Brown-Forman B (BF.B)
NYSE:BF.B
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Brown-Forman B
(NYSE:BF.B)
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Rating:73Outperform
Price Target:
$30.00
▲(11.73% Upside)
Action:UpgradedDate:04/04/26
The score is driven by strong financial quality (high margins, improving leverage, and robust free cash flow) and supportive valuation (low P/E with a solid dividend yield). Offsetting these positives, technicals are mixed with the stock still below key longer-term moving averages, and financials show recent top-line softness and uneven cash conversion.
Positive Factors
Brand portfolio and successful product innovation
The Blackberry launch exceeded expectations with shipments ahead of depletions and strong international phased rollouts. Durable benefit: successful new SKUs sustain consumer relevance, support premiumization, and drive repeatable incremental volume and on- and off-premise listings across markets.
Negative Factors
Top-line softness and choppy revenue trends
Revenue has been uneven with reported net sales down and organic results only flat after adjustments; multi-period top-line declines reduce scale benefits and pressure operating leverage. Persistent softness can constrain long-term margin expansion and slower brand investment returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Brand portfolio and successful product innovation
The Blackberry launch exceeded expectations with shipments ahead of depletions and strong international phased rollouts. Durable benefit: successful new SKUs sustain consumer relevance, support premiumization, and drive repeatable incremental volume and on- and off-premise listings across markets.
Read all positive factors
Brown-Forman B (BF.B) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.39B
Dividend Yield3.42%
Average Volume (3M)7.20M
Price to Earnings (P/E)12.1
Beta (1Y)0.49
Revenue Growth-4.59%
EPS Growth-19.19%
CountryUS
Employees5,700
SectorConsumer Defensive
Sector Strength42
IndustryBeverages - Wineries & Distilleries
Share Statistics
EPS (TTM)0.58
Shares Outstanding290,262,400
10 Day Avg. Volume7,095,341
30 Day Avg. Volume7,204,806
Financial Highlights & Ratios
PEG Ratio-1.31
Price to Book (P/B)4.12
Price to Sales (P/S)4.14
P/FCF Ratio38.21
Enterprise Value/Market Cap1.21
Enterprise Value/Revenue3.81
Enterprise Value/Gross Profit6.41
Enterprise Value/Ebitda12.54
Forecast
1Y Price Target
$27.61Price Target Upside2.83% Upside
Rating ConsensusHold
Number of Analyst Covering10
EPS Forecast (FY)1.75
Revenue Forecast (FY)$3.89B
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-dri...
How the Company Makes Money
Brown-Forman makes money primarily by selling branded alcoholic beverages to wholesalers, distributors, and retail customers across global markets. Its core revenue stream is the sale of spirits—especially American whiskey—where it earns revenue b...
Brown-Forman B Earnings Call Summary
Earnings Call Date:Dec 04, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jun 10, 2026
Earnings Call Sentiment Neutral
The call presents a balanced picture: meaningful regional and product-level strengths (double-digit emerging market growth, strong RTD and successful Blackberry innovation), improved cash flow and shareholder returns were offset by sizable, company-specific headwinds (major declines in used barrel sales and Canada distribution), pressured developed markets and near-term margin mix challenges. Management reaffirmed full-year guidance and emphasized strategic initiatives and cost discipline while acknowledging persistent macro uncertainty.Positive Updates
Top-line performance (First half FY2026)
Reported net sales declined 4% in the first half of fiscal 2026, while organic net sales were flat after adjusting for acquisition & divestiture (A&D) impacts related to Korbel and Sonoma-Cutrer.
Negative Updates
Headwinds from used barrel sales and Canada trade dispute
Used barrel organic net sales decreased by more than 60% (management cited ~61% decline); Canadian organic net sales declined over 60% as U.S.-produced spirits remain off shelves in most provinces — together these were identified as material negative impacts to top-line performance (more than ~2 points of top-line impact).
Read all updates
Q2-2026 Updates
Positive
Negative
Top-line performance (First half FY2026)
Reported net sales declined 4% in the first half of fiscal 2026, while organic net sales were flat after adjusting for acquisition & divestiture (A&D) impacts related to Korbel and Sonoma-Cutrer.
Read all positive updates
Company Guidance
Brown‑Forman reaffirmed its fiscal 2026 guidance, forecasting a low single‑digit decline in organic net sales for the full year, reported gross‑margin expansion (A&D benefits expected to more than offset negative price/mix and higher costs), and organic operating income down in the low single‑digit range; management expects shipments will be roughly in line with depletions for the year. Key quantified assumptions and impacts include an anticipated decline in used barrel sales of more than half versus fiscal 2025 (used barrels were down ~61% in H1), the continued Canada headwind (Canada organic net sales fell >60% in H1 and is assumed to persist), an effective tax rate of ~21%–23%, and a reduced full‑year capex outlook of $110–$120 million (down from $125–$135M). Financial and cash‑flow context provided: H1 reported gross margin was 59.5% (gross profit down 4%), reported operating income fell 9% (organic op income down 4%), diluted EPS was $0.83 (down 13%), cash flow from operations rose to $292M (+$163M) and free cash flow to $236M (+$179M); capital allocation actions include a 2% quarterly dividend increase (42nd consecutive increase) and a board‑authorized $400M buyback program (≈$99M repurchased as of 10/31/25).Brown-Forman B Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
73
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 | Apr 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.92B | 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 | 1.19B | 1.29B | 1.51B | 1.19B | 1.27B | 1.24B |
| Net Income | 807.00M | 869.00M | 1.02B | 783.00M | 838.00M | 903.00M |
Balance Sheet | ||||||
| Total Assets | 8.30B | 8.09B | 8.17B | 7.78B | 6.37B | 6.52B |
| Cash, Cash Equivalents and Short-Term Investments | 402.00M | 444.00M | 446.00M | 374.00M | 868.00M | 1.15B |
| Total Debt | 2.75B | 2.73B | 3.10B | 2.91B | 2.27B | 2.56B |
| Total Liabilities | 4.22B | 4.09B | 4.65B | 4.51B | 3.64B | 3.87B |
| Stockholders Equity | 4.08B | 3.99B | 3.52B | 3.27B | 2.74B | 2.66B |
Cash Flow | ||||||
| Free Cash Flow | 730.00M | 431.00M | 419.00M | 457.00M | 798.00M | 755.00M |
| Operating Cash Flow | 861.00M | 598.00M | 647.00M | 640.00M | 936.00M | 817.00M |
| Investing Cash Flow | -83.00M | 249.00M | 49.00M | -1.35B | -127.00M | 98.00M |
| Financing Cash Flow | -1.03B | -843.00M | -618.00M | 239.00M | -1.04B | -485.00M |
Brown-Forman B Technical Analysis
Positive
26.85
Price Trends
26.74
Positive
27.20
Negative
27.51
Negative
Market Momentum
0.17
Negative
57.86
Neutral
68.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BF.B, the sentiment is Positive. The current price of 26.85 is above the 20-day moving average (MA) of 24.74, above the 50-day MA of 26.74, and below the 200-day MA of 27.51, indicating a neutral trend. The MACD of 0.17 indicates Negative momentum. The RSI at 57.86 is Neutral, neither overbought nor oversold. The STOCH value of 68.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BF.B.
Brown-Forman B Risk Analysis
Brown-Forman B disclosed 24 risk factors in its most recent earnings report. Brown-Forman B 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 B Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $12.39B | 12.09 | 19.93% | 3.42% | -4.59% | -19.19% | |
70 Outperform | $2.62B | 19.30 | 12.16% | ― | -1.13% | 24.34% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $26.06B | 11.96 | 25.44% | 2.92% | -5.57% | 119.49% | |
60 Neutral | $42.84B | 6.04 | 21.39% | 4.80% | 0.22% | -38.76% | |
54 Neutral | $6.17B | 14.14 | 13.98% | 5.64% | 2.71% | 4.90% | |
49 Neutral | $8.71B | ― | -18.18% | 4.08% | -4.01% | -339.22% |
* Consumer Defensive Sector Average
BF.B
Brown-Forman B
26.85
-5.70
-17.51%
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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.