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BF-BBrown Forman IncSell4.9·$28.52+0.88%
SellModerate Confidence
Investment thesis

A well-run consumer defensive business with 18% operating margins and a near-perfect Piotroski financial-health score, but the stock has moved above its near-term technical target — presenting negative net upside — while 3 of the past 4 quarterly earnings reports were misses including the most recent; the setup favors patience rather than fresh exposure.

Thesis pillars

  • High Short Interest Bearish SignalDeteriorating
  • Quality Franchise At Stretched MultipleStable
  • Price Above Technical TargetStable
  • +1 more pillar — see the Why tab for full reasoning

Full reasoning →

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Brown Forman Inc (BF-B) Stock Analysis

Momentum Cont setup

SellQualityModerate Confidence

Consumer Defensive · Beverages - Wineries & Distilleries

Sell if holding. Analyst target reached at $28.52 — A.R:R is negative (-1.0) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Geographic: outside the United States (56.0%).

Brown-Forman manufactures, distills, bottles, and markets beverage alcohol brands led by Jack Daniel's Tennessee Whiskey, alongside Woodford Reserve, Old Forester, Herradura, el Jimador, and other spirits, RTDs, and wines sold in over 170 countries. The United States accounted... Read more

$28.52-12.3% A.UpsideScore 4.9/10#3 of 3 Beverages - Wineries & Distilleries
QualityF-score8 / 9FCF yield5.65%
IncomeYield3.27%(5y avg 1.84%)Payout59.80%sustainable
Stop $26.54Target $29.10(resistance)A.R:R -1.0:1
Analyst target$27.79-2.6%17 analysts
$29.10our TP
$28.52price
$27.79mean
$20
$35

Sell if holding. Analyst target reached at $28.52 — A.R:R is negative (-1.0) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Geographic: outside the United States (56.0%). Chart setup: Trend continuation, RSI 64, MACD bullish. Score 4.9/10, moderate confidence.

Passes 6/8 gates (positive momentum, clean insider activity, news events none recent, earnings proximity 25d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.

10-K grounded · weekly refresh

About Brown Forman Inc

About Brown Forman Inc

Brown-Forman sells more than 40 spirit, ready-to-drink, and wine brands anchored by Jack Daniel's Tennessee Whiskey, the top-selling American whiskey worldwide, across more than 170 countries. The United States generated 44% of fiscal 2025 net sales versus 56% from international markets, while the company's two largest customers accounted for approximately 13% and 11% of consolidated net sales, respectively, and its roughly 5,000 employees span six continents.

In the United States, where spirits and wine manufacturers generally cannot sell directly to consumers, Brown-Forman sells through distributors or, in control states, to state governments that resell to retailers. Outside the U.S., the company runs owned distribution companies in seventeen markets -- including Germany, Japan, Mexico, and the United Kingdom, plus Italy added in May 2025 -- while relying on third-party distribution partners or government-controlled channels elsewhere, and on provincial governments in Canada. Aging inventory is a structural feature of the business: whiskeys, certain tequilas, and rums must mature for years before sale, so agricultural inputs such as agave, barley, corn, rye, sugar, and wood carry weather-driven supply risk despite none currently being in short supply. Brown-Forman competes against Bacardi, Becle, Davide Campari-Milano, Diageo, LVMH, Pernod Ricard, Remy Cointreau, and Suntory Global Spirits, primarily at premium-and-above price points, and remains a Brown-family-controlled company under NYSE rules by virtue of the family's majority voting stake.

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Brown-Forman's own risk factors single out the health of one brand family as the primary swing factor for results: the Jack Daniel's family of brands is described as the primary driver of the company's revenue, so that reputational damage from even an isolated incident, or a failure to keep the brand relevant to new consumers, could weigh materially on financial results. That dependency compounds the company's control-company structure -- the Brown family holds more than 50% of voting stock -- since strategic responses to any Jack Daniel's-specific shock would run through family-controlled governance rather than a fully independent board, a structure the 10-K discloses without quantifying how concentrated Jack Daniel's is within total net sales.

See also: Consumer Defensive · Beverages - Wineries & Distilleries

From Brown Forman Inc's most recent 10-K filing, extracted August 2, 2026.

TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Wed, Sep 2, 202625d to earnings· next earnings call

Thesis

Rewards
High-quality business
Positive momentum
Risks
Concentration risk — Geographic: outside the United States (56.0%)
Analyst target reached - limited upside remaining
Consecutive earnings misses (3)

Key Metrics

P/E (TTM)18.5
P/E (Fwd)16.8
Mkt Cap$13.1B
EV/EBITDA13.0
Profit Mgn18.2%
ROE17.8%
Rev Growth2.0%
Beta0.34
Dividend3.27%
Rating analysts23

Quality Signals

Piotroski F8/9MoatNarrow

Options Flow

P/C0.77neutral

Concentration Risks(10-K Item 1A)

  • HIGHGeographicoutside the United States56%
    10-K Item 1: 'The United States, our most important market, accounted for 44% of our net sales in fiscal 2025, and the other 56% were outside of the United States.'
  • MEDIUMGeographicUnited States44%
    10-K Item 1: 'The United States, our most important market, accounted for 44% of our net sales in fiscal 2025, and the other 56% were outside of the United States.'
  • LOWCustomerlargest customer13%
    10-K Item 1: 'our two largest customers accounted for approximately 13% and 11% of consolidated net sales, respectively'
  • LOWCustomersecond-largest customer11%
    10-K Item 1: 'our two largest customers accounted for approximately 13% and 11% of consolidated net sales, respectively'

Material Events(8-K, last 90d)

  • 2026-03-16Item 5.02MEDIUM
    James W. Peters (ex-Whirlpool EVP) elected EVP and CFO effective March 31, 2026, succeeding Leanne D. Cunningham, who will retire effective May 1, 2026. Clean, previously-announced succession.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.

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Methodology · Editorial policy & full disclaimer

Rating Breakdown

3 floor-breakers

Growth below the gate floor. Component breakdown shows what dragged the score down.static

Earnings Growth
0.0
Revenue Growth
3.0

Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static

Growth Rank
0.0
Quality Rank
3.3
Value Rank
5.0

No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static

Earnings History
0.0
Surprise Avg
0.0
Erm
5.0
Earnings Timing
5.0
Dividend Safety
7.5
Earnings concerns: 1B/3MDividend aristocrat: 3.3% yield
GatesA.R:R -1.0=NEGATIVEExecutive change: officer departure/appointmentMomentum 7.1>=5.5Insider activity: OKNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 25d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARMomentum ContSuitability: Moderate
RSI
64 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $24.90Resistance $29.69

Price Targets

$27
$29
A.Upside-12.3%
A.R:R-1.0:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Target reached (-12.3% upside)
! Negative risk/reward — downside exceeds upside

Earnings

B
M
M
M
1/4 beats
Next Earnings2026-09-02 (25d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is BF-B stock a buy right now?

Sell if holding. Analyst target reached at $28.52 — A.R:R is negative (-1.0) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Geographic: outside the United States (56.0%). Chart setup: Trend continuation, RSI 64, MACD bullish. Prior stop was $26.54. Score 4.9/10, moderate confidence.

What is the BF-B stock price target?

Take-profit target: $29.10 (-12.3% upside). Prior stop was $26.54. Stop-loss: $26.54.

What are the risks of investing in BF-B?

Concentration risk — Geographic: outside the United States (56.0%); Analyst target reached - limited upside remaining; Consecutive earnings misses (3).

Is BF-B overvalued or undervalued?

Brown Forman Inc trades at a P/E of 18.5 (forward 16.8). TrendMatrix value score: 5.5/10. Verdict: Sell.

What do analysts say about BF-B?

23 analysts cover BF-B with a consensus score of 2.7/5. Average price target: $28.

What does Brown Forman Inc do?Brown-Forman manufactures, distills, bottles, and markets beverage alcohol brands led by Jack Daniel's Tennessee...

Brown-Forman manufactures, distills, bottles, and markets beverage alcohol brands led by Jack Daniel's Tennessee Whiskey, alongside Woodford Reserve, Old Forester, Herradura, el Jimador, and other spirits, RTDs, and wines sold in over 170 countries. The United States accounted for 44% of fiscal 2025 net sales, with the remaining 56% from international markets, and the company's two largest customers accounted for approximately 13% and 11% of consolidated net sales, respectively.

Related stocks: DEO (Diageo plc) · BF-A (Brown Forman Inc) · TAL (TAL Education Group) · PRDO (Perdoceo Education Corporation) · COCO (The Vita Coco Company, Inc.)
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