Brown Forman A AI Stock Analysis
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Brown Forman A (BF.A) AI Stock Analysis
Brown Forman A
(NYSE:BF.A)
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.
Brown Forman A (BF.A) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $13.96B
- Dividend Yield
- 2.98%
- Average Volume (3M)
- 142.30K
- Price to Earnings (P/E)
- 19.5
- Beta (1Y)
- 0.44
- Revenue Growth
- -0.18%
- EPS Growth
- -13.00%
- Country
- US
- Employees
- 4,900
- Sector
- Consumer Defensive
- Sector Strength
- 62
- Industry
- Beverages - Wineries & Distilleries
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 the g...
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 revenue...
Brown Forman A Earnings Call Summary
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.
Q1-2027 Updates
Positive Updates
Negative 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
Strong profitability and cash generation underpin the score (TTM gross margin ~61%, net margin ~18%; TTM free cash flow ~$0.93B and ~91% of net income). Balance sheet leverage appears manageable (TTM debt-to-equity ~0.62) but still meaningful. The key financial risk is weakening growth, with revenue flat-to-down recently and sharply negative TTM revenue growth (-33.1%), which can pressure future earnings.
Income Statement
73PositiveBalance Sheet
71PositiveCash Flow
82Very 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
Price Trends
Market Momentum
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 30.97 is above the 20-day moving average (MA) of 30.07, above the 50-day MA of 28.18, and above the 200-day MA of 27.37, indicating a bullish trend. The MACD of 0.94 indicates Negative momentum. The RSI at 58.25 is Neutral, neither overbought nor oversold. The STOCH value of 72.59 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 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.
Latest Risks Added
3 New RisksBrown Forman A Peers Comparison
Overall Rating
- BF.A67Neutral
STZ66Neutral
SAM64Neutral
TAP56Neutral
WVVI44Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| BF.A | 67Neutral | $14.30B | 19.55 | 17.80% | 2.98% | -0.18% | -13.00% |
| STZ | 66Neutral | $24.62B | 12.91 | 23.58% | 2.85% | -4.31% | 62.57% |
| SAM | 64Neutral | $2.23B | -32.09 | -9.81% | ― | -3.71% | -180.44% |
| Sector * | 62Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
| TAP | 56Neutral | $7.47B | 8.41 | 8.78% | 4.81% | -1.58% | ― |
| WVVI | 44Neutral | $8.22M | -1.80 | -3.34% | ― | -1.65% | -70.30% |
* Consumer Defensive Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| BF.A | Brown Forman Inc A | 30.97 | 3.94 | 14.57% | |
| SAM | Boston Beer Company | 219.16 | 18.14 | 9.02% | |
| STZ | Constellation Brands | 144.12 | 18.13 | 14.39% | |
| TAP | Molson Coors Beverage | 39.69 | -5.17 | -11.52% | |
| WVVI | Willamette Valley Vineyards | 1.66 | -1.10 | -39.86% |
Brown Forman A Corporate Events
Brown‑Forman A clarifies new notes debt obligation
NeutralBrown‑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 cross‑referen...
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.
Date of analysis: Sep 15, 2026