Operating Margin

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Price: 28.16 USD 2.51% Market Closed

Market Cap: 13.4B USD

29.6%

Improving

by 1.3%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

29.6%

Operating Income

$1.2B

Revenue

$3.9B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

29.6%

Operating Income

$1.2B

Revenue

$3.9B

Peer Comparison

Country		Company	Market Cap	Operating Margin
US		Brown-Forman Corp NYSE:BF.B	13.1B USD	Loading...
UK		Diageo PLC LSE:DGE	37.2B GBP	Loading...
CN		Kweichow Moutai Co Ltd SSE:600519	1.7T CNY	Loading...
CN		Wuliangye Yibin Co Ltd SZSE:000858	400.4B CNY	Loading...
ZA	D	Distell Group Holdings Ltd JSE:DGH	40.7B Zac	Loading...
CN		Shanxi Xinghuacun Fen Wine Factory Co Ltd SSE:600809	204B CNY	Loading...
US		Constellation Brands Inc NYSE:STZ	28.3B USD	Loading...
CN		Luzhou Laojiao Co Ltd SZSE:000568	166.8B CNY	Loading...
FR		Pernod Ricard SA PAR:RI	19.2B EUR	Loading...
CN		Jiangsu Yanghe Brewery Joint-Stock Co Ltd SZSE:002304	96.7B CNY	Loading...
IN		United Spirits Ltd NSE:MCDOWELL-N	960.1B INR	Loading...

Market Distribution

Min	-4 087 900%
30th Percentile	-5.1%
Median	6%
70th Percentile	14.8%
Max	1 032 600%

Other Profitability Ratios

Brown-Forman Corp
Glance View

Economic Moat

None

Market Cap

13.4B USD

Industry

Beverages

In the tapestry of the global spirits industry, Brown-Forman Corp. stands out as a storied entity weaving a narrative of legacy, innovation, and strategic prowess. Founded in 1870 and headquartered in Louisville, Kentucky, the company began its journey with the creation of Old Forester, the first bottled bourbon. This foundation of authenticity and dedication to quality has allowed Brown-Forman to expand its suite of brands over the decades. Today, it is behind some of the most iconic names in the spirits world, such as Jack Daniel’s, Finlandia Vodka, and Woodford Reserve, to name a few. These brands not only represent a commitment to heritage and craftsmanship but also signify Brown-Forman's ability to consistently adapt and respond to changing consumer preferences and market dynamics, including the burgeoning demand for premium spirits and experiences. Brown-Forman's business model is built on a robust and vertically integrated supply chain, which ensures control over production, distribution, and ultimately, brand integrity. The company makes its money by carefully managing this supply chain and leveraging its strong portfolio of brands across an extensive global distribution network. By owning key aspects of production, from sourcing ingredients to distilling and aging, Brown-Forman maintains quality assurance while enhancing cost efficiencies. Furthermore, strategic marketing and brand management, coupled with a savvy expansion into international markets, ensure that its products resonate with consumers worldwide. This strategy results in a resilient revenue stream comprising primarily of spirits sales, propelled by sustained consumer loyalty and recognition. With a focus on sustained growth and innovation, Brown-Forman continues to thrive in the dynamic alcoholic beverage landscape.

View BF.A Analysis

BF.A Intrinsic Value

Undervaluation 22%

Intrinsic Value

Price

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Brown-Forman Corp
NYSE:BF.A

Peer Comparison

Market Distribution

Other Profitability Ratios

Brown-Forman Corp
Glance View

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Brown-Forman Corp NYSE:BF.A