Want to see BF.A full AI Analyst Report?
Top Page
Brown Forman A
(NYSE:BF.A)
Select Model
Select Model
Rating:69Neutral
Price Target:
$32.00
▲(14.57% Upside)
Action:Downgraded
Date:06/05/26
Overall score reflects solid underlying financial quality (strong margins and improving leverage) and supportive valuation (reasonable P/E and strong dividend yield). These positives are tempered by weaker technical trend signals (below key moving averages with negative MACD) and recent softness/volatility in growth and cash flows.
Positive Factors
Brand portfolio & pricing power
Brown‑Forman’s durable advantage is its premium spirits portfolio (e.g., Jack Daniel’s, Woodford Reserve) and ability to trade consumers up. Strong brand equity supports pricing power, category premiumization, and resilient demand across geographies, underpinning long‑term revenue and margin stability.
Negative Factors
Weak revenue growth trend
Top‑line momentum has cooled: multi‑year revenue declines and flat 2026 sales reduce the company’s ability to leverage fixed costs and mature brands into faster earnings growth. Prolonged soft volumes increase dependence on price and mix to maintain organic profit expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Brand portfolio & pricing power
Brown‑Forman’s durable advantage is its premium spirits portfolio (e.g., Jack Daniel’s, Woodford Reserve) and ability to trade consumers up. Strong brand equity supports pricing power, category premiumization, and resilient demand across geographies, underpinning long‑term revenue and margin stability.
Read all positive factors
Brown Forman A (BF.A) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.29B
Dividend Yield3.15%
Average Volume (3M)168.34K
Price to Earnings (P/E)18.9
Beta (1Y)0.52
Revenue Growth-0.45%
EPS Growth-16.82%
CountryUS
Employees4,900
SectorConsumer Defensive
Sector Strength42
IndustryBeverages - Alcoholic
Share Statistics
EPS (TTM)1.52
Shares Outstanding168,480,850
10 Day Avg. Volume121,897
30 Day Avg. Volume168,345
Financial Highlights & Ratios
PEG Ratio-1.00
Price to Book (P/B)2.99
Price to Sales (P/S)3.06
P/FCF Ratio13.46
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$29.00Price Target Upside3.83% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)1.7
Revenue Forecast (FY)$3.95B
Brown Forman A Business Overview & Revenue Model
Company Description
Brown-Forman Corporation, along with its subsidiaries, is a global enterprise specializing in the production and distribution of a diverse range of alcoholic beverages. Its comprehensive operations cover manufacturing, distilling, bottling, and th...
How the Company Makes Money
Brown-Forman makes money primarily by selling branded alcoholic beverages to distributors, state control authorities (in certain markets), and retailers, earning revenue based on the volume and price of cases shipped (or equivalent units), net of ...
Brown Forman A Earnings Call Summary
Earnings Call Date:Dec 04, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Sep 02, 2026
Earnings Call Sentiment Neutral
The call presented a mix of clear strategic and operational positives — strong emerging-market and Travel Retail growth, successful innovation (Jack Daniel's Blackberry and New Mix RTD), improved cash flow and margin benefits from A&D activities, and completed route-to-consumer transitions — alongside sizable, company-specific negatives (used barrel sales collapse and the Canada trade ban) and soft developed-market demand that materially weighed on reported results and EPS. Management reaffirmed guidance, emphasized cost discipline and capital return actions, and signaled confidence in execution, but acknowledged persistent near-term headwinds and product-mix challenges.Positive Updates
Top-line Performance (Reported vs Organic)
Reported net sales declined 4% in the first half of fiscal 2026, while organic net sales were flat (0%) after adjusting for acquisition & divestiture (A&D) impacts related to Korbel and Sonoma-Cutrer.
Negative Updates
Severe Decline in Used Barrel Sales
Used barrel sales plunged by more than 60% (management cited ~61% decline in H1), a material headwind that materially reduced first-half organic net sales and was highlighted as a significant fiscal-2026-year issue for the business.
Read all updates
Q2-2026 Updates
Positive
Negative
Top-line Performance (Reported vs Organic)
Reported net sales declined 4% in the first half of fiscal 2026, while organic net sales were flat (0%) after adjusting for acquisition & divestiture (A&D) impacts related to Korbel and Sonoma-Cutrer.
Read all positive updates
Company Guidance
Brown‑Forman reaffirmed its full‑year fiscal 2026 outlook, guiding to a low single‑digit decline in organic net sales with shipments expected to be roughly in line with depletions, and forecasting reported gross‑margin expansion as A&D benefits (about +190 bps) more than offset negative price/mix (≈‑50 bps) and higher costs (≈‑110 bps). In the first half, reported net sales fell 4% while organic net sales were flat after A&D adjustments; reported gross profit decreased 4% with a 59.5% reported gross margin, reported operating income was down 9% (organic operating income down 4%), and diluted EPS declined 13% to $0.83. Management expects used barrel sales to be lower by more than half of FY2025 levels (H1 used barrel organic net sales were down >60%) and assumes Canada headwinds will persist (Canada organic net sales also down >60%); geographic expectations include emerging markets +12% YTD, Global Travel Retail +6%, developed international −6% and the U.S. roughly flat in H1. Financial/capital metrics and returns include an updated full‑year capex range of $110–$120M (previously $125–$135M), cash from operations of $292M (up $163M), free cash flow of $236M (up $179M), an effective tax‑rate outlook of ~21–23%, a 2% quarterly dividend increase (42nd consecutive annual increase) and a Board‑authorized $400M buyback (≈$99M repurchased as of Oct. 31). Finally, management reiterated no assumed change to current tariff impacts and expects organic operating income to decline in the low single‑digit range for FY2026.Brown Forman A Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
74
Positive
Cash Flow
70
Positive
| Breakdown | Apr 2026 | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.93B | 3.98B | 4.18B | 4.23B | 3.93B |
| Gross Profit | 2.38B | 2.34B | 2.53B | 2.49B | 2.39B |
| EBITDA | 1.11B | 1.29B | 1.51B | 1.19B | 1.27B |
| Net Income | 715.00M | 869.00M | 1.02B | 783.00M | 838.00M |
Balance Sheet | |||||
| Total Assets | 7.89B | 8.09B | 8.17B | 7.78B | 6.37B |
| Cash, Cash Equivalents and Short-Term Investments | 308.00M | 444.00M | 446.00M | 374.00M | 868.00M |
| Total Debt | 2.15B | 2.73B | 3.10B | 2.91B | 2.27B |
| Total Liabilities | 3.87B | 4.09B | 4.65B | 4.51B | 3.64B |
| Stockholders Equity | 4.02B | 3.99B | 3.52B | 3.27B | 2.74B |
Cash Flow | |||||
| Free Cash Flow | 893.00M | 431.00M | 419.00M | 457.00M | 798.00M |
| Operating Cash Flow | 1.00B | 598.00M | 647.00M | 640.00M | 936.00M |
| Investing Cash Flow | -71.00M | 249.00M | 49.00M | -1.35B | -127.00M |
| Financing Cash Flow | -1.07B | -843.00M | -618.00M | 239.00M | -1.04B |
Brown Forman A Technical Analysis
Positive
27.93
Price Trends
26.89
Positive
26.76
Positive
27.14
Positive
Market Momentum
-0.09
Negative
50.59
Neutral
61.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BF.A, the sentiment is Positive. The current price of 27.93 is above the 20-day moving average (MA) of 27.06, above the 50-day MA of 26.89, and above the 200-day MA of 27.14, indicating a bullish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 50.59 is Neutral, neither overbought nor oversold. The STOCH value of 61.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BF.A.
Brown Forman A Risk Analysis
Brown Forman A disclosed 25 risk factors in its most recent earnings report. Brown Forman A reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Brown Forman A Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $13.29B | 18.90 | 17.63% | 3.29% | -0.45% | -16.82% | |
64 Neutral | $22.27B | 12.41 | 23.13% | 3.14% | -9.99% | ― | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $6.58B | 10.72 | 15.30% | 7.14% | -2.90% | 33.92% | |
60 Neutral | $49.27B | 20.21 | 21.39% | 4.00% | -1.84% | -33.01% | |
57 Neutral | $7.81B | -3.91 | -19.15% | 4.64% | -1.30% | -312.85% | |
56 Neutral | $1.91B | -26.98 | -8.89% | ― | -6.06% | -195.51% |
* Consumer Defensive Sector Average
BF.A
Brown Forman A
29.22
1.58
5.72%
SAM
Boston Beer
183.20
-26.31
-12.56%
CPB
Campbell Soup
21.98
-8.42
-27.69%
STZ
Constellation Brands
130.23
-31.23
-19.34%
DEO
Diageo
88.06
-6.05
-6.43%
TAP
Molson Coors
41.56
-4.67
-10.10%
Brown Forman A Corporate Events
Business Operations and StrategyExecutive/Board ChangesDividendsShareholder Meetings
Brown-Forman Declares Quarterly Dividend After Annual Meeting
Positive
Jul 23, 2026
On July 23, 2026, Brown-Forman stockholders held their annual meeting and elected the full slate of directors recommended by the board to serve until the next meeting. Investors also approved, on a non-binding basis, the compensation of the compan...
Business Operations and StrategyExecutive/Board Changes
Brown-Forman Announces CEO Retirement and Leadership Transition
Positive
Jul 13, 2026
On July 13, 2026, Brown-Forman said President and Chief Executive Officer Lawson Whiting will retire after nearly three decades at the company, with his departure to take effect once a successor is appointed. The board has begun a CEO search led b...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.