BRUNSWICK CORP (BC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BC - US1170431092 - Common Stock
85.67 USD
-0.99 (-1.14%)
85.67 USD
0 (0%)
Overall BC gets a fundamental rating of 4 out of 10. We evaluated BC against 30 industry peers in the Leisure Products industry. While BC is still in line with the averages on profitability rating, there are concerns on its financial health. BC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year BC was profitable.
- In the past year BC had a positive cash flow from operations.
- Each year in the past 5 years BC has been profitable.
- BC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- BC has a Return On Assets (-4.41%) which is comparable to the rest of the industry.
- The Return On Equity of BC (-14.60%) is worse than 60.00% of its industry peers.
- With a decent Return On Invested Capital value of 4.96%, BC is doing good in the industry, outperforming 63.33% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for BC is above the industry average of 7.61%.
- 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.
- Looking at the Operating Margin, with a value of 5.65%, BC is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
- In the last couple of years the Operating Margin of BC has declined.
- BC has a Gross Margin of 24.65%. This is in the lower half of the industry: BC underperforms 60.00% 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%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BC is still creating some value.
- Compared to 1 year ago, BC has less shares outstanding
- The number of shares outstanding for BC has been reduced compared to 5 years ago.
- The debt/assets ratio for BC is higher compared to a year ago.
2.2 Solvency
- BC has a debt to FCF ratio of 3.72. This is a good value and a sign of high solvency as BC would need 3.72 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 3.72, BC is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
- A Debt/Equity ratio of 1.28 is on the high side and indicates that BC has dependencies on debt financing.
- With a Debt to Equity ratio value of 1.28, BC is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 3.72 | ||
| Altman-Z | N/A |
ROIC/WACC0.54
WACC9.26%
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's Current ratio of 1.78 is in line compared to the rest of the industry. BC outperforms 43.33% of its industry peers.
- A Quick Ratio of 0.73 indicates that BC may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.73, BC is doing worse than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.78 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
- The earnings per share for BC have decreased strongly by -49.22% in the last year.
- BC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.13% yearly.
- The Revenue has decreased by -4.78% in the past year.
- Measured over the past years, BC shows a small growth in Revenue. The Revenue has been growing by 4.97% on average per year.
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
- The Earnings Per Share is expected to grow by 14.83% on average over the next years. This is quite good.
- Based on estimates for the next years, BC will show a small growth in Revenue. The Revenue will grow by 4.51% on average per year.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- BC is valuated quite expensively with a Price/Earnings ratio of 29.24.
- Compared to the rest of the industry, the Price/Earnings ratio of BC is on the same level as its industry peers.
- BC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.25.
- Based on the Price/Forward Earnings ratio of 19.83, the valuation of BC can be described as rather expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of BC indicates a somewhat cheap valuation: BC is cheaper than 66.67% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of BC to the average of the S&P500 Index (25.98), we can say BC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.24 | ||
| Fwd PE | 19.83 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, BC is valued a bit cheaper than 70.00% of the companies in the same industry.
- 90.00% 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 | 9.46 | ||
| EV/EBITDA | 12.73 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)25.78
EPS Next 2Y-2.67%
EPS Next 3Y7.51%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.96%, BC has a reasonable but not impressive dividend return.
- BC's Dividend Yield is a higher than the industry average which is at 1.27.
- Compared to an average S&P500 Dividend Yield of 1.82, BC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
5.2 History
- On average, the dividend of BC grows each year by 13.66%, which is quite nice.
- BC has been paying a dividend for at least 10 years, so it has 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
- BC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
- 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%
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 29.24 and the Price/Book (PB) ratio is 3.41.
What is the financial health of BRUNSWICK CORP (BC) stock?
The financial health rating of BRUNSWICK CORP (BC) is 3 / 10.