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

Brown-Forman Corporation produces, distributes, and markets alcoholic beverages worldwide. Its portfolio features wines, whiskey spirits, ready-to-drink cocktails, vodkas, tequilas, rums, and liqueurs under brands such as Jack Daniel's, Woodford Reserve, Old Forester, Coopers' Craft, Gentleman Jack, Herradura, el Jimador, Korbel, Sonoma-Cutrer, and Finlandia. The company also sells used barrels, bulk whiskey, and bulk wine, and provides contract bottling services. Brown-Forman serves retail customers, distributors, wholesalers, retailers, and government entities across global markets, including the United States, Germany, Australia, the United Kingdom, Mexico, and Japan.

Between FY2022 and FY2026, Brown-Forman's revenue changed from $3.93B to $3.93B, delivering a 5-year revenue CAGR of 2.6% from FY2021 to FY2026. Annual revenue peaked at $4.23B in FY2023 before contracting 1.2% in FY2024, 4.9% in FY2025, and 1.2% in FY2026. Net income was $715.0M in FY2026, down from $1.02B in FY2024, with net margin at 18.2% and gross margin at 60.5%. In the latest quarter ended July 31, 2026, quarterly revenue fell 1.4% year-over-year, while quarterly earnings grew 5.7% year-over-year, supporting trailing twelve months revenue of $3.92B and EPS of $1.55.

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, reflecting a debt-to-equity ratio of 0.62 and a current ratio of 3.26. In FY2026, operating cash flow reached $1.00B and free cash flow was $893.0M. Capital expenditures totaled $107.0M, while the company returned capital through $400.0M in share buybacks and $427.0M in dividends paid, contributing to a 5-year share count reduction of 4.4%.

Brown-Forman trades at a trailing P/E of 18.6x, below the median of its S&P 500 Consumer Defensive peers of 23.5x, but its forward P/E of 15.6x trades slightly above the peer median of 15.2x. The stock's price-to-sales ratio of 3.4x is higher than the peer median of 1.6x, while its EV/EBITDA of 13.1x compares to the peer median of 14.8x. Over the past year, the stock returned 5.7% compared to 16.8% for the S&P 500 (SPY). Over five years, the stock dropped 53.2% versus an 83.0% gain for the index.

Brown-Forman pays a quarterly dividend with a forward annual payout of $0.92 per share, yielding 3.20%. Its payout ratio stands at 59.6%. The company has paid dividends for 42 consecutive years, maintaining a 5-year annualized dividend growth rate of 5.3%. The most recent ex-dividend date was September 3, 2026.

Wall Street analysts hold 1 Strong Buy, 1 Buy, 12 Hold, 2 Sell, and 2 Strong Sell ratings on the stock. The mean price target is $28.26, representing a 2.2% discount to the last close of $28.88. For the fiscal year ending April 30, 2027, consensus estimates project revenue of $3.93B and EPS of $1.69, reflecting 10.7% estimated EPS growth. In its last 4 quarters, Brown-Forman beat EPS estimates twice.

This page is an AI-written research summary of Brown-Forman Corporation (BF-B). 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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