Brown-Forman Corporation
Brown-Forman Corporation, together with its subsidiaries, manufactures, distills, bottles, imports, exports, markets, and sells a variety of alcohol beverages. The company provides spirits, wines, whiskey spirits, whiskey-based flavored liqueurs, ready-to-drink cocktails, ready-to-pour products, vod…
What to know about BF-B
Brown-Forman Corporation is a large Consumer Defensive company with a mixed financial profile. It scores well on risk and health, but size is worth keeping an eye on.
Should you consider BF-B?
Based on 31 financial metrics and sector comparison. Not financial advice.
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Brown-Forman Corporation is a large-cap Consumer Defensive company with a mixed overall financial profile — it is in the lower half of its Consumer Defensive peers (22 of 35).
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The business is both profitable and financially healthy — it keeps a good portion of what it earns and carries its debt comfortably.
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Valuation is in the middle of the pack — neither obviously cheap nor stretched.
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Growth has been slower than most peers. That's not necessarily a dealbreaker, but it means the investment case rests more on current earnings than future expansion.
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There is a small dividend (0.03%), but income-focused investors will likely find better yields elsewhere in the market.
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Risk is relatively low — the stock tends to be less volatile than the broader market, which typically means a smoother ride during uncertain periods.
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Analyst sentiment is cautious and short interest is relatively elevated — meaning some professional investors are actively betting the price will fall. Worth understanding why.
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There are several areas of concern. This may suit investors with a higher risk tolerance or a specific contrarian view on the Consumer Defensive sector.
At a glance
How it scores
We look at 31 different financial metrics and group them into categories. Here's how BF-B compares to the other S&P 500 stocks.
Dive deeper — all 31 metrics 9 categories · valuation, growth, health, dividends & more Show all Hide
Valuation
Is the stock cheap or expensive relative to its earnings, sales, and assets? Lower multiples often mean better value.
| Metric | Value | vs S&P 500 |
|---|---|---|
| P/E Ratio (Trailing) | 17.41 | Top 25% |
| Forward P/E | 15.60 | Above avg |
| PEG Ratio | 4.27 | Below avg |
| Price to Sales | 3.11 | Above avg |
| Price to Book | 3.04 | Above avg |
| EV/EBITDA | 12.25 | Above avg |
| Earnings Yield | 5.74% | Top 25% |
Profitability
How efficiently does the company turn revenue into profit? Higher margins mean more money kept from each dollar earned.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Gross Margin | 60.54% | Above avg |
| Operating Margin | 23.25% | Above avg |
| Net Profit Margin | 18.20% | Above avg |
| Return on Equity | 17.85% | Above avg |
| Return on Invested Capital | 8.64% | Above avg |
Growth
How fast is the business expanding? Strong growth in revenue and earnings signals increasing market demand.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Revenue Growth (YoY) | 2.00% | Below avg |
| Revenue Growth (3Y CAGR) | -2.42% | Below avg |
| EPS Growth (YoY) | -62.70% | Below avg |
| Free Cash Flow Growth | 107.19% | Top 25% |
Health
Can the company cover its debts and obligations? A healthy balance sheet reduces the risk of financial trouble.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Current Ratio | 3.24 | Top 25% |
| Debt to Equity | 0.65 | Above avg |
| Interest Coverage | 9.59 | Above avg |
| Altman Z-Score | 4.11 | Above avg |
Dividends
Does the company pay shareholders, and is that payment growing and sustainable?
| Metric | Value | vs S&P 500 |
|---|---|---|
| Dividend Yield | 3.46% | Top 25% |
| Payout Ratio | 59.80% | Average |
| Dividend Growth (5Y) | -23.20% | Below avg |
Cash Flow
Is real cash flowing into the business — not just accounting profits? Strong cash flow funds growth and dividends.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Free Cash Flow Yield | 7.31% | Top 25% |
| OCF to Sales | 25.46% | Above avg |
Risk
How volatile is the stock compared to the broader market? Lower beta and volatility mean a smoother ride.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Beta (1-Year) | 0.35 | Top 25% |
| Volatility (30-Day) | 29.89% | Above avg |
Sentiment
What do analysts and short-sellers think? High analyst ratings and low short interest signal broad confidence.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Short % of Float | 12.54% | Below avg |
| Avg. Analyst Rating | 3.00 | Below avg |
| Target Upside % | 4.26% | Below avg |
Size
How large is the company by market value? Size affects stability, growth potential, and index inclusion.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Market Capitalization | 12.22B | Below avg |
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