Brown-forman Corporation Stock Fair Value Calculator – Brown-Forman Corporation Reports Q2 Earnings Results for FY2024 as of October 31 2023
December 15, 2023
🌥️Earnings Overview
On December 6 2023, BROWN-FORMAN CORPORATION ($NYSE:BF.B) announced its Q2 earnings results for the financial year ending October 31 2023. Total revenue for the quarter amounted to USD 1107.0 million, with a 1.2% year-on-year rise. Net income also increased by 6.6% year-on-year, totalling USD 242.0 million.
Share Price
The stock opened at $56.8 and quickly plummeted, closing at $54.0, representing a decline of 10.4% from its last closing price of $60.2. Brown-Forman Corporation had previously predicted Q2 sales to remain steady compared to last year, but the results did not meet expectations. In response to the earnings report, Brown-Forman Corporation released a statement saying that they are “disappointed” with the results. They also noted that the pandemic has been especially difficult for the industry as a whole, and that they are exploring ways to strengthen their position moving forward. The company also noted that they are confident in their long-term strategy and believe that they can rebound from this setback in the coming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Brown-forman Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 4.27k | 780 | 18.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Brown-forman Corporation. More…
| Operations | Investing | Financing |
| 421 | -1.36k | 215 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Brown-forman Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 8.12k | 4.66k | 7.2 |
Key Ratios Snapshot
Some of the financial key ratios for Brown-forman Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 8.5% | 1.7% | 26.1% |
| FCF Margin | ROE | ROA |
| 5.1% | 20.5% | 8.6% |
Analysis – Brown-forman Corporation Stock Fair Value Calculator
We’ve examined the financials of BROWN-FORMAN CORPORATION. Our proprietary Valuation Line has calculated the fair value of BROWN-FORMAN CORPORATION share to be around $74.9. However, the current stock price of BROWN-FORMAN CORPORATION is $54.0, which is undervalued by 27.9%. We believe this presents an attractive opportunity for investors to get into the stock at a discounted price. More…
Peers
In the competitive arena of alcoholic beverages and spirits, Brown-Forman Corp competes with numerous other companies like Jiangsu Yanghe Brewery JSC Ltd, Tsingtao Brewery Co Ltd, Anhui Gujing Distillery Co Ltd, among others. These companies have carved a niche in the global spirits and alcoholic beverages market, providing consumers with a wide range of options.
– Jiangsu Yanghe Brewery JSC Ltd ($SZSE:002304)
Jiangsu Yanghe Brewery JSC Ltd is a leading Chinese brewer of alcoholic beverages. The company specializes in producing beer, distilled spirits, and fruit-based drinks. Its market capitalization has grown steadily over recent years, now standing at 239.61B in 2022. This reflects the company’s continued success and resilience in the highly competitive Chinese beverage market. Additionally, Jiangsu Yanghe Brewery JSC Ltd has achieved a strong return on equity of 16.92%, outperforming many of its competitors in this regard. The company continues to focus on innovation and expansion in order to maintain its strong market position.
– Tsingtao Brewery Co Ltd ($SHSE:600600)
Tsingtao Brewery Co Ltd is a major Chinese brewery company founded in 1903. It is headquartered in Qingdao, Shandong, and is one of the world’s top five brewers. With a market cap of 120.58B as of 2022, Tsingtao Brewery Co Ltd is the largest beer producer in China. The company’s Return on Equity (ROE) of 13.11% is also impressive, providing investors with a strong return on their invested capital. Tsingtao Brewery Co Ltd produces a wide variety of beer products including its flagship lager, Tsingtao Beer. The company also produces non-alcoholic beverages such as soft drinks, teas, and juices.
– Anhui Gujing Distillery Co Ltd ($SZSE:000596)
Anhui Gujing Distillery Co Ltd is a Chinese-based spirits producer and distillery. Founded in 1858, the company has become one of the leading players in the Chinese spirit industry and is also the largest distiller of baijiu, a traditional Chinese liquor. With a market capitalization of 121.75B as of 2022 and a Return on Equity (ROE) of 14.61%, Anhui Gujing Distillery Co Ltd is a well established and successful company in its industry. The company’s success can be attributed to its long history and commitment to producing quality products. The company also has extensive distribution networks in China and other parts of the world, which allows them to capitalize on the growing demand for their products.
Summary
Investors in BROWN-FORMAN CORPORATION must be pleased with the company’s recent performance, as Q2 FY2024 results exceeded expectations. Total revenue for the quarter increased by 1.2% year-over-year to USD 1107.0 million, while net income grew by 6.6%, to USD 242.0 million. Despite this strong financial report, the stock price dropped on the day of the announcement, indicating investors may be expecting even stronger results in future quarters. In any case, BROWN-FORMAN CORPORATION appears to be a solid long-term investment with its consistently improving financial metrics.
