We assign a fundamental rating of 4 out of 10 to BC. BC was compared to 31 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 valued correctly, but it does not seem to be growing.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
Of the past 5 years BC 4 years had a positive operating cash flow.

1.2 Ratios

With a Return On Assets value of -4.41%, BC perfoms like the industry average, outperforming 48.39% of the companies in the same industry.
The Return On Equity of BC (-14.60%) is comparable to the rest of the industry.
The Return On Invested Capital of BC (4.96%) is better than 64.52% 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 7.48%.
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.
With a decent Operating Margin value of 5.65%, BC is doing good in the industry, outperforming 70.97% 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 61.29% 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
BC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

2.2 Solvency

BC has a debt to FCF ratio of 3.72. This is a good value and a sign of high solvency as BC would need 3.72 years to pay back of 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 70.97% 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.
BC has a worse Debt to Equity ratio (1.28) than 67.74% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	1.28
Debt/FCF	3.72
Altman-Z	N/A

ROIC/WACC0.54

WACC9.21%

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 (1.78) which is comparable to the rest of the 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.
BC's Quick ratio of 0.73 is on the low side compared to the rest of the industry. BC is outperformed by 70.97% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.78
Quick Ratio	0.73

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The earnings per share for BC have decreased strongly by -28.29% in the last year.
Measured over the past years, BC shows a decrease in Earnings Per Share. The EPS has been decreasing by -8.40% on average per year.

EPS 1Y (TTM)-28.29%

EPS 3Y-31.13%

EPS 5Y-8.4%

EPS Q2Q%141.67%

Revenue 1Y (TTM)N/A

Revenue growth 3YN/A

Revenue growth 5YN/A

Sales Q2Q%15.49%

3.2 Future

Based on estimates for the next years, BC will show a very strong growth in Earnings Per Share. The EPS will grow by 28.79% on average per year.
BC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.07% yearly.

EPS Next Y32.1%

EPS Next 2Y31.63%

EPS Next 3Y32.23%

EPS Next 5Y28.79%

Revenue Next Year5.77%

Revenue Next 2Y5.87%

Revenue Next 3Y5.4%

Revenue Next 5Y5.07%

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.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 24.53, the valuation of BC can be described as rather expensive.
67.74% of the companies in the same industry are more expensive than BC, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.32. BC is around the same levels.
Based on the Price/Forward Earnings ratio of 18.57, the valuation of BC can be described as rather expensive.
Based on the Price/Forward Earnings ratio, BC is valued a bit cheaper than the industry average as 74.19% of the companies are valued more expensively.
BC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	24.53
Fwd PE	18.57

4.2 Price Multiples

64.52% of the companies in the same industry are more expensive than BC, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BC indicates a rather cheap valuation: BC is cheaper than 90.32% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	8.86
EV/EBITDA	12.13

4.3 Compensation for Growth

BC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
BC's earnings are expected to grow with 32.23% in the coming years. This may justify a more expensive valuation.

PEG (NY)0.76

PEG (5Y)N/A

EPS Next 2Y31.63%

EPS Next 3Y32.23%

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.13%, BC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.25, BC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.83, BC has a dividend comparable with the average S&P500 company.

		Industry Rank	Sector Rank
Dividend Yield	2.13%

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 more than its dividend. This makes the dividend growth sustainable.

DP-47.09%

EPS Next 2Y31.63%

EPS Next 3Y32.23%

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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 6 / 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 4 / 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 24.53 and the Price/Book (PB) ratio is 3.19.

What is the financial health of BRUNSWICK CORP (BC) stock?

The financial health rating of BRUNSWICK CORP (BC) is 3 / 10.