Brown Forman A (BF.A) AI Stock Analysis

• Market Cap: $14.02B
• Dividend Yield: 3.19%
• Average Volume (3M): 177.61K
• Price to Earnings (P/E): 17.5
• Beta (1Y): 0.57
• Revenue Growth: -4.59%
• EPS Growth: -19.19%
• Country: US
• Employees: 5,700
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Wineries & Distilleries
• EPS (TTM): 0.47
• Shares Outstanding: 168,614,780
• 10 Day Avg. Volume: 138,674
• 30 Day Avg. Volume: 177,610
• PEG Ratio: -1.31
• Price to Book (P/B): 4.12
• Price to Sales (P/S): 4.14
• P/FCF Ratio: 38.21
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 4.05
• Enterprise Value/Gross Profit: 6.85
• Enterprise Value/Ebitda: 13.30
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $33.00 ▲(15.63% Upside)

Brown Forman A's overall stock score is driven by solid financial performance and strategic corporate actions like the share buyback plan. While technical indicators suggest strong momentum, potential overbought conditions and mixed earnings call sentiment highlight areas for caution.

Positive Factors

Emerging Markets Growth

Strong growth in emerging markets indicates successful geographic expansion and potential for sustained revenue increases in these regions.

Strategic Product Innovation

Innovative product launches like Jack Daniel's Tennessee Blackberry can drive brand growth and enhance market competitiveness.

Cash Flow Generation

Strong cash flow generation supports ongoing operations, strategic investments, and shareholder returns, ensuring financial stability.

Negative Factors

Net Sales Decline

Declining net sales can indicate challenges in maintaining market share and revenue growth, affecting long-term profitability.

Challenges in Developed Markets

Economic challenges in developed markets may hinder revenue growth and require strategic adjustments to sustain performance.

Used Barrel Sales Decline

Significant decline in used barrel sales suggests industry-specific challenges that could impact overall sales and profitability.

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 primarily through the sale of its extensive range of alcoholic beverages. The company's revenue model relies on direct sales to wholesalers and retailers, as well as through e-commerce channels. Key revenue streams include the sale of its flagship brands, particularly whiskey, which accounts for a substantial portion of its earnings. The company benefits from strong brand loyalty and recognition, allowing it to maintain premium pricing. Additionally, Brown-Forman has established significant partnerships with distributors around the world, enhancing its market reach and operational efficiency. The company also invests in marketing and promotional activities to support its brands, which contributes to sustained growth in sales. Overall, Brown-Forman's financial success is driven by its commitment to quality, strategic brand management, and a global distribution network.

Brown Forman A Financial Statement Overview

Summary

Brown Forman A shows strong profitability margins and efficient cash flow management. Despite a decline in revenue growth, the company maintains operational efficiency and a stable balance sheet, with moderate leverage and strong return on equity.

Income Statement

Brown Forman A's income statement shows a strong gross profit margin of approximately 59% for TTM, indicating efficient cost management. However, the net profit margin has decreased to 20.8% from 21.9% in the previous annual report, reflecting a slight decline in profitability. The revenue growth rate is negative at -1.49% TTM, suggesting a contraction in sales. Despite this, the company maintains a healthy EBIT margin of 21% and an EBITDA margin of 30.5% TTM, showcasing operational efficiency.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.56 TTM, indicating a balanced approach to leveraging. Return on equity is solid at 21.2% TTM, reflecting effective use of equity to generate profits. The equity ratio stands at 50.3% TTM, suggesting a stable financial structure with a good proportion of assets financed by equity. However, the decrease in stockholders' equity over the periods indicates potential challenges in maintaining equity growth.

Cash Flow

Cash flow analysis shows a positive free cash flow growth rate of 4.45% TTM, indicating improved cash generation. The operating cash flow to net income ratio is 0.54 TTM, suggesting that operating cash flow adequately supports net income. The free cash flow to net income ratio is robust at 80.2% TTM, highlighting strong cash conversion capabilities. These metrics reflect a healthy cash flow position, supporting ongoing operations and potential investments.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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	1.29B	1.51B	1.19B	1.27B	1.24B
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: Negative
• Last Price: 28.54
• 50DMA: Positive
• 100DMA: Positive
• 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 28.54 is below the 20-day moving average (MA) of 29.00, above the 50-day MA of 27.94, and below the 200-day MA of 29.78, indicating a neutral trend. The MACD of 0.59 indicates Positive momentum. The RSI at 47.12 is Neutral, neither overbought nor oversold. The STOCH value of 41.50 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
BF.A	70 Outperform	$14.02B	17.51	20.67%	3.19%	-4.59%	-19.19%
SAM	68 Neutral	$2.15B	23.37	9.58%	―	-1.13%	24.34%
STZ	67 Neutral	$24.82B	20.81	15.91%	2.91%	-5.57%	119.49%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
CPB	60 Neutral	$8.55B	14.84	14.82%	5.43%	2.71%	4.90%
DEO	60 Neutral	$50.00B	21.00	22.33%	4.56%	0.22%	-38.76%
TAP	53 Neutral	$9.46B	-4.50	-17.66%	3.91%	-4.01%	-339.22%

Brown Forman A Corporate Events

Brown Forman A Approves Executive Severance Plan

On October 31, 2025, Brown-Forman Corporation’s Board of Directors approved a new Executive Change in Control Severance Plan to provide severance pay and benefits to key executives in the event of involuntary termination during a change in control period. This plan aims to attract and retain top talent, ensuring continued dedication from executives amid potential changes in company ownership.

Brown Forman A Announces $400M Share Buyback Plan

On October 1, 2025, Brown-Forman Corporation’s Board of Directors approved a $400 million share repurchase program for its Class A and Class B common stock, set to run until October 1, 2026. This move, announced on October 2, 2025, reflects the company’s confidence in generating strong cash flow and its commitment to returning capital to shareholders while maintaining flexibility for growth investments, despite a competitive market environment.