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BF-BBrown Forman IncSell4.7·$27.27-0.04%
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 TargetImproving
  • +1 more pillar — see the Why tab for full reasoning

Full reasoning →

Open full analysis

Brown Forman Inc (BF-B) Stock Analysis

Temporary headwind edge

SellQualityModerate Confidence

Consumer Defensive · Beverages - Wineries & Distilleries

Earnings in 5 days (2026-09-02). Expect elevated volatility around the report — consider waiting for post-earnings price action before new entries.

Sell if holding. Analyst target reached at $27.27 — A.R:R is negative (-1.3) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Supplier: single glass bottle producer.

Brown-Forman manufactures, distills, bottles, imports, exports, markets, and sells beverage alcohol products — spirits, ready-to-drink cocktails, and wine — under a portfolio of more than 40 brands sold in over 170 countries, led by the Jack Daniel's family of brands, described... Read more

$27.27-7.3% A.UpsideScore 4.7/10#2 of 3 Beverages - Wineries & Distilleries
QualityF-score8 / 9FCF yield5.91%
IncomeYield3.29%(5y avg 1.84%)Payout59.80%sustainable
Stop $26.31Target $28.72(resistance)A.R:R -1.3:1
Analyst target$28.08+3.0%17 analysts
$28.72our TP
$27.27price
$28.08mean
$20
$35

Sell if holding. Analyst target reached at $27.27 — A.R:R is negative (-1.3) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Supplier: single glass bottle producer. Chart setup: No clear chart pattern; technical signals are mixed. Score 4.7/10, moderate confidence.

Passes 4/8 gates (clean insider activity, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and earnings proximity 5d<=7d. Suitability: moderate.

10-K grounded · weekly refresh

About Brown Forman Inc

About Brown Forman Inc

Brown-Forman's portfolio of more than 40 spirit, ready-to-drink cocktail, and wine brands is led by the Jack Daniel's family, described in the 10-K as the primary driver of its revenue, alongside Woodford Reserve, Old Forester, Herradura, and el Jimador, sold in over 170 countries. The United States generated 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.

Brown-Forman earns revenue by manufacturing, distilling, and bottling branded spirits and selling them either to distributors and state governments in the US (where direct-to-consumer sales are generally prohibited) or through owned distribution companies — 17 of them across 18 countries as of May 2025, including a newly launched Italian operation — plus third-party distributors and government-controlled channels internationally. Input costs are tied to agricultural commodities including agave, barley, corn, molasses, rye, and wood, plus packaging materials such as glass bottles, aluminum cans, and closures; a single producer supplies most of the company's glass bottle requirements, and Brown-Forman recently closed its last barrel-making operation, now sourcing oak barrels for aging North American whiskeys externally. Whiskeys, tequilas, and rums must be aged for years before sale, so the company carries unusually large inventories relative to sales, and its tequila supply depends on agave plants that take six to seven years to mature.

Show full overview

Brown-Forman's packaging supply chain has a specific single point of failure: the 10-K states that only a few glass producers manufacture bottles at the scale the company requires, and a single producer supplies most of its glass needs. Trade policy adds a second, dated pressure point: in March 2025, several Canadian provinces pulled all American beverage alcohol, including Jack Daniel's, from store shelves in retaliation for a 25% US tariff on Canadian goods, showing how trade disputes can translate directly into lost shelf space rather than just higher input costs. Because Jack Daniel's alone is the primary driver of the company's revenue, a prolonged retail boycott in any single major market carries outsized weight.

See also: Consumer Defensive · Beverages - Wineries & Distilleries

From Brown Forman Inc's most recent 10-K filing, extracted August 23, 2026.

TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Wed, Sep 2, 20265d to earnings· next earnings call

Thesis

Rewards
High-quality business
Risks
Concentration risk — Supplier: single glass bottle producer
Analyst target reached - limited upside remaining
Earnings in 5 days (event risk)

Key Metrics

P/E (TTM)18.3
P/E (Fwd)16.1
Mkt Cap$12.5B
EV/EBITDA12.5
Profit Mgn18.2%
ROE17.8%
Rev Growth2.0%
Beta0.34
Dividend3.29%
Rating analysts23

Quality Signals

Piotroski F8/9MoatNarrow

Options Flow

P/C15.92bearish
Max Pain$40+46.7% vs spot

Concentration Risks(10-K Item 1A)

  • MEDIUMProductJack Daniel's family of brands
    10-K Item 1A: 'The Jack Daniel's family of brands is the primary driver of our revenue and Jack Daniel's is an iconic global trademark with a loyal consumer fan base.'
  • LOWCustomertwo largest customers13%
    10-K Item 1: 'In fiscal 2025, our two largest customers accounted for approximately 13% and 11% of consolidated net sales, respectively.'
  • 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.'
  • HIGHSuppliersingle glass bottle producer
    10-K Item 1A: 'only a few glass producers make bottles on a scale sufficient for our requirements, and a single producer supplies most of our glass requirements.'

Material Events(8-K, last 90d)

  • 2026-03-16Item 5.02MEDIUM
    Brown-Forman elected James W. Peters as EVP and CFO effective March 31, 2026, succeeding Leanne D. Cunningham, who will retire May 1, 2026 as previously announced. Peters most recently served as EVP, Enterprise Transformation at Whirlpool Corporation.
    SEC filing →

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

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About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.

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Methodology · Editorial policy & full disclaimer

Rating Breakdown

4 floor-breakers

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

Earnings Growth
0.0
Revenue Growth
3.0

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

Volume
0.0
Macd
0.9
Obv
1.0
Ma Position
4.0
Rsi
5.5
Volume distribution (falling OBV)Above 200-day MA

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/3MEarnings in 5 daysDividend aristocrat: 3.3% yield

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

Quality Rank
3.3
Growth Rank
3.3
Value Rank
5.0
GatesMomentum 2.3<4.5A.R:R -1.3=NEGATIVEEARNINGS PROXIMITY 5d<=7dExecutive change: officer departure/appointmentInsider activity: OKNEWS EVENTS NONE RECENTSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARSuitability: Moderate
RSI
41 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $27.12Resistance $29.31

Price Targets

$26
$29
A.Upside-7.3%
A.R:R-1.3:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Target reached (-7.3% upside)
! momentum at 2.3 (below the engine's 4.5 threshold)
! Negative risk/reward — downside exceeds upside

Earnings

B
M
M
M
1/4 beats
Next Earnings2026-09-02 (5d)

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 $27.27 — A.R:R is negative (-1.3) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Supplier: single glass bottle producer. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $26.31. Score 4.7/10, moderate confidence.

What is the BF-B stock price target?

Take-profit target: $28.72 (-7.3% upside). Prior stop was $26.31. Stop-loss: $26.31.

What are the risks of investing in BF-B?

Concentration risk — Supplier: single glass bottle producer; Analyst target reached - limited upside remaining; Earnings in 5 days (event risk).

Is BF-B overvalued or undervalued?

Brown Forman Inc trades at a P/E of 18.3 (forward 16.1). TrendMatrix value score: 5.8/10. 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, imports, exports, markets, and sells beverage alcohol products — spirits,...

Brown-Forman manufactures, distills, bottles, imports, exports, markets, and sells beverage alcohol products — spirits, ready-to-drink cocktails, and wine — under a portfolio of more than 40 brands sold in over 170 countries, led by the Jack Daniel's family of brands, described in the 10-K as the primary driver of its revenue. The United States accounted for 44% of fiscal 2025 net sales, and the company's two largest customers represented approximately 13% and 11% of consolidated net sales, respectively; the Brown family controls more than 50% of voting stock.

Related stocks: BF-A (Brown Forman Inc) · DEO (Diageo plc) · SENEB (Seneca Foods Corp.) · SENEA (Seneca Foods Corp.) · LAUR (Laureate Education, Inc.)
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