ScoreWhy is Brown-Forman Corp. ?
1
High Management Efficiency with a high ROCE of 22.43%
2
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 11.88
3
Poor long term growth as Operating profit has grown by an annual rate 0.38% of over the last 5 years
4
Flat results in Jul 25
- ROCE(HY) Lowest at 22.65%
- INVENTORY TURNOVER RATIO(HY) Lowest at 0.62 times
- PRE-TAX PROFIT(Q) At USD 228 MM has Fallen at -20.28%
5
With ROCE of 17.49%, it has a fair valuation with a 2.50 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -27.30%, its profits have fallen by -10.5%
6
High Institutional Holdings at 70.46%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 6.32% over the previous quarter.
7
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -27.30% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Brown-Forman Corp. should be less than 10%
- Overall Portfolio exposure to Beverages should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Beverages)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Brown-Forman Corp. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Brown-Forman Corp.
-27.56%
-0.76
39.16%
S&P 500
13.22%
0.64
20.20%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
3.46%
EBIT Growth (5y)
0.38%
EBIT to Interest (avg)
11.88
Debt to EBITDA (avg)
1.67
Net Debt to Equity (avg)
0.57
Sales to Capital Employed (avg)
0.62
Tax Ratio
19.61%
Dividend Payout Ratio
48.36%
Pledged Shares
0
Institutional Holding
70.46%
ROCE (avg)
22.43%
ROE (avg)
28.00%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
15
Industry P/E
Price to Book Value
3.37
EV to EBIT
14.32
EV to EBITDA
13.51
EV to Capital Employed
2.50
EV to Sales
3.97
PEG Ratio
NA
Dividend Yield
13.66%
ROCE (Latest)
17.49%
ROE (Latest)
23.01%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bullish
RSI
No Signal
Bullish
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
No Trend
No Trend
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend10What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 741 MM
DIVIDEND PER SHARE(HY)
Highest at USD 4.77
INTEREST COVERAGE RATIO(Q)
Highest at 1,112
DIVIDEND PAYOUT RATIO(Y)
Highest at 63.02%
RAW MATERIAL COST(Y)
Fallen by -0.93% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at 55.44 %
-7What is not working for the Company
ROCE(HY)
Lowest at 22.65%
INVENTORY TURNOVER RATIO(HY)
Lowest at 0.62 times
PRE-TAX PROFIT(Q)
At USD 228 MM has Fallen at -20.28%
NET PROFIT(Q)
At USD 176.18 MM has Fallen at -23.36%
Here's what is working for Brown-Forman Corp.
Operating Cash Flow
Highest at USD 741 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Interest Coverage Ratio
Highest at 1,112
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Dividend per share
Highest at USD 4.77 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Debt-Equity Ratio
Lowest at 55.44 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Dividend Payout Ratio
Highest at 63.02%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by -0.93% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Brown-Forman Corp.
Pre-Tax Profit
At USD 228 MM has Fallen at -20.28%
over average net sales of the previous four periods of USD 286 MMMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
Net Profit
At USD 176.18 MM has Fallen at -23.36%
over average net sales of the previous four periods of USD 229.88 MMMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
Inventory Turnover Ratio
Lowest at 0.62 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
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