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 31 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 has a decent growth rate and is not valued too expensively.
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.
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 0.72%, BC is doing good in the industry, outperforming 70.97% of the companies in the same industry.
BC has a Return On Equity of 2.18%. This is in the better half of the industry: BC outperforms 77.42% of its industry peers.
The Return On Invested Capital of BC (4.97%) is better than 74.19% 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 7.51%.
The last Return On Invested Capital (4.97%) 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 | 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
BC has a better Profit Margin (0.82%) than 74.19% of its industry peers.
In the last couple of years the Profit Margin of BC has declined.
BC has a Operating Margin of 6.12%. This is in the better half of the industry: BC outperforms 74.19% of its industry peers.
In the last couple of years the Operating Margin of BC has declined.
Looking at the Gross Margin, with a value of 24.72%, BC is doing worse than 61.29% of the companies in the same industry.
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.
BC has less shares outstanding than it did 1 year ago.
The number of shares outstanding for BC has been reduced compared to 5 years ago.
BC has a worse debt/assets ratio than last year.
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.
BC's Debt to FCF ratio of 4.43 is fine compared to the rest of the industry. BC outperforms 70.97% of its industry peers.
A Debt/Equity ratio of 1.10 is on the high side and indicates that BC has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.10, BC is doing worse than 70.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 4.43 | ||
| Altman-Z | N/A |
ROIC/WACC0.69
WACC7.24%
2.3 Liquidity
A Current Ratio of 1.68 indicates that BC should not have too much problems paying its short term obligations.
BC has a Current ratio of 1.68. This is in the lower half of the industry: BC underperforms 67.74% of its industry peers.
A Quick Ratio of 0.70 indicates that BC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.70, BC is doing worse than 74.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
The earnings per share for BC have decreased strongly by -55.41% 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.
The Revenue for BC has decreased by -11.58% in the past year. This is quite bad
The Revenue has been growing slightly by 4.97% on average over the past years.
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
BC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.75% yearly.
EPS Next Y-28.2%
EPS Next 2Y-2.62%
EPS Next 3Y9.15%
EPS Next 5Y20.12%
Revenue Next Year-0.23%
Revenue Next 2Y2.29%
Revenue Next 3Y3.12%
Revenue Next 5Y3.75%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.52 indicates a rather expensive valuation of BC.
77.42% of the companies in the same industry are more expensive than BC, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.85, BC is valued a bit cheaper.
A Price/Forward Earnings ratio of 14.85 indicates a correct valuation of BC.
Based on the Price/Forward Earnings ratio, BC is valued cheaply inside the industry as 80.65% of the companies are valued more expensively.
BC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.52 | ||
| Fwd PE | 14.85 |
4.2 Price Multiples
74.19% of the companies in the same industry are more expensive than BC, based on the Enterprise Value to EBITDA ratio.
90.32% of the companies in the same industry are more expensive than BC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.17 | ||
| EV/EBITDA | 10.19 |
4.3 Compensation for Growth
The decent profitability rating of BC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)18.09
EPS Next 2Y-2.62%
EPS Next 3Y9.15%
5. Dividend
5.1 Amount
BC has a Yearly Dividend Yield of 2.67%.
Compared to an average industry Dividend Yield of 4.15, BC pays a bit more dividend than its industry peers.
BC's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
5.2 History
On average, the dividend of BC grows each year by 13.66%, which is quite nice.
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)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-2.62%
EPS Next 3Y9.15%
64.22
+1.12 (+1.77%)
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 Change0.11%
Market Cap4.20B
Analysts74.62
Price Target64.5 (0.44%)
Short Float %8.57%
Short Ratio5.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
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)6.19%
PT rev (3m)7.51%
EPS NQ rev (1m)-24.07%
EPS NQ rev (3m)-44.12%
EPS NY rev (1m)0%
EPS NY rev (3m)-19.16%
Revenue NQ rev (1m)-7.1%
Revenue NQ rev (3m)-11.6%
Revenue NY rev (1m)1.23%
Revenue NY rev (3m)1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.52 | ||
| Fwd PE | 14.85 | ||
| P/S | 0.82 | ||
| P/FCF | 8.17 | ||
| P/OCF | 6.33 | ||
| P/B | 2.2 | ||
| P/tB | 215.15 | ||
| EV/EBITDA | 10.19 |
EPS(TTM)3.13
EY4.87%
EPS(NY)4.32
Fwd EY6.73%
FCF(TTM)7.86
FCFY12.24%
OCF(TTM)10.14
OCFY15.79%
SpS78.02
BVpS29.16
TBVpS0.3
PEG (NY)N/A
PEG (5Y)18.09
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
WACC7.24%
ROIC/WACC0.69
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-28.2%
EPS Next 2Y-2.62%
EPS Next 3Y9.15%
EPS Next 5Y20.12%
Revenue 1Y (TTM)-11.58%
Revenue growth 3Y-3.6%
Revenue growth 5Y4.97%
Sales Q2Q%0.21%
Revenue Next Year-0.23%
Revenue Next 2Y2.29%
Revenue Next 3Y3.12%
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%