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Brown-Forman B
(NYSE:BF.B)
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Rating:63Neutral
Price Target:
$28.00
▼(-0.64% Downside)
Action:Reiterated
Date:09/15/26
BF.B’s score is driven primarily by solid financial quality (strong margins and free-cash-flow generation) and a reasonable valuation supported by a ~3.5% dividend yield. These positives are tempered by weak technical momentum (trading below key moving averages with negative MACD) and an earnings outlook that, while more confident, still anticipates operating-income decline amid margin and demand headwinds.
Positive Factors
Strong Cash Generation
Robust operating and free cash flow gives Brown-Forman internal funding for brand investment, capital spending, dividends, and debt reduction. Strong cash conversion also supports resilience when beverage demand or margins weaken, improving the company’s ability to pursue long-term opportunities.
Negative Factors
Flat Sales and Falling Operating Income Outlook
Management’s outlook indicates that the company is entering the next several quarters without expected organic revenue growth and with declining operating income. That limits operating leverage and leaves earnings dependent on execution, mix improvement, and successful innovation rather than broad demand expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Cash Generation
Robust operating and free cash flow gives Brown-Forman internal funding for brand investment, capital spending, dividends, and debt reduction. Strong cash conversion also supports resilience when beverage demand or margins weaken, improving the company’s ability to pursue long-term opportunities.
Read all positive factors
Brown-Forman B Key Performance Indicators (KPIs)
Any
Sales by Geography
Breaks down sales across regions to show where the company is strongest and where it’s expanding, highlighting reliance on the U.S. market versus international and emerging markets. Geography-driven trends expose currency and regulatory risks, regional growth opportunities, and how well the company can offset slower markets with gains elsewhere.
Breaks down sales across regions to show where the company is strongest and where it’s expanding, highlighting reliance on the U.S. market versus international and emerging markets. Geography-driven trends expose currency and regulatory risks, regional growth opportunities, and how well the company can offset slower markets with gains elsewhere.
Data provided by:
The Fly
The FlyBrown-Forman B (BF.B) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.09B
Dividend Yield3.55%
Average Volume (3M)2.38M
Price to Earnings (P/E)16.9
Beta (1Y)0.52
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 Outstanding290,383,420
10 Day Avg. Volume2,782,206
30 Day Avg. Volume2,376,538
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$26.38Price Target Upside-6.41% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering9
EPS Forecast (FY)1.71
Revenue Forecast (FY)$3.94B
Brown-Forman B Business Overview & Revenue Model
Company Description
Brown-Forman Corporation, along with its subsidiaries, operates globally within the alcoholic beverage industry. The company is actively involved in the production, distillation, bottling, international trade (importing and exporting), marketing, ...
How the Company Makes Money
Brown-Forman makes money primarily by selling branded beverage alcohol to distributors and other wholesale customers, who then sell to retailers (e.g., liquor stores, supermarkets where permitted) and on-premise accounts (e.g., bars, restaurants, ...
Brown-Forman B 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. First-quarter performance was largely in line with expectations, organic operating income, EPS, and cash flow grew, innovation and RTDs generated meaningful momentum, emerging international markets grew 9%, and management reaffirmed full-year guidance with greater confidence toward the favorable end of the operating-income range. These strengths outweighed significant but acknowledged pressures from used barrel sales, tequila, developed-market demand, higher future input costs, whiskey inventory mix, and certain brands and channels.Positive Updates
First-Quarter Results In Line and Full-Year Outlook Reaffirmed
Management said fiscal 2027 first-quarter performance unfolded largely as expected and supports the full-year outlook. The company reaffirmed expectations for approximately flat organic net sales and organic operating income declining between 3% and 5%, with increased confidence that results will trend toward the more favorable end of the range.
Negative Updates
Used Barrel Sales Declined More Than 60%
Organic net sales for the non-branded and bulk business, primarily used barrel sales, declined more than 60%. Sales fell from more than $100 million two years ago to approximately $30 million, as demand from Scotch and Irish whiskey producers remained well below unusually high prior levels.
Read all updates
Q1-2027 Updates
Positive
Negative
First-Quarter Results In Line and Full-Year Outlook Reaffirmed
Management said fiscal 2027 first-quarter performance unfolded largely as expected and supports the full-year outlook. The company reaffirmed expectations for approximately flat organic net sales and organic operating income declining between 3% and 5%, with increased confidence that results will trend toward the more favorable end of the range.
Read all positive updates
Company Guidance
Brown-Forman reaffirmed its fiscal 2027 guidance, continuing to expect organic net sales to be approximately flat, organic operating income to decline between 3% and 5%, capital expenditures to be in the range of $60 million to $70 million, and its effective tax rate to be approximately 20%-22% for fiscal 2027; the company also expects depletions exceeding shipments for the full fiscal year, continued pressure on used barrel sales with the impact to moderate through the remainder of the year and the year-over-year dollar impact on net sales to be significantly less, and increased confidence that results will trend toward the more favorable end of the range.Brown-Forman B Financial Statement Overview
Summary
Income Statement
70
Positive
Balance Sheet
66
Positive
Cash Flow
78
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 | 1.06B | 1.11B | 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 B Technical Analysis
Negative
28.18
Price Trends
27.12
Negative
26.53
Negative
26.59
Negative
Market Momentum
-0.26
Negative
47.29
Neutral
46.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BF.B, the sentiment is Negative. The current price of 28.18 is above the 20-day moving average (MA) of 26.35, above the 50-day MA of 27.12, and above the 200-day MA of 26.59, indicating a bearish trend. The MACD of -0.26 indicates Negative momentum. The RSI at 47.29 is Neutral, neither overbought nor oversold. The STOCH value of 46.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BF.B.
Brown-Forman B Risk Analysis
Brown-Forman B disclosed 25 risk factors in its most recent earnings report. Brown-Forman B 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 B Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $2.78B | 15.90 | 32.60% | 10.44% | -1.80% | -5.87% | |
68 Neutral | $19.41B | 10.76 | 23.13% | 3.63% | -9.99% | ― | |
63 Neutral | $12.09B | 16.90 | 17.80% | 3.55% | -0.18% | -13.00% | |
63 Neutral | $12.67B | 24.02 | -889.19% | 0.52% | 10.71% | 12.43% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
57 Neutral | $6.78B | -3.15 | -22.65% | 5.27% | -1.77% | -326.16% | |
51 Neutral | $274.53M | -1.13 | -35.26% | 3.76% | -17.95% | -3524.49% |
* Consumer Defensive Sector Average
BF.B
Brown-Forman B
26.29
0.12
0.46%
COKE
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STZ
Constellation Brands
112.77
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MGPI
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13.34
-10.26
-43.48%
TAP
Molson Coors
36.01
-7.29
-16.83%
FIZZ
National Beverage
29.61
-3.76
-11.27%
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.