Brown Forman Stock Piotroski F Score

BF-A Stock  USD 41.91  0.88  2.14%   
This module uses fundamental data of Brown Forman to approximate its Piotroski F score. Brown Forman F Score is determined by combining nine binary scores representing 3 distinct fundamental categories of Brown Forman. These three categories are profitability, efficiency, and funding. Some research analysts and sophisticated value traders use Piotroski F Score to find opportunities outside of the conventional market and financial statement analysis.They believe that some of the new information about Brown Forman financial position does not get reflected in the current market share price suggesting a possibility of arbitrage. Check out Brown Forman Altman Z Score, Brown Forman Correlation, Brown Forman Valuation, as well as analyze Brown Forman Alpha and Beta and Brown Forman Hype Analysis.
  
At present, Brown Forman's Short and Long Term Debt Total is projected to increase significantly based on the last few years of reporting. The current year's Net Debt is expected to grow to about 2.8 B, whereas Long Term Debt is forecasted to decline to about 2.1 B. At present, Brown Forman's Dividend Yield is projected to slightly decrease based on the last few years of reporting. The current year's Book Value Per Share is expected to grow to 7.75, whereas Price To Sales Ratio is forecasted to decline to 3.14.
At this time, it appears that Brown Forman's Piotroski F Score is Poor. Although some professional money managers and academia have recently criticized Piotroski F-Score model, we still consider it an effective method of predicting the state of the financial strength of any organization that is not predisposed to accounting gimmicks and manipulations. Using this score on the criteria to originate an efficient long-term portfolio can help investors filter out the purely speculative stocks or equities playing fundamental games by manipulating their earnings..
4.0
Piotroski F Score - Poor
Current Return On Assets

Positive

Focus
Change in Return on Assets

Decreased

Focus
Cash Flow Return on Assets

Positive

Focus
Current Quality of Earnings (accrual)

Decreasing

Focus
Asset Turnover Growth

Increase

Focus
Current Ratio Change

Decrease

Focus
Long Term Debt Over Assets Change

Lower Leverage

Focus
Change In Outstending Shares

Increase

Focus
Change in Gross Margin

No Change

Focus

Brown Forman Piotroski F Score Drivers

The critical factor to consider when applying the Piotroski F Score to Brown Forman is to make sure Brown is not a subject of accounting manipulations and runs a healthy internal audit department. So, if Brown Forman's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back. Below are the main accounts that are used in the Piotroski F Score model. By analyzing the historical trends of the mains drivers, investors can determine if Brown Forman's financial numbers are properly reported.
Current ValueLast YearChange From Last Year 10 Year Trend
Return On Assets0.10.1254
Significantly Down
Slightly volatile
Asset Turnover0.950.5116
Way Up
Slightly volatile
Gross Profit Margin0.50.6046
Significantly Down
Slightly volatile
Net Debt2.8 B2.7 B
Sufficiently Up
Slightly volatile
Total Current Liabilities1.6 B1.6 B
Sufficiently Up
Slightly volatile
Non Current Liabilities Total3.2 B3.1 B
Sufficiently Up
Slightly volatile
Total Assets8.6 B8.2 B
Sufficiently Up
Slightly volatile
Total Current Assets4.2 BB
Sufficiently Up
Slightly volatile
Total Cash From Operating Activities460.9 M647 M
Way Down
Slightly volatile

Brown Forman F Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to project the various growth rates. Understanding the correlation between Brown Forman's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Brown Forman in a much-optimized way.

About Brown Forman Piotroski F Score

F-Score is one of many stock grading techniques developed by Joseph Piotroski, a professor of accounting at the Stanford University Graduate School of Business. It was published in 2002 under the paper titled Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers. Piotroski F Score is based on binary analysis strategy in which stocks are given one point for passing 9 very simple fundamental tests, and zero point otherwise. According to Mr. Piotroski's analysis, his F-Score binary model can help to predict the performance of low price-to-book stocks.

Book Value Per Share

7.75

At present, Brown Forman's Book Value Per Share is projected to slightly grow based on the last few years of reporting.

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.

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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.