Brown Forman Corp (BF-B)

Price$26.20Cached quoteAs of 2026-10-01 03:36 UTC

AI: Fair-priced

Price checkAt $28.15, the shares look fairly priced because cash returns offset weak near-term growth.

The latest verifiable close found was $28.15 on August 6, 2026, eleven days before the research timestamp. Against fiscal 2026 earnings of $1.53 a share, that is about 18.4 times earnings. Using $893 million of free cash flow—cash left after running and investing in the business—and 458.7 million year-end shares, the cash yield is roughly 6.9%. Adding $2.19 billion of net debt gives a company value near 13.8 times operating profit before interest, taxes, depreciation, and amortization. Those signals support fair value, not a clear bargain.

Big pictureSales have stalled, but cash generation improved sharply and still covers shareholder payments.

Fiscal 2026 revenue fell 1.2% to $3.93 billion, leaving it 7.1% below fiscal 2023. Operating income declined 9.6%, while net income fell 17.7% to $715 million. Operating cash flow nevertheless rose from $598 million to $1.0 billion, and lower investment spending lifted free cash flow from $431 million to $893 million. Management attributed much of the cash improvement to lower working-capital needs and tax payments, so it may not repeat fully. The $827 million of dividends and buybacks was covered, but fiscal 2027 guidance signals continued pressure.

Business strengthPowerful whiskey brands and ample short-term assets cushion debt, while buybacks reduced dilution.

Brown-Forman kept a 60.5% gross margin in fiscal 2026, evidence that brand pricing remains powerful. Current assets of $3.99 billion covered current liabilities of $1.23 billion more than three times. Net debt was $2.19 billion, about twice the year’s operating cash earnings; ratings remained investment grade at A2 and A-, although Moody’s downgrade flags less flexibility. The $400 million buyback retired 14.05 million shares, cutting year-end shares 3.0%, while only 88,000 shares were issued for compensation. The $427 million dividend remained covered by reported free cash flow.

What could change the storyA real sales recovery would create upside; another profit slide would expose the valuation.

The bull case is improving product mix: whiskey sales rose 3%, ready-to-drink products 11%, and New Mix 41%; restructuring and U.S. distributor changes may lift profit. Sazerac’s reported $32 cash approach also suggests strategic value, but family control makes it no firm price floor. The bear case is broader: tequila fell 4%, Jack Daniel’s Tennessee Whiskey declined, and $132 million of brand write-downs reflected weaker forecasts. Management expects fiscal 2027 underlying sales roughly flat and operating profit down 3%–5%. At 18.4 times earnings, the price assumes stabilization after that decline.

AI: News

Fiscal 2026 resultsSales beat expectations, but falling profit and cautious guidance showed that recovery remains incomplete.

On June 4, Brown-Forman reported fourth-quarter sales of $912 million, up 2%, while operating income fell 53% and earnings per share dropped 62% to $0.12. Full-year sales declined 1% and earnings per share fell 17% to $1.53, although free cash flow reached $893 million. Management forecast roughly flat underlying sales and a 3%–5% operating-profit decline for fiscal 2027. Reuters-reported trading showed the shares gaining about 3% that morning, likely reflecting the sales beat and stronger cash generation.

Chief executive retirementLawson Whiting’s planned retirement adds leadership uncertainty during a difficult operating turnaround.

Brown-Forman announced on July 13 that Lawson Whiting would retire after a successor is appointed. The board began an internal and external search, while Whiting agreed to remain through the transition and later serve as an adviser. The company simultaneously reaffirmed its fiscal 2027 outlook, limiting evidence of an immediate strategy change. Class B shares closed at $26.25, about 0.3% higher that day; this small move does not establish that the announcement caused the change.

Sazerac proposal rejectedA rejected cash proposal highlighted strategic value but offered shareholders no dependable takeover exit.

On July 26, Brown-Forman disclosed an unsolicited Sazerac acquisition proposal and said it was not actionable after consulting Wolf Pen Branch, the Brown-family group controlling most voting shares. Reuters reported the latest approach was $32 per share in cash, valuing Brown-Forman near $15 billion. The shares subsequently finished July 29 up 5.5% at $28.90, according to Zacks, which linked the move to takeover interest. That interpretation is plausible, not definitive, and family opposition prevents treating $32 as a realizable floor.

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Financial statements

	2026	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009
Revenue	$3.93B	$3.98B	$4.18B	$4.23B	$3.93B	$3.46B	$3.36B	$3.32B	$3.25B	$2.99B	$4.01B	$4.10B	$3.95B	$3.78B	$3.61B	$3.40B	$3.23B	$3.19B
Gross profit	$2.38B	$2.34B	$2.53B	$2.49B	$2.39B	$2.09B	$2.13B	$2.17B	$2.20B	$2.02B	$2.14B	$2.18B	$2.08B	$1.96B	$1.79B	$1.72B	$1.61B	$1.58B
Gross margin	60.54%	58.94%	60.46%	58.99%	60.79%	60.50%	63.25%	65.16%	67.80%	67.50%	53.45%	53.30%	52.66%	51.66%	49.67%	50.65%	49.94%	49.40%
Operating expenses	$1.38B	$1.24B	$1.11B	$1.37B	$1.19B	$928.0M	$1.04B	$1.02B	$1.15B	$1.01B	$611.0M	$1.16B	$1.11B	$1.06B	$1.01B	$869.0M	$901.0M	$916.0M
Operating income	$1.00B	$1.11B	$1.41B	$1.13B	$1.20B	$1.17B	$1.09B	$1.14B	$1.05B	$1.01B	$1.53B	$1.03B	$971.0M	$898.0M	$788.0M	$855.0M	$710.0M	$661.0M
Operating margin	25.48%	27.85%	33.84%	26.66%	30.61%	33.69%	32.44%	34.42%	32.27%	33.73%	38.22%	25.07%	24.61%	23.73%	21.80%	25.12%	22.01%	20.71%
EBITDA	$1.09B	$1.19B	$1.50B	$1.21B	$1.28B	$1.24B	$1.17B	$1.22B	$1.11B	$1.07B	$1.59B	$1.08B	$1.02B	$949.0M	$837.0M	$911.0M	$769.0M	$716.0M
EBITDA margin	27.83%	30.04%	35.93%	28.55%	32.62%	35.91%	34.64%	36.58%	34.24%	35.67%	39.62%	26.32%	25.87%	25.08%	23.16%	26.76%	23.84%	22.43%
Net income	$715.0M	$869.0M	$1.02B	$783.0M	$838.0M	$903.0M	$827.0M	$835.0M	$717.0M	$669.0M	$1.07B	$684.0M	$659.0M	$591.0M	$513.0M	$572.0M	$449.0M	$435.0M
Net profit margin	18.20%	21.86%	24.51%	18.52%	21.31%	26.09%	24.59%	25.12%	22.08%	22.34%	26.60%	16.70%	16.70%	15.62%	14.19%	16.80%	13.92%	13.63%
Basic EPSper basic share	$1.53	$1.84	$2.15	$1.63	$1.75	$1.89	$1.73	$1.74	$1.49	$1.38	$2.10	$1.62	$1.54	$1.39	$1.20	$1.31	$1.52	$0.96
Diluted EPSper diluted share	$1.53	$1.84	$2.14	$1.63	$1.74	$1.88	$1.72	$1.73	$1.48	$1.37	$2.09	$1.60	$1.53	$1.38	$1.19	$1.30	$1.51	$0.96

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

≈5.03%of listed shares

VANGUARD CAPITAL MANAGEMENT LLC14.6M shares · Jun 30, 2026

View holders

Top 20 reported holders of BF-B
Holder	% owned
VANGUARD CAPITAL MANAGEMENT LLC	≈5.03%14.6M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	≈4.61%13.4M shares
FMR LLC	≈4.33%12.58M shares
BlackRock, Inc.	≈4.19%12.16M shares
VAN ECK ASSOCIATES CORP	≈4.17%12.1M shares
STATE STREET CORP	≈3.36%9.75M shares
Invesco Ltd.	≈2.95%8.56M shares
GOLDMAN SACHS GROUP INC	≈2.55%7.4M shares
DIMENSIONAL FUND ADVISORS LP	≈2.43%7.05M shares
ProShare Advisors LLC	≈1.95%5.66M shares
GEODE CAPITAL MANAGEMENT, LLC	≈1.89%5.5M shares
MASSACHUSETTS FINANCIAL SERVICES CO /MA/	≈1.22%3.53M shares
MORGAN STANLEY	≈1.20%3.47M shares
Bank of New York Mellon Corp	≈0.97%2.83M shares
EQUITY INVESTMENT CORP	≈0.89%2.59M shares
Black Creek Investment Management Inc.	≈0.85%2.46M shares
BANK OF AMERICA CORP /DE/	≈0.80%2.33M shares
CHARLES SCHWAB INVESTMENT MANAGEMENT INC	≈0.73%2.12M shares
UBS Group AG	≈0.73%2.11M shares
WELLINGTON MANAGEMENT GROUP LLP	≈0.70%2.05M shares

Percentages use 290.38M shares of this listed class outstanding on Jun 9, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)5$2.20M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Feb 12, 2026Form 4 · 10b5-1	Whiting Lawson EPresident & CEO	SellClass A Common	25.9K	$31.01	$803.6K	7.0K
Dec 12, 2025Form 4 · 10b5-1	Whiting Lawson EPresident & CEO	SellClass A Common	8.8K	$31.00	$273.9K	32.9K
Dec 4, 2025Form 4 · 10b5-1	Whiting Lawson EPresident & CEO	SellClass B Common	4.8K	$31.00	$148.3K	2
Dec 4, 2025Form 4 · 10b5-1	Whiting Lawson EPresident & CEO	SellClass A Common	7.7K	$31.01	$240.2K	41.8K
Jul 23, 2025Form 4 · 10b5-1	Whiting Lawson EPresident & CEO	SellClass B Common	23.6K	$31.00	$732.9K	4.8K

Review ownership filings at SEC.gov ↗

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Brown Forman Corp (BF-B)

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