Brown-Forman: A Label On Bottles Can't Stop A Secular Trend

Jan. 09, 2025 5:39 AM ETBrown-Forman Corporation (BF.B) Stock, BF.A Stock1 Comment
Eugenio Catone profile picture
Eugenio Catone
3.16K Followers
(12min)

Summary

  • Brown-Forman's stock hasn't been this cheap since 2009.
  • Despite industry challenges, BF's long-term revenue and profit margins remain stable, indicating resilience and growth potential.
  • Warning labels on alcohol are unlikely to significantly impact demand, similar to the ineffectiveness of cigarette warnings.
  • Potential 50% tariffs on whiskey exports to Europe are a concern, but the current low valuation and strong dividend yield make the Company a compelling investment.

Abigail Letson/iStock via Getty Images

Since my last article on Brown-Forman (NYSE:BF.B) (NYSE:BF.A) the stock has lost about 25%, vastly underperforming the S&P500. At the time I considered it a buy, but after this collapse I have to change

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About BF.B Stock

SymbolLast Price% Chg
BF.B
35.99-0.66%
Post37.103.08%
Created with Highcharts 11.2.0Jan 3Jan 6Jan 7Jan 834363840
Market Cap
$16.92B
PE (FWD)
20.05
Yield
2.44%
Rev Growth (YoY)
-4.52%
Short Interest
7.59%
Prev. Close
$36.23
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