Brown-Forman B (BF.B) AI Stock Analysis

• Market Cap: $12.52B
• Dividend Yield: 3.41%
• Average Volume (3M): 3.45M
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.64
• 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: 303,608,900
• 10 Day Avg. Volume: 3,802,519
• 30 Day Avg. Volume: 3,454,822
• 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: 1.27
• Enterprise Value/Revenue: 4.02
• Enterprise Value/Gross Profit: 6.81
• Enterprise Value/Ebitda: 12.68
• 1Y Price Target: $30.21
• Price Target Upside: 13.57% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10
• EPS Forecast (FY): 1.65
• Revenue Forecast (FY): $3.84B

• Rating: 70 Outperform
• Price Target: $29.00 ▲(9.02% Upside)

The overall stock score for Brown-Forman B is driven primarily by its strong financial performance and attractive valuation. The company's profitability and cash flow generation are robust, although declining revenue growth is a concern. The stock's valuation metrics suggest it may be undervalued, with a compelling dividend yield. However, technical indicators point to a bearish trend, which tempers the overall score.

Positive Factors

Cash Generation Ability

Strong free cash flow growth indicates robust cash generation, enabling Brown-Forman to reinvest in its business, pay down debt, or return capital to shareholders, supporting long-term financial health.

Profitability

High profitability margins suggest efficient operations and pricing power, allowing Brown-Forman to maintain competitive advantages and sustain its market position over time.

Balance Sheet Health

A moderate debt-to-equity ratio indicates a balanced leverage position, providing financial stability and flexibility to navigate market changes and invest in growth opportunities.

Negative Factors

Declining Revenue Growth

Negative revenue growth trends can hinder Brown-Forman's ability to expand its market share and may impact long-term profitability if not addressed through strategic initiatives.

Earnings Decline

A decline in earnings per share growth reflects challenges in maintaining profitability, potentially affecting investor confidence and the company's ability to fund future growth.

Revenue Model Reliance

Heavy reliance on premium pricing strategies may expose Brown-Forman to risks if consumer preferences shift or competitive pressures increase, affecting long-term revenue stability.

Brown-Forman B 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, which are distributed worldwide. The company's revenue model is heavily reliant on the pricing strategy of its premium brands, which allows for higher profit margins. Key revenue streams include direct sales to retailers and wholesalers, as well as partnerships with distributors in various regions. The company also benefits from brand loyalty and recognition, which drives repeat purchases. Additionally, Brown-Forman invests in marketing and promotional campaigns to enhance brand visibility and attract new consumers. Seasonal sales spikes, particularly during holidays and special occasions, further contribute to its earnings.

Brown-Forman B Financial Statement Overview

Summary

Brown-Forman B demonstrates strong profitability with stable margins and effective equity utilization. However, declining revenue growth poses a risk to future performance. The company maintains a balanced leverage position, supporting its financial stability.

Income Statement

Brown-Forman B demonstrates strong profitability with a consistent gross profit margin around 59% and a net profit margin over 21% in the TTM. However, the company faces challenges with declining revenue growth, showing a negative trend in recent periods. 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 manageable leverage. Return on equity is solid at 22.4%, indicating effective use of equity to generate profits. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing.

Cash Flow

Cash flow analysis reveals strong free cash flow growth of 35.5% in the TTM, highlighting improved cash generation. The operating cash flow to net income ratio is below 1, suggesting potential areas for improvement in cash conversion. Nonetheless, the free cash flow to net income ratio is healthy at 0.72, indicating good cash flow relative to earnings.

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 B Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 26.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BF.B, the sentiment is Negative. The current price of 26.6 is below the 20-day moving average (MA) of 27.64, below the 50-day MA of 27.62, and below the 200-day MA of 30.43, indicating a bearish trend. The MACD of -0.27 indicates Positive momentum. The RSI at 40.76 is Neutral, neither overbought nor oversold. The STOCH value of 18.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BF.B.

Brown-Forman B Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SAM	74 Outperform	$2.23B	23.51	9.58%	―	-1.13%	24.34%
BF.B	70 Outperform	$12.52B	14.87	22.65%	3.41%	-3.34%	-14.19%
BF.A	68 Neutral	$12.75B	15.00	22.65%	3.43%	-3.34%	-14.19%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
DEO	60 Neutral	$52.47B	22.06	22.33%	4.56%	0.22%	-38.76%
STZ	57 Neutral	$22.86B	19.07	15.91%	3.19%	-5.57%	119.49%
TAP	56 Neutral	$8.74B	―	-17.66%	3.99%	-4.01%	-339.22%

Brown-Forman B Corporate Events

Brown-Forman Corp Reports Q1 Fiscal 2026 Results

Brown-Forman Corporation is a leading global spirits company, known for its premium beverage alcohol brands such as Jack Daniel’s, Woodford Reserve, and Herradura, operating in the spirits industry for over 155 years.