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

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$52.59 $0.25 (0.48%) BF.B stock closing price Jul 20, 2018 (Closing)

Watch the robo advisor video of Brown Forman stock analysis on Amigobulls. Our analyst opinion covering the buy and sell arguments for BF.B stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Brown-Forman Corporation Stock Rating 3/5

Amigobulls BF.B stock analysis takes into account various financial ratios like relative valuation, Brown Forman revenue, growth and return on equity based on latest quarter 2018 Q4 financial statements. We also check Brown Forman dividend performance. We also use relative valuation metrics like PE ratio and price to sales ratio for Brown Forman valuation analysis. Brown Forman stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy BF.B stock?

  • The TTM operating margin was good at 26.08 for Brown Forman.
  • Net margins stood at a healthy 18% (average) for Brown Forman in the Trailing Twelve Months.
  • Brown Forman's return on invested capital of 19.8 is good.
  • The LTM ROE of 51.6 for Brown Forman is attractive.

Should you sell BF.B stock?

  • Brown Forman sales declined by -17.4% year on year in 2018-04.
  • Revenue growth of 1 has been weak over the last 5 years.
  • With a debt/equity ratio of 1.94, Brown Forman is highly leveraged in comparison to Consumer Staples peers.
  • The company has an operating cash flow which is 0.6364 times the net income. This is not a healthy sign.
  • The BF.B stock currently trades at a PE of 34.1, which is expensive, compared to the sector average of 21.7.
  • The company is trading at a price to sales multiple of 6.3, which is higher in comparison to the Consumer Staples sector average of 1.7, making BF.B stock expensive.

Comments on this video and Brown Forman stock

Investors can make use of the Amigobulls Brown Forman stock analysis to ascertain how BF.B stock fares in fundamental analysis investment criteria. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

Brown Forman revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Brown Forman stock.