BRUNSWICK CORP (BC) Stock Fundamental Analysis
USA - NYSE:BC - US1170431092 - Common Stock
66.34 USD
+1.24 (+1.9%)
66.34 USD
0 (0%)
BC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 33 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
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.
Each year in the past 5 years BC had a positive operating cash flow.
1.2 Ratios
The Return On Assets of BC (0.72%) is better than 60.61% of its industry peers.
BC has a Return On Equity of 2.18%. This is in the better half of the industry: BC outperforms 66.67% of its industry peers.
BC has a Return On Invested Capital of 4.97%. This is in the better half of the industry: BC outperforms 69.70% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BC is above the industry average of 7.78%.
The 3 year average ROIC (11.29%) for BC is well above the current ROIC(4.97%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.72% | ||
| ROE | 2.18% | ||
| ROIC | 4.97% |
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
The Profit Margin of BC (0.82%) is better than 63.64% 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 6.12%, BC is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
BC's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 24.72%, BC is doing worse than 60.61% 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 | 6.12% | ||
| PM (TTM) | 0.82% | ||
| GM | 24.72% |
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
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
BC has a debt to FCF ratio of 4.43. This is a neutral value as BC would need 4.43 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.43, BC is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
BC has a Debt/Equity ratio of 1.10. This is a high value indicating a heavy dependency on external financing.
BC has a Debt to Equity ratio of 1.10. This is in the lower half of the industry: BC underperforms 69.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 4.43 | ||
| Altman-Z | N/A |
ROIC/WACC0.5
WACC10.04%
2.3 Liquidity
BC has a Current Ratio of 1.68. 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 of 1.68. This is in the lower half of the industry: BC underperforms 63.64% of its industry peers.
BC has a Quick Ratio of 1.68. This is a bad value and indicates that BC is not financially healthy enough and could expect problems in meeting its short term obligations.
BC has a worse Quick ratio (0.70) than 75.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
BC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -55.41%.
The Earnings Per Share has been growing slightly by 1.13% on average over the past years.
Looking at the last year, BC shows a very negative growth in Revenue. The Revenue has decreased by -11.58% 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)-55.41%
EPS 3Y-18%
EPS 5Y1.13%
EPS Q2Q%-35.56%
Revenue 1Y (TTM)-11.58%
Revenue growth 3Y-3.6%
Revenue growth 5Y4.97%
Sales Q2Q%0.21%
3.2 Future
BC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.12% yearly.
The Revenue is expected to grow by 3.75% on average over the next years.
EPS Next Y-27.16%
EPS Next 2Y-2.67%
EPS Next 3Y8.05%
EPS Next 5Y20.12%
Revenue Next Year0.43%
Revenue Next 2Y2.49%
Revenue Next 3Y3.52%
Revenue Next 5Y3.75%
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.
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
BC is valuated rather expensively with a Price/Earnings ratio of 21.19.
Based on the Price/Earnings ratio, BC is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
BC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.86.
The Price/Forward Earnings ratio is 15.36, which indicates a correct valuation of BC.
84.85% of the companies in the same industry are more expensive than BC, based on the Price/Forward Earnings ratio.
BC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.19 | ||
| Fwd PE | 15.36 |
4.2 Price Multiples
72.73% of the companies in the same industry are more expensive than BC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, BC is valued cheaply inside the industry as 93.94% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.44 | ||
| EV/EBITDA | 10.28 |
4.3 Compensation for Growth
BC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)18.69
EPS Next 2Y-2.67%
EPS Next 3Y8.05%
5. Dividend
5.1 Amount
BC has a Yearly Dividend Yield of 2.64%.
Compared to an average industry Dividend Yield of 4.26, BC pays a better dividend. On top of this BC pays more dividend than 96.97% of the companies listed in the same industry.
BC's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
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
269.47% of the earnings are spent on dividend by BC. This is not a sustainable payout ratio.
The dividend of BC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP269.47%
EPS Next 2Y-2.67%
EPS Next 3Y8.05%
66.34
+1.24 (+1.9%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners108.48%
Inst Owner Change1.66%
Ins Owners0.92%
Ins Owner Change0.56%
Market Cap4.33B
Analysts75.38
Price Target68.87 (3.81%)
Short Float %9.15%
Short Ratio6.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
Yearly Dividend1.67
Dividend Growth(5Y)13.66%
DP269.47%
Div Incr Years12
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)77.94%
Min EPS beat(2)18.98%
Max EPS beat(2)136.9%
EPS beat(4)3
Avg EPS beat(4)40.08%
Min EPS beat(4)-5.65%
Max EPS beat(4)136.9%
EPS beat(8)3
Avg EPS beat(8)16.76%
EPS beat(12)4
Avg EPS beat(12)10.57%
EPS beat(16)8
Avg EPS beat(16)8.78%
Revenue beat(2)2
Avg Revenue beat(2)8.87%
Min Revenue beat(2)4.88%
Max Revenue beat(2)12.87%
Revenue beat(4)3
Avg Revenue beat(4)5.03%
Min Revenue beat(4)-4.26%
Max Revenue beat(4)12.87%
Revenue beat(8)3
Avg Revenue beat(8)-0.91%
Revenue beat(12)3
Avg Revenue beat(12)-2.47%
Revenue beat(16)5
Avg Revenue beat(16)-2.05%
PT rev (1m)6.78%
PT rev (3m)13.38%
EPS NQ rev (1m)-0.62%
EPS NQ rev (3m)-24.4%
EPS NY rev (1m)0.33%
EPS NY rev (3m)1.46%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)-7.21%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)1.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.19 | ||
| Fwd PE | 15.36 | ||
| P/S | 0.85 | ||
| P/FCF | 8.44 | ||
| P/OCF | 6.54 | ||
| P/B | 2.28 | ||
| P/tB | 222.26 | ||
| EV/EBITDA | 10.28 |
EPS(TTM)3.13
EY4.72%
EPS(NY)4.32
Fwd EY6.51%
FCF(TTM)7.86
FCFY11.85%
OCF(TTM)10.14
OCFY15.29%
SpS78.02
BVpS29.16
TBVpS0.3
PEG (NY)N/A
PEG (5Y)18.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.72% | ||
| ROE | 2.18% | ||
| ROCE | 6.99% | ||
| ROIC | 4.97% | ||
| ROICexc | 5.35% | ||
| ROICexgc | 9.82% | ||
| OM | 6.12% | ||
| PM (TTM) | 0.82% | ||
| GM | 24.72% | ||
| FCFM | 10.08% |
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 Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 4.43 | ||
| Debt/EBITDA | 3.47 | ||
| Cap/Depr | 50.96% | ||
| Cap/Sales | 2.92% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 109.72% | ||
| Profit Quality | 1234.86% | ||
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | N/A |
F-Score5
WACC10.04%
ROIC/WACC0.5
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)-55.41%
EPS 3Y-18%
EPS 5Y1.13%
EPS Q2Q%-35.56%
EPS Next Y-27.16%
EPS Next 2Y-2.67%
EPS Next 3Y8.05%
EPS Next 5Y20.12%
Revenue 1Y (TTM)-11.58%
Revenue growth 3Y-3.6%
Revenue growth 5Y4.97%
Sales Q2Q%0.21%
Revenue Next Year0.43%
Revenue Next 2Y2.49%
Revenue Next 3Y3.52%
Revenue Next 5Y3.75%
EBIT growth 1Y-50.21%
EBIT growth 3Y-18.95%
EBIT growth 5Y-2.43%
EBIT Next Year27.55%
EBIT Next 3Y18.74%
EBIT Next 5Y18.04%
FCF growth 1Y57.53%
FCF growth 3Y-4.9%
FCF growth 5Y5.54%
OCF growth 1Y-4.15%
OCF growth 3Y-9.08%
OCF growth 5Y-0.13%