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Brown Forman A
(NYSE:BF.A)
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Rating:67Neutral
Price Target:
$33.00
▲(18.96% Upside)
Action:Reiterated
Date:09/15/26
The score is driven primarily by strong financial quality—healthy margins, excellent free-cash-flow generation, and manageable leverage—tempered by a materially weakening growth profile. Technical signals are notably weak, with the stock trading below major moving averages and negative momentum. Valuation is supportive (moderate P/E and ~3.45% yield), while the latest earnings call was constructive on execution and cash flow but still points to a flat-sales and declining operating-income year with several category and cost headwinds.
Positive Factors
Strong cash generation
High conversion of earnings into free cash flow supports brand investment, dividends, debt service, and operational flexibility. This cash-generation profile gives Brown-Forman resilience through softer demand and capacity to fund growth without relying heavily on external financing.
Negative Factors
Flat sales and declining operating income outlook
Management's outlook indicates that near-term earnings expansion is constrained despite operational execution. Flat sales limit operating leverage, while lower operating income can reduce funds available for reinvestment and make sustained profit growth dependent on efficiencies and mix.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
High conversion of earnings into free cash flow supports brand investment, dividends, debt service, and operational flexibility. This cash-generation profile gives Brown-Forman resilience through softer demand and capacity to fund growth without relying heavily on external financing.
Read all positive factors
Brown Forman A (BF.A) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.62B
Dividend Yield3.07%
Average Volume (3M)157.56K
Price to Earnings (P/E)19.1
Beta (1Y)0.44
Revenue Growth-0.18%
EPS Growth-13.00%
CountryUS
Employees4,900
SectorConsumer Defensive
Sector Strength42
IndustryBeverages - Wineries & Distilleries
Share Statistics
EPS (TTM)1.54
Shares Outstanding168,480,850
10 Day Avg. Volume145,654
30 Day Avg. Volume157,562
Financial Highlights & Ratios
PEG Ratio-1.00
Price to Book (P/B)2.99
Price to Sales (P/S)3.06
P/FCF Ratio13.46
Enterprise Value/Market Cap1.14
Enterprise Value/Revenue3.97
Enterprise Value/Gross Profit6.55
Enterprise Value/Ebitda14.30
Forecast
1Y Price Target
$26.00Price Target Upside-6.27% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering1
EPS Forecast (FY)1.71
Revenue Forecast (FY)$3.94B
Brown Forman A Business Overview & Revenue Model
Company Description
Brown-Forman Corporation, along with its subsidiaries, is a global enterprise specializing in the production and distribution of a diverse range of alcoholic beverages. Its comprehensive operations cover manufacturing, distilling, bottling, and th...
How the Company Makes Money
Brown-Forman primarily makes money by selling branded alcoholic beverages to wholesale distributors, state-controlled agencies (in certain markets), retailers, and on-premise customers (bars/restaurants) via its distribution network. Its core reve...
Brown Forman A Earnings Call Summary
Earnings Call Date:Sep 02, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Dec 09, 2026
Earnings Call Sentiment Positive
The call was positive overall. Management reported results largely in line with expectations, reaffirmed fiscal 2027 guidance, cited strong innovation and RTD momentum, delivered organic operating income and EPS growth, and generated higher operating and free cash flow. These strengths were partially offset by flat expected full-year organic net sales, declines in used barrels and tequila, weak developed-market demand, anticipated gross-margin and input-cost pressure, and ongoing category challenges.Positive Updates
First Quarter Results in Line with Expectations
Management said fiscal 2027 first-quarter performance unfolded largely as expected, supported the full-year outlook, and led the company to reaffirm its fiscal 2027 guidance.
Negative Updates
Persistent Pressure on Developed-Market Consumer Demand
Challenging industry conditions persisted, with consumers remaining selective about discretionary spending, particularly in developed markets. Management said demand remained pressured across many developed markets.
Read all updates
Q1-2027 Updates
Positive
Negative
First Quarter Results in Line with Expectations
Management said fiscal 2027 first-quarter performance unfolded largely as expected, supported the full-year outlook, and led the company to reaffirm its fiscal 2027 guidance.
Read all positive updates
Company Guidance
Brown-Forman reaffirmed its fiscal 2027 guidance, continuing to expect organic net sales to be approximately flat for fiscal 2027, organic operating income to decline between 3% and 5%, with results expected to trend toward the more favorable end of the range, capital expenditures to be in the range of $60 million to $70 million, and an effective tax rate of approximately 20%-22% for fiscal 2027; the company expects the gap between shipments and depletions to narrow as the year progresses, with depletions exceeding shipments for the full fiscal year, continued pressure on used barrel sales but expects the impact to moderate through the remainder of the year and the year-over-year dollar impact on net sales will be significantly less, and continues to assume U.S.-produced spirits restrictions in Canada will remain in place for the balance of the fiscal year.Brown Forman A Financial Statement Overview
Summary
Income Statement
73
Positive
Balance Sheet
71
Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Apr 2026 | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.92B | 3.93B | 3.98B | 4.18B | 4.23B | 3.93B |
| Gross Profit | 2.38B | 2.38B | 2.34B | 2.53B | 2.49B | 2.39B |
| EBITDA | 1.09B | 1.20B | 1.29B | 1.51B | 1.19B | 1.27B |
| Net Income | 721.00M | 715.00M | 869.00M | 1.02B | 783.00M | 838.00M |
Balance Sheet | ||||||
| Total Assets | 7.83B | 7.89B | 8.09B | 8.17B | 7.78B | 6.37B |
| Cash, Cash Equivalents and Short-Term Investments | 301.00M | 308.00M | 444.00M | 446.00M | 374.00M | 868.00M |
| Total Debt | 2.44B | 2.15B | 2.73B | 3.10B | 2.91B | 2.27B |
| Total Liabilities | 3.86B | 3.87B | 4.09B | 4.65B | 4.51B | 3.64B |
| Stockholders Equity | 3.97B | 4.02B | 3.99B | 3.52B | 3.27B | 2.74B |
Cash Flow | ||||||
| Free Cash Flow | 925.00M | 893.00M | 431.00M | 419.00M | 457.00M | 798.00M |
| Operating Cash Flow | 1.01B | 1.00B | 598.00M | 647.00M | 640.00M | 936.00M |
| Investing Cash Flow | -86.00M | -71.00M | 249.00M | 49.00M | -1.35B | -127.00M |
| Financing Cash Flow | -1.10B | -1.07B | -843.00M | -618.00M | 239.00M | -1.04B |
Brown Forman A Technical Analysis
Positive
27.74
Price Trends
27.61
Positive
27.39
Positive
27.14
Positive
Market Momentum
0.77
Negative
62.99
Neutral
80.65
Negative
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 27.74 is below the 20-day moving average (MA) of 28.05, above the 50-day MA of 27.61, and above the 200-day MA of 27.14, indicating a bullish trend. The MACD of 0.77 indicates Negative momentum. The RSI at 62.99 is Neutral, neither overbought nor oversold. The STOCH value of 80.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BF.A.
Brown Forman A Risk Analysis
Brown Forman A disclosed 25 risk factors in its most recent earnings report. Brown Forman A 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 A Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $23.47B | 12.43 | 23.58% | 2.96% | -4.31% | 62.57% | |
67 Neutral | $13.62B | 19.10 | 17.80% | 3.07% | -0.18% | -13.00% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $2.08B | -29.62 | -9.81% | ― | -3.71% | -180.44% | |
57 Neutral | $7.71B | -3.57 | -22.65% | 4.63% | -1.77% | -326.16% | |
47 Neutral | $336.84M | -1.40 | -35.26% | 3.05% | -17.95% | -3524.49% | |
43 Neutral | $9.46M | -2.06 | -3.34% | ― | -1.65% | -70.30% |
* Consumer Defensive Sector Average
BF.A
Brown Forman A
29.81
2.59
9.53%
SAM
Boston Beer
201.48
-26.04
-11.45%
STZ
Constellation Brands
135.62
1.58
1.18%
MGPI
MGP Ingredients
15.52
-7.47
-32.49%
TAP
Molson Coors
40.00
-3.32
-7.66%
WVVI
Willamette Valley Vineyards
1.91
-1.92
-50.13%
Brown Forman A Corporate Events
Private Placements and FinancingRegulatory Filings and Compliance
Brown‑Forman A clarifies new notes debt obligation
Neutral
Sep 21, 2026
Brown‑Forman A disclosed that information about newly issued Notes, previously detailed under Item 1.01 as a material definitive agreement, is also being applied to Item 2.03 to describe the creation of a direct financial obligation. By cros...
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.