| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 53 | 18.7x | 17.3x | Around median | |
Growth | 30 | -0.8% | 7.1% | Bottom tier | |
Quality | 86 | 12.3% | 4.5% | Top tier | |
Safety | 74 | 2.1x | 2.6x | Top tier | |
Capital Return | 94 | 3.11% | 0.06% | Top tier | |
Momentum | 70 | -7.4% | -1.6% | Top tier | |
Sentiment | 99 | 17 | 3 | Top tier |
The floor: what the company is worth if growth stopped today
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, 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 produces spirits and generates revenue from its whiskey, tequila, and ready-to-drink brands. Jack Daniel's Tennessee Whiskey forms the foundation of its portfolio, while growth drivers include Jack Daniel's Tennessee Blackberry, New Mix, and Jack Daniel's Single Barrel Heritage Barrel, and its tequila portfolio includes Herradura and el Jimador. The company relies on expanding distribution and international markets, innovation in flavors, sizes, and packaging, and increasing consumption occasions through ready-to-drink products.
In Q1 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%, up 40 basis points according to the official presentation, while reported operating income declined 3% and organic operating income increased 4%; earnings per share also grew 6%, supported by improved organic operating performance, lower non-operating postretirement expenses, and share repurchases in the prior year.
The performance mix was varied in Q1 fiscal 2027: organic sales of Jack Daniel's Tennessee Whiskey were approximately flat, emerging international markets grew 9% led by Mexico and the UAE, while developed international markets declined 8%. Australia delivered organic growth of 4%, and organic sales in the United States were flat despite contraction in the spirits market, but the used barrel business fell by more than 60% and the full-strength tequila portfolio declined by a low-double-digit percentage.
The provided information does not include a numerical price target or a high-low range for analyst targets, while the consensus rates the stock as "Neutral"; therefore, the data does not support a strong conclusion regarding a potential valuation gap. The stock's 52-week range is between $22.61 and $31.92, while annual earnings per share declined from $2.14 to $1.53, a decrease consistent with a more conservative revaluation amid weak demand, contraction in the barrel business, and expected margin pressures.
Figures in the text are as of 2026-09-04; the live price is shown at the top of the page.
Q1 fiscal 2027 revenue was approximately $911 million, net income was $176 million, and earnings per share were $0.38. New Mix, the ready-to-drink portfolio, and Jack Daniel's Tennessee Blackberry supported sales, while Jack Daniel's Tennessee Whiskey was approximately flat organically. In contrast, the used barrel business declined by more than 60%, and the full-strength tequila portfolio declined by a low-double-digit percentage.
Tennessee Blackberry contributed more than two percentage points of value growth in the United States according to Nielsen trends presented on September 2, 2026. The brand became available in more than 30 international markets, with strong growth in Brazil, France, and the UAE. The company is expanding the product's opportunities through additional package sizes and the Jack Daniel's Tennessee Blackberry and Lemonade ready-to-drink format.
On September 2, 2026, management reaffirmed its expectation for approximately flat organic sales during fiscal 2027. It expects organic operating income to decline by between 3% and 5%, with increased confidence in approaching the better end of the 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.
Gross margin expanded 40 basis points to 60.2% in Q1 fiscal 2027 due to lower costs and favorable portfolio changes. However, management expects whiskey inventory produced during a period of high inflation and higher barrel, grain, and energy costs to gradually enter cost of sales during the remainder of the year. Lower production, higher diesel and aluminum costs, and growth in ready-to-drink products with a different margin mix add further pressure.
Organic sales of the full-strength Herradura and el Jimador portfolio declined by a low-double-digit percentage in Q1 fiscal 2027. In the U.S. market, the tequila category shifted from 5% growth a year ago to a 4% contraction according to Nielsen figures presented by management, while el Jimador's ranking within the $15 to $30 price tier improved from ninth to fourth. Herradura remains more exposed to weak demand above the $30 level, while the company launched new packaging and marketing communications for el Jimador and is preparing changes for Herradura.
Lawson Whiting said during the September 2, 2026 call that he had decided to retire after nearly 30 years with Brown-Forman, with the retirement to take place after a successor is named. Until then, he confirmed that he would continue leading the company and executing its strategy, and he then expects to support the transition in an advisory capacity after the successor is appointed. The board's governance and nominating committee is conducting a search that includes internal and external candidates, and the company has not specified a timeline.