Brown-Forman Corporation (BF-B) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Brown-Forman Corporation

Updated on October 19, 2026 · accounts published on September 2, 2026

A highly profitable, financially solid business whose earnings keep shrinking

Brown-Forman trades at a P/E of 18.9 over the last 12 months, 46 % below its ten-year median of 35.1, while EPS fell 17 % year over year.

• Is Brown-Forman expensive or cheap? Its P/E is 46 % below its ten-year median of 35.1, though it has traded lower 25 % of the time this decade.
• How is the business doing? Operating margin is 29 % over the last 12 months, below its 33 % average for fiscal 2015-2026, and EPS fell 17 %.
• How strong is the balance sheet? Net debt is 1.7× EBITDA in fiscal 2026, under the sector's 2.5× ceiling, and the dividend yields 3.2 %.
• What to expect from the next earnings? Results are due December 3, 2026, with analysts expecting EPS of $0.46; only 5 of 36 analysts rate it a buy.
• Is it as stable as the sector promises? Brown-Forman passes six of eight sector tests, but EPS fell 3.1 % a year over fiscal 2016-2026 against a 6 % bar.

Is Brown-Forman expensive or cheap?

Over the last 12 months Brown-Forman trades at a P/E of 18.9. That is 46 % below its ten-year median of 35.1 and 14 % below the 21.9 median of its sector. Over the decade its P/E has ranged from 12.0 to 46.9, and the stock has traded at a lower P/E than today only 25 % of the time. EV/EBITDA stands at 14.7× and the free cash flow yield at 5.9 %. The discount comes alongside falling earnings. The share price is up just 5 % over the past year and sits 1 % below its 52-week high of $30.88.

How is the business doing?

Revenue slipped 1.2 % over the last 12 months and EPS fell 17 %, so the business is shrinking slightly. Profitability is still high but has eroded. The operating margin of 29 % over the last 12 months compares with a 33 % average across fiscal 2015-2026, and fiscal 2026 closed at 28 %. Returns on capital still stand out. ROIC of 13 % over the last 12 months is 4.2 points above the 8.8 % sector median, and it has stayed above 10 % in each of the last ten fiscal years. The business still earns well, but it earns a little less each year.

How strong is the balance sheet?

Debt is manageable. Net debt of $4.14 per share in fiscal 2026 equals 14 % of the current price, and debt to equity is 0.6 over the last 12 months. A current ratio of 3.3 and an Altman Z of 4.1, in the safe zone, leave little doubt about solvency, and the Piotroski score is 7 out of 9. The dividend yields 3.2 % over the last 12 months. The payout ratio was 60 % of earnings in fiscal 2026, comfortably under the 75 % comfort level for the sector, and the dividend per share has risen for three consecutive fiscal years.

What to expect from the next earnings?

Expectations are muted. Of the 36 analysts covering Brown-Forman, 24 say hold, 7 say sell and only 5 say buy. The 2027 EPS consensus has not moved in the last 30 days, holding at $1.71 across 18 analysts, and revenue estimates are just as flat. The last report, on September 2, 2026, delivered EPS of $0.38, exactly in line with forecasts, and the company has beaten EPS estimates in only 2 of the last 8 quarters. For December 3, 2026, analysts expect EPS of $0.46. A quarter that stops the earnings decline would matter more than a small beat.

Is it as stable as the sector promises?

Consumer staples are judged on durability: steady margins, cash that matches earnings and a dividend that keeps growing. Investors buy these companies for stability, not explosive growth. On that test Brown-Forman scores well. Its fiscal 2026 gross margin of 61 % clears the 35 % stability mark. ROE of 18 % over the last 12 months beats the 15 % healthy level, and free cash flow equalled 125 % of net income in fiscal 2026, above the 90 % bar. Growth is the weak spot. EPS declined 3.1 % a year over fiscal 2016-2026 against a healthy pace of 6 %, and dividend growth of 5.7 % a year sits right at the 6 % threshold.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.