Brown Forman A (BF.A) AI Stock Analysis

• Market Cap: $13.02B
• Dividend Yield: 3.24%
• Average Volume (3M): 152.35K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.63
• Revenue Growth: -3.34%
• EPS Growth: -14.19%
• Country: US
• Employees: 5,700
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Wineries & Distilleries
• EPS (TTM): 0.36
• Shares Outstanding: 169,143,810
• 10 Day Avg. Volume: 189,854
• 30 Day Avg. Volume: 152,347
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: 3.99
• Enterprise Value/Gross Profit: 6.76
• Enterprise Value/Ebitda: 12.61
• 1Y Price Target: $33.00
• Price Target Upside: 18.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: $33.00 ▲(18.19% Upside)

Brown Forman A's overall stock score is driven by its strong financial performance and reasonable valuation. The technical analysis suggests a neutral short-term outlook, with the stock trading close to its moving averages. The absence of earnings call data and corporate events limits additional insights.

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 alcoholic beverages across various markets worldwide. The company operates a direct-to-consumer sales model as well as partnerships with distributors and retailers, which allows it to reach both on-premise (bars and restaurants) and off-premise (liquor stores and supermarkets) channels. Key revenue streams include sales of whiskey, vodka, tequila, and wine, with Jack Daniel's being its flagship brand that contributes significantly to overall revenue. Additionally, Brown-Forman benefits from a strong brand portfolio and effective marketing strategies, as well as partnerships with international distributors that help expand its global reach. Seasonal and holiday promotions, along with limited edition releases, also play a role in driving sales and enhancing consumer engagement.

Brown Forman A Financial Statement Overview

Summary

Brown Forman A exhibits solid financial health with strong profitability and cash flow metrics. Despite a slight decline in revenue growth, the company maintains efficient operations and a stable balance sheet.

Income Statement

Brown Forman A has maintained strong profitability with a consistent gross profit margin around 59% and a net profit margin above 21% in the TTM. However, the company experienced a slight decline in revenue growth, with a negative growth rate of -0.68% in the TTM. Despite this, EBIT and EBITDA margins remain robust, indicating efficient operations.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 0.59 in the TTM, reflecting a balanced approach to leverage. Return on equity is healthy at 22.41%, suggesting effective use of equity to generate profits. The equity ratio indicates a stable financial structure, although there has been a slight increase in debt levels over the past year.

Cash Flow

Brown Forman A demonstrates strong cash flow management with a significant free cash flow growth rate of 35.5% in the TTM. The operating cash flow to net income ratio is below 1, indicating room for improvement in converting income to cash. However, the free cash flow to net income ratio is strong at 0.72, showing effective cash generation relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.95B	3.98B	4.18B	4.23B	3.93B	3.46B
Gross Profit	2.33B	2.34B	2.53B	2.49B	2.39B	2.09B
EBITDA	1.25B	1.29B	1.51B	1.19B	1.27B	1.24B
Net Income	844.00M	869.00M	1.02B	783.00M	838.00M	903.00M
Balance Sheet
Total Assets	8.17B	8.09B	8.17B	7.78B	6.37B	6.52B
Cash, Cash Equivalents and Short-Term Investments	471.00M	444.00M	446.00M	374.00M	868.00M	1.15B
Total Debt	2.70B	2.73B	3.10B	2.91B	2.27B	2.56B
Total Liabilities	4.18B	4.09B	4.65B	4.51B	3.64B	3.87B
Stockholders Equity	3.99B	3.99B	3.52B	3.27B	2.74B	2.66B
Cash Flow
Free Cash Flow	584.00M	431.00M	419.00M	457.00M	798.00M	755.00M
Operating Cash Flow	741.00M	598.00M	647.00M	640.00M	936.00M	817.00M
Investing Cash Flow	241.00M	249.00M	49.00M	-1.35B	-127.00M	98.00M
Financing Cash Flow	-930.00M	-843.00M	-618.00M	239.00M	-1.04B	-485.00M

Brown Forman A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 27.92
• 50DMA: Negative
• 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 Negative. The current price of 27.92 is below the 20-day moving average (MA) of 29.06, below the 50-day MA of 29.31, and below the 200-day MA of 32.37, indicating a bearish trend. The MACD of -0.53 indicates Positive momentum. The RSI at 40.70 is Neutral, neither overbought nor oversold. The STOCH value of 21.55 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
SAM	74 Outperform	2.45B	31.74	8.73%	―	2.46%	-7.28%
BF.A	70 Outperform	$13.02B	15.61	22.65%	3.24%	-3.34%	-14.19%
CPB	69 Neutral	9.82B	16.70	15.42%	4.68%	6.40%	6.17%
TAP	66 Neutral	9.30B	9.34	7.72%	3.95%	-5.48%	-6.99%
DEO	61 Neutral	55.59B	23.51	21.23%	4.18%	0.22%	-38.76%
STZ	60 Neutral	23.45B	-55.72	-6.09%	3.05%	-0.47%	-117.62%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

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.