BRUNSWICK CORP (BC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BC - US1170431092 - Common Stock
86.66 USD
-1.3 (-1.48%)
86.66 USD
0 (0%)
Overall BC gets a fundamental rating of 4 out of 10. We evaluated BC against 30 industry peers in the Leisure Products industry. BC has a medium profitability rating, but doesn't score so well on its financial health evaluation. BC has a correct valuation and a medium growth rate.
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.
- BC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of -4.41%, BC is in line with its industry, outperforming 45.16% of the companies in the same industry.
- BC has a Return On Equity of -14.60%. This is comparable to the rest of the industry: BC outperforms 41.94% of its industry peers.
- BC has a better Return On Invested Capital (4.96%) than 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 7.61%.
- 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
- In the last couple of years the Profit Margin of BC has declined.
- BC has a Operating Margin of 5.65%. This is in the better half of the industry: BC outperforms 70.97% of its industry peers.
- In the last couple of years the Operating Margin of BC has declined.
- BC has a Gross Margin of 24.65%. This is in the lower half of the industry: BC underperforms 61.29% of its industry peers.
- 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
- BC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for BC has been reduced compared to 1 year ago.
- BC has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, BC has a worse debt to assets ratio.
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 70.97% 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.
- BC's Debt to Equity ratio of 1.28 is on the low side compared to the rest of the industry. BC is outperformed by 70.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 3.72 | ||
| Altman-Z | N/A |
ROIC/WACC0.57
WACC8.71%
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 has a Current ratio (1.78) which is in line with 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.
- Looking at the Quick ratio, with a value of 0.73, BC is doing worse than 70.97% of the companies in the same industry.
| 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
- The Earnings Per Share is expected to grow by 14.83% on average over the next years. This is quite good.
- 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-26.52%
EPS Next 2Y-2.67%
EPS Next 3Y7.51%
EPS Next 5Y14.83%
Revenue Next Year1.81%
Revenue Next 2Y3.77%
Revenue Next 3Y4.5%
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
- With a Price/Earnings ratio of 29.58, BC can be considered very expensive at the moment.
- BC's Price/Earnings ratio is in line with the industry average.
- BC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
- BC is valuated rather expensively with a Price/Forward Earnings ratio of 20.06.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of BC indicates a somewhat cheap valuation: BC is cheaper than 67.74% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, BC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.58 | ||
| Fwd PE | 20.06 |
4.2 Price Multiples
- BC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BC is cheaper than 64.52% of the companies in the same industry.
- 90.32% of the companies in the same industry are more expensive than BC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.57 | ||
| EV/EBITDA | 12.84 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)26.08
EPS Next 2Y-2.67%
EPS Next 3Y7.51%
5. Dividend
5.1 Amount
- BC has a Yearly Dividend Yield of 1.96%.
- Compared to an average industry Dividend Yield of 1.27, BC pays a bit more dividend than its industry peers.
- BC's Dividend Yield is comparable with the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
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 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
- BC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
- 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-2.67%
EPS Next 3Y7.51%
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 29.58 and the Price/Book (PB) ratio is 3.45.
What is the financial health of BRUNSWICK CORP (BC) stock?
The financial health rating of BRUNSWICK CORP (BC) is 3 / 10.