BRUNSWICK CORP (BC)
US1170431092 - Common Stock
Taking everything into account, BC scores 5 out of 10 in our fundamental rating. BC was compared to 32 industry peers in the Leisure Products industry. While BC belongs to the best of the industry regarding profitability, 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.
BC had a positive operating cash flow in the past year.
BC had positive earnings in 4 of the past 5 years.
Each year in the past 5 years BC had a positive operating cash flow.
1.2 Ratios
BC has a better Return On Assets (5.78%) than 70.97% of its industry peers.
BC has a better Return On Equity (18.35%) than 77.42% of its industry peers.
BC has a better Return On Invested Capital (10.27%) than 70.97% of its industry peers.
BC had an Average Return On Invested Capital over the past 3 years of 14.41%. This is above the industry average of 11.12%.
The 3 year average ROIC (14.41%) for BC is well above the current ROIC(10.27%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.78% | ||
| ROE | 18.35% | ||
| ROIC | 10.27% |
ROA(3y)9.46%
ROA(5y)6.92%
ROE(3y)28.09%
ROE(5y)19.78%
ROIC(3y)14.41%
ROIC(5y)14.44%
1.3 Margins
The Profit Margin of BC (6.24%) is better than 80.65% of its industry peers.
BC's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 11.09%, BC belongs to the best of the industry, outperforming 83.87% of the companies in the same industry.
BC's Operating Margin has improved in the last couple of years.
BC's Gross Margin of 27.48% is on the low side compared to the rest of the industry. BC is outperformed by 61.29% of its industry peers.
BC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.09% | ||
| PM (TTM) | 6.24% | ||
| GM | 27.48% |
OM growth 3Y-0.54%
OM growth 5Y4.08%
PM growth 3Y-8.5%
PM growth 5Y0.4%
GM growth 3Y0.05%
GM growth 5Y2.57%
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.
The number of shares outstanding for BC has been reduced compared to 1 year ago.
The number of shares outstanding for BC has been reduced compared to 5 years ago.
Compared to 1 year ago, BC has an improved debt to assets ratio.
2.2 Solvency
BC has a debt to FCF ratio of 8.17. This is a slightly negative value and a sign of low solvency as BC would need 8.17 years to pay back of all of its debts.
With a Debt to FCF ratio value of 8.17, BC is not doing good in the industry: 64.52% of the companies in the same industry are doing better.
BC has a Debt/Equity ratio of 1.16. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.16, BC is not doing good in the industry: 80.65% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 8.17 | ||
| Altman-Z | N/A |
ROIC/WACC1.21
WACC8.51%
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.
With a Current ratio value of 1.68, BC is not doing good in the industry: 80.65% of the companies in the same industry are doing better.
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 Quick ratio of 0.75. This is amonst the worse of the industry: BC underperforms 80.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
The earnings per share for BC have decreased strongly by -24.68% in the last year.
BC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.00% yearly.
BC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.21%.
The Revenue has been growing by 9.21% on average over the past years. This is quite good.
EPS 1Y (TTM)-24.68%
EPS 3Y20.13%
EPS 5Y13%
EPS growth Q2Q-47.47%
Revenue 1Y (TTM)-12.21%
Revenue growth 3Y13.77%
Revenue growth 5Y9.21%
Revenue growth Q2Q-21.71%
3.2 Future
BC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.49% yearly.
The Revenue is expected to grow by 3.82% on average over the next years.
EPS Next Y-12.48%
EPS Next 2Y1.31%
EPS Next 3Y4.71%
EPS Next 5Y10.49%
Revenue Next Year-6.41%
Revenue Next 2Y-0.38%
Revenue Next 3Y0.96%
Revenue Next 5Y3.82%
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 stable.
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
Based on the Price/Earnings ratio of 10.74, the valuation of BC can be described as reasonable.
Based on the Price/Earnings ratio, BC is valued a bit cheaper than 77.42% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.28, BC is valued rather cheaply.
BC is valuated reasonably with a Price/Forward Earnings ratio of 9.02.
Based on the Price/Forward Earnings ratio, BC is valued a bit cheaper than the industry average as 77.42% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 20.88. BC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.74 | ||
| Fwd PE | 9.02 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BC indicates a somewhat cheap valuation: BC is cheaper than 74.19% of the companies listed in the same industry.
BC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.96 | ||
| EV/EBITDA | 8.24 |
4.3 Compensation for Growth
The decent profitability rating of BC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.83
EPS Next 2Y1.31%
EPS Next 3Y4.71%
5. Dividend
5.1 Amount
BC has a Yearly Dividend Yield of 2.09%. 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 3.32.
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 | 2.09% |
5.2 History
The dividend of BC is nicely growing with an annual growth rate of 15.57%!
BC has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)15.57%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
29.81% of the earnings are spent on dividend by BC. This is a low number and sustainable payout ratio.
BC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP29.81%
EPS Next 2Y1.31%
EPS Next 3Y4.71%
BRUNSWICK CORP
NYSE:BC (5/3/2024, 7:04:00 PM)
After market: 81.33 0 (0%)81.33
+0.18 (+0.22%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.52B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.74 | ||
| Fwd PE | 9.02 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.78% | ||
| ROE | 18.35% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.09% | ||
| PM (TTM) | 6.24% | ||
| GM | 27.48% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-24.68%
EPS 3Y20.13%
EPS 5Y
EPS growth Q2Q
EPS Next Y-12.48%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-12.21%
Revenue growth 3Y13.77%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y