BRUNSWICK CORP (BC) Stock Fundamental Analysis
USA - NYSE:BC - US1170431092 - Common Stock
65.28 USD
-1.39 (-2.08%)
65.28 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to BC. BC was compared to 33 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.
In the past year BC had a positive cash flow from operations.
In the past 5 years BC has always been profitable.
Each year in the past 5 years BC had a positive operating cash flow.
1.2 Ratios
BC's Return On Assets of 0.72% is fine compared to the rest of the industry. BC outperforms 60.61% of its industry peers.
BC has a better Return On Equity (2.18%) than 66.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.97%, BC is in the better half of the industry, outperforming 69.70% 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 7.78%.
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.
The Operating Margin of BC (6.12%) is better than 72.73% of its industry peers.
In the last couple of years the Operating Margin of BC has declined.
With a Gross Margin value of 24.72%, BC is not doing good in the industry: 60.61% 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 | 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
BC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, BC has less shares outstanding
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
The Debt to FCF ratio of BC is 4.43, which is a neutral value as it means it would take BC, 4.43 years of fcf income to pay off 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 66.67% 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's Debt to Equity ratio of 1.10 is on the low side compared to the rest of the industry. BC is outperformed by 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
WACC10.03%
2.3 Liquidity
A Current Ratio of 1.68 indicates that BC should not have too much problems paying its short term obligations.
BC's Current ratio of 1.68 is on the low side compared to the rest of the industry. BC is outperformed by 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's Quick ratio of 0.70 is on the low side compared to the rest of the industry. BC is outperformed by 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%.
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.
BC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.58%.
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
The Earnings Per Share is expected to grow by 20.12% on average over the next years. This is a very strong growth
Based on estimates for the next years, BC will show a small growth in Revenue. The Revenue will grow by 3.75% on average per year.
EPS Next Y-27.4%
EPS Next 2Y-2.8%
EPS Next 3Y8.46%
EPS Next 5Y20.12%
Revenue Next Year0.3%
Revenue Next 2Y2.45%
Revenue Next 3Y3.57%
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 20.86.
BC's Price/Earnings ratio is a bit cheaper when compared to the industry. BC is cheaper than 75.76% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. BC is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 15.15 indicates a correct valuation of BC.
BC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BC is cheaper than 78.79% 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 22.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.86 | ||
| Fwd PE | 15.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BC is valued a bit cheaper than 72.73% of the companies in the same industry.
BC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BC is cheaper than 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.3 | ||
| EV/EBITDA | 10.45 |
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)18.39
EPS Next 2Y-2.8%
EPS Next 3Y8.46%
5. Dividend
5.1 Amount
BC has a Yearly Dividend Yield of 2.63%. 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 3.99.
Compared to an average S&P500 Dividend Yield of 2.41, BC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
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 269.47% 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.
DP269.47%
EPS Next 2Y-2.8%
EPS Next 3Y8.46%
65.28
-1.39 (-2.08%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners107.26%
Inst Owner Change1.64%
Ins Owners0.91%
Ins Owner Change0.56%
Market Cap4.26B
Analysts74.62
Price Target66.32 (1.59%)
Short Float %8.91%
Short Ratio6.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
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)10.04%
PT rev (3m)10.55%
EPS NQ rev (1m)-3.42%
EPS NQ rev (3m)-45.14%
EPS NY rev (1m)1.12%
EPS NY rev (3m)2.8%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-11.32%
Revenue NY rev (1m)0.53%
Revenue NY rev (3m)1.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.86 | ||
| Fwd PE | 15.15 | ||
| P/S | 0.84 | ||
| P/FCF | 8.3 | ||
| P/OCF | 6.44 | ||
| P/B | 2.24 | ||
| P/tB | 218.7 | ||
| EV/EBITDA | 10.45 |
EPS(TTM)3.13
EY4.79%
EPS(NY)4.31
Fwd EY6.6%
FCF(TTM)7.86
FCFY12.05%
OCF(TTM)10.14
OCFY15.54%
SpS78.02
BVpS29.16
TBVpS0.3
PEG (NY)N/A
PEG (5Y)18.39
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
WACC10.03%
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-27.4%
EPS Next 2Y-2.8%
EPS Next 3Y8.46%
EPS Next 5Y20.12%
Revenue 1Y (TTM)-11.58%
Revenue growth 3Y-3.6%
Revenue growth 5Y4.97%
Sales Q2Q%0.21%
Revenue Next Year0.3%
Revenue Next 2Y2.45%
Revenue Next 3Y3.57%
Revenue Next 5Y3.75%
EBIT growth 1Y-50.21%
EBIT growth 3Y-18.95%
EBIT growth 5Y-2.43%
EBIT Next Year27.63%
EBIT Next 3Y19.71%
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%