Brown Forman Stock Return On Asset
| BF-B Stock | USD 48.69 0.56 1.16% |
Brown Forman fundamentals help investors to digest information that contributes to Brown Forman's financial success or failures. It also enables traders to predict the movement of Brown Stock. The fundamental analysis module provides a way to measure Brown Forman's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Brown Forman stock.
The current year's Return On Assets is expected to grow to 0.10. Brown | Return On Asset |
Brown Forman Company Return On Asset Analysis
Brown Forman's Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Current Brown Forman Return On Asset | 0.094 |
Most of Brown Forman's fundamental indicators, such as Return On Asset, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Brown Forman is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Brown Return On Asset Driver Correlations
Understanding the fundamental principles of building solid financial models for Brown Forman is extremely important. It helps to project a fair market value of Brown Stock properly, considering its historical fundamentals such as Return On Asset. Since Brown Forman's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Brown Forman's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Brown Forman's interrelated accounts and indicators.
Click cells to compare fundamentals
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
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Brown Total Assets
Total Assets |
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Based on the latest financial disclosure, Brown Forman has a Return On Asset of 0.094. This is 213.33% higher than that of the Beverages sector and significantly higher than that of the Consumer Staples industry. The return on asset for all United States stocks is 167.14% lower than that of the firm.
Brown Return On Asset Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Brown Forman's direct or indirect competition against its Return On Asset to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Brown Forman could also be used in its relative valuation, which is a method of valuing Brown Forman by comparing valuation metrics of similar companies.Brown Forman is currently under evaluation in return on asset category among related companies.
Brown Forman ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Brown Forman's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Brown Forman's managers, analysts, and investors.Environment Score | Governance Score | Social Score |
Brown Fundamentals
| Return On Equity | 0.31 | ||||
| Return On Asset | 0.094 | ||||
| Profit Margin | 0.23 % | ||||
| Operating Margin | 0.24 % | ||||
| Current Valuation | 25.56 B | ||||
| Shares Outstanding | 303.42 M | ||||
| Shares Owned By Insiders | 1.98 % | ||||
| Shares Owned By Institutions | 54.35 % | ||||
| Number Of Shares Shorted | 10.04 M | ||||
| Price To Earning | 38.67 X | ||||
| Price To Book | 7.20 X | ||||
| Price To Sales | 5.54 X | ||||
| Revenue | 4.23 B | ||||
| Gross Profit | 2.39 B | ||||
| EBITDA | 1.1 B | ||||
| Net Income | 783 M | ||||
| Cash And Equivalents | 899 M | ||||
| Cash Per Share | 1.88 X | ||||
| Total Debt | 2.91 B | ||||
| Debt To Equity | 0.80 % | ||||
| Current Ratio | 3.53 X | ||||
| Book Value Per Share | 6.87 X | ||||
| Cash Flow From Operations | 640 M | ||||
| Short Ratio | 5.32 X | ||||
| Earnings Per Share | 2.01 X | ||||
| Price To Earnings To Growth | 2.39 X | ||||
| Target Price | 58.08 | ||||
| Number Of Employees | 5.6 K | ||||
| Beta | 0.77 | ||||
| Market Capitalization | 22.97 B | ||||
| Total Asset | 7.78 B | ||||
| Retained Earnings | 3.64 B | ||||
| Working Capital | 2.72 B | ||||
| Current Asset | 2.53 B | ||||
| Current Liabilities | 904 M | ||||
| Annual Yield | 0.02 % | ||||
| Five Year Return | 1.09 % | ||||
| Net Asset | 7.78 B | ||||
| Last Dividend Paid | 0.83 |
About Brown Forman Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Brown Forman's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Brown Forman using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Brown Forman based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Brown Forman in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Brown Forman's short interest history, or implied volatility extrapolated from Brown Forman options trading.
Pair Trading with Brown Forman
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Brown Forman position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Brown Forman will appreciate offsetting losses from the drop in the long position's value.Moving together with Brown Stock
| 0.74 | VINE | Fresh Grapes LLC | PairCorr |
| 0.79 | WVVI | Willamette Valley | PairCorr |
| 0.61 | DEO | Diageo PLC ADR | PairCorr |
Moving against Brown Stock
| 0.86 | BG | Bunge Limited Financial Report 1st of May 2024 | PairCorr |
| 0.79 | KR | Kroger Company Financial Report 20th of June 2024 | PairCorr |
| 0.77 | STZ | Constellation Brands Financial Report 5th of July 2024 | PairCorr |
| 0.71 | LVMUY | LVMH Moet Hennessy | PairCorr |
| 0.71 | MO | Altria Group | PairCorr |
The ability to find closely correlated positions to Brown Forman could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Brown Forman when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Brown Forman - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Brown Forman to buy it.
The correlation of Brown Forman is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Brown Forman moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Brown Forman moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Brown Forman can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Brown Forman Piotroski F Score and Brown Forman Altman Z Score analysis. You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Complementary Tools for Brown Stock analysis
When running Brown Forman's price analysis, check to measure Brown Forman's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Brown Forman is operating at the current time. Most of Brown Forman's value examination focuses on studying past and present price action to predict the probability of Brown Forman's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Brown Forman's price. Additionally, you may evaluate how the addition of Brown Forman to your portfolios can decrease your overall portfolio volatility.
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