BRUNSWICK CORP (BC) Stock Fundamental Analysis
NYSE:BC - New York Stock Exchange, Inc. - US1170431092 - Common Stock - Currency: USD
BC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year BC was profitable.
BC had a positive operating cash flow in the past year.
BC had positive earnings in each of the past 5 years.
In the past 5 years BC always reported a positive cash flow from operatings.
1.2 Ratios
BC has a better Return On Assets (1.41%) than 70.00% of its industry peers.
Looking at the Return On Equity, with a value of 4.40%, BC is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
With a decent Return On Invested Capital value of 5.94%, BC is doing good in the industry, outperforming 70.00% of the companies in the same industry.
BC had an Average Return On Invested Capital over the past 3 years of 11.29%. This is above the industry average of 7.91%.
The last Return On Invested Capital (5.94%) 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 | 1.41% | ||
| ROE | 4.4% | ||
| ROIC | 5.94% |
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 has a better Profit Margin (1.62%) than 70.00% of its industry peers.
BC's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 7.20%, BC is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
BC's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 25.15%, BC is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
BC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.2% | ||
| PM (TTM) | 1.62% | ||
| GM | 25.15% |
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.
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
An Altman-Z score of 2.68 indicates that BC is not a great score, but indicates only limited risk for bankruptcy at the moment.
BC has a Altman-Z score of 2.68. This is comparable to the rest of the industry: BC outperforms 46.67% of its industry peers.
The Debt to FCF ratio of BC is 6.11, which is on the high side as it means it would take BC, 6.11 years of fcf income to pay off all of its debts.
BC has a Debt to FCF ratio (6.11) which is comparable to the rest of the industry.
BC has a Debt/Equity ratio of 1.12. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of BC (1.12) is worse than 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 6.11 | ||
| Altman-Z | 2.68 |
ROIC/WACC0.75
WACC7.97%
2.3 Liquidity
BC has a Current Ratio of 1.57. 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 1.57, BC is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
A Quick Ratio of 0.65 indicates that BC may have some problems paying its short term obligations.
With a Quick ratio value of 0.65, BC is not doing good in the industry: 76.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
The earnings per share for BC have decreased strongly by -50.20% 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.
Looking at the last year, BC shows a very negative growth in Revenue. The Revenue has decreased by -15.42% in the last year.
BC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.97% yearly.
EPS 1Y (TTM)-50.2%
EPS 3Y-18%
EPS 5Y1.13%
EPS Q2Q%-58.52%
Revenue 1Y (TTM)-15.42%
Revenue growth 3Y-3.6%
Revenue growth 5Y4.97%
Sales Q2Q%-10.49%
3.2 Future
The Earnings Per Share is expected to grow by 20.53% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 3.63% on average over the next years.
EPS Next Y-28.2%
EPS Next 2Y-2.62%
EPS Next 3Y9.15%
EPS Next 5Y20.53%
Revenue Next Year-1.47%
Revenue Next 2Y2.02%
Revenue Next 3Y3.12%
Revenue Next 5Y3.63%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.36, BC is valued correctly.
Based on the Price/Earnings ratio, BC is valued cheaply inside the industry as 86.67% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.21, BC is valued a bit cheaper.
With a Price/Forward Earnings ratio of 13.39, BC is valued correctly.
Based on the Price/Forward Earnings ratio, BC is valued a bit cheaper than the industry average as 76.67% of the companies are valued more expensively.
BC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.36 | ||
| Fwd PE | 13.39 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BC indicates a somewhat cheap valuation: BC is cheaper than 73.33% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, BC is valued cheaply inside the industry as 86.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.36 | ||
| EV/EBITDA | 9.14 |
4.3 Compensation for Growth
The decent profitability rating of BC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)13.54
EPS Next 2Y-2.62%
EPS Next 3Y9.15%
5. Dividend
5.1 Amount
BC has a Yearly Dividend Yield of 3.10%. Purely for dividend investing, there may be better candidates out there.
BC's Dividend Yield is a higher than the industry average which is at 4.42.
BC's Dividend Yield is a higher than the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
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 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 pays out 135.97% of its income as dividend. This is not a sustainable payout ratio.
The dividend of BC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP135.97%
EPS Next 2Y-2.62%
EPS Next 3Y9.15%
57.89
+2.65 (+4.8%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners106.09%
Inst Owner Change2.7%
Ins Owners0.91%
Ins Owner Change3.98%
Market Cap3.80B
Analysts74.81
Price Target60.74 (4.92%)
Short Float %9.06%
Short Ratio5.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
Yearly Dividend1.67
Dividend Growth(5Y)13.66%
DP135.97%
Div Incr Years12
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)73.5%
Min EPS beat(2)10.1%
Max EPS beat(2)136.9%
EPS beat(4)2
Avg EPS beat(4)33.31%
Min EPS beat(4)-8.11%
Max EPS beat(4)136.9%
EPS beat(8)2
Avg EPS beat(8)13.4%
EPS beat(12)4
Avg EPS beat(12)9.11%
EPS beat(16)8
Avg EPS beat(16)8.46%
Revenue beat(2)2
Avg Revenue beat(2)5.76%
Min Revenue beat(2)4.88%
Max Revenue beat(2)6.64%
Revenue beat(4)2
Avg Revenue beat(4)-0.63%
Min Revenue beat(4)-9.76%
Max Revenue beat(4)6.64%
Revenue beat(8)2
Avg Revenue beat(8)-3.36%
Revenue beat(12)2
Avg Revenue beat(12)-3.68%
Revenue beat(16)5
Avg Revenue beat(16)-2.79%
PT rev (1m)1.25%
PT rev (3m)-24.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-39.1%
EPS NY rev (1m)1.66%
EPS NY rev (3m)-22.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-15.2%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-4.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.36 | ||
| Fwd PE | 13.39 | ||
| P/S | 0.75 | ||
| P/FCF | 9.36 | ||
| P/OCF | 6.82 | ||
| P/B | 2.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.14 |
EPS(TTM)3.77
EY6.51%
EPS(NY)4.32
Fwd EY7.47%
FCF(TTM)6.19
FCFY10.69%
OCF(TTM)8.49
OCFY14.66%
SpS77.56
BVpS28.5
TBVpS-0.16
PEG (NY)N/A
PEG (5Y)13.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.41% | ||
| ROE | 4.4% | ||
| ROCE | 8.35% | ||
| ROIC | 5.94% | ||
| ROICexc | 6.36% | ||
| ROICexgc | 11.75% | ||
| OM | 7.2% | ||
| PM (TTM) | 1.62% | ||
| GM | 25.15% | ||
| FCFM | 7.98% |
ROA(3y)6.58%
ROA(5y)8.11%
ROE(3y)20.05%
ROE(5y)23.17%
ROIC(3y)11.29%
ROIC(5y)12.56%
ROICexc(3y)12.61%
ROICexc(5y)14.42%
ROICexgc(3y)24.11%
ROICexgc(5y)28.09%
ROCE(3y)15.87%
ROCE(5y)17.66%
ROICexcg growth 3Y-26.29%
ROICexcg growth 5Y-12.51%
ROICexc growth 3Y-22.36%
ROICexc growth 5Y-13.21%
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%
F-Score5
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 6.11 | ||
| Debt/EBITDA | 3.2 | ||
| Cap/Depr | 52.19% | ||
| Cap/Sales | 2.97% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.96% | ||
| Profit Quality | 493.68% | ||
| Current Ratio | 1.57 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 2.68 |
F-Score5
WACC7.97%
ROIC/WACC0.75
Cap/Depr(3y)110.64%
Cap/Depr(5y)120.16%
Cap/Sales(3y)4.47%
Cap/Sales(5y)4.44%
Profit Quality(3y)112.61%
Profit Quality(5y)110.96%
High Growth Momentum
Growth
EPS 1Y (TTM)-50.2%
EPS 3Y-18%
EPS 5Y1.13%
EPS Q2Q%-58.52%
EPS Next Y-28.2%
EPS Next 2Y-2.62%
EPS Next 3Y9.15%
EPS Next 5Y20.53%
Revenue 1Y (TTM)-15.42%
Revenue growth 3Y-3.6%
Revenue growth 5Y4.97%
Sales Q2Q%-10.49%
Revenue Next Year-1.47%
Revenue Next 2Y2.02%
Revenue Next 3Y3.12%
Revenue Next 5Y3.63%
EBIT growth 1Y-45.13%
EBIT growth 3Y-18.95%
EBIT growth 5Y-2.43%
EBIT Next Year25.6%
EBIT Next 3Y19.11%
EBIT Next 5Y22.27%
FCF growth 1Y22.64%
FCF growth 3Y-4.9%
FCF growth 5Y5.54%
OCF growth 1Y-21.74%
OCF growth 3Y-9.08%
OCF growth 5Y-0.13%