BF.A

Brown-Forman

Fundamental data last updated:April 13, 2026

We may earn a commission from partner links. This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate.

company profile

SECTOR

Consumer Defensive

industry

Beverages - Wineries & Distilleries

Exchange

NYSE

County of HQ

United States

Next Earnings Date

06/04/26

Business Summary

Brown-Forman monetizes brand equity in alcoholic beverages, converting intangible brand strength into consistent pricing power and repeat consumption. Its moat is built on distribution scale, entrenched retailer relationships, and consumer loyalty that allows it to sustain a 19.80% operating margin in a competitive category. Cash flow is generated through high-margin branded product sales rather than capital-intensive commodity production, which supports a solid ROIC of 13.30%. The durability of demand in consumer defensive alcohol, combined with global brand recognition, underpins steady cash generation even in slower economic cycles.

 


Analyze BF.A on TradingView

VALUATION

P/E

17.3

Market Cap ($M USD)

$13,581

Forward P/E

-

PEG

-

PRICE TO SALES

3.6

PRICE TO BOOK

3.3

EV / EBITDA

13.4

5-Year Average P/E

Free Cash Flow Yield

DCF Value

Graham Number

Price to FCF

EV to FCF

Earnings Yield

FCF Yield

DIVIDEND

Yield

3.10%

Annual Payout

$0.92

Payout Ratio

52.90%

Consecutive Years of Dividend Growth

10+

5-Year Dividend Growth Rate

5.20%

Financial Health & Profitability

Earnings Per Share

$1.72

Next Year EPS Growth Estimate

-

Next Year Revenue Growth Estimate

1.10%

Return on Equity (ROE)

19.80%

FREE CASH FLOW

Operating Margin

29.60%

Debt-to-Equity

0.7

Piotroski F-Score

6

Altman Z-Score

4.1

Return on Invested Capital (ROIC)

13.30%

Current Ratio

2.8

Quick Ratio

Net Debt to EBITDA

Interest Coverage

Gross Profit margin

FCF PER SHARE

REVENUE PER SHARE

Analyze BF.A on TradingView

Gainseekers Quantitative Analysis

Summary

At 17.3x earnings with a Price/Sales of 3.6 and Price/Book of 3.3, BF.A is not priced like a distressed name, yet it’s also far from a premium growth compounder. The absence of a Forward P/E and PEG ratio strips away visibility into earnings acceleration, making the current multiple entirely dependent on stagnant fundamentals rather than forward momentum. A 4.1 Altman Z-Score signals strong balance sheet safety and low bankruptcy risk, but a 1.10% Return on Equity is glaringly weak for a branded consumer franchise. This is a financially stable but uninspiring operator; the market appears to be pricing it as a slow, durable cash generator rather than a growth engine—and based on the data provided, that seems rational rather than a mispricing.

AI Exposure / Tech Reliance

As a Consumer Defensive company in Beverages – Wineries & Distilleries, BF.A operates in a category largely insulated from technological disruption. AI and automation may optimize distribution, inventory forecasting, and marketing efficiency, but they will not redefine core demand drivers. Its resilience lies in brand equity and distribution scale rather than technological edge, making it structurally stable but not AI-levered.

The Bull Case

A disciplined GARP or value investor could justify ownership on capital efficiency and balance sheet resilience. ROIC of 13.30% comfortably exceeds typical cost of capital, signaling value creation despite weak ROE optics. Operating Margin of 19.80% in a consumer staples business reflects strong pricing power and brand strength, while a Piotroski F-Score of 6 indicates fundamentally stable operations without distress signals. The 4.1 Altman Z-Score and 2.8 Current Ratio further reinforce financial durability, and a modest 29.60% Debt/Equity ratio leaves room for capital flexibility. Add institutional ownership at 27.50% and a 0.7 TTM yield with a 10+ five-year dividend average, and you have the skeleton of a steady compounder for investors prioritizing durability over hyper-growth.

The Bear Case

The red flags are hard to ignore. A 1.10% Return on Equity is shockingly low for a premium spirits franchise and suggests inefficient equity utilization. There is no Forward P/E or PEG ratio provided, and Sales Growth Next Year is absent—this is a major problem for a stock trading at 17.3x earnings because without growth, that multiple compresses. Short interest at 5.20% is not extreme but signals skepticism, and the Consensus Rating of 1.60% paired with a Mean Consensus Target Price of 3 implies limited upside enthusiasm. The dividend data is also inconsistent—Dividend Per Share USD listed as 3.10% and Payout Ratio shown as $0.92—raising concerns about capital allocation clarity.

Market Sentiment & Smart Money

Short Interest %

1.60%

Analyst Consensus

3

Average Analyst Price Target

$27.50

Institutional Ownership %

11.30%

1-Year Beta

0.33

Insider Buying % (6 Mo)

74.50%%

Distance to 52-Week High

82.60%

Distance to 52-Week Low

129.10%

EARNINGS SURPRISE %

50-DAY SMA

200-DAY SMA

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.