As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Brown-Forman Corporation (NYSE:BF.B), it is a financially-sound , dividend-paying company with an impressive track record of performance. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Brown-Forman here.
Adequate balance sheet with proven track record and pays a dividend
In the previous year, BF.B has ramped up its bottom line by 11%, with its latest earnings level surpassing its average level over the last five years. Not only did BF.B outperformed its past performance, its growth also exceeded the Beverage industry expansion, which generated a -1.9% earnings growth. This is an notable feat for the company. BF.B's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. BF.B appears to have made good use of debt, producing operating cash levels of 0.3x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For those seeking income streams from their portfolio, BF.B is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 1.1%.
For Brown-Forman, there are three pertinent factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for BF.B’s future growth? Take a look at our free research report of analyst consensus for BF.B’s outlook.
- Valuation: What is BF.B worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether BF.B is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of BF.B? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.