📊 BF-B Key Takeaways
Investment Thesis
Brown-Forman demonstrates solid fundamental strength with excellent profitability margins (59.9% gross, 30% operating, 21.9% net) and robust cash generation (628M FCF). However, significant revenue contraction of 21.4% YoY and diluted EPS decline of 14% present material headwinds that require clarity on underlying business drivers before a positive stance is warranted.
BF-B Strengths
- Exceptional profitability with net margin of 21.9% and operating margin of 30%
- Strong cash generation with 628M free cash flow and 20.8% FCF margin
- Solid balance sheet with 2.77x current ratio and conservative 0.60x debt-to-equity leverage
- Robust interest coverage of 11.8x demonstrates comfortable debt servicing capacity
- Healthy ROE of 16.2% and ROA of 8.0% indicating efficient capital deployment
BF-B Risks
- Severe revenue decline of 21.4% YoY signals significant top-line deterioration requiring investigation
- Diluted EPS fell 14% YoY despite flat net income, indicating share dilution or reduced earnings per share
- Long-term debt of 2.4B represents meaningful leverage that warrants monitoring during revenue pressure periods
- Limited insider activity with only 1 Form 4 filing in last 90 days suggests minimal insider buying conviction
Key Metrics to Watch
- Revenue trajectory and drivers of 21.4% YoY decline
- Quarterly revenue trends to determine if decline is stabilizing
- Free cash flow sustainability and capital allocation priorities
- Debt reduction progress given strong FCF generation
- Operating margin maintenance amid volume pressures
BF-B Financial Metrics
💡 AI Analyst Insight
The 20.8% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 2.77x current ratio provides a solid financial cushion.
BF-B Profitability Ratios
BF-B vs Default Sector
How BROWN FORMAN CORP compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
BF-B Balance Sheet & Liquidity
BF-B 5-Year Financial Trend
5-Year Trend Summary: BROWN FORMAN CORP's revenue has grown significantly by 22% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.63 reflects profitable operations.
BF-B Growth Metrics (YoY)
BF-B Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $1.0B | $170.0M | $0.57 |
| Q2 2026 | $1.0B | $170.0M | $0.47 |
| Q1 2026 | $924.0M | $170.0M | $0.36 |
| Q3 2025 | $1.0B | $195.0M | $0.57 |
| Q2 2025 | $1.1B | $195.0M | $0.50 |
| Q1 2025 | $951.0M | $195.0M | $0.41 |
| Q3 2024 | $1.1B | $100.0M | $0.21 |
| Q2 2024 | $1.1B | $227.0M | $0.47 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
BF-B Capital Allocation
BF-B SEC Filings
Access official SEC EDGAR filings for BROWN FORMAN CORP (CIK: 0000014693)
📋 Recent SEC Filings
❓ Frequently Asked Questions about BF-B
What is the AI rating for BF-B?
BROWN FORMAN CORP (BF-B) has an AI rating of HOLD with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are BF-B's key strengths?
Exceptional profitability with net margin of 21.9% and operating margin of 30%. Strong cash generation with 628M free cash flow and 20.8% FCF margin.
What are the risks of investing in BF-B?
Severe revenue decline of 21.4% YoY signals significant top-line deterioration requiring investigation. Diluted EPS fell 14% YoY despite flat net income, indicating share dilution or reduced earnings per share.
What is BF-B's revenue and growth?
BROWN FORMAN CORP reported revenue of $3.0B.
Does BF-B pay dividends?
BROWN FORMAN CORP pays dividends, with $321.0M distributed to shareholders in the trailing twelve months.
Where can I find BF-B SEC filings?
Official SEC filings for BROWN FORMAN CORP (CIK: 0000014693) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is BF-B's EPS?
BROWN FORMAN CORP has a diluted EPS of $1.41.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.