We award a wide economic moat rating to Brown-Forman, based on the strong brand intangible assets and cost advantages associated with the spirits maker’s premium American whiskey portfolio that makes up two thirds of its overall sales.
Premiumization trends in spirits consumption, coupled with Brown-Forman’s strong innovation pipeline, bode well for mid- to high-single-digit top-line growth in the coming years.
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) | 24.38 | 17.46 | 19.32 |
Price/Book Value | 7.24 | 2.26 | 8.19 |
Price/Sales | 5.51 | 3.18 | 3.85 |
Price/Cash Flow | 23.69 | 15.98 | 16.26 |
|
Metric
|
BF.B
|
RI
|
DGE
|
|---|---|---|---|
Quick Ratio | 0.91 | 0.66 | 0.65 |
Current Ratio | 2.74 | 1.91 | 1.58 |
Interest Coverage | 10.93 | 8.50 | 5.60 |
|
Metric
|
BF.B
|
RI
|
DGE
|
|---|---|---|---|
Return on Assets (Normalized) | 11.41% | 5.39% | 9.16% |
Return on Equity (Normalized) | 27.90% | 12.64% | 42.99% |
Return on Invested Capital (Normalized) | 15.71% | 7.92% | 14.78% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
DGEAF
| Diageo PLC | — | Xyj | $78.6 Bil | |
DEO
| Diageo PLC ADR | Wtlhzkwkc | Tjkz | $77.4 Bil | |
STZ
| Constellation Brands Inc Class A | Ywhhprfm | Zwhsb | $47.9 Bil | |
PDRDF
| Pernod Ricard SA | — | Ybgt | $39.2 Bil | |
PRNDY
| Pernod Ricard SA ADR | — | Lzc | $39.0 Bil | |
BF.A
| Brown-Forman Corp Class A | Jvympfcrj | Tkvj | $23.4 Bil | |
DVDCF
| Davide Campari-Milano NV Az nom Post Frazionamento | — | Mrz | $12.2 Bil | |
DVCMY
| Davide Campari-Milano NV ADR | — | Qzybg | $12.2 Bil | |
TBVPF
| Thai Beverage PLC | — | Ljlc | $8.9 Bil |
