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Brown-Forman Corporation

BF-B
51
Beverages - Wineries & Distilleries · Consumer Defensive
Also trades as: 0HQ3.L
Price
$27.40
+1.32 (+5.08%)
Market Cap
$12.78B
Exchange
New York Stock Exchange
Winston Score
51
Winston is curious
Mixed quality — meaningful strengths and weaknesses.
Data as of Jul 28, 2026 · filings through Apr 30, 2026

Share count falling — buybacks

2.9% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 480.6M (2022) → 466.7M (2026)

Brown-Forman makes and sells alcoholic beverages, mainly whiskey and other spirits. Its most famous brand is Jack Daniel's Tennessee Whiskey, one of the best-selling American whiskeys in the world. The company also owns Woodford Reserve bourbon, Old Forester, and a handful of tequila and vodka brands, selling to bars, restaurants, liquor stores, and everyday consumers.

Brown-Forman earns money by producing spirits and selling them through distributors to retailers and hospitality businesses around the world. It operates in over 170 countries, with the United States and Europe as its largest markets, and generates roughly $4 billion in annual revenue. Its moat comes from the Jack Daniel's brand, which has strong global recognition built over decades and is difficult for competitors to replicate. The key risk is that premium spirits demand has softened recently as consumers pull back on spending, and the company also faces potential headwinds from tariffs on American whiskey exports to key international markets.

Winston Score History

Score breakdown

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Quality

Gross Margin
62.6%
Premium pricing power — 62.6% gross margin
Operating Margin
23.7%
Excellent — 23.7% operating margin
ROCE
3.5%
Weak — 3.5% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
-1.2%
Shrinking sales (-1.2% YoY)
EPS YoY
-17.4%
Earnings shrinking (-17.4% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency
0/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
140%
Turns 140% of profit into real cash
FCF Margin
22.7%
Converts sales into free cash efficiently (22.7%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity
0.54
Conservative — low debt load (0.54)
Interest Cover
11.40x
Comfortably covers interest (11.4x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
18.0x
Fair value — P/E 18.0

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward
+3.4
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (18.0 → 14.7)

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Dividends

Dividend Yield
3.55%
Moderate income — 3.55% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth
+2.4%
Dividend flat

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