| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 61 | 17.2x | 17.8x | Around median | |
Growth | 33 | -0.8% | 7.1% | Bottom tier | |
Quality | 87 | 12.6% | 4.5% | Top tier | |
Safety | 75 | 1.7x | 2.6x | Top tier | |
Capital Return | 73 | 3.38% | 2.12% | Top tier | |
Momentum | 48 | -4.6% | 2.9% | Around median | |
Sentiment | 2 | 1 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Brown-Forman Corporation is a spirits company whose portfolio is anchored by Jack Daniel's Tennessee Whiskey as the foundation of its business, alongside Woodford Reserve, Herradura, el Jimador, flavored whiskey products, and ready-to-drink beverages. The company generates revenue from selling its core brands and innovations featuring different flavors and package formats across the United States and international markets, in addition to its used-barrel sales business; New Mix, the ready-to-drink portfolio, and Jack Daniel's Tennessee Blackberry have become important sources of growth in the sales mix.
In Q1 of fiscal 2027, revenue was $911 million, gross profit was $549 million, net income was $176 million, and earnings per share were $0.38. Gross margin was 60.2% after expanding by 40 basis points, while reported operating income declined 3%, organic operating income increased 4%, and earnings per share grew 6%. On a trailing-twelve-month basis ending in fiscal 2027, the company recorded revenue of $3.9 billion, gross profit of $2.4 billion, and net income of $721 million.
The geographic mix showed a clear divergence in Q1 of fiscal 2027; organic sales rose 9% in emerging international markets, led by Mexico and the United Arab Emirates, while declining 8% in developed international markets, with weakness in Germany, France, and the United Kingdom. In the United States, organic sales were stable despite contraction in the spirits market, while the travel retail channel declined 1%. Growth in New Mix, ready-to-drink beverages, and Jack Daniel's Tennessee Blackberry helped offset the decline in used-barrel sales and pressure on full-strength tequila.
The average analyst price target is $28.5, within a narrow range of $28 to $29, and the average is approximately 8.5% below the 52-week range high of $31.14, while the year's range extends to $23.01. The Neutral consensus reflects caution consistent with expectations for approximately flat organic sales and a decline in organic operating income of between 3% and 5% in fiscal 2027, despite strong innovation and cash flow.
Figures in the text are as of 2026-09-04; the live price is shown at the top of the page.
The most prominent growth drivers are New Mix, the ready-to-drink portfolio, and Jack Daniel's Tennessee Blackberry. In Q1 of fiscal 2027, ready-to-drink beverages contributed approximately one percentage point to value growth in the United States, and Blackberry added more than two percentage points, according to Nielsen data cited on the September 2, 2026 call. Emerging international markets also recorded organic growth of 9%, led by Mexico and the United Arab Emirates.
Revenue was $911 million, gross profit was $549 million, and net income was $176 million in Q1 of fiscal 2027. Earnings per share were $0.38, up 6%, while gross margin was 60.2% after expanding by 40 basis points. Reported operating income declined 3%, but organic operating income increased 4%.
On September 2, 2026, management reaffirmed its expectation that organic sales would be approximately flat in fiscal 2027. It expects organic operating income to decline between 3% and 5%, with greater confidence that the result will be near the favorable end of that range. It also expects capital expenditures of between $60 million and $70 million and an effective tax rate of between 20% and 22%.
Automated analysis for informational purposes only — not investment advice.
Organic sales of used barrels declined by more than 60% in Q1 of fiscal 2027. Annual sales from this business fell from more than $100 million two years ago to approximately $30 million due to weak demand from Scotch and Irish whiskey producers. Management estimated that the decline resulted in more than $80 million in lost profitability over two years, but it expects the annual impact on net sales to become smaller during the remainder of fiscal 2027.
Organic sales of the full-strength Herradura and el Jimador portfolio declined by a low-double-digit percentage in Q1 of fiscal 2027. However, el Jimador's ranking within the $15 to $30 price segment improved from ninth to fourth over the course of a year, and its growth gap versus the category narrowed from 13 percentage points to one percentage point. Herradura remains more exposed to pressure because products priced above $30 face weaker demand, while el Jimador benefits as consumers shift toward lower-priced segments.
President and Chief Executive Officer Lawson Whiting announced in July 2026 that he would retire after a successor is named, following a career of nearly 30 years with Brown-Forman. On the September 2, 2026 call, he confirmed that he would continue leading the business and executing the strategy until a successor is selected, after which he expects to support the transition in an advisory capacity. The board's Corporate Governance and Nominating Committee is leading a search that includes internal and external candidates, and the company has not specified a timeline for the selection.
