BRUNSWICK CORP (BC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BC - US1170431092 - Common Stock
74 USD
-0.56 (-0.75%)
74 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to BC. BC was compared to 32 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
BC had positive earnings in the past year.
In the past year BC had a positive cash flow from operations.
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 has a Return On Assets (-4.41%) which is in line with its industry peers.
BC has a Return On Equity (-14.60%) which is comparable to the rest of the industry.
BC's Return On Invested Capital of 4.96% is fine compared to the rest of the industry. BC outperforms 68.75% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BC is above the industry average of 7.09%.
The last Return On Invested Capital (4.96%) for BC is well below the 3 year average (11.29%), which needs to be investigated, but indicates that BC had better years and this may not be a problem.
| 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 75.00% of its industry peers.
In the last couple of years the Operating Margin of BC has declined.
Looking at the Gross Margin, with a value of 24.65%, BC is doing worse than 65.63% of the companies in the same industry.
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.
BC has less shares outstanding than it did 1 year ago.
The number of shares outstanding for BC has been reduced compared to 5 years ago.
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 68.75% 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.
With a Debt to Equity ratio value of 1.28, BC is not doing good in the industry: 78.13% 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/WACC0.48
WACC10.34%
2.3 Liquidity
A Current Ratio of 1.78 indicates that BC should not have too much problems paying its short term obligations.
The Current ratio of BC (1.78) is worse than 62.50% of its industry peers.
BC has a Quick Ratio of 1.78. This is a bad value and indicates that BC is not financially healthy enough and could expect problems in meeting its short term obligations.
BC has a Quick ratio of 0.73. This is in the lower half of the industry: BC underperforms 75.00% of its industry peers.
| 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.
Looking at the last year, BC shows a decrease in Revenue. The Revenue has decreased by -4.78% in the last year.
The Revenue has been growing slightly by 4.97% on average over the past years.
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.
BC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.51% yearly.
EPS Next Y-26.57%
EPS Next 2Y-3.48%
EPS Next 3Y5.07%
EPS Next 5Y14.83%
Revenue Next Year1.72%
Revenue Next 2Y3.58%
Revenue Next 3Y4.17%
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
Based on the Price/Earnings ratio of 25.26, the valuation of BC can be described as expensive.
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 (26.43), we can say BC is valued inline with the index average.
With a Price/Forward Earnings ratio of 17.42, BC is valued on the expensive side.
Based on the Price/Forward Earnings ratio, BC is valued a bit cheaper than 71.88% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.66. BC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.26 | ||
| Fwd PE | 17.42 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BC indicates a somewhat cheap valuation: BC is cheaper than 71.88% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BC indicates a rather cheap valuation: BC is cheaper than 90.63% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.17 | ||
| EV/EBITDA | 11.44 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)22.27
EPS Next 2Y-3.48%
EPS Next 3Y5.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.30%, BC has a reasonable but not impressive dividend return.
BC's Dividend Yield is a higher than the industry average which is at 1.54.
Compared to an average S&P500 Dividend Yield of 1.87, BC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
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-3.48%
EPS Next 3Y5.07%
74
-0.56 (-0.75%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners111.04%
Inst Owner Change-0.15%
Ins Owners0.94%
Ins Owner Change0.54%
Market Cap4.81B
Revenue(TTM)5.18B
Net Income(TTM)-238.50M
Analysts75.56
Price Target75.93 (2.61%)
Short Float %4.83%
Short Ratio3.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
Yearly Dividend1.67
Dividend Growth(5Y)13.66%
DP-47.09%
Div Incr Years12
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.81%
Min EPS beat(2)10.64%
Max EPS beat(2)18.98%
EPS beat(4)4
Avg EPS beat(4)44.16%
Min EPS beat(4)10.1%
Max EPS beat(4)136.9%
EPS beat(8)4
Avg EPS beat(8)18.17%
EPS beat(12)5
Avg EPS beat(12)11.62%
EPS beat(16)8
Avg EPS beat(16)9.25%
Revenue beat(2)2
Avg Revenue beat(2)8.79%
Min Revenue beat(2)4.71%
Max Revenue beat(2)12.87%
Revenue beat(4)4
Avg Revenue beat(4)7.27%
Min Revenue beat(4)4.71%
Max Revenue beat(4)12.87%
Revenue beat(8)4
Avg Revenue beat(8)0.51%
Revenue beat(12)4
Avg Revenue beat(12)-1.51%
Revenue beat(16)6
Avg Revenue beat(16)-1.59%
PT rev (1m)1.28%
PT rev (3m)10.25%
EPS NQ rev (1m)-3.06%
EPS NQ rev (3m)-14.15%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)1.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.51%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.26 | ||
| Fwd PE | 17.42 | ||
| P/S | 0.93 | ||
| P/FCF | 8.17 | ||
| P/OCF | 6.54 | ||
| P/B | 2.95 | ||
| P/tB | 54.75 | ||
| EV/EBITDA | 11.44 |
EPS(TTM)2.93
EY3.96%
EPS(NY)4.25
Fwd EY5.74%
FCF(TTM)9.05
FCFY12.23%
OCF(TTM)11.31
OCFY15.28%
SpS79.7
BVpS25.12
TBVpS1.35
PEG (NY)N/A
PEG (5Y)22.27
Graham Number40.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.41% | ||
| ROE | -14.6% | ||
| ROCE | 6.97% | ||
| ROIC | 4.96% | ||
| ROICexc | 5.34% | ||
| ROICexgc | 8.84% | ||
| OM | 5.65% | ||
| PM (TTM) | N/A | ||
| GM | 24.65% | ||
| FCFM | 11.36% |
ROA(3y)6.58%
ROA(5y)8.11%
ROE(3y)20.05%
ROE(5y)23.17%
ROIC(3y)11.29%
ROIC(5y)12.56%
ROICexc(3y)12.61%
ROICexc(5y)14.42%
ROICexgc(3y)24.11%
ROICexgc(5y)28.09%
ROCE(3y)15.87%
ROCE(5y)17.66%
ROICexgc growth 3Y-26.29%
ROICexgc growth 5Y-12.51%
ROICexc growth 3Y-22.36%
ROICexc growth 5Y-13.21%
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%
F-Score5
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 3.72 | ||
| Debt/EBITDA | 3.58 | ||
| Cap/Depr | 49.98% | ||
| Cap/Sales | 2.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 125.44% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.78 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | N/A |
F-Score5
WACC10.34%
ROIC/WACC0.48
Cap/Depr(3y)110.64%
Cap/Depr(5y)120.16%
Cap/Sales(3y)4.47%
Cap/Sales(5y)4.44%
Profit Quality(3y)112.61%
Profit Quality(5y)110.96%
High Growth Momentum
Growth
EPS 1Y (TTM)-49.22%
EPS 3Y-18%
EPS 5Y1.13%
EPS Q2Q%-17.09%
EPS Next Y-26.57%
EPS Next 2Y-3.48%
EPS Next 3Y5.07%
EPS Next 5Y14.83%
Revenue 1Y (TTM)-4.78%
Revenue growth 3Y-3.6%
Revenue growth 5Y4.97%
Sales Q2Q%6.82%
Revenue Next Year1.72%
Revenue Next 2Y3.58%
Revenue Next 3Y4.17%
Revenue Next 5Y4.51%
EBIT growth 1Y-44.16%
EBIT growth 3Y-18.95%
EBIT growth 5Y-2.43%
EBIT Next Year29.13%
EBIT Next 3Y16.46%
EBIT Next 5Y15.06%
FCF growth 1Y46.14%
FCF growth 3Y-4.9%
FCF growth 5Y5.54%
OCF growth 1Y1.46%
OCF growth 3Y-9.08%
OCF growth 5Y-0.13%
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 for 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 financial health of BRUNSWICK CORP (BC) stock?
The financial health rating of BRUNSWICK CORP (BC) is 3 / 10.
Can you provide the dividend sustainability for BC stock?
The dividend rating of BRUNSWICK CORP (BC) is 6 / 10 and the dividend payout ratio is -47.09%.