Brown-Forman Corporation BF-A
Composite 58/100; the shares have moved about 42% annualised. Names that move more contribute more risk for the same amount invested, and our composite reflects how strong the evidence for this one is right now.
Growth ranks 40/100 — a slight mark against it.
Income ranks 75/100 — a strong point in its favour. Quality ranks 72/100 — a moderate point in its favour. Balance-sheet strength ranks 58/100 — a slight point in its favour.
Growth ranks 40/100 — a slight mark against it.
What the company does Brown-Forman (BF-A) is a global leader in premium spirits and wines, owning iconic brands such as Jack Daniel’s, Woodford Reserve, and Herradura. The company operates across 170+ countries, with 60.5% gross margins and a diversified portfolio spanning bourbon, tequila, gin, and liqueurs.
Key financials The company reports ROE of 17.8%, ROA of 8.6%, and strong profitability with net margins of 18.2%. Revenue grew 2.0% year-over-year, but EPS declined 62.7%. It maintains a solid balance sheet with a debt-to-equity ratio of 0.65 and a current ratio of 3.24.
Stock health Momentum is mixed: 3-month return is 11.80%, but the stock is down 5.65% from its 52-week high. The RSI(14) stands at 61.90, indicating moderate bullish momentum. The dividend yield is 3.5% with a payout ratio of 59.8%.
Price vs fair value The stock trades at a PREMIUM of 50.90% versus our fair-value estimate. - Rejection of a $15B takeover bid by Sazerac highlights control premium concerns (USA TODAY). - Analysts note valuation disconnect due to dual-class share structure (Insider Monkey). - Recent surge in BF.B (+5.5%) suggests market optimism, though skepticism remains (Zacks). - Sector tailwinds support consumer staples, but profitability concerns persist (MT Newswires).
Looking forward Forward P/E of 15.43 and EV/EBITDA of 13.21 suggest moderate valuation relative to growth. However, EPS growth of -62.7% and PEG of 4.29 indicate potential headwinds in profitability. Dividend sustainability remains strong with a 3.5% yield.
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Data as of 2026-09-04, compiled from third-party sources; errors and delays are possible and figures are not warranted. Investing puts your capital at risk; past performance does not predict future results. We publish our full track record, including the calls that lost, and our conflicts of interest.