Brown Forman Stock Analysis, Valuation (NYSE:BF.B)
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 3.4/5
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 2019 Q1 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?
- Brown Forman had a healthy average operating margin of 26.08 over the last 4 quarters.
- Net margins came in at average 18% for Brown Forman over the last twelve months.
- Brown Forman has an attractive ROIC (Return on Invested Capital) of 19.8
- Brown Forman has a good Return On Equity (ROE) of 51.6.
Should you sell BF.B stock?
- Brown Forman revenue saw a decline of -17.4% YoY in 2018-04.
- Long term revenue growth of 1 over the past 5 years has been disappointing.
- Brown Forman is debt laden and has a high debt/equity ratio of 1.94.
- Cash flow from operations is low at 0.6364 times the net income.
- BF.B stock is trading at a PE ratio of 33.4, which is worse than the sector average multiple of 21.4.
- BF.B stock is trading at a PS multiple of 6.6, which is a negative when compared to the Consumer Staples sector average multiple of 1.6.
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.