BF.B

Brown-Forman

Fundamental data last updated:April 13, 2026

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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 generates cash by owning premium alcoholic beverage brands and pushing them through a global distribution network where brand equity, shelf space, and pricing power matter more than scale alone. The moat sits in intangible assets—heritage labels, consumer loyalty, and entrenched distributor relationships that smaller competitors cannot easily replicate. High operating margins of 19.80% reflect the power of branded spirits to command premium pricing over production cost. Cash flow durability stems from repeat consumption patterns and global diversification within the spirits category, creating steady revenue that supports dividends and reinvestment.

 


Analyze BF.B on TradingView

VALUATION

P/E

17.2

Market Cap ($M USD)

$13,551

Forward P/E

17.4

PEG

-

PRICE TO SALES

3.5

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

$1.70

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.B on TradingView

Gainseekers Quantitative Analysis

Summary

At 17.2x earnings and 17.4x forward earnings, the stock is priced like a no-growth staple despite generating a 13.30% ROIC and maintaining an Altman Z-Score of 4.1, which signals strong balance sheet safety and negligible bankruptcy risk. A Market Cap of $13,551M against a Price/Sales of 3.5 and Price/Book of 3.3 suggests the market is not assigning a premium multiple to its asset base or revenue durability. The Piotroski F-Score of 6 indicates stable, not spectacular, operational health, but combined with a 2.8 current ratio and modest 29.60% Debt/Equity, the financial profile is clearly solid. This looks more like a conservatively priced defensive compounder than a distressed name, implying limited downside but also muted expectations baked into the multiple.

AI Exposure / Tech Reliance

As a Consumer Defensive company in Beverages – Wineries & Distilleries, its exposure to AI disruption is minimal because demand is driven by brand, distribution, and consumer behavior rather than technological displacement. Operationally, AI can enhance supply chain efficiency and marketing precision, but it will not fundamentally alter its revenue engine. The business is structurally resilient to tech shocks because alcohol consumption patterns are not algorithm-dependent.

The Bull Case

A GARP investor buys this for capital efficiency and resilience: a 13.30% ROIC paired with a 19.80% operating margin demonstrates strong pricing power and disciplined cost control. The Piotroski F-Score of 6 confirms operational stability, while a 2.8 current ratio and 29.60% Debt/Equity show a balance sheet that is far from stretched. Add in an Altman Z-Score of 4.1 and you have a financially secure compounder trading at 17.4x forward earnings—hardly excessive for a defensive name with positive institutional ownership at 28.63%. The 0.7 yield and 10+ five-year dividend average signal a shareholder return component that, while not high, adds to total return stability.

The Bear Case

There are real concerns: Return on Equity is just 1.10%, which is strikingly low relative to the 3.3 Price/Book multiple, implying weak equity productivity. The absence of a forward PEG ratio removes visibility into growth-adjusted valuation, and with Sales Growth Next Year listed at 1.70, growth appears modest at best. A Short % of Float at 5.20% shows measurable skepticism, while a forward P/E of 17.4 without strong growth acceleration suggests potential multiple compression risk. Combined with a Payout Ratio listed at $0.92 and TTM Yield of 0.7, capital return efficiency looks inconsistent and may limit reinvestment flexibility.

Market Sentiment & Smart Money

Short Interest %

17.40%

Analyst Consensus

3.04

Average Analyst Price Target

$28.63

Institutional Ownership %

77.00%

1-Year Beta

0.29

Insider Buying % (6 Mo)

2.90%%

Distance to 52-Week High

81.50%

Distance to 52-Week Low

130.40%

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.