BRUNSWICK CORP (BC) Stock Fundamental Analysis
NYSE:BC - New York Stock Exchange, Inc. - US1170431092 - Common Stock - Currency: USD
Taking everything into account, BC scores 5 out of 10 in our fundamental rating. BC was compared to 30 industry peers in the Leisure Products industry. While BC is still in line with the averages on profitability rating, there are concerns on its financial health. BC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
BC had positive earnings in the past year.
In the past year BC had a positive cash flow from operations.
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
The Return On Assets of BC (1.41%) is better than 70.00% of its industry peers.
BC has a better Return On Equity (4.40%) than 70.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.94%, BC is in the better half of 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 8.00%.
The 3 year average ROIC (11.29%) for BC is well above the current ROIC(5.94%). The reason for the recent decline needs to be investigated.
| 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.
BC has a better Operating Margin (7.20%) than 76.67% of its industry peers.
BC's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 25.15%, BC is doing worse than 60.00% 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 | 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.
BC has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, BC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.65 indicates that BC is not a great score, but indicates only limited risk for bankruptcy at the moment.
BC has a Altman-Z score (2.65) which is comparable to the rest of the industry.
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.
A Debt/Equity ratio of 1.12 is on the high side and indicates that BC has dependencies on debt financing.
BC has a worse Debt to Equity ratio (1.12) than 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 6.11 | ||
| Altman-Z | 2.65 |
ROIC/WACC0.71
WACC8.37%
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.
Looking at the Current ratio, with a value of 1.57, BC is doing worse than 80.00% of the companies in the same industry.
BC has a Quick Ratio of 1.57. This is a bad value and indicates that BC is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of BC (0.65) is worse than 76.67% of its industry peers.
| 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.
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 very negative growth in Revenue. In the last year, the Revenue has decreased by -15.42%.
The Revenue has been growing slightly by 4.97% on average over the past years.
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
BC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.50% yearly.
Based on estimates for the next years, BC will show a small growth in Revenue. The Revenue will grow by 4.38% on average per year.
EPS Next Y-29.37%
EPS Next 2Y-3.15%
EPS Next 3Y8.99%
EPS Next 5Y21.5%
Revenue Next Year-1.32%
Revenue Next 2Y2.09%
Revenue Next 3Y3.29%
Revenue Next 5Y4.38%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
BC is valuated correctly with a Price/Earnings ratio of 14.59.
Compared to the rest of the industry, the Price/Earnings ratio of BC indicates a rather cheap valuation: BC is cheaper than 90.00% of the companies listed in the same industry.
BC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.31.
The Price/Forward Earnings ratio is 12.86, which indicates a correct valuation of BC.
Based on the Price/Forward Earnings ratio, BC is valued a bit cheaper than 73.33% of the companies in the same industry.
BC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.06.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.59 | ||
| Fwd PE | 12.86 |
4.2 Price Multiples
BC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BC is cheaper than 73.33% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BC is valued cheaper than 86.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.89 | ||
| EV/EBITDA | 8.85 |
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)12.86
EPS Next 2Y-3.15%
EPS Next 3Y8.99%
5. Dividend
5.1 Amount
BC has a Yearly Dividend Yield of 3.34%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.43, BC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, BC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.34% |
5.2 History
The dividend of BC is nicely growing with an annual growth rate of 13.66%!
BC has paid a dividend for at least 10 years, which is 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-3.15%
EPS Next 3Y8.99%
55
+0.27 (+0.49%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners104.85%
Inst Owner Change2.7%
Ins Owners0.85%
Ins Owner Change4.08%
Market Cap3.61B
Analysts74.81
Price Target60 (9.09%)
Short Float %6.93%
Short Ratio3.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.34% |
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)-15.02%
PT rev (3m)-25.29%
EPS NQ rev (1m)-3.08%
EPS NQ rev (3m)-39.1%
EPS NY rev (1m)-20.48%
EPS NY rev (3m)-24.13%
Revenue NQ rev (1m)-1.24%
Revenue NQ rev (3m)-15.2%
Revenue NY rev (1m)-3.92%
Revenue NY rev (3m)-4.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.59 | ||
| Fwd PE | 12.86 | ||
| P/S | 0.71 | ||
| P/FCF | 8.89 | ||
| P/OCF | 6.48 | ||
| P/B | 1.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.85 |
EPS(TTM)3.77
EY6.85%
EPS(NY)4.28
Fwd EY7.78%
FCF(TTM)6.19
FCFY11.25%
OCF(TTM)8.49
OCFY15.43%
SpS77.56
BVpS28.5
TBVpS-0.16
PEG (NY)N/A
PEG (5Y)12.86
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 | 2.65 |
F-Score5
WACC8.37%
ROIC/WACC0.71
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-29.37%
EPS Next 2Y-3.15%
EPS Next 3Y8.99%
EPS Next 5Y21.5%
Revenue 1Y (TTM)-15.42%
Revenue growth 3Y-3.6%
Revenue growth 5Y4.97%
Sales Q2Q%-10.49%
Revenue Next Year-1.32%
Revenue Next 2Y2.09%
Revenue Next 3Y3.29%
Revenue Next 5Y4.38%
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%