Brown-Forman Corporation (BF-A) AI Stock Analysis

Brown-Forman Corporation produces, distills, bottles, imports, exports, markets, and sells alcoholic beverages worldwide. Its portfolio includes spirits, wines, whiskies, ready-to-drink cocktails, tequilas, champagnes, vodkas, and liqueurs under brands such as Jack Daniel's, Old Forester, Herradura, el Jimador, Finlandia, and Fords Gin. The company also sells used barrels and bulk whiskey and provides contract bottling services. It distributes through retail customers, wholesalers, provincial governments, distributors, and state governments across international markets such as the United States, Germany, Australia, and the United Kingdom.

Brown-Forman generated $3.93B in revenue in FY2026, marking a 1.2% decline from $3.98B in FY2025 and down from $4.18B in FY2024. Revenue grew at a 5-year CAGR of 2.6% from FY2021 to FY2026. Gross margin stood at 60.5% in FY2026, unchanged from FY2024 and up from 58.9% in FY2025. Operating margin was 28.2% in FY2026, while net margin registered at 18.2% with net income of $715.0M, or $1.53 per share. For the trailing twelve months ended July 31, 2026, revenue was $3.92B, operating margin was 27.6%, and EPS was $1.55. In the latest quarter, revenue declined 1.4% year-over-year while quarterly earnings grew 5.7%.

As of July 31, 2026, Brown-Forman held $301.0M in cash and short-term investments against total debt of $2.44B, resulting in net debt of $2.14B. Shareholders' equity was $3.97B on total assets of $7.83B, yielding a debt-to-equity ratio of 0.62 and a current ratio of 3.26. In FY2026, the company generated $1.00B in operating cash flow and $893.0M in free cash flow. It deployed capital toward $107.0M in capital expenditures, $400.0M in share buybacks, and $427.0M in dividends paid.

At a share price of $29.46, Brown-Forman trades at a trailing P/E of 19.0x and a forward P/E of 15.9x, compared to medians of 18.6x and 14.3x for its US-listed Consumer Defensive peers. Its enterprise value to EBITDA ratio is 13.1x versus the peer median of 11.7x, and its price-to-sales multiple is 3.5x against the peer median of 0.7x. Over the past year, the stock returned 7.5%, trailing the S&P 500 return of 16.8%. Over a 5-year period, the stock fell 49.5%, while the S&P 500 gained 83.0%.

Brown-Forman pays a quarterly dividend with an annual forward dividend of $0.92 per share, representing a dividend yield of 3.14%. The company has paid consecutive dividends for 43 years, achieving a 5-year annualized dividend growth rate of 5.4%. Its payout ratio is 59.6%, and the last ex-dividend date was September 3, 2026.

Analyst consensus estimates project revenue of $3.93B for the current fiscal year ending April 30, 2027. For the next fiscal year, analysts estimate revenue of $4.01B, representing expected revenue growth of 1.8%. Brown-Forman has beaten earnings per share estimates in 1 of the last 4 quarters. Insider ownership represents 77.0% of shares, institutional ownership stands at 11.9%, and short interest accounts for 1.4% of float.

This page is an AI-written research summary of Brown-Forman Corporation (BF-A). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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