BRUNSWICK CORP (BC) Stock Fundamental Analysis
NYSE:BC - New York Stock Exchange, Inc. - US1170431092 - Common Stock - Currency: USD
Taking everything into account, BC scores 5 out of 10 in our fundamental rating. BC was compared to 30 industry peers in the Leisure Products industry. BC has an excellent profitability rating, but there are concerns on its financial health. BC is valued correctly, but it does not seem to be growing. 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.
Of the past 5 years BC 4 years were profitable.
Of the past 5 years BC 4 years had a positive operating cash flow.
1.2 Ratios
BC has a better Return On Assets (4.54%) than 73.33% of its industry peers.
With an excellent Return On Equity value of 13.44%, BC belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
The Return On Invested Capital of BC (8.06%) is better than 76.67% of its industry peers.
BC had an Average Return On Invested Capital over the past 3 years of 14.41%. This is significantly above the industry average of 8.27%.
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.
The Operating Margin of BC (9.63%) is better than 86.67% of its industry peers.
In the last couple of years the Operating Margin of BC has grown nicely.
BC has a Gross Margin of 26.85%. This is in the lower half of the industry: BC underperforms 63.33% of its industry peers.
In the last couple of years the Gross Margin of BC has grown nicely.
| 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
BC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
There is no outstanding debt for BC. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
BC has an Altman-Z score of 2.92. 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.
With a decent Altman-Z score value of 2.92, BC is doing good in the industry, outperforming 63.33% of the companies in the same industry.
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.
BC has a Debt to FCF ratio of 11.96. This is comparable to the rest of the industry: BC outperforms 43.33% of its industry peers.
BC has a Debt/Equity ratio of 1.17. This is a high value indicating a heavy dependency on external financing.
BC has a worse Debt to Equity ratio (1.17) than 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 11.96 | ||
| Altman-Z | 2.92 |
ROIC/WACC1.05
WACC7.71%
2.3 Liquidity
A Current Ratio of 1.97 indicates that BC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.97, BC is in line with its industry, outperforming 43.33% of the companies in the same industry.
A Quick Ratio of 0.74 indicates that BC may have some problems paying its short term obligations.
With a Quick ratio value of 0.74, BC is not doing good in the industry: 73.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.97 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
BC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -48.12%.
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.
EPS 1Y (TTM)-48.12%
EPS 3Y-18%
EPS 5Y1.13%
EPS Q2Q%-83.45%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-15.2%
3.2 Future
The Earnings Per Share is expected to grow by 20.87% on average over the next years. This is a very strong growth
BC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.86% yearly.
EPS Next Y-6.91%
EPS Next 2Y10.38%
EPS Next 3Y14.94%
EPS Next 5Y20.87%
Revenue Next Year3.51%
Revenue Next 2Y4.64%
Revenue Next 3Y4.81%
Revenue Next 5Y4.86%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.76 indicates a correct valuation of BC.
Compared to the rest of the industry, the Price/Earnings ratio of BC indicates a rather cheap valuation: BC is cheaper than 83.33% of the companies listed in the same industry.
BC is valuated cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 14.78, the valuation of BC can be described as correct.
Based on the Price/Forward Earnings ratio, BC is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, BC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.76 | ||
| Fwd PE | 14.78 |
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 86.67% of the companies listed in the same industry.
BC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.25 | ||
| EV/EBITDA | 8.06 |
4.3 Compensation for Growth
BC has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as BC's earnings are expected to grow with 14.94% in the coming years.
PEG (NY)N/A
PEG (5Y)12.13
EPS Next 2Y10.38%
EPS Next 3Y14.94%
5. Dividend
5.1 Amount
BC has a Yearly Dividend Yield of 2.65%.
In the last 3 months the price of BC has falen by -23.83%. 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 4.10, BC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, BC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.65% |
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 their dividend for at least 10 years, which is a reliable track record.
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.
The dividend of BC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP40.95%
EPS Next 2Y10.38%
EPS Next 3Y14.94%
62.74
-1.28 (-2%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners104.61%
Inst Owner Change-0.19%
Ins Owners1.32%
Ins Owner Change0.44%
Market Cap4.14B
Analysts76.92
Price Target85.84 (36.82%)
Short Float %5.42%
Short Ratio5.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.65% |
Yearly Dividend1.6
Dividend Growth(5Y)15.57%
DP40.95%
Div Incr Years12
Div Non Decr Years16
Ex-Date
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)-2.89%
PT rev (3m)-5.06%
EPS NQ rev (1m)-2.95%
EPS NQ rev (3m)-2.95%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)-0.14%
Revenue NQ rev (1m)-0.37%
Revenue NQ rev (3m)-0.37%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.76 | ||
| Fwd PE | 14.78 | ||
| P/S | 0.76 | ||
| P/FCF | 19.25 | ||
| P/OCF | 10.14 | ||
| P/B | 2.03 | ||
| P/tB | 119.3 | ||
| EV/EBITDA | 8.06 |
EPS(TTM)4.56
EY7.27%
EPS(NY)4.24
Fwd EY6.77%
FCF(TTM)3.26
FCFY5.19%
OCF(TTM)6.19
OCFY9.86%
SpS82.51
BVpS30.83
TBVpS0.53
PEG (NY)N/A
PEG (5Y)12.13
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 | 2.92 |
F-Score5
WACC7.71%
ROIC/WACC1.05
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)-48.12%
EPS 3Y-18%
EPS 5Y1.13%
EPS Q2Q%-83.45%
EPS Next Y-6.91%
EPS Next 2Y10.38%
EPS Next 3Y14.94%
EPS Next 5Y20.87%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-15.2%
Revenue Next Year3.51%
Revenue Next 2Y4.64%
Revenue Next 3Y4.81%
Revenue Next 5Y4.86%
EBIT growth 1Y-38.93%
EBIT growth 3Y13.15%
EBIT growth 5Y13.66%
EBIT Next Year-15.12%
EBIT Next 3Y-2.13%
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%