Brown Stock Buy Hold or Sell Recommendation

BF-B
 Stock
  

USD 77.66  0.21  0.27%   

Given the investment horizon of 90 days and your highly speculative risk level, our recommendation regarding Brown Forman is 'Strong Buy'. Macroaxis provides Brown Forman buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding BF-B positions. The advice algorithm takes into account all of Brown Forman's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Brown Forman's buy-and-hold perspective. Continue to Brown Forman Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Brown and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Brown Forman.

Execute Brown Forman Buy or Sell Advice

The Brown recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Brown Forman. Macroaxis does not own or have any residual interests in Brown Forman or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Brown Forman's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Brown FormanBuy Brown Forman
Strong Buy

Volatility

Details

Hype Condition

Details

Current Valuation

Details

Odds of Distress

Details

Economic Sensitivity

Details

Analyst Consensus

Not Available
Details

Reporting Quality (M-Score)

Details
For the selected time horizon Brown Forman has a Risk Adjusted Performance of 0.1957, Jensen Alpha of 0.1702, Total Risk Alpha of 0.1347, Sortino Ratio of 0.0828 and Treynor Ratio of 0.2875
Macroaxis provides unbiased investment recommendation on Brown Forman that should be used to complement current analysts and expert consensus on Brown Forman. Our trade advice engine determines the company's potential to grow exclusively from the perspective of an investors' current risk tolerance and investing horizon. To make sure Brown Forman is not overpriced, please confirm all Brown Forman fundamentals, including its shares owned by insiders, number of shares shorted, price to book, as well as the relationship between the shares owned by institutions and price to earning . Given that Brown Forman has a price to earning of 47.12 X, we suggest you to validate Brown Forman market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Brown Forman Trading Alerts and Improvement Suggestions

Brown Forman is unlikely to experience financial distress in the next 2 years
On 1st of July 2022 Brown Forman paid $ 0.1885 per share dividend to its current shareholders
Latest headline from finance.yahoo.com: Whiskey Market to record USD 28.67 Bn growth -- Evolving Opportunities with Allied Blenders and Distillers Pvt. Ltd. and Bacardi Ltd. - Yahoo Finance

Brown Forman current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Brown analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Brown analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price71.74
Target Median Price71.00
Target High Price90.00
Recommendation Mean3.20
Number Of Analyst Opinions14
Target Low Price62.00
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Brown Forman Returns Distribution Density

The distribution of Brown Forman's historical returns is an attempt to chart the uncertainty of Brown Forman's future price movements. The chart of the probability distribution of Brown Forman stock daily returns describes the distribution of returns around its average expected value. We use Brown Forman price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Brown Forman returns is essential to provide solid investment advice for Brown Forman.
Mean Return0.25Value At Risk-1.57
Potential Upside2.89Standard Deviation1.57
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Brown Forman historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Brown Forman Cash Flow Accounts

201720182019202020212022 (projected)
Net Cash Flow from Financing(466 M)(599 M)(191 M)(485 M)(1.04 B)(1.12 B)
Net Cash Flow from Investing(422 M)(128 M)(119 M)(141 M)98 M(130.34 M)
Net Cash Flow from Operations632 M800 M724 M817 M936 M766.45 M

Brown Forman Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Brown Forman or Consumer Defensive sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Brown Forman's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Brown stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
0.17
β
Beta against DOW0.82
σ
Overall volatility
1.28
Ir
Information ratio 0.1

Brown Forman Volatility Alert

Brown Forman has relatively low volatility with skewness of -1.43 and kurtosis of 7.19. However, we advise all investors to independently investigate Brown Forman to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Brown Forman's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Brown Forman's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Brown Forman Implied Volatility

Brown Forman's implied volatility" href="/stock-options/BF-B/Brown-Forman">Brown Forman's implied volatility exposes the market's sentiment of Brown Forman stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Brown Forman's implied volatility" href="/stock-options/BF-B/Brown-Forman">Brown Forman's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Brown Forman stock will not fluctuate a lot when Brown Forman's options" href="/stock-options/BF-B/Brown-Forman">Brown Forman's options are near their expiration.

Brown Forman Fundamentals Vs Peers

Comparing Brown Forman's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Brown Forman's direct or indirect competition across all of the common fundamentals between Brown Forman and the related equities. This way, we can detect undervalued stocks with similar characteristics as Brown Forman or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Brown Forman's fundamental indicators could also be used in its relative valuation, which is a method of valuing Brown Forman by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Brown Forman to competition
FundamentalsBrown FormanPeer Average
Return On Equity31.08 %(0.31) %
Return On Asset11.98 %(0.14) %
Profit Margin21.31 %(1.27) %
Operating Margin33.44 %(5.51) %
Current Valuation37.03 B16.62 B
Shares Outstanding309.74 M571.82 M
Shares Owned by Insiders1.72 %10.09 %
Shares Owned by Institutions50.21 %39.21 %
Number of Shares Shorted4.26 M4.71 M
Price to Earning47.12 X28.72 X
Price to Book12.33 X9.51 X
Price to Sales8.96 X11.42 X
Revenue3.93 B9.43 B
Gross Profit2.39 B27.38 B
EBITDA1.32 B3.9 B
Net Income838 M570.98 M
Cash and Equivalents868 M2.7 B
Cash per Share1.81 X5.01 X
Total Debt2.34 B5.32 B
Debt to Equity0.86 %48.70 %
Current Ratio3.65 X2.16 X
Book Value Per Share6.11 X1.93 K
Cash Flow from Operations936 M971.22 M
Short Ratio4.05 X4.00 X
Earnings Per Share1.60 X3.12 X
Price to Earnings To Growth4.40 X4.89 X
Number of Employees5.2 K18.84 K
Beta0.67-0.15
Market Capitalization35.25 B19.03 B
Total Asset4.72 B29.47 B
Retained Earnings4.28 B9.33 B
Working Capital1.63 B1.48 B
Current Asset2.53 B9.34 B

Brown Forman Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Brown . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
Accumulation Distribution3540.12
Daily Balance Of Power0.42
Rate Of Daily Change1.0
Day Median Price77.56
Day Typical Price77.59
Market Facilitation Index0.0
Price Action Indicator0.2

About Brown Forman Buy or Sell Advice

When is the right time to buy or sell Brown Forman? Buying financial instruments such as Brown Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Receivables570 M753 M813 M673.69 M
Inventories1.69 B1.75 B1.82 B1.45 B

Use Investing Ideas to Build Portfolios

In addition to having Brown Forman in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Aircraft Thematic Idea Now

Aircraft
Aircraft Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Aircraft theme has 38 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Aircraft Theme or any other thematic opportunities.
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Continue to Brown Forman Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Brown Forman information on this page should be used as a complementary analysis to other Brown Forman's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

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Please note, there is a significant difference between Brown Forman's value and its price as these two are different measures arrived at by different means. Investors typically determine Brown Forman value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Brown Forman's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.