Brown-FormanLTS:0SGN 73 Operating Margin % is 25.00% as of Apr. 2026, which is 18% below its 10-year median of 30.58. GuruFocus rates LTS:0SGN with a GF Score™ of 73/100 and a GF Value™ of $47.94. The stock has 2 warning signs investors should review. Among 210 Beverages - Alcoholic companies, Brown-Forman ranks better than 94.76% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Brown-Forman's Operating Income for the
three
months ended in Apr. 2026 was $228 Mil. Brown-Forman's Revenue for the
three
months ended in Apr. 2026 was $912 Mil. Therefore, Brown-Forman's Operating Margin % for the quarter that ended in Apr. 2026 was 25.00%.
The historical rank and industry rank for Brown-Forman's Operating Margin % or its related term are showing as below:
LTS:0SGN'
s Operating Margin % Range Over the Past 10 Years
Min: 26.66 Med: 30.58 Max: 34.42
Current: 29.33
LTS:0SGN's Operating Margin % is ranked better than 94.76% of 210
companies
in the Beverages - Alcoholic industry
Industry Median: 7.915
vs LTS:0SGN: 29.33
Brown-Forman's 5-Year Average Operating Margin % Growth Rate was -0.30% per year.
Brown-Forman's Operating Income for the
three
months ended in Apr. 2026 was $228 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Apr. 2026 was $1,152 Mil.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Brown-Forman Operating Margin % Related Terms
Brown-Forman Operating Margin % Historical Data
* Premium members only.
The historical data trend for Brown-Forman's Operating 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.
LTS:0SGN vs AGCC, SNDL, MGPI: Operating Margin % Comparison
For the Beverages - Wineries & Distilleries subindustry, Brown-Forman's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Brown-Forman's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Brown-Forman's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Brown-Forman's Operating Margin % for the fiscal year that ended in Apr. 2026 is calculated as
* 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.
Brown-Forman (LTS:0SGN) has a Operating Margin % of 25.00% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Brown-Forman and its competitors. This is 18% below median its historical median of 30.58. Over the past decade, Brown-Forman's Operating Margin % has ranged from 26.66 to 34.42. According to the industry distribution chart, Brown-Forman ranks #11 out of 210 companies in the Beverages - Alcoholic industry, placing it in the top 5.2%.
Is Brown-Forman's Operating Margin % too high?
Brown-Forman's current Operating Margin % of 25.00% is 18% below median its 10-year median of 30.58. Over the past 10 years, this metric has ranged from a low of 26.66 to a high of 34.42. The Beverages - Alcoholic industry median Operating Margin % is 7.92. Brown-Forman's value of 25.00% is 215.9% above this industry median. Based on the distribution chart, Brown-Forman ranks #11 out of 210 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 73/100, reflecting its overall financial health beyond just this single metric.
How does Brown-Forman's Operating Margin % compare to AGCC and SNDL?
According to the Beverages - Alcoholic industry distribution chart, Brown-Forman ranks #11 out of 210 companies for Operating Margin %. This places Brown-Forman in the top 5% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 7.92. Brown-Forman's value of 25.00% is 215.9% above this benchmark. Historically, Brown-Forman's own Operating Margin % has ranged from 26.66 to 34.42 over the past decade. While the company's 10-year median is 30.58 vs. the industry median of 7.92, 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 Operating Margin % for a Beverages - Alcoholic company?
The median Operating Margin % among Beverages - Alcoholic companies is 7.92, based on 210 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Brown-Forman's current Operating Margin % of 25.00% is 215.9% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Brown-Forman and its competitors. For the Beverages - Alcoholic industry, the median Operating Margin % is 7.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Brown-Forman's current Operating Margin % is 25.00%, which is 18% below median its own 10-year median of 30.58. 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 (LTS:0SGN) has a current Operating Margin % of 25.00%. The stock's GF Value™ is $47.94, compared to a current price of $33.48 — trading 30.2% below its estimated fair value. The current Operating Margin % is 25.00%, which is 18% below median its 10-year median of 30.58 and 215.9% above the Beverages - Alcoholic industry median of 7.92. Brown-Forman's overall GF Score™ is 73/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Brown-Forman (LTS:0SGN), the current Operating Margin % is 25.00% 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 (LTS:0SGN) Overvalued in 2026?
Based on GuruFocus' analysis, Brown-Forman stock appears to be undervalued.
The current stock price of $33.48 is trading 30.2% below its estimated GF Value™ of $47.94.
Key valuation signals for LTS:0SGN:
Operating Margin %: 25.00% (18% below median its 10-year median of 30.58)
GF Value™: $47.94 vs. price of $33.48 (30.2% below fair value)
Industry Position: 215.9% above the Beverages - Alcoholic median (#11 of 210)
No single metric tells the full story. See the LTS:0SGN 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.
73GF Score
Get the complete analysis for LTS:0SGN
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
LTS:0SGN has been successfully added to your 
