Brown Forman Inc Class B
Find Ratings ReportsBROWN FORMAN CORP's gross profit margin for the third quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased. BROWN FORMAN CORP has weak liquidity. Currently, the Quick Ratio is 0.92 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has increased by 6.81% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q3 FY23 | Q3 FY22 |
---|---|---|
Net Sales ($mil) | 1069.0 | 1081.0 |
EBITDA ($mil) | 314.0 | 320.0 |
EBIT ($mil) | 289.0 | 300.0 |
Net Income ($mil) | 285.0 | 100.0 |
Balance Sheet | Q3 FY23 | Q3 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 599.0 | 437.0 |
Total Assets ($mil) | 8237.0 | 7754.0 |
Total Debt ($mil) | 3406.0 | 3028.0 |
Equity ($mil) | 3245.0 | 3038.0 |
Profitability | Q3 FY23 | Q3 FY22 |
---|---|---|
Gross Profit Margin | 61.74 | 59.57 |
EBITDA Margin | 29.37 | 29.6 |
Operating Margin | 27.03 | 27.75 |
Sales Turnover | 0.52 | 0.54 |
Return on Assets | 11.71 | 9.37 |
Return on Equity | 29.74 | 23.93 |
Debt | Q3 FY23 | Q3 FY22 |
---|---|---|
Current Ratio | 2.74 | 1.99 |
Debt/Capital | 0.51 | 0.5 |
Interest Expense | 33.0 | 24.0 |
Interest Coverage | 8.76 | 12.5 |
Share Data | Q3 FY23 | Q3 FY22 |
---|---|---|
Shares outstanding (mil) | 472.49 | 479.16 |
Div / share | 0.22 | 0.21 |
EPS | 0.6 | 0.21 |
Book value / share | 6.87 | 6.34 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 1627616.0 | 1668757.0 |
HOLD. The current P/E ratio indicates a premium compared to an average of 22.25 for the Beverage and Tobacco Product Manufacturing subsector and a value on par with the S&P 500 average of 27.95. Conducting a second comparison, its price-to-book ratio of 7.76 indicates a significant premium versus the S&P 500 average of 4.68 and a premium versus the subsector average of 7.67. The price-to-sales ratio is well above both the S&P 500 average and the subsector average, indicating a premium. Upon assessment of these and other key valuation criteria, BROWN FORMAN CORP proves to trade at a premium to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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BF.B 26.52 | Peers 22.25 | BF.B 42.79 | Peers 19.91 | |||||||||||||||||||||
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. BF.B is trading at a premium to its peers. |
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. BF.B is trading at a significant premium to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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BF.B 27.34 | Peers 16.98 | BF.B 1.24 | Peers 1.14 | |||||||||||||||||||||
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. BF.B is trading at a significant premium to its peers. |
Average. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. BF.B trades at a valuation on par to its peers. |
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Price/Book |
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Earnings Growth |
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BF.B 7.76 | Peers 7.67 | BF.B 33.11 | Peers 357.05 | |||||||||||||||||||||
Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. BF.B is trading at a valuation on par with its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, BF.B is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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BF.B 5.91 | Peers 3.77 | BF.B 1.96 | Peers 9.01 | |||||||||||||||||||||
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. BF.B is trading at a significant premium to its subsector. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. BF.B significantly trails its peers on the basis of sales growth. |
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