Brown Forman Corp (BF-A)
Consumer Staples · Distillers & Vintners · US stock · S&P 500 component
$30.91
▲ +2.06 (7.14%)
Fair valueFair
$36 +16.2% to fair value
$18fair band $31–$44$54
Day's range
$28.90 – $30.93
52-week range
$23.01 – $31.14
About Brown Forman Corp
Brown-Forman is a producer and marketer of spirits and wine, best known for its Tennessee whiskey and bourbon brands, along with tequila, vodka and other drinks. It makes, ages and bottles these products, then sells them to distributors and retailers in the United States and many international markets. Revenue comes from sales of branded alcoholic beverages, and results are influenced by consumer demand, pricing, tariffs and currency movements.
Revenue of $5.1 billion was recorded for the latest twelve months; sales fell 1.8% a year over the past three years. Brown Forman Corp converts that into an operating margin of 19.6%. Return on invested capital comes to 13%. Net debt to EBITDA is 2.0 times. Shareholders receive a dividend, yielding 3.0%, and the X-Ray Score is 57 out of 100.
Price chart
52-wk range $23.01 – $31.14Volume 123,702Daily, split-adjusted
Vitals
Market cap$14.2B
52-week range$23.01 – $31.14
Volume (last day)123,702
P/E (TTM)20.0
EBIT / EV yield6.1%
Free-cash-flow yield6.5%
Dividend yield3.0%
Revenue (TTM)$5.1B
Net income (TTM)$721M
Operating margin19.6%
Return on capital13.1%
Debt incl. leases$2.4B
Cash & securities$301M
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$36middle half of models $33 – $37
Fair
+16.2% to fair value
Average of the 15 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is Medium, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $31
Undervalued < $31Fair $31 – $44Overvalued > $44
P/E multiple
$32
P/B multiple
$48
P/S multiple
$35
EV/EBITDA multiple
$33
EV/EBIT multiple
$36
EV/revenue multiple
$35
10-year DCF, EBITDA exit
$34
5-year DCF, EBITDA exit
$33
10-year DCF, revenue exit
$34
5-year DCF, revenue exit
$34
10-year DCF, growth exit
$30
5-year DCF, growth exit
$29
Dividend discount, stable
$37
Dividend discount, multi-stage
$47
Earnings power value
$41
Growth the price implies
7.2%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Average business, fairly priced
The price sits inside our fair-value band. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Consumer Staples peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Strong
72/100
Cheap against its sector on earnings and cash flow.
See the numbers →
EBIT / EV yield6.1%
Free-cash-flow yield6.5%
Fair value vs price1.2×
Growth
Weak
37/100
Growing slower than most of its sector.
See the numbers →
Revenue growth (3y)-1.8%
EPS growth (3y)-2.1%
Growth consistency20%
Profitability
Weak
49/100
Earns lower returns on its capital than most peers.
See the numbers →
Return on invested capital13.1%
Operating margin19.6%
Gross profitability30.4%
Financial health
Strong
71/100
Balance sheet looks strong: debt is well covered.
See the numbers →
Piotroski F-Score7 / 9
Net debt / EBITDA2.0×
Interest cover9.6×
Dividends
Fair
51/100
Dividend is typical for its sector.
See the numbers →
Dividend yield3.0%
Dividends vs free cash flow46%
Dividend growth4.1%
Quarterly results: last 6 quarters
-5.9%
Apr '25
-1.7%
Jul '25
-2.9%
Oct '25
+3.6%
Jan '26
+3.4%
Apr '26
-0.8%
Jul '26
Revenue against the same quarter a year earlier. Latest quarter revenue $1.2B, diluted EPS $0.38.
SWOT analysis: Brown Forman Corp
Strengthsinside the company
- Operating margin of 19.6% is well above the 10.2% median of sector peers, a sign of pricing power or lower costs.
- Free cash flow equals 6.5% of the market value, which funds dividends, buybacks or debt paydown.
- Passes 7 of the 9 Piotroski tests, which points to improving profitability, funding and efficiency.
Weaknessesinside the company
- Revenue has fallen 1.8% a year over three years while sector peers grew 2.5%.
Opportunitiesvaluation and setting
- Dividends use only 46% of free cash flow, which leaves room to raise them.
- Trades at 19.7x earnings, 27% below the 27.0x median of sector peers.
- Price momentum is strong on the weekly and monthly signals (trends can reverse).
Threatsvaluation and setting
- No specific threat is flagged by our checks; general market and interest-rate risk still applies.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare BF-A with peers and sector
Medians of 28 Consumer Staples peers and of 28 Consumer Staples stocks in our universe.
Largest peers (X-Ray Score): WMT 51, COST 56, KO 43, PG 54, PM 50, PEP 60.
| Metric | BF-A | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 57 | 50 | 50 |
| Valuation | 72 | 53 | 53 |
| Growth | 37 | 49 | 49 |
| Profitability | 49 | 53 | 53 |
| Financial health | 71 | 46 | 46 |
| Dividends | 51 | 50 | 50 |
Sector leaders: highest X-Ray Score in Consumer Staples
BF-A ranks #8 of 29 in Consumer Staples by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for BF-A
Each factor is rated by where BF-A stands among the 29 Consumer Staples stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 8 Good · 10 Average · 5 Bad of 23
Growth: 0 · 1 · 2
Profitability: 2 · 3 · 0
Financial strength: 2 · 2 · 0
Valuation: 2 · 2 · 1
Cash flow: 2 · 2 · 0
Efficiency: 0 · 0 · 2
| Factor | BF-A | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | −1.8% | Bad beats 23% | +2.3% | – | – |
| Revenue growth, last year | +0.5% | Bad beats 27% | +2.2% | +0.5% | ≈ In line |
| EPS growth, 3 years a year | −2.1% | Average beats 38% | +2.0% | – | – |
| Profitability | |||||
| Gross margin | 46.8% | Average beats 61% | 38.7% | 46.8% | ≈ In line |
| Operating margin | 19.6% | Good beats 80% | 11.0% | 21.9% | ▼ Worse |
| Net margin | 14.2% | Good beats 77% | 6.9% | 16.5% | ▼ Worse |
| Return on invested capital | 13.1% | Average beats 43% | 15.2% | – | – |
| Return on equity | 18.2% | Average beats 44% | 18.6% | 24.0% | ▼ Worse |
| Financial strength | |||||
| Net debt / EBITDA | 2.0x | Average beats 58% | 2.0x | 2.1x | ≈ In line |
| Interest cover | 9.6x | Average beats 40% | 11.8x | 11.1x | ▼ Worse |
| Current ratio | 3.26 | Good beats 95% | 1.04 | 3.51 | ≈ In line |
| Piotroski F-score | 7 / 9 | Good beats 79% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 19.7x | Good beats 69% | 25.0x | 22.9x | ▲ Better |
| Price / book | 3.6x | Average beats 60% | 4.5x | 6.7x | ▲ Better |
| Price / sales | 2.8x | Bad beats 27% | 1.8x | 4.4x | ▲ Better |
| EV / EBITDA | 15.0x | Average beats 52% | 15.2x | 17.7x | ▲ Better |
| Free cash flow yield | 6.5% | Good beats 75% | 4.8% | 2.6% | ▲ Better |
| Cash flow | |||||
| Free cash flow margin | 18.2% | Good beats 79% | 9.3% | 8.5% | ▲ Better |
| Cash from operations / net income | 1.40 | Average beats 40% | 1.54 | 0.82 | ▲ Better |
| Free cash flow growth, 3 years a year | +25.0% | Good beats 86% | +11.0% | – | – |
| Accruals (lower is better) | −3.7% | Average beats 44% | −4.2% | – | – |
| Efficiency | |||||
| Inventory turnover | 0.6x | Bad beats 2% | 5.3x | 0.6x | ≈ In line |
| Days sales outstanding | 59 days | Bad beats 7% | 35 days | 58 days | ≈ In line |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 8 Good · ● 6 Average · ● 2 BadCash quality
Earnings backed by cashAverage
Free-cash-flow yieldGood
Risk models
Altman Z''Good
Piotroski F-ScoreGood
Growth
EPS growth (3y)Average
Free-cash-flow growth (3y)Good
Revenue growth (3y)Bad
Growth consistencyBad
Balance sheet
Current ratioGood
Net debt / EBITDAAverage
Interest coverAverage
Valuation
Fair value vs priceGood
EBIT / EV yieldGood
Profitability
Return on invested capitalAverage
Operating marginGood
Gross profitabilityAverage
Each check is graded against the company's sector, not a fixed number. Checklist score 58/100.
Financials
| FY22 | FY23 | FY24 | FY25 | FY26 | |
|---|---|---|---|---|---|
| Revenue | $5.1B | $5.4B | $5.3B | $5.1B | $5.1B |
| Operating income | $1.2B | $1.1B | $1.4B | $1.1B | $1.0B |
| Net income | $838M | $783M | $1.0B | $869M | $715M |
| Operating cash flow | $936M | $640M | $647M | $598M | $1.0B |
| Operating margin | 23.7% | 21.0% | 26.5% | 21.9% | 19.7% |
| Free cash flow | $798M | $457M | $419M | $431M | $893M |
| Diluted EPS | $1.74 | $1.63 | $2.14 | $1.84 | $1.53 |
Fiscal years, from SEC filings.
Technical summary
Daily
Bullish
12 bullish · 0 neutral · 4 bearish
Weekly
Strongly bullish
9 bullish · 1 neutral · 2 bearish
Monthly
Bullish
5 bullish · 1 neutral · 2 bearish
Moving averages (daily)
| SMA 10 | 28.70 | Bullish |
| EMA 10 | 28.86 | Bullish |
| SMA 20 | 27.72 | Bullish |
| EMA 20 | 28.17 | Bullish |
| SMA 50 | 27.55 | Bullish |
| EMA 50 | 27.65 | Bullish |
| SMA 100 | 27.29 | Bullish |
| EMA 100 | 27.41 | Bullish |
| SMA 200 | 27.09 | Bullish |
| EMA 200 | 27.52 | Bullish |
Oscillators (daily)
| RSI (14) | 74.91 | Bearish |
| MACD (12, 26) | 0.69 | Bullish |
| Momentum (12) | 14.91 | Bullish |
| Stochastic %K (14) | 99.68 | Bearish |
| Williams %R (14) | -0.32 | Bearish |
| CCI (20) | 162.1 | Bearish |
Pivot points (classic, last session)
S3 27.54 | S2 28.22 | S1 29.57 | Pivot 30.25 | R1 31.59 | R2 32.27 | R3 33.61 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
Dividends
Paid, last 12 months
0.92 USD
Yield on today's price
2.99%
Frequency
Quarterly
Next ex-dividend date
Not announced
| Ex-dividend date | Amount per share |
|---|---|
| 0.2310 | |
| 0.2310 | |
| 0.2310 | |
| 0.2310 | |
| 0.2270 | |
| 0.2270 | |
| 0.2270 | |
| 0.2270 | |
| 0.2180 | |
| 0.2180 | |
| 0.2180 | |
| 0.2180 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
ETFs that hold BF-A
| ETF | Share of the fund |
|---|---|
| DON WisdomTree U.S. MidCap Dividend | 0.26% |
| FSTA Fidelity MSCI Consumer Staples Index | 0.15% |
| ESML iShares ESG Aware MSCI USA Small-Cap | 0.09% |
| IYK iShares US Consumer Staples | 0.06% |
| FDL First Trust Morningstar Dividend Leade... | 0.03% |
| VBR Vanguard Small-Cap Value | 0.02% |
| DFAT DFA Investment Dimensions Group Inc. | 0.02% |
| SMMD iShares Russell 2500 | 0.02% |
The eight funds with the largest weight in BF-A among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
BF-A stock splits
BF-A has split its stock 6 times since 1994. The latest was a 5-for-4 split on 1 Mar 2018.
Full BF-A stock split history →BF-A SEC filings
8-KSEC EDGAR
Entered a material agreement
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Shareholder vote results; Regulation FD disclosure
8-KSEC EDGAR
Director or officer change; Regulation FD disclosure
DEF 14ASEC EDGAR
Proxy statement
10-KSEC EDGAR
Annual report
8-KSEC EDGAR
Results of operations
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.