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Brown-Forman Corporation

BF-B
56
Beverages - Wineries & Distilleries · Consumer Defensive
Also trades as: 0HQ3.L
Exchange
New York Stock Exchange
Winston Score
56
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Aug 23, 2026 · filings through Apr 30, 2026
How the score breaks down
Quality
Strong
Growth
Weak
Cash Flow
Exceptional
Stability
Strong
Valuation
Good
Dividends
Mixed

Winston Score History

The full picture

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.

Score breakdown

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Quality

Profit per sale
Gross Margin
62.6%
Premium pricing power — 62.6% gross margin
Profit after running costs
Operating Margin
23.7%
Excellent — 23.7% operating margin
Return on the money invested
ROCE
18.5%
Strong — 18.5% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

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

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

How steady the profit is
EPS Consistency
1/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash
Cash Conversion
140%
Turns 140% of profit into real cash
Spare cash per sale
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

What it owes vs what it owns
Debt / Equity
0.54
Conservative — low debt load (0.54)
Covers its interest
Interest Cover
11.40x
Comfortably covers interest (11.4x)

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

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Valuation

Price vs profit
P/E Ratio (TTM)
18.7x
no trend
Fair value — P/E 18.7

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

Cheaper or dearer next year
P/E vs Forward
+2.4
GROWING
Earnings expected to grow — slightly cheaper on forward P/E

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Dividends

Dividend
Dividend Yield
3.28%
no trend
Moderate income — 3.28% yield

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

Dividend record
Dividend Growth
+1.8%
no trend
Dividend flat

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