BRUNSWICK CORP (BC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BC - US1170431092 - Common Stock
85.77 USD
+0.1 (+0.12%)
85.77 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. There are concerns on the financial health of BC while its profitability can be described as average. BC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year BC was profitable.
- BC had a positive operating cash flow in the past year.
- In the past 5 years BC has always been profitable.
- In the past 5 years BC always reported a positive cash flow from operatings.
1.2 Ratios
- BC's Return On Assets of -4.41% is in line compared to the rest of the industry. BC outperforms 43.33% of its industry peers.
- 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.
- The Return On Invested Capital of BC (4.96%) is better than 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 last Return On Invested Capital (4.96%) for BC is well below the 3 year average (11.29%), which needs to be investigated, but indicates that BC had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.41% | ||
| 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.
- BC has a Gross Margin of 24.65%. This is in the lower half of the industry: BC underperforms 60.00% 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BC is creating some value.
- Compared to 1 year ago, BC has less shares outstanding
- Compared to 5 years ago, BC has less shares outstanding
- 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.
- Looking at the Debt to FCF ratio, with a value of 3.72, BC is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
- BC has a Debt/Equity ratio of 1.28. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of BC (1.28) is worse than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 3.72 | ||
| Altman-Z | N/A |
ROIC/WACC0.53
WACC9.27%
2.3 Liquidity
- A Current Ratio of 1.78 indicates that BC should not have too much problems paying its short term obligations.
- BC has a Current ratio of 1.78. This is comparable to the rest of the industry: BC outperforms 43.33% of its industry peers.
- A Quick Ratio of 0.73 indicates that BC may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.73, BC is doing worse than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.78 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
- BC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -49.22%.
- BC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.13% yearly.
- BC shows a decrease in Revenue. In the last year, the revenue decreased by -4.78%.
- 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
- Based on estimates for the next years, BC will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.83% on average per year.
- 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-26.52%
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
- A Price/Earnings ratio of 29.27 indicates a quite expensive valuation of BC.
- BC's Price/Earnings is on the same level as the industry average.
- When comparing the Price/Earnings ratio of BC to the average of the S&P500 Index (28.82), we can say BC is valued inline with the index average.
- Based on the Price/Forward Earnings ratio of 19.86, the valuation of BC can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, BC is valued a bit cheaper than 66.67% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.95. BC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.27 | ||
| Fwd PE | 19.86 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, BC is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
- 90.00% 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 | 9.47 | ||
| EV/EBITDA | 12.74 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)25.81
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.
- Compared to an average S&P500 Dividend Yield of 1.82, BC has a dividend comparable with the average S&P500 company.
| 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 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
- 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 29.27 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.