Brown Forman A (BF.A) AI Stock Analysis

• Market Cap: $14.27B
• Dividend Yield: 3.14%
• Average Volume (3M): 175.93K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.61
• Revenue Growth: -4.90%
• EPS Growth: -14.49%
• Country: US
• Employees: 5,700
• Sector: Consumer Defensive
• Sector Strength: 52
• Industry: Beverages - Wineries & Distilleries
• EPS (TTM): 0.31
• Shares Outstanding: 169,143,810
• 10 Day Avg. Volume: 116,319
• 30 Day Avg. Volume: 175,934
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.31
• Enterprise Value/Revenue: 4.71
• Enterprise Value/Gross Profit: 7.99
• Enterprise Value/Ebitda: 15.56
• 1Y Price Target: $29.50
• Price Target Upside: 0.72% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 70 Neutral
• Price Target: $33.00 ▲(12.67% Upside)

Brown Forman A's overall stock score is driven by its strong financial performance and attractive valuation. The company's solid profitability and cash management are complemented by a reasonable P/E ratio and a healthy dividend yield. Technical analysis indicates short-term bullish momentum, though longer-term trends are less favorable. Corporate events further support the company's strategic growth and governance.

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 profitability and cash management capabilities. While the company maintains a healthy balance sheet with moderate leverage, challenges exist in revenue growth and profitability efficiency. Strategic initiatives may be necessary to bolster revenue and optimize returns.

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	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	1.11B	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: 29.29
• 50DMA: Positive
• 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 Neutral. The current price of 29.29 is above the 20-day moving average (MA) of 29.28, above the 50-day MA of 29.21, and below the 200-day MA of 34.63, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 50.15 is Neutral, neither overbought nor oversold. The STOCH value of 21.12 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
SAM	73 Outperform	$2.37B	30.75	8.15%	―	2.46%	-7.28%
CCU	71 Outperform	$2.22B	12.83	11.33%	3.83%	6.18%	61.39%
BF.A	70 Neutral	$14.27B	16.29	23.14%	3.14%	-4.90%	-14.49%
DEO	69 Neutral	$56.27B	23.07	22.33%	4.25%	-1.21%	-8.89%
TAP	69 Neutral	$10.57B	9.69	7.79%	3.78%	-5.17%	-0.74%
STZ	65 Neutral	$30.08B	49.10	-5.05%	2.38%	-0.47%	-117.62%
Sector *	63 Neutral	$20.31B	12.53	-7.33%	3.14%	2.97%	-12.13%

Brown Forman A Corporate Events

Brown-Forman Announces New Chairman and Dividend Approval

On July 24, 2025, Brown-Forman Corporation held its Annual Meeting of Stockholders, where the election of directors and the ratification of Ernst & Young LLP as the independent registered public accounting firm for fiscal year 2026 were confirmed. Marshall B. Farrer was named Chairman, succeeding Campbell P. Brown, and the Board approved a regular quarterly cash dividend, continuing the company’s long-standing tradition of dividend payments. These decisions reflect Brown-Forman’s commitment to strong corporate governance and strategic growth, emphasizing long-term success and resilience in a complex market environment.