Brown-Forman logged a -1.8% change during today's morning session, and is now trading at a price of $62.9 per share. The S&P 500 index moved -1.0% and the Nasdaq posted a -0.0% change.
Brown-Forman shares moved -8.0% over the last 52 weeks, with a high of $78.15 and a low of $60.23. During this time, the stock basically tracked the performance of the S&P 500. As of January 2022, the company's 50-day average price is $65.0.
Brown-Forman Corporation, together with its subsidiaries, manufactures, distills, bottles, imports, exports, markets, and sells various alcoholic beverages. The Large-Cap Consumer Defensive company has 5,200 full time employees and is based in Louisville, KY. Brown-Forman has returned a 1.2% dividend yield over the last 12 months.
Declining EPS Growth Trend with Healthy Leverage Levels:
| 2019-04-30 | 2020-04-30 | 2021-04-30 | 2022-04-30 | |
|---|---|---|---|---|
| Revenue (MM) | $3,324 | $3,363 | $3,461 | $3,933 |
| Revenue Growth | n/a | 1.17% | 2.91% | 13.64% |
| Gross Margins | 65.2% | 63.2% | 60.5% | 60.8% |
| Gross Margins Growth | n/a | -3.07% | -4.27% | 0.5% |
| Operating Margins | 34.4% | 32.4% | 30.0% | 30.6% |
| Operating Margins Growth | n/a | -5.81% | -7.41% | 2.0% |
| Net Margins | 25.12% | 24.59% | 26.09% | 21.31% |
| Net Margins Growth | n/a | -2.11% | 6.1% | -18.32% |
| Earnings Per Share | $1.73 | $1.72 | $1.88 | $1.51 |
| EPS Growth | n/a | -0.58% | 9.3% | -19.68% |
| Diluted Shares (MM) | 482 | 480 | 481 | 354 |
| Free Cash Flow (MM) | $679 | $605 | $752 | $798 |
| FCF Growth | n/a | -10.9% | 24.3% | 6.12% |
| Capital Expenditures (MM) | -$121 | -$119 | -$65 | -$138 |
| Net Debt / EBITDA | 1.77 | 1.65 | 1.27 | 1.1 |
Brown-Forman Is Overvalued:
Compared to the Consumer Defensive sector's average of 24.36, Brown-Forman has a trailing twelve month P/E ratio of 41.7 and, according to its EPS guidance of 2.03, an expected P/E ratio of 31.0. Brown-Forman's PEG ratio is 7.57 based on its 3.2% compound average growth rate of historical and projected earnings per share. This suggests that the company's shares are overvalued.
Brown-Forman's P/B ratio is 9.9 compared to its sector average of 4.29. The company is likely overvalued in terms of its net asset value. The company's shares are currently trading 302.7% above their fair value as expressed by Benjamin Graham's formula:
√(22.5 * 4-year average EPS * book value per share) = √(22.5 * 1.71 * 6.342) = $15.62
Most of the Market Indicators on Series([], ) Are Negative:
17 analysts are following Brown-Forman and have set target prices ranging from $60.0 to $90.0 per share. On average, they have given the company a rating of hold. At the current price of $62.9, BF-B is trading -8.01% away from its average analyst target price of $68.38 per share, implying an analyst consensus of some upside potential for the stock.
