BRUNSWICK CORP (BC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BC - US1170431092 - Common Stock
85.67 USD
-0.99 (-1.14%)
85.67 USD
0 (0%)
Taking everything into account, BC scores 4 out of 10 in our fundamental rating. BC was compared to 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- BC had positive earnings in the past year.
- BC had a positive operating cash flow in the past year.
- 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
- The Return On Assets of BC (-4.41%) is comparable to the rest of the industry.
- With a Return On Equity value of -14.60%, BC is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
- BC has a Return On Invested Capital of 4.96%. This is in the better half of the industry: BC outperforms 63.33% 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 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
- BC's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 5.65%, BC is in the better half of the industry, outperforming 70.00% 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 24.65%, BC is doing worse than 60.00% 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
- 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.
- The debt/assets ratio for BC is higher compared to a year ago.
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.
- The Debt to FCF ratio of BC (3.72) is better than 70.00% of its industry peers.
- A Debt/Equity ratio of 1.28 is on the high side and indicates that BC has dependencies on debt 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 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 3.72 | ||
| Altman-Z | N/A |
ROIC/WACC0.54
WACC9.26%
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.
- With a Current ratio value of 1.78, BC perfoms like the industry average, outperforming 43.33% of the companies in the same industry.
- 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 70.00% 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.
- The Revenue has decreased by -4.78% in the past 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 29.24, BC can be considered very expensive at the moment.
- The rest of the industry has a similar Price/Earnings ratio as BC.
- BC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
- Based on the Price/Forward Earnings ratio of 19.83, the valuation of BC can be described as rather expensive.
- BC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BC is cheaper than 66.67% of the companies in the same industry.
- BC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.24 | ||
| Fwd PE | 19.83 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, BC is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
- BC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BC is cheaper than 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.46 | ||
| EV/EBITDA | 12.84 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)25.78
EPS Next 2Y-2.67%
EPS Next 3Y7.51%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.96%, BC has a reasonable but not impressive dividend return.
- BC's Dividend Yield is a higher than the industry average which is at 1.27.
- 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
- The dividend of BC is nicely growing with an annual growth rate of 13.66%!
- 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)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.
- 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 29.24 and the Price/Book (PB) ratio is 3.41.
What is the financial health of BRUNSWICK CORP (BC) stock?
The financial health rating of BRUNSWICK CORP (BC) is 3 / 10.