We assign a fundamental rating of 4 out of 10 to BC. BC was compared to 31 industry peers in the Leisure Products industry. There are concerns on the financial health of BC while its profitability can be described as average. BC has a correct valuation and a medium growth rate.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

BC had positive earnings in the past year.
BC had a positive operating cash flow in the past year.
BC had positive earnings in each of the past 5 years.
In the past 5 years BC always reported a positive cash flow from operatings.

1.2 Ratios

BC's Return On Assets of -4.41% is in line compared to the rest of the industry. BC outperforms 45.16% of its industry peers.
BC's Return On Equity of -14.60% is in line compared to the rest of the industry. BC outperforms 41.94% of its industry peers.
BC's Return On Invested Capital of 4.96% is fine compared to the rest of the industry. BC outperforms 64.52% of its industry peers.
BC had an Average Return On Invested Capital over the past 3 years of 11.29%. This is above the industry average of 7.35%.
The 3 year average ROIC (11.29%) for BC is well above the current ROIC(4.96%). The reason for the recent decline needs to be investigated.

		Industry Rank	Sector Rank
ROA	-4.41%
ROE	-14.6%
ROIC	4.96%

ROA(3y)6.58%

ROA(5y)8.11%

ROE(3y)20.05%

ROE(5y)23.17%

ROIC(3y)11.29%

ROIC(5y)12.56%

1.3 Margins

In the last couple of years the Profit Margin of BC has declined.
BC has a better Operating Margin (5.65%) than 70.97% of its industry peers.
BC's Operating Margin has declined in the last couple of years.
BC has a Gross Margin of 24.65%. This is in the lower half of the industry: BC underperforms 61.29% of its industry peers.
BC's Gross Margin has been stable in the last couple of years.

		Industry Rank	Sector Rank
OM	5.65%
PM (TTM)	N/A
GM	24.65%

OM growth 3Y-15.92%

OM growth 5Y-7.05%

PM growth 3Y-37.44%

PM growth 5YN/A

GM growth 3Y-2.7%

GM growth 5Y-0.86%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

BC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, BC has less shares outstanding
Compared to 5 years ago, BC has less shares outstanding
BC has a worse debt/assets ratio than last year.

2.2 Solvency

The Debt to FCF ratio of BC is 3.72, which is a good value as it means it would take BC, 3.72 years of fcf income to pay off all of its debts.
BC's Debt to FCF ratio of 3.72 is fine compared to the rest of the industry. BC outperforms 70.97% of its industry peers.
BC has a Debt/Equity ratio of 1.28. This is a high value indicating a heavy dependency on external financing.
BC has a worse Debt to Equity ratio (1.28) than 70.97% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	1.28
Debt/FCF	3.72
Altman-Z	N/A

ROIC/WACC0.57

WACC8.71%

2.3 Liquidity

BC has a Current Ratio of 1.78. This is a normal value and indicates that BC is financially healthy and should not expect problems in meeting its short term obligations.
BC has a Current ratio (1.78) which is comparable to the rest of the industry.
A Quick Ratio of 0.73 indicates that BC may have some problems paying its short term obligations.
The Quick ratio of BC (0.73) is worse than 70.97% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.78
Quick Ratio	0.73

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The earnings per share for BC have decreased strongly by -49.22% in the last year.
Measured over the past 5 years, BC shows a small growth in Earnings Per Share. The EPS has been growing by 1.13% on average per year.
The Revenue has decreased by -4.78% in the past year.
BC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.97% yearly.

EPS 1Y (TTM)-49.22%

EPS 3Y-18%

EPS 5Y1.13%

EPS Q2Q%-17.09%

Revenue 1Y (TTM)-4.78%

Revenue growth 3Y-3.6%

Revenue growth 5Y4.97%

Sales Q2Q%6.82%

3.2 Future

Based on estimates for the next years, BC will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.83% on average per year.
The Revenue is expected to grow by 4.51% on average over the next years.

EPS Next Y-26.52%

EPS Next 2Y-2.67%

EPS Next 3Y7.51%

EPS Next 5Y14.83%

Revenue Next Year1.81%

Revenue Next 2Y3.77%

Revenue Next 3Y4.5%

Revenue Next 5Y4.51%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 29.58 indicates a quite expensive valuation of BC.
The rest of the industry has a similar Price/Earnings ratio as BC.
When comparing the Price/Earnings ratio of BC to the average of the S&P500 Index (27.21), we can say BC is valued inline with the index average.
BC is valuated rather expensively with a Price/Forward Earnings ratio of 20.06.
BC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BC is cheaper than 67.74% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BC to the average of the S&P500 Index (24.26), we can say BC is valued inline with the index average.

		Industry Rank	Sector Rank
PE	29.58
Fwd PE	20.06

4.2 Price Multiples

64.52% of the companies in the same industry are more expensive than BC, based on the Enterprise Value to EBITDA ratio.
90.32% of the companies in the same industry are more expensive than BC, based on the Price/Free Cash Flow ratio.

		Industry Rank	Sector Rank
P/FCF	9.57
EV/EBITDA	12.99

4.3 Compensation for Growth

PEG (NY)N/A

PEG (5Y)26.08

EPS Next 2Y-2.67%

EPS Next 3Y7.51%

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5. Dividend

5.1 Amount

BC has a Yearly Dividend Yield of 1.94%. Purely for dividend investing, there may be better candidates out there.
BC's Dividend Yield is a higher than the industry average which is at 1.22.
BC's Dividend Yield is comparable with the S&P500 average which is at 1.82.

		Industry Rank	Sector Rank
Dividend Yield	1.94%

5.2 History

On average, the dividend of BC grows each year by 13.66%, which is quite nice.
BC has paid a dividend for at least 10 years, which is a reliable track record.
BC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.

Dividend Growth(5Y)13.66%

Div Incr Years12

Div Non Decr Years16

5.3 Sustainability

The earnings of BC are negative and hence is the payout ratio. BC will probably not be able to sustain this dividend level.
BC's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.

DP-47.09%

EPS Next 2Y-2.67%

EPS Next 3Y7.51%

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BRUNSWICK CORP / BC FAQ

What is the fundamental rating for BC stock?

ChartMill assigns a fundamental rating of 4 / 10 to BC.

What is the valuation status of BRUNSWICK CORP (BC) stock?

ChartMill assigns a valuation rating of 4 / 10 to BRUNSWICK CORP (BC). This can be considered as Fairly Valued.

How profitable is BRUNSWICK CORP (BC) stock?

BRUNSWICK CORP (BC) has a profitability rating of 5 / 10.

What is the valuation of BRUNSWICK CORP based on its PE and PB ratios?

The Price/Earnings (PE) ratio for BRUNSWICK CORP (BC) is 29.58 and the Price/Book (PB) ratio is 3.45.

What is the financial health of BRUNSWICK CORP (BC) stock?

The financial health rating of BRUNSWICK CORP (BC) is 3 / 10.