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BF-BBrown Forman IncSell4.7·$26.21+0.19%
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

Temporary headwind edge

SellModerate Confidence

Consumer Defensive · Beverages - Wineries & Distilleries

Sell if holding. Analyst target reached at $26.21 — A.R:R is negative (-0.4) — 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 producer.

Brown-Forman manufactures, markets, and sells a portfolio of more than 40 spirits, ready-to-drink cocktail, and wine brands — led by Jack Daniel's Tennessee Whiskey, along with Woodford Reserve, Old Forester, Herradura, and el Jimador — sold in over 170 countries. The United... Read more

$26.21+6.8% A.UpsideScore 4.7/10#2 of 3 Beverages - Wineries & Distilleries
QualityF-score8 / 9FCF yield6.16%
IncomeYield3.51%(5y avg 1.84%)Payout59.80%sustainable
Stop $24.25Target $27.51(resistance)A.R:R -0.4:1
Analyst target$27.79+6.0%17 analysts
$27.51our TP
$26.21price
$27.79mean
$20
$37

Sell if holding. Analyst target reached at $26.21 — A.R:R is negative (-0.4) — 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 producer. Chart setup: No clear chart pattern; technical signals are mixed. Score 4.7/10, moderate confidence.

Passes 5/9 gates (clean insider activity, news events none recent, earnings proximity 53d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and death cross (50MA < 200MA). Suitability: moderate.

10-K grounded · weekly refresh

About Brown Forman Inc

About Brown Forman Inc

Jack Daniel's Tennessee Whiskey anchors Brown-Forman's portfolio of more than 40 spirits, ready-to-drink cocktail, and wine brands, with the United States supplying 44% of fiscal 2025 net sales and Mexico, Germany, Australia, and the United Kingdom each contributing 4-7%. The company's two largest customers accounted for approximately 13% and 11% of consolidated net sales, respectively, and Brown-Forman employs approximately 5,000 people across six continents, including 2,000 in the United States.

Brown-Forman sells through a mix of owned distribution companies in 16 countries, third-party distributors under fixed-term contracts, and direct sales to state governments in U.S. control states, with routes-to-market adapted by country regulatory structure. Key agricultural inputs — including agave, barley, corn, and wood for barrels — are exposed to weather and commodity-market swings, and the company sources oak barrels from an external supplier after closing its last remaining barrel-making operation, while a single producer supplies most of its glass bottle requirements. Brown-Forman competes against larger diversified spirits companies such as Diageo and Pernod Ricard, along with a growing field of craft distillers in the United States.

Show full overview

Brown-Forman's April 2025 disclosure shows how quickly retaliatory trade measures can reach the shelf: after the United States announced a 25% tariff on Canadian goods, several Canadian provinces removed all American beverage alcohol, including Jack Daniel's, from store shelves in March 2025. Because the company sells directly to provincial governments in Canada rather than through independent distributors, a single policy decision by a handful of provincial liquor boards can eliminate access to an entire national market overnight — a concentration of distribution control the 10-K discloses separately from its input-cost and supplier risk factors.

See also: Consumer Defensive · Beverages - Wineries & Distilleries

From Brown Forman Inc's most recent 10-K filing, extracted July 6, 2026.

TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Thu, Aug 27, 202653d to earnings· next earnings call

Thesis

Rewards
High-quality business
Risks
Concentration risk — Supplier: single glass producer
Analyst target reached - limited upside remaining
Consecutive earnings misses (3)

Key Metrics

P/E (TTM)17.1
P/E (Fwd)15.3
Mkt Cap$12.0B
EV/EBITDA12.1
Profit Mgn18.2%
ROE17.8%
Rev Growth2.0%
Beta0.34
Dividend3.51%
Rating analysts22

Quality Signals

Piotroski F8/9MoatNarrow

Options Flow

P/C0.67bullish
Max Pain$15-42.8% vs spot

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'
  • LOWCustomerlargest customer13%
    10-K Item 1: 'In fiscal 2025, our two largest customers accounted for approximately 13% and 11% of consolidated net sales, respectively.'
  • LOWCustomersecond-largest customer11%
    10-K Item 1: 'In fiscal 2025, our two largest customers accounted for approximately 13% and 11% of consolidated net sales, respectively.'
  • HIGHSuppliersingle glass producer
    10-K Item 1A: 'a single producer supplies most of our glass requirements'

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 effective May 1, 2026. Peters joins from Whirlpool Corporation, where he was EVP, Enterprise Transformation.
    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

Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static

Obv
1.0
Ma Position
1.0
Macd
1.2
Volume
2.9
Rsi
4.5
Volume distribution (falling OBV)Below 200-MA, MA slope -1.3%/30d — confirmed downtrend

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: 351.0%

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
GatesMomentum 2.1<4.5A.R:R -0.4=NEGATIVEDeath cross (50MA < 200MA)Executive change: officer departure/appointmentInsider activity: OKNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 53d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARSuitability: Moderate
RSI
41 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $25.00Resistance $28.07

Price Targets

$24
$28
A.Upside+5.0%
A.R:R-0.4:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Target reached (-2.9% upside)
! momentum at 2.1 (below the engine's 4.5 threshold)
! Negative risk/reward — downside exceeds upside

Earnings

B
M
M
M
1/4 beats
Next Earnings2026-08-27 (53d)

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 $26.21 — A.R:R is negative (-0.4) — 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 producer. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $24.25. Score 4.7/10, moderate confidence.

What is the BF-B stock price target?

Take-profit target: $27.51 (+6.8% upside). Prior stop was $24.25. Stop-loss: $24.25.

What are the risks of investing in BF-B?

Concentration risk — Supplier: single glass producer; 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 17.1 (forward 15.3). TrendMatrix value score: 5.7/10. Verdict: Sell.

What do analysts say about BF-B?

22 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, markets, and sells a portfolio of more than 40 spirits, ready-to-drink cocktail, and wine...

Brown-Forman manufactures, markets, and sells a portfolio of more than 40 spirits, ready-to-drink cocktail, and wine brands — led by Jack Daniel's Tennessee Whiskey, along with Woodford Reserve, Old Forester, Herradura, and el Jimador — sold in over 170 countries. The United States generated 44% of fiscal 2025 net sales, and the Brown family controls more than 50% of the company's voting stock as a New York Stock Exchange-designated controlled company.

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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