Is the business good?
How good a business is BF-B?
Brown-Forman Corporation earns 13% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
13%
Return on invested capital · cost of capital 9.0% · 3.7 points above what the capital costs: growth creates value
- Operating margin
- 25%
Operating margin · Consumer Defensive median 9.0% · 12 months to Q4 2026
- Cash conversion
- 1.25×
Cash conversion · 0.50× a year ago · every dollar of reported profit arrived as cash, and more
- Gross margin
- 61%
Gross margin
| Year | Operating margin |
|---|---|
| FY2021 | 34% |
| FY2022 | 31% |
| FY2023 | 27% |
| FY2024 | 34% |
| FY2025 | 28% |
| FY2026 | 25% |
Details›
- Gross margin12 months to Q4 2026
- 61%
- Operating margin12 months to Q4 2026
- 25%
- Net margin12 months to Q4 2026
- 18%
- Free cash flow margin
- 23%
- Revenue, trailing twelve months
- $3.93B
- Free cash flow, trailing twelve months
- $893M
- Net income, trailing twelve months
- $715M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 13%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.