing, and distribution of its alcoholic beverage brands. The company's primary revenue streams come from the sale of whiskey, vodka, liqueurs, and tequila, with Jack Daniel's Tennessee Whiskey being its flagship product. Brown-Forman sells its products through a combination of direct sales to retailers and distributors, as well as partnerships with wholesalers and other distribution networks around the world. The company also invests in brand building and marketing strategies to enhance its market presence and drive sales. Additionally, pricing strategies, product innovation, and geographic expansion contribute to Brown-Forman's earnings by capturing new markets and consumer segments.

Brown Forman A Financial Statement Overview

Summary

Brown Forman A demonstrates strong profitability and cash management capabilities. The company maintains a healthy balance sheet with moderate leverage, but faces challenges in revenue growth and profitability efficiency.

Income Statement

The company shows a solid gross profit margin of around 59% and a stable EBIT margin of 27.8% in the latest year. However, the net profit margin has slightly decreased due to lower net income. Revenue has slightly declined by 4.85% from the previous year, indicating a need for growth strategies.

Balance Sheet

The debt-to-equity ratio remains manageable at 0.68, showcasing moderate financial leverage. The equity ratio is healthy at around 49.4%, indicating a stable financial structure. However, the return on equity has decreased to 21.8%, signaling a decline in profitability efficiency.

Cash Flow

The free cash flow to net income ratio is robust at 49.6%, and the operating cash flow to net income ratio is strong at 68.8%, highlighting effective cash management. However, free cash flow growth is marginally positive, requiring focus on enhancing cash-generating activities.

Breakdown	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	3.98B	4.18B	4.23B	3.93B	3.46B
Gross Profit	2.34B	2.53B	2.49B	2.39B	2.09B
EBITDA	1.11B	1.51B	1.31B	1.31B	1.09B
Net Income	869.00M	1.02B	783.00M	838.00M	903.00M
Balance Sheet
Total Assets	8.09B	8.17B	7.78B	6.37B	6.52B
Cash, Cash Equivalents and Short-Term Investments	444.00M	446.00M	374.00M	868.00M	1.15B
Total Debt	2.73B	3.10B	2.91B	2.27B	2.56B
Total Liabilities	4.09B	4.65B	4.51B	3.64B	3.87B
Stockholders Equity	3.99B	3.52B	3.27B	2.74B	2.66B
Cash Flow
Free Cash Flow	431.00M	419.00M	457.00M	798.00M	755.00M
Operating Cash Flow	598.00M	647.00M	640.00M	936.00M	817.00M
Investing Cash Flow	249.00M	49.00M	-1.35B	-127.00M	98.00M
Financing Cash Flow	-843.00M	-618.00M	239.00M	-1.04B	-485.00M

Brown Forman A Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 29.27
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Neutral. The current price of 29.27 is above the 20-day moving average (MA) of 27.61, below the 50-day MA of 30.85, and below the 200-day MA of 35.92, indicating a neutral trend. The MACD of -0.36 indicates Negative momentum. The RSI at 53.31 is Neutral, neither overbought nor oversold. The STOCH value of 79.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BF.A.

Brown Forman A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCU	73 Outperform	$2.40B	13.62	11.33%	3.36%	6.18%	61.39%
DEO	71 Outperform	$58.43B	16.29	35.83%	3.13%	-1.21%	-8.89%
BF.A	68 Neutral	$13.76B	15.93	23.14%	3.10%	-4.90%	-14.49%
SAM	65 Neutral	$2.20B	32.22	7.36%	―	0.79%	-24.27%
STZ	65 Neutral	$30.34B	49.10	-5.05%	2.37%	-0.47%	-117.62%
TAP	65 Neutral	$10.15B	10.05	7.90%	3.76%	-5.17%	-0.74%
Sector *	50 Neutral	AU$2.20B	-0.58	-14.39%	11.90%	7.38%	-60.19%

Brown Forman A Corporate Events

Brown Forman A Announces Leadership Transition and Compensation

On April 25, 2025, Marshall B. Farrer announced his resignation as Executive Vice President and Chief Strategic Growth Officer of Brown-Forman Corporation, effective after the 2025 Annual Meeting of Stockholders, to assume the role of Chairman of the Board. In recognition of his service and new role, the company approved a compensatory package including a one-time $865,000 payment and favorable treatment of his stock-settled appreciation rights, reflecting the company’s strategic leadership transition.