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Brown-Forman B (BF.B)
NYSE:BF.B
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Brown-Forman B
(NYSE:BF.B)
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Rating:68Neutral
Price Target:
$32.00
▲(18.08% Upside)
Brown-Forman B's strong financial performance, characterized by robust profitability and cash flow generation, is the most significant factor supporting its stock score. However, technical indicators suggest a bearish trend, which, along with declining revenue growth, poses risks. The valuation is reasonable, providing some support to the overall score.
Positive Factors
Strong Profitability
The company's consistent gross profit margin around 59% and net profit margin over 21% indicate efficient operations and a strong ability to generate profits, supporting long-term financial health.
Cash Flow Generation
Strong free cash flow growth highlights improved cash generation, providing the company with flexibility to invest in growth opportunities, pay down debt, or return capital to shareholders.
Balanced Leverage
A moderate debt-to-equity ratio reflects manageable leverage, ensuring financial stability and reducing the risk of financial distress, which is crucial for long-term sustainability.
Negative Factors
Declining Revenue Growth
Negative revenue growth trends can impact the company's ability to expand and compete effectively, potentially affecting its market position and long-term profitability.
Earnings Decline
A significant decline in earnings per share growth suggests challenges in maintaining profitability, which could hinder the company's ability to invest in future growth and innovation.
Operating Cash Flow Concerns
A low operating cash flow to net income ratio indicates potential inefficiencies in cash conversion, which could affect the company's liquidity and its ability to fund operations and growth initiatives.
Brown-Forman B (BF.B) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.75B
Dividend Yield3.34%
Average Volume (3M)3.54M
Price to Earnings (P/E)15.2
Beta (1Y)0.64
Revenue Growth-3.34%
EPS Growth-14.19%
CountryUS
Employees5,700
SectorConsumer Defensive
Sector Strength42
IndustryBeverages - Wineries & Distilleries
Share Statistics
EPS (TTM)0.36
Shares Outstanding303,608,900
10 Day Avg. Volume3,608,691
30 Day Avg. Volume3,539,366
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.24
Enterprise Value/Revenue4.02
Enterprise Value/Gross Profit6.81
Enterprise Value/Ebitda12.68
Forecast
1Y Price Target
$30.39Price Target Upside12.14% Upside
Rating ConsensusHold
Number of Analyst Covering11
Brown-Forman B Business Overview & Revenue Model
Company DescriptionBrown-Forman Corporation (BF.B) is a leading American beverage alcohol company known for its diverse portfolio of premium spirits and wines. Founded in 1870 and headquartered in Louisville, Kentucky, the company operates primarily in the spirits sector, with a strong emphasis on whiskey, vodka, tequila, and liqueurs. Its flagship brands include Jack Daniel's, Woodford Reserve, and Finlandia Vodka, alongside several other well-known products that cater to a global market.
How the Company Makes MoneyBrown-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 Earnings Call Summary
Earnings Call Date:Aug 28, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Dec 03, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive developments, such as the return to organic sales growth and strong performance in certain product lines and markets, alongside challenges like reported sales decline, gross margin contraction, and external uncertainties like tariffs. The strategic initiatives are set to improve long-term efficiency but also highlight current operational challenges.Q3-2025 Updates
Positive Updates
Organic Net Sales Growth
Organic net sales increased by 2% after adjusting for divestitures and other factors, indicating a return to growth expectations.
Woodford Reserve Performance
Woodford Reserve continued to grow by 10% in organic net sales, driven by its Distiller Select and Double Oak products.
Jack Daniel's RTD Recognition
Jack & Coke RTD received the 2025 Product of the Year Award in the U.K. in the premixed spirit category.
Growth in Emerging Markets
Emerging international markets delivered an 8% organic net sales increase, led by strong growth in Turkey and Brazil.
Strategic Workforce Initiatives
The company announced strategic initiatives including workforce reduction and closure of the Louisville Cooperage, expected to save $70-$80 million annually.
Negative Updates
Reported Net Sales Decline
Reported net sales decreased by 4% over the nine months of fiscal 2025.
Tequila Brands Challenges
El Jimador and Herradura faced challenges in the U.S. and Mexico, with a competitive market and economic challenges impacting performance.
Gross Margin Contraction
Gross margin contracted by 150 basis points to 59.4% due to higher costs and foreign exchange impacts.
Tariff Uncertainties
Continued uncertainty around tariffs, especially with potential impacts from the EU, Canada, and Mexico, affecting strategic planning.
Company Guidance
During the third quarter of fiscal year 2025, Brown-Forman reaffirmed its guidance for organic net sales growth in the range of 2% to 4%, expecting it to be closer to the lower end. The company reported a 2% increase in organic net sales year-to-date, despite a 4% decrease in reported net sales. This was achieved after adjusting for the divestitures of Finlandia and Sonoma-Cutrer, foreign exchange impacts, and changes in the business model for Jack Daniel's Country Cocktails. Brown-Forman experienced organic operating income growth of 5%, with Woodford Reserve and Jack Daniel’s Tennessee Whiskey being significant contributors. The company also highlighted its strategic initiatives, including a reduction in global workforce by approximately 12%, expected to generate $70 million to $80 million in annual savings. Despite higher costs impacting the gross margin, which contracted by 150 basis points to 59.4%, Brown-Forman anticipates maintaining its full-year guidance with a focus on innovation, emerging markets, and the premium whiskey category.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.75
Positive
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.70
Positive
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.80
Positive
| 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
Negative
27.10
Price Trends
29.06
Negative
29.53
Negative
31.95
Negative
Market Momentum
-0.59
Positive
41.44
Neutral
31.28
Neutral
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 27.1 is below the 20-day moving average (MA) of 27.68, below the 50-day MA of 29.06, and below the 200-day MA of 31.95, indicating a bearish trend. The MACD of -0.59 indicates Positive momentum. The RSI at 41.44 is Neutral, neither overbought nor oversold. The STOCH value of 31.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | 12.75B | 14.98 | 21.16% | 3.39% | -3.34% | -14.19% | |
69 Neutral | 2.34B | 30.28 | 8.73% | ― | 2.46% | -7.28% | |
68 Neutral | $12.75B | 15.19 | 22.65% | 3.34% | -3.34% | -14.19% | |
66 Neutral | 8.90B | 8.83 | 7.72% | 4.13% | -5.48% | -6.99% | |
61 Neutral | 52.20B | 22.12 | 21.23% | 4.40% | 0.22% | -38.76% | |
60 Neutral | 23.36B | -55.49 | -6.09% | 3.06% | -0.47% | -117.62% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
* Consumer Defensive Sector Average
Performance Comparison
BF.B
Brown-Forman B
27.10
-20.78
-43.40%
SAM
Boston Beer
215.02
-74.12
-25.63%
BF.A
Brown Forman A
26.74
-20.05
-42.85%
STZ
Constellation Brands
132.49
-119.73
-47.47%
DEO
Diageo
94.15
-44.14
-31.92%
TAP
Molson Coors
44.83
-10.80
-19.41%
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.