We award a wide economic moat rating to Brown-Forman, primarily for the strong brand intangible assets associated with the spirits maker’s premium American whiskey portfolio, which makes up over 70% of sales.
Premiumization trends in spirits consumption (especially in emerging markets), coupled with Brown-Forman’s strong innovation pipeline, should enable sales growth to stabilize in the midsingle digits.
Brown-Forman is less diversified in category exposure compared with larger rivals Diageo and Pernod and could therefore be more susceptible to volume swings should demand soften for its core American whiskey products.
|
Metric
|
BF.B
|
RI
|
DGE
|
|---|---|---|---|
Price/Earnings (Normalized) | 16.38 | 10.35 | 19.66 |
Price/Book Value | 3.49 | 1.07 | 4.72 |
Price/Sales | 3.57 | 1.76 | 2.65 |
Price/Cash Flow | 15.07 | 9.09 | 12.07 |
|
Metric
|
BF.B
|
RI
|
DGE
|
|---|---|---|---|
Quick Ratio | 0.93 | 0.75 | 0.49 |
Current Ratio | 3.26 | 2.47 | 1.60 |
Interest Coverage | 9.55 | 4.34 | 3.15 |
|
Metric
|
BF.B
|
RI
|
DGE
|
|---|---|---|---|
Return on Assets (Normalized) | 10.63% | 3.95% | 7.53% |
Return on Equity (Normalized) | 21.27% | 9.59% | 32.87% |
Return on Invested Capital (Normalized) | 14.02% | 6.06% | 11.69% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| Diageo PLC
DGEAF
| — | LOCK|rx | $53B | |||
| Diageo PLC ADR
DEO
| LOCK|y!Xvb& | LOCK|!<K | $53B | |||
| Pernod Ricard SA
PDRDF
| LOCK|#B!&b$ | LOCK|?# | $19B | |||
| Pernod Ricard SA ADR
PRNDY
| LOCK|!BlNDq | LOCK|?q< | $19B | |||
| Brown-Forman Corp Class A
BF.A
| LOCK|kh&LX#Py | LOCK|lgd | $14B | |||
| Davide Campari-Milano NV Az nom Post Frazionamento
DVDCF
| — | LOCK|Zm | $9B | |||
| Davide Campari-Milano NV ADR
DVCMY
| — | LOCK|wlB | $9B | |||
| Thai Beverage PLC
TBVPF
| — | LOCK|R&M | $8B | |||
| Thai Beverage PLC ADR
TBVPY
| — | LOCK|>D | $8B |
United States