Brown-FormanBSP:B1FC34 65 ROA % is 2.59% as of Apr. 2026, which is 81% below its 10-year median of 13.85. GuruFocus rates BSP:B1FC34 with a GF Score™ of 65/100 and a GF Value™ of R$197.41 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 214 Beverages - Alcoholic companies, Brown-Forman ranks better than 81.31% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Brown-Forman's annualizedNet Income for the quarter that ended in Apr. 2026 was R$1,087 Mil.
Brown-Forman's average Total Assets over the quarter that ended in Apr. 2026 was R$42,000 Mil. Therefore, Brown-Forman's annualized ROA % for the quarter that ended in Apr. 2026 was 2.59%.
The historical rank and industry rank for Brown-Forman's ROA % or its related term are showing as below:
BSP:B1FC34'
s ROA % Range Over the Past 10 Years
Min: 8.79 Med: 13.85 Max: 16.51
Current: 8.79
During the past 13 years, Brown-Forman's highest ROA % was 16.51%. The lowest was 8.79%. And the median was 13.85%.
BSP:B1FC34's ROA % is ranked better than 81.31% of 214
companies
in the Beverages - Alcoholic industry
Industry Median: 2.86
vs BSP:B1FC34: 8.79
Brown-Forman (BSP:B1FC34) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Apr. 2026) net income data. The Revenue data used here is four times the quarterly (Apr. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Brown-Forman ROA % Related Terms
Brown-Forman ROA % Historical Data
* Premium members only.
The historical data trend for Brown-Forman's ROA % 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.
For the Beverages - Wineries & Distilleries subindustry, Brown-Forman's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Brown-Forman's ROA % distribution charts can be found below:
* The bar in red indicates where Brown-Forman's ROA % 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Apr. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Brown-Forman (BSP:B1FC34) has a ROA % of 2.59% as of Apr. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Brown-Forman and its competitors. This is 81% below median its historical median of 13.85. Over the past decade, Brown-Forman's ROA % has ranged from 8.79 to 16.51. According to the industry distribution chart, Brown-Forman ranks #40 out of 214 companies in the Beverages - Alcoholic industry, placing it in the top 18.7%.
Is Brown-Forman's ROA % too high?
Brown-Forman's current ROA % of 2.59% is 81% below median its 10-year median of 13.85. Over the past 10 years, this metric has ranged from a low of 8.79 to a high of 16.51. The Beverages - Alcoholic industry median ROA % is 2.86. Brown-Forman's value of 2.59% is 9.4% below this industry median. Based on the distribution chart, Brown-Forman ranks #40 out of 214 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 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Brown-Forman's ROA % compare to MGPI and SNDL?
According to the Beverages - Alcoholic industry distribution chart, Brown-Forman ranks #40 out of 214 companies for ROA %. This places Brown-Forman in the top 19% of its industry — outperforming the majority of peers. The industry median ROA % is 2.86. Brown-Forman's value of 2.59% is 9.4% below this benchmark. Historically, Brown-Forman's own ROA % has ranged from 8.79 to 16.51 over the past decade. While the company's 10-year median is 13.85 vs. the industry median of 2.86, Brown-Forman has consistently been below 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 ROA % for a Beverages - Alcoholic company?
The median ROA % among Beverages - Alcoholic companies is 2.86, based on 214 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Brown-Forman's current ROA % of 2.59% is 9.4% below 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Brown-Forman and its competitors. For the Beverages - Alcoholic industry, the median ROA % is 2.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Brown-Forman's current ROA % is 2.59%, which is 81% below median its own 10-year median of 13.85. 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?
Based on GuruFocus' analysis, Brown-Forman (BSP:B1FC34) is currently considered Significantly Undervalued. The stock's GF Value™ is R$197.41, compared to a current price of R$136.67 — trading 30.8% below its estimated fair value. The current ROA % is 2.59%, which is 81% below median its 10-year median of 13.85 and 9.4% below the Beverages - Alcoholic industry median of 2.86. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Brown-Forman (BSP:B1FC34), the current ROA % is 2.59% 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 (BSP:B1FC34) Overvalued in 2026?
Based on GuruFocus' analysis, Brown-Forman stock appears to be undervalued.
The current stock price of R$136.67 is trading 30.8% below its estimated GF Value™ of R$197.41.
GuruFocus considers Brown-Forman to be Significantly Undervalued.
Key valuation signals for BSP:B1FC34:
ROA %: 2.59% (81% below median its 10-year median of 13.85)
GF Value™: R$197.41 vs. price of R$136.67 (30.8% below fair value)
Industry Position: 9.4% below the Beverages - Alcoholic median (#40 of 214)
No single metric tells the full story. See the BSP:B1FC34 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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