BRUNSWICK CORP (BC) Stock Fundamental Analysis
NYSE:BC - New York Stock Exchange, Inc. - US1170431092 - Common Stock
BC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 30 industry peers in the Leisure Products industry. BC has an excellent profitability rating, but there are concerns on its financial health. BC has a valuation in line with the averages, but it does not seem to be growing.
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.
Of the past 5 years BC 4 years were profitable.
Each year in the past 5 years BC had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.54%, BC is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
BC has a Return On Equity of 13.44%. This is in the better half of the industry: BC outperforms 80.00% of its industry peers.
The Return On Invested Capital of BC (8.06%) is better than 76.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BC is significantly above the industry average of 8.25%.
The last Return On Invested Capital (8.06%) for BC is well below the 3 year average (14.41%), which needs to be investigated, but indicates that BC had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.54% | ||
| ROE | 13.44% | ||
| ROIC | 8.06% |
ROA(3y)9.46%
ROA(5y)6.92%
ROE(3y)28.09%
ROE(5y)19.78%
ROIC(3y)14.41%
ROIC(5y)14.44%
1.3 Margins
BC has a Profit Margin of 5.02%. This is in the better half of the industry: BC outperforms 76.67% of its industry peers.
BC's Profit Margin has been stable in the last couple of years.
BC has a Operating Margin of 9.63%. This is amongst the best in the industry. BC outperforms 86.67% of its industry peers.
BC's Operating Margin has improved in the last couple of years.
BC has a worse Gross Margin (26.85%) than 63.33% of its industry peers.
BC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.63% | ||
| PM (TTM) | 5.02% | ||
| GM | 26.85% |
OM growth 3Y-0.54%
OM growth 5Y4.08%
PM growth 3Y-8.5%
PM growth 5Y0.4%
GM growth 3Y0.05%
GM growth 5Y2.57%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), BC is creating value.
The number of shares outstanding for BC has been reduced compared to 1 year ago.
The number of shares outstanding for BC has been reduced compared to 5 years ago.
BC has a better debt/assets ratio than last year.
2.2 Solvency
BC has an Altman-Z score of 2.96. This is not the best score and indicates that BC is in the grey zone with still only limited risk for bankruptcy at the moment.
BC has a better Altman-Z score (2.96) than 63.33% of its industry peers.
BC has a debt to FCF ratio of 11.96. This is a negative value and a sign of low solvency as BC would need 11.96 years to pay back of all of its debts.
With a Debt to FCF ratio value of 11.96, BC is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
A Debt/Equity ratio of 1.17 is on the high side and indicates that BC has dependencies on debt financing.
The Debt to Equity ratio of BC (1.17) is worse than 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 11.96 | ||
| Altman-Z | 2.96 |
ROIC/WACC1.04
WACC7.75%
2.3 Liquidity
BC has a Current Ratio of 1.97. 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 of 1.97. This is comparable to the rest of the industry: BC outperforms 43.33% of its industry peers.
A Quick Ratio of 0.74 indicates that BC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.74, BC is doing worse than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.97 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The earnings per share for BC have decreased strongly by -38.16% in the last year.
Measured over the past years, BC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.00% on average per year.
Looking at the last year, BC shows a very negative growth in Revenue. The Revenue has decreased by -17.79% in the last year.
The Revenue has been growing by 9.21% on average over the past years. This is quite good.
EPS 1Y (TTM)-38.16%
EPS 3Y20.13%
EPS 5Y13%
EPS Q2Q%-51.65%
Revenue 1Y (TTM)-17.79%
Revenue growth 3Y13.77%
Revenue growth 5Y9.21%
Sales Q2Q%-20.1%
3.2 Future
Based on estimates for the next years, BC will show a small growth in Earnings Per Share. The EPS will grow by 3.99% on average per year.
BC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.71% yearly.
EPS Next Y-46.74%
EPS Next 2Y-21.28%
EPS Next 3Y-9.23%
EPS Next 5Y3.99%
Revenue Next Year-20.58%
Revenue Next 2Y-9.11%
Revenue Next 3Y-4.27%
Revenue Next 5Y-0.71%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.69 indicates a reasonable valuation of BC.
Based on the Price/Earnings ratio, BC is valued cheaper than 90.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of BC to the average of the S&P500 Index (27.96), we can say BC is valued rather cheaply.
With a Price/Forward Earnings ratio of 12.38, BC is valued correctly.
80.00% of the companies in the same industry are more expensive than BC, based on the Price/Forward Earnings ratio.
BC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.11.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.69 | ||
| Fwd PE | 12.38 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BC indicates a rather cheap valuation: BC is cheaper than 83.33% of the companies listed in the same industry.
BC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.7 | ||
| EV/EBITDA | 8.35 |
4.3 Compensation for Growth
The decent profitability rating of BC may justify a higher PE ratio.
BC's earnings are expected to decrease with -9.23% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.9
EPS Next 2Y-21.28%
EPS Next 3Y-9.23%
5. Dividend
5.1 Amount
BC has a Yearly Dividend Yield of 2.58%.
BC's Dividend Yield is a higher than the industry average which is at 4.09.
Compared to an average S&P500 Dividend Yield of 2.29, BC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
5.2 History
On average, the dividend of BC grows each year by 15.57%, 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)15.57%
Div Incr Years12
Div Non Decr Years16
5.3 Sustainability
40.95% of the earnings are spent on dividend by BC. This is a bit on the high side, but may be sustainable.
BC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP40.95%
EPS Next 2Y-21.28%
EPS Next 3Y-9.23%
BRUNSWICK CORP
NYSE:BC (1/17/2025, 8:04:00 PM)
After market: 67.45 0 (0%)67.45
-0.13 (-0.19%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners104.61%
Inst Owner Change0%
Ins Owners1.32%
Ins Owner Change0.4%
Market Cap4.45B
Analysts78.52
Price Target88.39 (31.05%)
Short Float %5.49%
Short Ratio6.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
Yearly Dividend1.6
Dividend Growth(5Y)15.57%
DP40.95%
Div Incr Years12
Div Non Decr Years16
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.88%
Min EPS beat(2)-8.11%
Max EPS beat(2)-5.65%
EPS beat(4)0
Avg EPS beat(4)-7.82%
Min EPS beat(4)-14.56%
Max EPS beat(4)-2.96%
EPS beat(8)1
Avg EPS beat(8)-4.65%
EPS beat(12)4
Avg EPS beat(12)-2.38%
EPS beat(16)8
Avg EPS beat(16)3.88%
Revenue beat(2)0
Avg Revenue beat(2)-7.01%
Min Revenue beat(2)-9.76%
Max Revenue beat(2)-4.26%
Revenue beat(4)0
Avg Revenue beat(4)-6.26%
Min Revenue beat(4)-9.76%
Max Revenue beat(4)-2.92%
Revenue beat(8)0
Avg Revenue beat(8)-5.9%
Revenue beat(12)2
Avg Revenue beat(12)-4.54%
Revenue beat(16)5
Avg Revenue beat(16)-2.12%
PT rev (1m)0%
PT rev (3m)-1.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-87.46%
EPS NY rev (1m)0%
EPS NY rev (3m)-13.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-28.49%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-3.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.69 | ||
| Fwd PE | 12.38 | ||
| P/S | 0.82 | ||
| P/FCF | 20.7 | ||
| P/OCF | 10.9 | ||
| P/B | 2.19 | ||
| P/tB | 128.25 | ||
| EV/EBITDA | 8.35 |
EPS(TTM)5.77
EY8.55%
EPS(NY)5.45
Fwd EY8.08%
FCF(TTM)3.26
FCFY4.83%
OCF(TTM)6.19
OCFY9.17%
SpS82.51
BVpS30.83
TBVpS0.53
PEG (NY)N/A
PEG (5Y)0.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.54% | ||
| ROE | 13.44% | ||
| ROCE | 10.85% | ||
| ROIC | 8.06% | ||
| ROICexc | 8.57% | ||
| ROICexgc | 15.3% | ||
| OM | 9.63% | ||
| PM (TTM) | 5.02% | ||
| GM | 26.85% | ||
| FCFM | 3.95% |
ROA(3y)9.46%
ROA(5y)6.92%
ROE(3y)28.09%
ROE(5y)19.78%
ROIC(3y)14.41%
ROIC(5y)14.44%
ROICexc(3y)16.13%
ROICexc(5y)16.67%
ROICexgc(3y)32.35%
ROICexgc(5y)32.08%
ROCE(3y)19.4%
ROCE(5y)19.43%
ROICexcg growth 3Y-6.06%
ROICexcg growth 5Y10.99%
ROICexc growth 3Y-8.58%
ROICexc growth 5Y5.33%
OM growth 3Y-0.54%
OM growth 5Y4.08%
PM growth 3Y-8.5%
PM growth 5Y0.4%
GM growth 3Y0.05%
GM growth 5Y2.57%
F-Score5
Asset Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 11.96 | ||
| Debt/EBITDA | 2.94 | ||
| Cap/Depr | 68.18% | ||
| Cap/Sales | 3.55% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 50.55% | ||
| Profit Quality | 78.61% | ||
| Current Ratio | 1.97 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 2.96 |
F-Score5
WACC7.75%
ROIC/WACC1.04
Cap/Depr(3y)141.31%
Cap/Depr(5y)142.11%
Cap/Sales(3y)4.93%
Cap/Sales(5y)4.93%
Profit Quality(3y)62.21%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-38.16%
EPS 3Y20.13%
EPS 5Y13%
EPS Q2Q%-51.65%
EPS Next Y-46.74%
EPS Next 2Y-21.28%
EPS Next 3Y-9.23%
EPS Next 5Y3.99%
Revenue 1Y (TTM)-17.79%
Revenue growth 3Y13.77%
Revenue growth 5Y9.21%
Sales Q2Q%-20.1%
Revenue Next Year-20.58%
Revenue Next 2Y-9.11%
Revenue Next 3Y-4.27%
Revenue Next 5Y-0.71%
EBIT growth 1Y-38.93%
EBIT growth 3Y13.15%
EBIT growth 5Y13.66%
EBIT Next Year-13.69%
EBIT Next 3Y0.76%
EBIT Next 5Y7.55%
FCF growth 1Y521.39%
FCF growth 3Y-10.31%
FCF growth 5Y25.34%
OCF growth 1Y-2.97%
OCF growth 3Y-2.78%
OCF growth 5Y16.83%