Brown Forman A (BF.A) AI Stock Analysis

• Market Cap: $12.28B
• Dividend Yield: 3.45%
• Average Volume (3M): 144.75K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.56
• Revenue Growth: -4.90%
• EPS Growth: -14.49%
• Country: US
• Employees: 5,700
• Sector: Consumer Defensive
• Sector Strength: 64
• Industry: Beverages - Wineries & Distilleries
• EPS (TTM): 0.31
• Shares Outstanding: 169,143,810
• 10 Day Avg. Volume: 272,649
• 30 Day Avg. Volume: 144,750
• PEG Ratio: -5.91
• Price to Book (P/B): 9.71
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 69.43
• Enterprise Value/Market Cap: 2.79
• Enterprise Value/Revenue: 2.09
• Enterprise Value/Gross Profit: 14.28
• Enterprise Value/Ebitda: 5.80
• 1Y Price Target: $29.50
• Price Target Upside: 11.74% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 62 Neutral
• Price Target: $28.00 ▲(6.06%Upside)

The overall stock score is influenced by a solid financial foundation and reasonable valuation metrics. However, technical analysis suggests bearish momentum and the earnings call underscores challenges in sales growth and market competition.

Brown Forman A Business Overview & Revenue Model

Company Description

Brown-Forman Corporation is a leading American multinational company primarily engaged in the production and distribution of alcoholic beverages. Founded in 1870 and headquartered in Louisville, Kentucky, Brown-Forman is renowned for its portfolio of premium spirits and wines, including iconic brands such as Jack Daniel's, Woodford Reserve, Old Forester, and Finlandia. The company operates globally, serving a diverse range of markets with a focus on maintaining high-quality standards and strong brand recognition.

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 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
599.00M	446.00M	374.00M	868.00M	1.15B	675.00M
	Total Assets
8.07B	8.17B	7.78B	6.37B	6.52B	5.78B
	Total Debt
2.86B	3.10B	2.91B	2.27B	2.56B	2.60B
	Net Debt
2.26B	2.65B	2.54B	1.40B	1.41B	1.93B
	Total Liabilities
4.25B	4.65B	4.51B	3.64B	3.87B	3.80B
	Stockholders Equity
3.82B	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: 26.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 26.4 is below the 20-day moving average (MA) of 30.31, below the 50-day MA of 32.50, and below the 200-day MA of 37.19, indicating a bearish trend. The MACD of -2.00 indicates Positive momentum. The RSI at 22.27 is Positive, neither overbought nor oversold. The STOCH value of 6.63 is Positive, 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
CCU	71 Outperform	$2.40B	13.81	11.33%	3.32%	6.18%	61.39%
DEO	71 Outperform	$56.90B	15.93	35.83%	3.14%	-1.21%	-8.89%
TAP	67 Neutral	$10.06B	9.98	7.90%	3.81%	-5.17%	-0.74%
SAM	67 Neutral	$2.29B	33.31	7.36%	―	0.79%	-24.27%
Sector *	65 Neutral	$8.73B	15.10	4.69%	4.08%	3.64%	-2.90%
BF.A	62 Neutral	$12.28B	14.30	23.14%	3.45%	-4.90%	-14.49%
STZ	61 Neutral	$28.41B	49.10	-0.98%	2.54%	2.47%	-105.09%

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.