Brown Forman Stock Buy Hold or Sell Recommendation
| BF-A Stock | USD 41.10 0.23 0.56% |
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Brown Forman is 'Hold'. Macroaxis provides Brown Forman buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding BF-A positions.
Check out Brown Forman Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. In addition, we conduct extensive research on individual companies such as Brown and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Brown Forman. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
Brown |
Execute Brown Forman Buy or Sell Advice
The Brown recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Brown Forman. Macroaxis does not own or have any residual interests in Brown Forman or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Brown Forman's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Brown Forman Trading Alerts and Improvement Suggestions
| Brown Forman generated a negative expected return over the last 90 days | |
| Brown Forman has high financial leverage indicating that it may have difficulties to generate enough cash to satisfy its financial obligations | |
| Brown Forman has a poor financial position based on the latest SEC disclosures | |
| About 74.0% of the company shares are held by company insiders | |
| On 1st of October 2024 Brown Forman paid $ 0.2178 per share dividend to its current shareholders |
Brown Forman Returns Distribution Density
The distribution of Brown Forman's historical returns is an attempt to chart the uncertainty of Brown Forman's future price movements. The chart of the probability distribution of Brown Forman daily returns describes the distribution of returns around its average expected value. We use Brown Forman price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Brown Forman returns is essential to provide solid investment advice for Brown Forman.
| Mean Return | -0.15 | Value At Risk | -2.63 | Potential Upside | 2.14 | Standard Deviation | 1.61 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Brown Forman historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Brown Forman Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Brown Forman or Beverages sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Brown Forman's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Brown stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | -0.17 | |
β | Beta against Dow Jones | 0.05 | |
σ | Overall volatility | 1.61 | |
Ir | Information ratio | -0.17 |
Brown Forman Volatility Alert
Brown Forman exhibits very low volatility with skewness of -0.74 and kurtosis of 1.25. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Brown Forman's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Brown Forman's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Brown Forman Fundamentals Vs Peers
Comparing Brown Forman's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Brown Forman's direct or indirect competition across all of the common fundamentals between Brown Forman and the related equities. This way, we can detect undervalued stocks with similar characteristics as Brown Forman or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Brown Forman's fundamental indicators could also be used in its relative valuation, which is a method of valuing Brown Forman by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Brown Forman to competition |
| Fundamentals | Brown Forman | Peer Average |
| Return On Equity | 0.29 | -0.31 |
| Return On Asset | 0.0852 | -0.14 |
| Profit Margin | 0.24 % | (1.27) % |
| Operating Margin | 0.30 % | (5.51) % |
| Current Valuation | 22.22 B | 16.62 B |
| Shares Outstanding | 169.12 M | 571.82 M |
| Shares Owned By Insiders | 74.20 % | 10.09 % |
| Shares Owned By Institutions | 11.28 % | 39.21 % |
| Number Of Shares Shorted | 256.64 K | 4.71 M |
| Price To Earning | 35.39 X | 28.72 X |
| Price To Book | 5.58 X | 9.51 X |
| Price To Sales | 4.76 X | 11.42 X |
| Revenue | 4.18 B | 9.43 B |
| Gross Profit | 2.39 B | 27.38 B |
| EBITDA | 1.51 B | 3.9 B |
| Net Income | 1.02 B | 570.98 M |
| Cash And Equivalents | 307 M | 2.7 B |
| Cash Per Share | 0.64 X | 5.01 X |
| Total Debt | 3.1 B | 5.32 B |
| Debt To Equity | 152.50 % | 48.70 % |
| Current Ratio | 3.27 X | 2.16 X |
| Book Value Per Share | 7.33 X | 1.93 K |
| Cash Flow From Operations | 647 M | 971.22 M |
| Short Ratio | 2.83 X | 4.00 X |
| Earnings Per Share | 2.07 X | 3.12 X |
| Price To Earnings To Growth | 4.30 X | 4.89 X |
| Number Of Employees | 5.7 K | 18.84 K |
| Beta | 0.76 | -0.15 |
| Market Capitalization | 19.47 B | 19.03 B |
| Total Asset | 8.17 B | 29.47 B |
| Retained Earnings | 4.26 B | 9.33 B |
| Working Capital | 2.48 B | 1.48 B |
| Annual Yield | 0.02 % |
Note: Disposition of 49500 shares by Brown Stuart R of Brown Forman subject to Rule 16b-3 [view details]
Brown Forman Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Brown . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Brown Forman Buy or Sell Advice
When is the right time to buy or sell Brown Forman? Buying financial instruments such as Brown Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
Use Investing Ideas to Build Portfolios
In addition to having Brown Forman in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Aggressive Funds Thematic Idea Now
Aggressive Funds
Funds or Etfs that attempt to achieve high capital gains by investing in companies with high growth potential and above average risk. The Aggressive Funds theme has 48 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Aggressive Funds Theme or any other thematic opportunities.
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Other Information on Investing in Brown Stock
Brown Forman financial ratios help investors to determine whether Brown Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Brown with respect to the benefits of owning Brown Forman security.