Brown-FormanMEX:BFB 65 Gross Margin % is 62.61% as of Apr. 2026, which is 3% above its 10-year median of 60.67. GuruFocus rates MEX:BFB with a GF Score™ of 65/100 and a GF Value™ of MXN697.44. The stock has 2 warning signs investors should review. Among 205 Beverages - Alcoholic companies, Brown-Forman ranks better than 82.93% on this metric.
The historical rank and industry rank for Brown-Forman's Gross Margin % or its related term are showing as below:
MEX:BFB'
s Gross Margin % Range Over the Past 10 Years
Min: 58.94 Med: 60.67 Max: 67.8
Current: 60.54
During the past 13 years, the highestGross Margin % of Brown-Forman was 67.80%. The lowest was 58.94%. And the median was 60.67%.
MEX:BFB's Gross Margin % is ranked better than 82.93% of 205
companies
in the Beverages - Alcoholic industry
Industry Median: 42.2
vs MEX:BFB: 60.54
Brown-Forman had a gross margin of 62.61% for the quarter that ended in Apr. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Brown-Forman was -0.20% per year.
Brown-Forman (MEX:BFB) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Brown-Forman had a gross margin of 62.61% for the quarter that ended in Apr. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Brown-Forman Gross Margin % Related Terms
Brown-Forman Gross Margin % Historical Data
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The historical data trend for Brown-Forman's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:BFB vs MGPI, SNDL, AGCC: Gross Margin % Comparison
For the Beverages - Wineries & Distilleries subindustry, Brown-Forman's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Brown-Forman Gross Margin % vs Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Brown-Forman's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Brown-Forman's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Brown-Forman (MEX:BFB) has a Gross Margin % of 62.61% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Brown-Forman and its competitors. This is near median its historical median of 60.67. Over the past decade, Brown-Forman's Gross Margin % has ranged from 58.94 to 67.80. According to the industry distribution chart, Brown-Forman ranks #35 out of 205 companies in the Beverages - Alcoholic industry, placing it in the top 17.1%.
Is Brown-Forman's Gross Margin % too high?
Brown-Forman's current Gross Margin % of 62.61% is near median its 10-year median of 60.67. Over the past 10 years, this metric has ranged from a low of 58.94 to a high of 67.80. The Beverages - Alcoholic industry median Gross Margin % is 42.20. Brown-Forman's value of 62.61% is 48.4% above this industry median. Based on the distribution chart, Brown-Forman ranks #35 out of 205 companies in the Beverages - Alcoholic industry, which is in the top quartile — a strong position relative to peers. Overall, Brown-Forman has a GF Score™ of 65/100, reflecting its overall financial health beyond just this single metric.
How does Brown-Forman's Gross Margin % compare to MGPI and SNDL?
According to the Beverages - Alcoholic industry distribution chart, Brown-Forman ranks #35 out of 205 companies for Gross Margin %. This places Brown-Forman in the top 17% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 42.20. Brown-Forman's value of 62.61% is 48.4% above this benchmark. Historically, Brown-Forman's own Gross Margin % has ranged from 58.94 to 67.80 over the past decade. While the company's 10-year median is 60.67 vs. the industry median of 42.20, Brown-Forman has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Beverages - Alcoholic company?
The median Gross Margin % among Beverages - Alcoholic companies is 42.20, based on 205 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Brown-Forman's current Gross Margin % of 62.61% is 48.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Brown-Forman and its competitors. For the Beverages - Alcoholic industry, the median Gross Margin % is 42.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Brown-Forman's current Gross Margin % is 62.61%, which is near median its own 10-year median of 60.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Brown-Forman stock overvalued right now?
Brown-Forman (MEX:BFB) has a current Gross Margin % of 62.61%. The stock's GF Value™ is MXN697.44, compared to a current price of MXN455.44 — trading 34.7% below its estimated fair value. The current Gross Margin % is 62.61%, which is near median its 10-year median of 60.67 and 48.4% above the Beverages - Alcoholic industry median of 42.20. Brown-Forman's overall GF Score™ is 65/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Brown-Forman (MEX:BFB), the current Gross Margin % is 62.61% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Brown-Forman (MEX:BFB) Overvalued in 2026?
Based on GuruFocus' analysis, Brown-Forman stock appears to be undervalued.
The current stock price of MXN455.44 is trading 34.7% below its estimated GF Value™ of MXN697.44.
Key valuation signals for MEX:BFB:
Gross Margin %: 62.61% (near median its 10-year median of 60.67)
GF Value™: MXN697.44 vs. price of MXN455.44 (34.7% below fair value)
Industry Position: 48.4% above the Beverages - Alcoholic median (#35 of 205)
No single metric tells the full story. See the MEX:BFB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Brown-Forman is a US-based manufacturer of premium distilled spirits. It generates over 70% of its revenue in the whiskey category, under well-known Tennessee whiskey brand Jack Daniel's and bourbon brands Woodford Reserve and Old Forester. It also manufactures and distributes tequila, vodka, rum, gin, and premium wines. The company generated 44% of fiscal 2025 sales from the US, while the bulk of international revenue comes from Europe, Australia, and Latin America. The Brown family controls over 50% of the economic interests and 67% of the voting power in the company.
65GF Score
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