Brown-Forman 1Q cash & cash equivalents $471M, est. $472.2M

Brown-Forman 1Q cash & cash equivalents $471M, est. $472.2M

Brown-Forman Corp. (BF.B) reported its first-quarter (1Q) cash and cash equivalents at $471 million, with an estimated $472.2 million for the next quarter. This financial update comes amidst a period of industry challenges and significant leadership changes within the company.

The stock price of Brown-Forman has been volatile, with a decline of 32.2% over the past year, compared to a 16.3% gain in the SPY ETF. The company's shares traded at $29.85 as of August 26, 2025, with a market capitalization of $14.30 billion. The stock's beta of 0.66 indicates a lower sensitivity to market movements compared to the broader market [1].

Brown-Forman's performance has been underwhelming in recent months, with a 11.4% decline over the past three months and a 2.2% drop in the last two weeks. Despite these challenges, the company has received mixed analyst ratings. RBC Capital maintained a hold rating, while J.P. Morgan kept a sell rating [1].

The company's financial health is assessed by a variety of key metrics. Brown-Forman has a gross profit margin of 58.9%, a return on assets of 10.7%, and a return on equity of 23.1%. The company's stock is valued at 16.32 times its earnings per share (EPS) and has a price-to-book ratio of 3.54. The company's earnings are expected to be reported on August 28, 2025 [2].

The recent announcement of the retirement of Leanne Cunningham, the company's Chief Financial Officer, has added an element of uncertainty to the company's future. Cunningham's departure after 30 years of service will require the company to appoint a new CFO, which could impact the company's strategic direction and financial planning [2].

In terms of market sentiment, the stock has a bearish outlook among investors, with a 48.63 Relative Strength Index (RSI) score indicating a potential sell signal. However, the stock's price has been trading within a narrow range of $29.98 to $30.25, suggesting a lack of significant volatility [2].

In conclusion, Brown-Forman's financial position and market outlook remain uncertain. The company's cash position is strong, but its stock price has been declining. The upcoming earnings report and the appointment of a new CFO will be critical in determining the company's future performance. Investors should closely monitor these developments and consider the company's long-term prospects before making investment decisions.

References:
[1] https://marketchameleon.com/Overview/BF.B/Summary/
[2] https://www.investing.com/equities/brown-forman-corp-a