BRUNSWICK CORP (BC)
US1170431092 - Common Stock
BC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 32 industry peers in the Leisure Products industry. BC scores excellent on profitability, but there are concerns on its financial health. 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.
In the past year BC had a positive cash flow from operations.
BC had positive earnings in 4 of the past 5 years.
BC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 5.78%, BC is doing good in the industry, outperforming 75.00% of the companies in the same industry.
With an excellent Return On Equity value of 18.35%, BC belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
With a decent Return On Invested Capital value of 10.27%, BC is doing good in the industry, outperforming 68.75% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BC is above the industry average of 10.48%.
The 3 year average ROIC (14.41%) for BC is well above the current ROIC(10.27%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.78% | ||
| ROE | 18.35% | ||
| ROIC | 10.27% |
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 6.24%. This is amongst the best in the industry. BC outperforms 84.38% of its industry peers.
In the last couple of years the Profit Margin of BC has remained more or less at the same level.
Looking at the Operating Margin, with a value of 11.09%, BC belongs to the top of the industry, outperforming 84.38% of the companies in the same industry.
In the last couple of years the Operating Margin of BC has grown nicely.
BC has a Gross Margin of 27.48%. This is in the lower half of the industry: BC underperforms 62.50% of its industry peers.
In the last couple of years the Gross Margin of BC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.09% | ||
| PM (TTM) | 6.24% | ||
| GM | 27.48% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), BC is creating value.
Compared to 1 year ago, BC has less shares outstanding
BC has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, BC has an improved debt to assets ratio.
2.2 Solvency
BC has an Altman-Z score of 2.93. 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 Altman-Z score value of 2.93, BC perfoms like the industry average, outperforming 53.13% of the companies in the same industry.
BC has a debt to FCF ratio of 8.17. This is a slightly negative value and a sign of low solvency as BC would need 8.17 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.17, BC is in line with its industry, outperforming 40.63% of the companies in the same industry.
BC has a Debt/Equity ratio of 1.16. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.16, BC is not doing good in the industry: 78.13% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 8.17 | ||
| Altman-Z | 2.93 |
ROIC/WACC1.44
WACC7.12%
2.3 Liquidity
A Current Ratio of 1.68 indicates that BC should not have too much problems paying its short term obligations.
The Current ratio of BC (1.68) is worse than 71.88% of its industry peers.
A Quick Ratio of 0.75 indicates that BC may have some problems paying its short term obligations.
With a Quick ratio value of 0.75, BC is not doing good in the industry: 78.13% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
BC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.68%.
The Earnings Per Share has been growing by 13.00% on average over the past years. This is quite good.
The Revenue for BC has decreased by -12.21% in the past year. This is quite bad
The Revenue has been growing by 9.21% on average over the past years. This is quite good.
EPS 1Y (TTM)-24.68%
EPS 3Y20.13%
EPS 5Y13%
EPS Q2Q%-47.47%
Revenue 1Y (TTM)-12.21%
Revenue growth 3Y13.77%
Revenue growth 5Y9.21%
Sales Q2Q%-21.71%
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 8.36% on average per year.
BC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.88% yearly.
EPS Next Y-14.24%
EPS Next 2Y-0.09%
EPS Next 3Y2.39%
EPS Next 5Y8.36%
Revenue Next Year-7.39%
Revenue Next 2Y-1.02%
Revenue Next 3Y-0.13%
Revenue Next 5Y1.88%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.84 indicates a reasonable valuation of BC.
Based on the Price/Earnings ratio, BC is valued a bit cheaper than the industry average as 78.13% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.42, BC is valued rather cheaply.
The Price/Forward Earnings ratio is 8.49, which indicates a very decent valuation of BC.
Based on the Price/Forward Earnings ratio, BC is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of BC to the average of the S&P500 Index (20.02), we can say BC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.84 | ||
| Fwd PE | 8.49 |
4.2 Price Multiples
BC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BC is cheaper than 84.38% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.54 | ||
| EV/EBITDA | 7.73 |
4.3 Compensation for Growth
The excellent profitability rating of BC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.76
EPS Next 2Y-0.09%
EPS Next 3Y2.39%
5. Dividend
5.1 Amount
BC has a Yearly Dividend Yield of 2.24%.
BC's Dividend Yield is a higher than the industry average which is at 3.45.
Compared to an average S&P500 Dividend Yield of 2.39, BC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
5.2 History
The dividend of BC is nicely growing with an annual growth rate of 15.57%!
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)15.57%
Div Incr Years11
Div Non Decr Years15
5.3 Sustainability
BC pays out 29.81% of its income as dividend. This is a sustainable payout ratio.
The dividend of BC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP29.81%
EPS Next 2Y-0.09%
EPS Next 3Y2.39%
BRUNSWICK CORP
NYSE:BC (6/14/2024, 7:04:00 PM)
After market: 74.48 0 (0%)74.48
-0.68 (-0.9%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.03B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.84 | ||
| Fwd PE | 8.49 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.78% | ||
| ROE | 18.35% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.09% | ||
| PM (TTM) | 6.24% | ||
| GM | 27.48% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-24.68%
EPS 3Y20.13%
EPS 5Y
EPS Q2Q%
EPS Next Y-14.24%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-12.21%
Revenue growth 3Y13.77%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y