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 -31.35%, 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 -31.35% 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.
2.87%
-0.74
37.79%
S&P 500
22.24%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
3.30%
EBIT Growth (5y)
1.36%
EBIT to Interest (avg)
11.88
Debt to EBITDA (avg)
1.67
Net Debt to Equity (avg)
0.57
Sales to Capital Employed (avg)
0.60
Tax Ratio
19.61%
Dividend Payout Ratio
48.36%
Pledged Shares
0
Institutional Holding
93.31%
ROCE (avg)
22.43%
ROE (avg)
28.00%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
15
Industry P/E
Price to Book Value
3.13
EV to EBIT
13.51
EV to EBITDA
12.52
EV to Capital Employed
2.36
EV to Sales
3.86
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
17.43%
ROE (Latest)
20.59%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bullish
RSI
No Signal
Bullish
Bollinger Bands
Mildly Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend6What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 1,000 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 56.04 %
DIVIDEND PAYOUT RATIO(Y)
Highest at 196.43%
RAW MATERIAL COST(Y)
Fallen by -9.39% (YoY
-11What is not working for the Company
ROCE(HY)
Lowest at 17.85%
INVENTORY TURNOVER RATIO(HY)
Lowest at 0.61 times
CASH AND EQV(HY)
Lowest at USD 729 MM
PRE-TAX PROFIT(Q)
Lowest at USD 189 MM
NET PROFIT(Q)
Lowest at USD 143.75 MM
EPS(Q)
Lowest at USD 0.12
Here's what is working for Brown-Forman Corp.
Debt-Equity Ratio
Lowest at 56.04 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Operating Cash Flow
Highest at USD 1,000 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Dividend Payout Ratio
Highest at 196.43%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by -9.39% (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.
Net Profit
At USD 143.75 MM has Fallen at -31.58%
over average net sales of the previous four periods of USD 210.11 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (USD MM)
Inventory Turnover Ratio
Lowest at 0.61 times and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Pre-Tax Profit
Lowest at USD 189 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
Pre-Tax Profit
At USD 189 MM has Fallen at -27.24%
over average net sales of the previous four periods of USD 259.75 MMMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
Net Profit
Lowest at USD 143.75 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
EPS
Lowest at USD 0.12
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
Cash and Eqv
Lowest at USD 729 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
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