BRUNSWICK CORP (BC) Stock Fundamental Analysis
NYSE:BC - New York Stock Exchange, Inc. - US1170431092 - Common Stock - Currency: USD
BC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 30 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 is not valued too expensively and it also shows a decent growth rate. Finally BC also has an excellent dividend rating.
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's Return On Assets of 2.29% is fine compared to the rest of the industry. BC outperforms 70.00% of its industry peers.
BC's Return On Equity of 6.88% is fine compared to the rest of the industry. BC outperforms 66.67% of its industry peers.
BC has a Return On Invested Capital of 7.01%. This is in the better half of the industry: BC outperforms 73.33% 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 8.15%.
The last Return On Invested Capital (7.01%) 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 | 2.29% | ||
| ROE | 6.88% | ||
| ROIC | 7.01% |
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
BC has a better Profit Margin (2.48%) than 70.00% of its industry peers.
BC's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 8.27%, BC belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
In the last couple of years the Operating Margin of BC has declined.
Looking at the Gross Margin, with a value of 25.79%, BC is doing worse than 63.33% 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 | 8.27% | ||
| PM (TTM) | 2.48% | ||
| GM | 25.79% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BC is creating some value.
BC has less shares outstanding than it did 1 year ago.
BC has less shares outstanding than it did 5 years ago.
BC has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.70 indicates that BC is not a great score, but indicates only limited risk for bankruptcy at the moment.
BC's Altman-Z score of 2.70 is fine compared to the rest of the industry. BC outperforms 63.33% of its industry peers.
BC has a debt to FCF ratio of 8.87. This is a slightly negative value and a sign of low solvency as BC would need 8.87 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.87, BC is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Debt/Equity ratio of 1.11 is on the high side and indicates that BC has dependencies on debt financing.
BC has a Debt to Equity ratio of 1.11. This is in the lower half of the industry: BC underperforms 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 8.87 | ||
| Altman-Z | 2.7 |
ROIC/WACC0.91
WACC7.66%
2.3 Liquidity
BC has a Current Ratio of 1.65. This is a normal value and indicates that BC is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.65, BC is doing worse than 66.67% of the companies in the same industry.
BC has a Quick Ratio of 1.65. 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 0.63. This is in the lower half of the industry: BC underperforms 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.65 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
The earnings per share for BC have decreased strongly by -48.12% 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.
Looking at the last year, BC shows a very negative growth in Revenue. The Revenue has decreased by -18.19% in the last 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)-48.12%
EPS 3Y-18%
EPS 5Y1.13%
EPS Q2Q%-83.45%
Revenue 1Y (TTM)-18.19%
Revenue growth 3Y-3.6%
Revenue growth 5Y4.97%
Sales Q2Q%-15.2%
3.2 Future
Based on estimates for the next years, BC will show a very strong growth in Earnings Per Share. The EPS will grow by 21.50% on average per year.
BC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.38% yearly.
EPS Next Y-11.18%
EPS Next 2Y7.78%
EPS Next 3Y13.37%
EPS Next 5Y21.5%
Revenue Next Year3.28%
Revenue Next 2Y4.42%
Revenue Next 3Y4.81%
Revenue Next 5Y4.38%
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
With a Price/Earnings ratio of 9.61, the valuation of BC can be described as very reasonable.
90.00% of the companies in the same industry are more expensive than BC, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.29. BC is valued rather cheaply when compared to this.
BC is valuated reasonably with a Price/Forward Earnings ratio of 10.81.
Based on the Price/Forward Earnings ratio, BC is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.08. BC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.61 | ||
| Fwd PE | 10.81 |
4.2 Price Multiples
BC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BC is cheaper than 80.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BC indicates a somewhat cheap valuation: BC is cheaper than 80.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.94 | ||
| EV/EBITDA | 6.86 |
4.3 Compensation for Growth
The decent profitability rating of BC may justify a higher PE ratio.
BC's earnings are expected to grow with 13.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)8.47
EPS Next 2Y7.78%
EPS Next 3Y13.37%
5. Dividend
5.1 Amount
BC has a Yearly Dividend Yield of 3.93%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of BC has falen by -35.06%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 4.91, BC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.52, BC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.93% |
5.2 History
The dividend of BC is nicely growing with an annual growth rate of 13.66%!
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
BC pays out 86.32% of its income as dividend. This is not a sustainable payout ratio.
BC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP86.32%
EPS Next 2Y7.78%
EPS Next 3Y13.37%
43.8
+0.46 (+1.06%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners104.85%
Inst Owner Change0.17%
Ins Owners0.85%
Ins Owner Change3.72%
Market Cap2.89B
Analysts76.92
Price Target80.31 (83.36%)
Short Float %5.88%
Short Ratio4.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.93% |
Yearly Dividend1.67
Dividend Growth(5Y)13.66%
DP86.32%
Div Incr Years12
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.23%
Min EPS beat(2)-5.65%
Max EPS beat(2)10.1%
EPS beat(4)1
Avg EPS beat(4)-1.65%
Min EPS beat(4)-8.11%
Max EPS beat(4)10.1%
EPS beat(8)2
Avg EPS beat(8)-3.13%
EPS beat(12)4
Avg EPS beat(12)-1.83%
EPS beat(16)8
Avg EPS beat(16)2.95%
Revenue beat(2)1
Avg Revenue beat(2)1.19%
Min Revenue beat(2)-4.26%
Max Revenue beat(2)6.64%
Revenue beat(4)1
Avg Revenue beat(4)-2.57%
Min Revenue beat(4)-9.76%
Max Revenue beat(4)6.64%
Revenue beat(8)1
Avg Revenue beat(8)-4.11%
Revenue beat(12)2
Avg Revenue beat(12)-4.06%
Revenue beat(16)5
Avg Revenue beat(16)-2.17%
PT rev (1m)0%
PT rev (3m)-9.14%
EPS NQ rev (1m)-4.19%
EPS NQ rev (3m)-78.63%
EPS NY rev (1m)-4.59%
EPS NY rev (3m)-25.64%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)-13.77%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.61 | ||
| Fwd PE | 10.81 | ||
| P/S | 0.55 | ||
| P/FCF | 10.94 | ||
| P/OCF | 6.69 | ||
| P/B | 1.53 | ||
| P/tB | 365.43 | ||
| EV/EBITDA | 6.86 |
EPS(TTM)4.56
EY10.41%
EPS(NY)4.05
Fwd EY9.25%
FCF(TTM)4.01
FCFY9.14%
OCF(TTM)6.55
OCFY14.94%
SpS79.46
BVpS28.71
TBVpS0.12
PEG (NY)N/A
PEG (5Y)8.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.29% | ||
| ROE | 6.88% | ||
| ROCE | 9.85% | ||
| ROIC | 7.01% | ||
| ROICexc | 7.46% | ||
| ROICexgc | 13.73% | ||
| OM | 8.27% | ||
| PM (TTM) | 2.48% | ||
| GM | 25.79% | ||
| FCFM | 5.04% |
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%
ROICexcg growth 3Y-26.29%
ROICexcg 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 Turnover0.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 8.87 | ||
| Debt/EBITDA | 2.91 | ||
| Cap/Depr | 57.96% | ||
| Cap/Sales | 3.2% | ||
| Interest Coverage | 3.09 | ||
| Cash Conversion | 59.74% | ||
| Profit Quality | 202.92% | ||
| Current Ratio | 1.65 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 2.7 |
F-Score5
WACC7.66%
ROIC/WACC0.91
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)-48.12%
EPS 3Y-18%
EPS 5Y1.13%
EPS Q2Q%-83.45%
EPS Next Y-11.18%
EPS Next 2Y7.78%
EPS Next 3Y13.37%
EPS Next 5Y21.5%
Revenue 1Y (TTM)-18.19%
Revenue growth 3Y-3.6%
Revenue growth 5Y4.97%
Sales Q2Q%-15.2%
Revenue Next Year3.28%
Revenue Next 2Y4.42%
Revenue Next 3Y4.81%
Revenue Next 5Y4.38%
EBIT growth 1Y-45.12%
EBIT growth 3Y-18.95%
EBIT growth 5Y-2.43%
EBIT Next Year44.99%
EBIT Next 3Y23.04%
EBIT Next 5Y22.27%
FCF growth 1Y-40.58%
FCF growth 3Y-4.9%
FCF growth 5Y5.54%
OCF growth 1Y-41.19%
OCF growth 3Y-9.08%
OCF growth 5Y-0.13%