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    BF-A  Brown Forman Corporation

    Exchange

    NYSE

    Sector

    Industry

    Market Cap.

    15.647B

    Potential Competitive Advantage over the past 10 years

    BF-A potentially has a competitive advantage. This could be strong branding, the ability to keep costs low, or some other characteristic that is hard to replicate. Look at its future prospects to determine sustainability and whether the economic moat will strengthen.

    $16.43 of every $100 of Revenue have been pure profit, on average over the past 10 years.
    Figures in USD. Fiscal year ends in April
    2003200420052006200720082009201020112012
    Net Income 245.00M 258.00M 308.00M 320.00M 389.00M 440.00M 435.00M 449.00M 572.00M 513.00M
    divided by
    Revenue 2.06B 2.21B 2.31B 1.98B 2.22B 2.58B 2.48B 2.47B 2.59B 2.72B
    Net Profit Margin 11.89% 11.66% 13.32% 16.19% 17.54% 17.04% 17.53% 18.19% 22.12% 18.84%

    Strong Pricing Power over the past 10 years

    BF-A has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

    $67.13 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
    Figures in USD. Fiscal year ends in April
    2003200420052006200720082009201020112012
    Gross Profit 1.18B 1.30B 1.40B 1.32B 1.48B 1.70B 1.58B 1.61B 1.72B 2.72B
    divided by
    Revenue 2.06B 2.21B 2.31B 1.98B 2.22B 2.58B 2.48B 2.47B 2.59B 2.72B
    Gross Margin 57.38% 58.65% 60.55% 66.85% 66.77% 65.65% 63.56% 65.25% 66.67% 100.00%

    Low Capital Intensity over the past 10 years

    BF-A has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that BF-A may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

    16.03% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
    Figures in USD. Fiscal year ends in April
    2003200420052006200720082009201020112012
    Capital Expenditure 127.00M 56.00M 49.00M 53.00M 92.00M 66.00M 5.00M 3.00M 3.00M 68.00M
    divided by
    Net Income 245.00M 258.00M 308.00M 320.00M 389.00M 440.00M 435.00M 449.00M 572.00M 513.00M
    Capital Expenditure Ratio 51.84% 21.71% 15.91% 16.56% 23.65% 15.00% 1.15% 0.67% 0.52% 13.26%