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BF-BBrown Forman IncSell5.0·$27.96+1.01%
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 SignalStable
  • Quality Franchise At Stretched MultipleStable
  • Price Above Technical TargetStable
  • +1 more pillar — see the Why tab for full reasoning

Full reasoning →

Open full analysis

Brown Forman Inc (BF-B) Stock Analysis

Momentum Cont setup

SellDEATH CROSS (EXEMPT)Moderate Confidence

Consumer Defensive · Beverages - Wineries & Distilleries

Sell if holding. Analyst target reached at $27.96 — A.R:R is negative (-0.8) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Consecutive earnings misses (3).

Brown-Forman manufactures, distills, and markets spirits under 40+ brands led by Jack Daniel's Tennessee Whiskey, selling in over 170 countries with 44% of net sales in the U.S. in fiscal 2025. Revenue is driven by branded premium spirits sold through wholesalers, state... Read more

$27.96-1.9% A.UpsideScore 5.0/10#2 of 3 Beverages - Wineries & Distilleries
QualityF-score8 / 9FCF yield5.76%
IncomeYield3.29%(5y avg 1.84%)Payout59.80%sustainable
Stop $26.38Target $27.44(resistance)A.R:R -0.8:1
Analyst target$28.02+0.2%16 analysts
$27.44our TP
$27.96price
$28.02mean
$20
$37

Sell if holding. Analyst target reached at $27.96 — A.R:R is negative (-0.8) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Consecutive earnings misses (3). Chart setup: Trend continuation, RSI 69, MACD bullish. Score 5.0/10, moderate confidence.

Passes 7/10 gates (positive momentum, clean insider activity, positive momentum, news events none recent, earnings proximity 60d 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 sold products across 170-plus countries in fiscal 2025, with the United States contributing 44% of net sales, Mexico 7%, Germany 6%, Australia 5%, and the United Kingdom 4%. The portfolio spans more than 40 spirit, ready-to-drink (RTD), and wine brands, anchored by Jack Daniel's Tennessee Whiskey — ranked the #1 selling American whiskey globally by IWSR 2024 data. The company employed approximately 5,000 people on six continents.

Brown-Forman earns revenue from branded premium-and-above spirits sold through wholesalers, state governments in U.S. control states, and 17 owned distribution companies across 18 countries including Germany, Japan, Mexico, the United Kingdom, and France. Competitors named in the 10-K include Diageo PLC, Pernod Ricard SA, Bacardi Limited, and Suntory Global Spirits. Oak barrels — after the company closed its last barrel-making operation — are now sourced entirely from an external supplier, and a single glass producer supplies most of the company's bottle requirements. Agricultural inputs including agave, corn, and rye are subject to weather disruption and multi-year lead times; tequila supply requires agave plants to reach full maturity over approximately six to seven years. The fourth calendar quarter represented 29% of reported net sales in fiscal 2025.

Show full overview

Trade policy risk is concrete for a portfolio sold across 170-plus markets: in March 2025, several Canadian provinces removed all American beverage alcohol from store shelves — including Jack Daniel's — after the United States announced a 25% tariff on Canadian imports. The 10-K notes that if newly announced tariffs persist, cost of goods sold could increase and gross margins may be pressured if those costs cannot be passed through to customers. Jack Daniel's and the company's tequilas are each distilled at single locations, meaning a catastrophic disruption at either facility could reduce supply for an extended period.

See also: Consumer Defensive · Beverages - Wineries & Distilleries

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

TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Thu, Aug 27, 202660d to earnings· next earnings call

Thesis

Rewards
High-quality business
Positive momentum
Risks
Analyst target reached - limited upside remaining
Consecutive earnings misses (3)
Weak growth

Key Metrics

P/E (TTM)18.3
P/E (Fwd)16.3
Mkt Cap$12.8B
EV/EBITDA12.8
Profit Mgn18.2%
ROE17.8%
Rev Growth2.0%
Beta0.35
Dividend3.29%
Rating analysts21

Quality Signals

Piotroski F8/9MoatNarrow

Options Flow

P/C0.23bullish

Concentration Risks(10-K Item 1A)

  • MEDIUMGeographicUnited States44%
    10-K Item 1: 'The United States, our most important market, accounted for 44% of our net sales in fiscal 2025'
  • MEDIUMProductJack Daniel's family of brands
    10-K Item 1A: 'The Jack Daniel's family of brands is the primary driver of our revenue'
  • MEDIUMSupplierprimary glass supplier
    10-K Item 1A: 'a single producer supplies most of our glass requirements'
  • LOWCustomertwo largest customers
    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 elected EVP and CFO effective March 31, 2026, succeeding Leanne D. Cunningham who will retire May 1, 2026. Peters previously served as EVP Enterprise Transformation at Whirlpool Corporation. Clean succession; retirement cited as departure reason.
    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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Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.

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

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
3.5
Earnings Timing
5.0
Dividend Safety
6.5
Earnings concerns: 1B/3MDividend: 329.0%

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

Support Resistance
0.1
Bollinger
1.1
Gap
6.0
52w Position
6.8

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

Quality Rank
1.7
Growth Rank
3.3
Value Rank
5.0
GatesA.R:R -0.8=NEGATIVEDeath cross exempted (quality + momentum high enough)Executive change: officer departure/appointmentMomentum 7.9>=5.5Insider activity: OKNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 60d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARMomentum ContSuitability: Moderate
RSI
69 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $24.45Resistance $28.00

Price Targets

$26
$27
A.Upside-1.9%
A.R:R-0.8:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Target reached (-9.8% upside)
! Negative risk/reward — downside exceeds upside

Earnings

B
M
M
M
1/4 beats
Next Earnings2026-08-27 (60d)

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 $27.96 — A.R:R is negative (-0.8) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Consecutive earnings misses (3). Chart setup: Trend continuation, RSI 69, MACD bullish. Prior stop was $26.38. Score 5.0/10, moderate confidence.

What is the BF-B stock price target?

Take-profit target: $27.44 (-1.9% upside). Prior stop was $26.38. Stop-loss: $26.38.

What are the risks of investing in BF-B?

Analyst target reached - limited upside remaining; Consecutive earnings misses (3); Weak growth.

Is BF-B overvalued or undervalued?

Brown Forman Inc trades at a P/E of 18.3 (forward 16.3). TrendMatrix value score: 5.5/10. Verdict: Sell.

What do analysts say about BF-B?

21 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, and markets spirits under 40+ brands led by Jack Daniel's Tennessee Whiskey,...

Brown-Forman manufactures, distills, and markets spirits under 40+ brands led by Jack Daniel's Tennessee Whiskey, selling in over 170 countries with 44% of net sales in the U.S. in fiscal 2025. Revenue is driven by branded premium spirits sold through wholesalers, state governments, and 17 owned distribution companies in 18 countries, employing approximately 5,000 people.

Related stocks: DEO (Diageo plc) · BF-A (Brown Forman Inc) · TAL (TAL Education Group) · EDU (New Oriental Education & Techno) · CELH (Celsius Holdings, Inc.)
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