BRUNSWICK CORP (BC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BC - US1170431092 - Common Stock
87.57 USD
+0.83 (+0.96%)
87.57 USD
0 (0%)
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.
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.
BC had positive earnings in each of the past 5 years.
BC had a positive operating cash flow in each of the past 5 years.
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.
Measured over the past 3 years, the Average Return On Invested Capital for BC 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
BC's Profit Margin has declined in the last couple of years.
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.
Looking at the Gross Margin, with a value of 24.65%, BC is doing worse than 61.29% of the companies in the same industry.
In the last couple of years the Gross Margin of BC has remained more or less at the same level.
| 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
BC has less shares outstanding than it did 5 years ago.
BC has a worse debt/assets ratio than last year.
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 70.97% 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.
BC has a Debt to Equity ratio of 1.28. This is in the lower half of the industry: BC underperforms 70.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 3.72 | ||
| Altman-Z | N/A |
ROIC/WACC0.53
WACC9.33%
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 41.94% 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.
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 |
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.
BC shows a decrease in Revenue. In the last year, the revenue decreased by -4.78%.
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
BC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.83% yearly.
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-26.57%
EPS Next 2Y-3.25%
EPS Next 3Y5.65%
EPS Next 5Y14.83%
Revenue Next Year1.74%
Revenue Next 2Y3.63%
Revenue Next 3Y4.36%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 29.89, BC can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as BC.
BC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 20.52, which indicates a rather expensive current valuation of BC.
67.74% of the companies in the same industry are more expensive than BC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.88, BC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.89 | ||
| Fwd PE | 20.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BC is valued a bit cheaper than 64.52% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BC is valued cheaply inside the industry as 90.32% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.67 | ||
| EV/EBITDA | 12.85 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)26.35
EPS Next 2Y-3.25%
EPS Next 3Y5.65%
5. Dividend
5.1 Amount
BC has a Yearly Dividend Yield of 1.98%. 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 1.30.
Compared to an average S&P500 Dividend Yield of 1.90, BC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
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 their dividend for at least 10 years, which is a reliable track record.
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.
The dividend of BC is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP-47.09%
EPS Next 2Y-3.25%
EPS Next 3Y5.65%
87.57
+0.83 (+0.96%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners110.83%
Inst Owner Change0%
Ins Owners0.94%
Ins Owner Change0.54%
Market Cap5.70B
Revenue(TTM)5.18B
Net Income(TTM)-238.50M
Analysts75.71
Price Target77.59 (-11.4%)
Short Float %4.57%
Short Ratio3.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
Yearly Dividend1.67
Dividend Growth(5Y)13.66%
DP-47.09%
Div Incr Years12
Div Non Decr Years16
Ex-DateN/A
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)2.18%
PT rev (3m)12.65%
EPS NQ rev (1m)-0.1%
EPS NQ rev (3m)-14.24%
EPS NY rev (1m)0%
EPS NY rev (3m)0.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.51%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.89 | ||
| Fwd PE | 20.52 | ||
| P/S | 1.1 | ||
| P/FCF | 9.67 | ||
| P/OCF | 7.74 | ||
| P/B | 3.49 | ||
| P/tB | 64.8 | ||
| EV/EBITDA | 12.85 |
EPS(TTM)2.93
EY3.35%
EPS(NY)4.27
Fwd EY4.87%
FCF(TTM)9.05
FCFY10.34%
OCF(TTM)11.31
OCFY12.92%
SpS79.7
BVpS25.12
TBVpS1.35
PEG (NY)N/A
PEG (5Y)26.35
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
WACC9.33%
ROIC/WACC0.53
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-3.25%
EPS Next 3Y5.65%
EPS Next 5Y14.83%
Revenue 1Y (TTM)-4.78%
Revenue growth 3Y-3.6%
Revenue growth 5Y4.97%
Sales Q2Q%6.82%
Revenue Next Year1.74%
Revenue Next 2Y3.63%
Revenue Next 3Y4.36%
Revenue Next 5Y4.51%
EBIT growth 1Y-44.16%
EBIT growth 3Y-18.95%
EBIT growth 5Y-2.43%
EBIT Next Year29.1%
EBIT Next 3Y17.34%
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 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 29.89 and the Price/Book (PB) ratio is 3.49.
What is the financial health of BRUNSWICK CORP (BC) stock?
The financial health rating of BRUNSWICK CORP (BC) is 3 / 10.