Brown Forman Stock Analysis, Valuation (NYSE:BF.A)

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$55.51 $0.48 (0.86%) BF.A stock closing price Sep 19, 2017 (Closing)
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Brown Forman
Updated on : Sep 19, 2017
previous close
BF.A 55.5 (0%)
S&P 500 2506.7 (0%)
Closing Price On: Sep 19, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Beverages-Alcoholic
Sector :
Consumer Staples
5 Quarter Revenue
Revenue Growth
2018-Q1
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
0.4%
Operating Profit
Operating Margin:
27.4%
Sector Average:
10.8%
5 Quarter Net Profit
Net Margins
2018-Q1
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
2.23B
Debt/Equity Ratio:
 1.57
Compared to the industry
Cash Flow
Operating cash flow:
$102M
Net Income:
$178M
Dividend Yield
BF.A dividend yield:
1.28%
PROS      CONS
Operating Margins
Net Margins
ROIC
ROE
FCF Margin
Recent Growth
Long Term Growth
High Debt Burden
Cash Flow
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
BF.A PS :
5.7
Industry PS :
1.6
Sector:   Consumer Staples.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
20%
Return on Equity:
53.2%
Free Cash Flow Margin:
10.2%
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Brown Forman Analysis Video

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View Brown Forman stock analysis video. This is our BF.A analyst opinion covering the buy and sell arguments for BF.A stock.

Brown-Forman Corporation Stock Rating (3.1/5)

Our Brown Forman stock opinion is based on fundamentals of the company. This Brown Forman stock analysis is based on latest 2018 Q1 earnings. The stock price analysis takes into account the company's valuation metrics.

Should you buy BF.A stock?

  • Brown Forman had a healthy average operating margin of 27.4% over the last 4 quarters.
  • Net margins came in at average 18.8% for Brown Forman over the last twelve months.
  • Brown Forman has an attractive ROIC (Return on Invested Capital) of 20%
  • The LTM ROE of 53.2% for Brown Forman is attractive.
  • Brown Forman has a healthy FCF (Free Cash Flow) margin of 10.2%.

Should you sell BF.A stock?

  • Brown Forman sales shrank by -15.5% year-over-year in 2018 Q1.
  • Over the last 5 years, the company registered a poor revenue growth of 0.4%.
  • Brown Forman is debt laden and has a high debt/equity ratio of  1.57.
  • Cash flow from operations is 0.6 times net income which is a negative signal.
  • BF.A stock is trading at a PE ratio of 30.7, which is worse than the industry average multiple of 22.7.
  • BF.A stock is trading at a PS multiple of 5.7, which is a negative when compared to the Beverages-Alcoholic industry average multiple of 1.6.

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