NYSE:BGG

Stock Analysis Report

Executive Summary

Briggs & Stratton Corporation designs, manufactures, markets, sells, and services gasoline engines for outdoor power equipment to the original equipment manufacturers in the United States.

Snowflake

Fundamentals

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has Briggs & Stratton's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

10.7%

BGG

5.1%

US Machinery

2.3%

US Market


1 Year Return

-66.4%

BGG

2.8%

US Machinery

5.6%

US Market

Return vs Industry: BGG underperformed the US Machinery industry which returned 2.8% over the past year.

Return vs Market: BGG underperformed the US Market which returned 5.6% over the past year.


Shareholder returns

BGGIndustryMarket
7 Day10.7%5.1%2.3%
30 Day-8.5%-2.1%-1.0%
90 Day-36.8%-1.3%-0.7%
1 Year-64.9%-66.4%5.0%2.8%7.9%5.6%
3 Year-65.1%-68.2%46.5%37.0%45.6%36.3%
5 Year-62.8%-68.0%59.6%40.4%65.8%47.6%

Price Volatility Vs. Market

How volatile is Briggs & Stratton's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Briggs & Stratton undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: BGG ($6.02) is trading below our estimate of fair value ($12.89)

Significantly Undervalued: BGG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BGG is unprofitable, so we can't compare its PE Ratio to the Machinery industry average.

PE vs Market: BGG is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate BGG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BGG is good value based on its PB Ratio (0.6x) compared to the US Machinery industry average (2.2x).


Next Steps

Future Growth

How is Briggs & Stratton forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

86.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BGG is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.7%).

Earnings vs Market: BGG is forecast to become profitable over the next 3 year, which is considered above average market growth.

High Growth Earnings: BGG's loss is forecast to worsen by 0% next year.

Revenue vs Market: BGG's revenue (3% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: BGG's revenue (3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: BGG's Return on Equity is forecast to be low in 3 years time (6.2%).


Next Steps

Past Performance

How has Briggs & Stratton performed over the past 5 years?

-42.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BGG is unprofitable, and losses have increased over the past 5 years at a rate of -42.2% per year.

Accelerating Growth: Unable to compare BGG's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: BGG is unprofitable, making it difficult to compare its past year earnings growth to the Machinery industry (18.7%).


Return on Equity

High ROE: BGG has a negative Return on Equity (-12.11%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: BGG is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: BGG is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Briggs & Stratton's financial position?


Financial Position Analysis

Short Term Liabilities: BGG's short term assets ($762.5M) exceeds its short term liabilities ($577.7M)

Long Term Liabilities: BGG's short term assets (762.5M) exceeds its long term liabilities (527.0M)


Debt to Equity History and Analysis

Debt Level: BGG's debt to equity ratio (82.2%) is considered high

Reducing Debt: BGG's debt to equity ratio has increased from 33.7% to 82.2% over the past 5 years.

Debt Coverage: BGG's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if BGG's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: BGG has a high level of physical assets or inventory.

Debt Coverage by Assets: BGG's debt is covered by short term assets (assets are 2.076780x debt).


Next Steps

Dividend

What is Briggs & Stratton's current dividend yield, its reliability and sustainability?

3.32%

Current Dividend Yield


Dividend Yield vs Market

company3.3%marketbottom25%1.5%markettop25%3.8%industryaverage2.1%forecastin3Years3.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BGG's dividend (3.32%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: BGG's dividend (3.32%) is low compared to the top 25% of dividend payers in the US market (3.76%).

Stable Dividend: BGG's dividend payments have been volatile in the past 10 years.

Growing Dividend: BGG's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: BGG is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: BGG's dividends in 3 years are forecast to be well covered by earnings (33.3% payout ratio).


Next Steps

Management

What is the CEO of Briggs & Stratton's salary, the management and board of directors tenure and is there insider trading?

6.8yrs

Average management tenure


CEO

Todd Teske (54yo)

9.8yrs

Tenure

US$4,291,676

Compensation

Mr. Todd J. Teske has been the Chief Executive Officer and President at Briggs & Stratton Corporation since January 1, 2010 and September 1, 2008 respectively and also serves as its principal executive off ...


CEO Compensation Analysis

Compensation vs. Market: Todd's total compensation ($USD4.29M) is above average for companies of similar size in the US market ($USD1.18M).

Compensation vs Earnings: Todd's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

6.8yrs

Average Tenure

54yo

Average Age

Experienced Management: BGG's management team is seasoned and experienced (6.8 years average tenure).


Board Age and Tenure

7.9yrs

Average Tenure

59yo

Average Age

Experienced Board: BGG's board of directors are considered experienced (7.9 years average tenure).


Insider Trading

Insider Buying: BGG insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$95,35716 Sep 19
Jeffrey Zeiler
EntityIndividual
Shares15,112
Max PriceUS$6.31
BuyUS$194,89405 Sep 19
Jeffrey Zeiler
EntityIndividual
Shares45,614
Max PriceUS$4.73
BuyUS$26,07603 Sep 19
Rachele Lehr
EntityIndividual
Role
Head of Human Resources
Vice President of Human Resources
Shares6,000
Max PriceUS$4.35
BuyUS$175,68003 Sep 19
Frank Jaehnert
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares40,000
Max PriceUS$4.39
BuyUS$20,90003 Sep 19
David Rodgers
EntityIndividual
Role
Senior Key Executive
Senior VP and President of Engines & Power
Shares5,000
Max PriceUS$4.18
BuyUS$120,42529 Jan 19
Frank Jaehnert
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$12.04
BuyUS$68,66931 Oct 18
Frank Jaehnert
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$13.73

Ownership Breakdown


Management Team

  • Bill Reitman (63yo)

    Senior VP & President of Support

    • Tenure: 9yrs
    • Compensation: US$1.03m
  • Todd Teske (54yo)

    Chairman

    • Tenure: 9.8yrs
    • Compensation: US$4.29m
  • Kathryn Buono (57yo)

    VP, General Counsel & Corporate Secretary

    • Tenure: 4.5yrs
    • Compensation: US$859.79k
  • Harold Redman (54yo)

    Senior VP and President of Turf & Consumer Products

    • Tenure: 13.1yrs
    • Compensation: US$945.08k
  • Dave Rodgers (48yo)

    Senior VP and President of Engines & Power

    • Tenure: 9.3yrs
    • Compensation: US$1.22m
  • Mark Schwertfeger (42yo)

    Senior VP & CFO

    • Tenure: 4.2yrs
    • Compensation: US$943.37k
  • Rick Carpenter (62yo)

    Vice President of Corporate Marketing

    • Tenure: 3.1yrs
  • Thomas Rugg

    VP & President of Job Site and Standby

    • Tenure: 0.5yrs
  • Rachele Lehr (42yo)

    Vice President of Human Resources

    • Tenure: 0yrs
  • Todd MacKay

    Vice President & Chief Information Officer

    • Tenure: 0yrs

Board Members

  • Frank Jaehnert (62yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$209.70k
  • Pat Kampling (59yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$239.87k
  • Brian Walker (57yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$244.13k
  • Henrik Slipsager (64yo)

    Independent Director

    • Tenure: 7yrs
    • Compensation: US$218.75k
  • Todd Teske (54yo)

    Chairman

    • Tenure: 9.8yrs
    • Compensation: US$4.29m
  • Charles Story (64yo)

    Independent Director

    • Tenure: 25.8yrs
    • Compensation: US$213.75k
  • Keith McLoughlin (63yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: US$203.75k
  • Jeff Hennion (52yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$212.52k
  • Sara Ulbrich-Greenstein (44yo)

    Independent Director

    • Tenure: 1.2yrs
    • Compensation: US$206.32k

Company Information

Briggs & Stratton Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Briggs & Stratton Corporation
  • Ticker: BGG
  • Exchange: NYSE
  • Founded: 1908
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$252.964m
  • Shares outstanding: 42.02m
  • Website: https://www.basco.com

Number of Employees


Location

  • Briggs & Stratton Corporation
  • 12301 West Wirth Street
  • Wauwatosa
  • Wisconsin
  • 53222
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BGGNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
BS7DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968

Biography

Briggs & Stratton Corporation designs, manufactures, markets, sells, and services gasoline engines for outdoor power equipment to the original equipment manufacturers in the United States. It operates in t ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 23:32
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.