Brown Forman A (BF.A) AI Stock Analysis

• Market Cap: $16.42B
• Dividend Yield: 2.57%
• Average Volume (3M): 119.29K
• Price to Earnings (P/E): 16.5
• Beta (1Y): 0.57
• Revenue Growth: -5.11%
• EPS Growth: 3.64%
• Country: US
• Employees: 5,700
• Sector: Consumer Defensive
• Sector Strength: 70
• Industry: Beverages - Wineries & Distilleries
• EPS (TTM): 0.57
• Shares Outstanding: 169,129,180
• 10 Day Avg. Volume: 102,618
• 30 Day Avg. Volume: 119,287
• PEG Ratio: -11.71
• Price to Book (P/B): 4.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 30.68
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 1.14
• Enterprise Value/Gross Profit: 7.77
• Enterprise Value/Ebitda: 3.16
• 1Y Price Target: $36.00
• Price Target Upside: 0.36% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

Brown Forman A's overall score of 74 reflects its strong financial performance, solid valuation, and strategic initiatives aimed at long-term growth. While the technical analysis shows moderate momentum and there are challenges in certain segments, the company's proactive approach to cost management and brand development supports a positive outlook. The risks include declining reported net sales and external uncertainties such as tariffs, which investors should monitor.

Brown Forman A 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 makes money by producing, marketing, and selling alcoholic beverages. The company's revenue model is primarily driven by sales of its premium spirits brands, with Jack Daniel’s Whiskey being its most significant revenue contributor. Revenue streams include direct sales to retailers, distributors, and wholesalers globally. Brown-Forman also engages in strategic partnerships and distribution agreements to expand its market reach. The company's earnings are influenced by factors such as brand strength, market expansion, product innovation, and global consumer demand trends in the spirits industry.

Brown Forman A Financial Statement Overview

Summary

Brown Forman A demonstrates strong financial health with robust margins and efficient cash flow generation. While revenue growth has faced some hurdles, the company's profitability and cash flow metrics remain solid, suggesting resilience in its operations. The balance sheet is stable with moderate leverage, but there is potential for optimizing liabilities and further enhancing equity returns.

Income Statement

Brown Forman A shows stable profitability with a healthy Gross Profit Margin of 59.3% and a Net Profit Margin of 24.5% in TTM (Trailing-Twelve-Months). However, there is a slight decline in revenue from the previous period by 3.2%, which indicates a potential challenge in top-line growth. The EBIT and EBITDA margins remain robust at 31.6% and 33.5% respectively, reflecting strong operational efficiency.

Balance Sheet

The company's Debt-to-Equity Ratio stands at 0.67, indicating a moderate leverage level. The Return on Equity (ROE) is strong at 25.9%, signifying effective management in generating returns on equity. The Equity Ratio of 47.4% suggests a solid equity base, though there is room for improvement in reducing total liabilities.

Cash Flow

The Free Cash Flow Growth Rate is impressive at 27.4%, indicating strong cash generation capability. The Operating Cash Flow to Net Income Ratio is 0.74, showing a solid conversion of net income into cash. The Free Cash Flow to Net Income Ratio is 0.54, which is satisfactory, but highlights opportunities for further cash flow efficiency.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
4.04B	4.18B	4.23B	3.93B	3.46B	3.36B
	Gross Profit
2.40B	2.53B	2.49B	2.39B	2.09B	2.13B
	EBIT
1.28B	1.41B	1.13B	1.20B	1.17B	1.09B
	EBITDA
1.46B	1.51B	1.31B	1.31B	1.09B	1.17B
	Net Income Common Stockholders
989.00M	1.02B	783.00M	838.00M	903.00M	827.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
599.00M	446.00M	374.00M	868.00M	1.15B	675.00M
	Total Assets
8.07B	8.17B	7.78B	6.37B	6.52B	5.78B
	Total Debt
2.86B	3.10B	2.91B	2.27B	2.56B	2.60B
	Net Debt
2.26B	2.65B	2.54B	1.40B	1.41B	1.93B
	Total Liabilities
4.25B	4.65B	4.51B	3.64B	3.87B	3.80B
	Stockholders Equity
3.82B	3.52B	3.27B	2.74B	2.66B	1.98B
Cash Flow		Free Cash Flow
534.00M	419.00M	457.00M	798.00M	755.00M	611.00M
	Operating Cash Flow
731.00M	647.00M	640.00M	936.00M	817.00M	724.00M
	Investing Cash Flow
270.00M	49.00M	-1.35B	-127.00M	98.00M	-141.00M
	Financing Cash Flow
-952.00M	-618.00M	239.00M	-1.04B	-485.00M	-191.00M

Brown Forman A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.87
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BF.A, the sentiment is Positive. The current price of 35.87 is above the 20-day moving average (MA) of 34.52, above the 50-day MA of 34.12, and below the 200-day MA of 38.98, indicating a neutral trend. The MACD of 0.41 indicates Negative momentum. The RSI at 63.45 is Neutral, neither overbought nor oversold. The STOCH value of 76.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BF.A.

Brown Forman A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BF.A	74 Outperform	$16.42B	16.53	27.99%	2.57%	-5.11%	3.64%
CCU	72 Outperform	$2.70B	15.46	11.33%	1.89%	6.18%	61.39%
DEO	72 Outperform	$62.78B	17.41	35.83%	3.57%	-1.21%	-8.89%
SAM	70 Outperform	$2.65B	40.58	7.36%	―	0.79%	-24.27%
STZ	65 Neutral	$33.25B	49.10	-0.98%	2.12%	2.47%	-105.09%
Sector *	64 Neutral	$8.77B	14.65	4.78%	173.88%	3.25%	2.28%
TAP	64 Neutral	$11.22B	11.16	7.90%	3.18%	-5.17%	-0.74%

Brown Forman A Corporate Events

Brown Forman A Announces Leadership Transition and Compensation

On April 25, 2025, Marshall B. Farrer announced his resignation as Executive Vice President and Chief Strategic Growth Officer of Brown-Forman Corporation, effective after the 2025 Annual Meeting of Stockholders, to assume the role of Chairman of the Board. In recognition of his service and new role, the company approved a compensatory package including a one-time $865,000 payment and favorable treatment of his stock-settled appreciation rights, reflecting the company’s strategic leadership transition.

Spark’s Take on BF.A Stock

According to Spark, TipRanks’ AI Analyst, BF.A is a Outperform.

Brown Forman A’s stock is supported by strong financial fundamentals and strategic initiatives aimed at future growth. The company’s efficient cash flow generation and moderate valuation metrics add to its appeal. However, challenges such as declining reported sales and competitive pressures, particularly in the tequila segment, present risks. The stock’s technical indicators show moderate positive momentum, contributing to a balanced outlook.

To see Spark’s full report on BF.A stock, click here.