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Brown-Forman Corporation
🇺🇸 BF-B · NYSE/NASDAQ
Consumer
Price at analysis: USD 28.38 Current price: USD 29.82 * updated every night
Scores
Key Metrics
Powered by EODHDP/E (TTM)
18.4
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Net Debt/EBITDA (TTM)
2.0x
Latest quarter: 7.7x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
Latest quarter (2026-07-31): 7.7x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
ROE
18.1%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
13.8x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Dividend Summary
Powered by EODHDDividend Yield (Fwd)
3.24%
TTM: 3.32%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Forward Yield (estimated): 3.24%
Trailing Yield (TTM, last 12 months): 3.32%
Payout Ratio (Fwd)
59.6% TTM
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Dividend History
EODHD Dividends API| Status | Type | Decl. Date | Ex-Div Date | Pay Date | Currency | Amount |
|---|---|---|---|---|---|---|
| Forecast* | Quarterly | — | 03 Sep 2027 | — | USD | 0.231 |
| Forecast* | Quarterly | — | 10 Jun 2027 | — | USD | 0.231 |
| Forecast* | Quarterly | — | 09 Mar 2027 | — | USD | 0.231 |
| Forecast* | Quarterly | — | 05 Dec 2026 | — | USD | 0.231 |
| Paid | Quarterly | 23 Jul 2026 | 03 Sep 2026 | 01 Oct 2026 | USD | 0.231 |
| Paid | Quarterly | 28 May 2026 | 10 Jun 2026 | 01 Jul 2026 | USD | 0.231 |
| Paid | Quarterly | 18 Feb 2026 | 09 Mar 2026 | 01 Apr 2026 | USD | 0.231 |
| Paid | Quarterly | 19 Nov 2025 | 05 Dec 2025 | 02 Jan 2026 | USD | 0.231 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
Summary
Brown-Forman pairs an elite, moaty brand portfolio with strong cash generation, offering an attractive 6.40% total shareholder yield. With major regulatory overhangs like EU tariffs now fully resolved in the company's favor, the current 18.43x P/E valuation presents a compelling entry point despite near-term fundamental sluggishness. Worth considering for new positions by investors seeking a resilient consumer compounder.
Sector Context
Brown-Forman operates in the Consumer sector (Beverages - Wineries & Distilleries), characterized by high brand loyalty, resilient staple-like demand, and complex multi-tier regulatory structures. For DGI investors, the sector generally provides durable cash flows, though international operations face periodic trade policy and excise tax volatility.
Temporary Opportunity Identified
Cyclical earnings deceleration and margin contraction due to inventory adjustments, compounded by pending securities litigation, masking the favorable resolution of major international trade headwinds.
📊 Strategy Analysis
- • Elite brand moat centered on Jack Daniel's, fortified by strict regulatory production barriers (Tennessee Whiskey statutory mandates) and backed by recent trademark victories.
- • Robust capital return profile offering a 6.40% total shareholder yield, combining a secure 3.32% TTM dividend (covered 2.17x by FCF) and a 3.08% net buyback yield.
- • Major operational overhangs have been decisively cleared, notably the April 2025 EU exclusion of American whiskey from retaliatory tariffs.
- • Solid financial footing with a 42.05% cash flow payout ratio and an 18.12% ROE, indicating sustainable capital returns.
⚠ What to Watch
- • Fundamental momentum has stalled, evidenced by a 5-year EPS CAGR of -2.6% and net margins contracting to 18.2% from a 20.9% 5-year average.
- • Ongoing class-action securities and derivative litigation, which remains a near-term legal overhang following a September 2026 partial denial of the company's motion to dismiss.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-10-31
Disclaimer: This information is for educational purposes only. Not financial advice.