NYSE:BC

Stock Analysis Report

Executive Summary

Brunswick Corporation designs, manufactures, and markets recreation products worldwide.

Rewards

Trading at 65.9% below its fair value

Earnings are forecast to grow 46.72% per year

Pays a reliable dividend of 2.67%

Risk Analysis

Has a high level of debt

Dividend of 2.67% is not well covered by earnings

Highly volatile share price over past 3 months

Large one-off items impacting financial results

+ 1 more risk


Snowflake Analysis

Adequate balance sheet with reasonable growth potential and pays a dividend.


Similar Companies

Share Price & News

How has Brunswick's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

15.4%

BC

13.0%

US Leisure

7.2%

US Market


1 Year Return

-28.9%

BC

-25.5%

US Leisure

-10.4%

US Market

Return vs Industry: BC underperformed the US Leisure industry which returned -25.5% over the past year.

Return vs Market: BC underperformed the US Market which returned -10.4% over the past year.


Shareholder returns

BCIndustryMarket
7 Day15.4%13.0%7.2%
30 Day-32.4%-11.0%-12.6%
90 Day-40.1%-30.3%-19.4%
1 Year-27.7%-28.9%-24.3%-25.5%-8.5%-10.4%
3 Year-35.5%-38.3%-32.4%-35.7%15.8%8.3%
5 Year-25.6%-30.5%-30.3%-36.9%35.8%21.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Brunswick undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BC ($35.94) is trading below our estimate of fair value ($105.54)

Significantly Below Fair Value: BC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BC is poor value based on its PE Ratio (100.7x) compared to the Leisure industry average (12.9x).

PE vs Market: BC is poor value based on its PE Ratio (100.7x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: BC is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: BC is overvalued based on its PB Ratio (2.2x) compared to the US Leisure industry average (2.1x).


Next Steps

Future Growth

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

46.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BC's forecast earnings growth (46.7% per year) is above the savings rate (1.7%).

Earnings vs Market: BC's earnings (46.7% per year) are forecast to grow faster than the US market (12.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BC's revenue is expected to decline over the next 3 years (-2.9% per year).

High Growth Revenue: BC's revenue is forecast to decline over the next 3 years (-2.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BC's Return on Equity is forecast to be high in 3 years time (25.8%)


Next Steps

Past Performance

How has Brunswick performed over the past 5 years?

-10.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BC has a large one-off loss of $321.3M impacting its December 31 2019 financial results.

Growing Profit Margin: BC's current net profit margins (0.7%) are lower than last year (6.1%).


Past Earnings Growth Analysis

Earnings Trend: BC's earnings have declined by -10.6% per year over the past 5 years.

Accelerating Growth: BC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BC had negative earnings growth (-88%) over the past year, making it difficult to compare to the Leisure industry average (-3.4%).


Return on Equity

High ROE: BC's Return on Equity (2.3%) is considered low.


Next Steps

Financial Health

How is Brunswick's financial position?


Financial Position Analysis

Short Term Liabilities: BC's short term assets ($1.5B) exceed its short term liabilities ($944.4M).

Long Term Liabilities: BC's short term assets ($1.5B) exceed its long term liabilities ($1.3B).


Debt to Equity History and Analysis

Debt Level: BC's debt to equity ratio (85.3%) is considered high.

Reducing Debt: BC's debt to equity ratio has increased from 38.7% to 85.3% over the past 5 years.

Debt Coverage: BC's debt is well covered by operating cash flow (39.1%).

Interest Coverage: BC's interest payments on its debt are well covered by EBIT (6.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: BC's debt is covered by short term assets (assets are 1.4x debt).


Next Steps

Dividend

What is Brunswick's current dividend yield, its reliability and sustainability?

2.67%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BC's dividend (2.67%) is higher than the bottom 25% of dividend payers in the US market (1.95%).

High Dividend: BC's dividend (2.67%) is low compared to the top 25% of dividend payers in the US market (5.4%).


Stability and Growth of Payments

Stable Dividend: BC's dividends per share have been stable in the past 10 years.

Growing Dividend: BC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (243.8%), BC's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BC's dividends in 3 years are forecast to be well covered by earnings (29% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

David Foulkes (57yo)

1.17s

Tenure

US$5,840,775

Compensation

Mr. David M. Foulkes has been Chief Executive Officer and Director at Brunswick Corp. since January 01, 2019. Mr. Foulkes was Chief Technology Officer and President of Brunswick Marine Consumer Solutions a ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD5.84M) is about average for companies of similar size in the US market ($USD5.48M).

Compensation vs Earnings: David's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David Foulkes
CEO & Director1.17yrsUS$5.84m0.018% $525.3k
William Metzger
Senior VP & CFO7yrsUS$2.08m0.16% $4.5m
Christopher Dekker
VP, General Counsel & Secretary5.42yrsUS$1.43m0.026% $739.8k
Huw Bower
VP & President of Brunswick Boat Group3.83yrsUS$1.45m0.021% $600.1k
Christopher Drees
VP & President of Mercury Marine1.17yrsUS$1.41m0.0066% $187.1k
Danielle Brown
Chief Information Officer & VP3.25yrsno datano data
Alexander Marchetti
Senior Director of Investor Relations0.67yrno datano data
Daniel Kubera
Director of Media Relations & Corporate Communicationsno datano datano data
Brenna Preisser
VP, Chief Human Resources Officer & President of Business Acceleration4yrsno data0.038% $1.1m
Jeffry Behan
VP of Corporate Strategy & President of Aluminum Commercial Operations0.42yrno datano data

3.3yrs

Average Tenure

50yo

Average Age

Experienced Management: BC's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Foulkes
CEO & Director1.17yrsUS$5.84m0.018% $525.3k
Nancy Cooper
Independent Director6.58yrsUS$277.44k0.016% $469.4k
J. Whisler
Independent Director12.42yrsUS$293.76k0.083% $2.4m
Manuel Fernandez
Non–Executive Chairman of the Board1.17yrsUS$423.38k0.017% $491.7k
Joseph McClanathan
Independent Director1.67yrsUS$287.76k0.000050% $1.4k
David Singer
Independent Director6.25yrsUS$380.95k0.038% $1.1m
Jane Warner
Independent Director5yrsUS$266.54k0.00015% $4.3k
Roger Wood
Independent Director7.42yrsUS$288.98k0.000080% $2.3k
David Everitt
Independent Director7.42yrsUS$329.73k0.026% $731.0k
Lauren Flaherty
Independent Director1.25yrsUS$242.10k0.000050% $1.4k

5.6yrs

Average Tenure

64.5yo

Average Age

Experienced Board: BC's board of directors are considered experienced (5.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Brunswick Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Brunswick Corporation
  • Ticker: BC
  • Exchange: NYSE
  • Founded: 1845
  • Industry: Leisure Products
  • Sector: Consumer Durables
  • Market Cap: US$2.852b
  • Shares outstanding: 79.36m
  • Website: https://www.brunswick.com

Number of Employees


Location

  • Brunswick Corporation
  • 26125 North Riverwoods Boulevard
  • Suite 500
  • Mettawa
  • Illinois
  • 60045
  • United States

Listings

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

Biography

Brunswick Corporation designs, manufactures, and markets recreation products worldwide. The company offers marine engine products, including outboard, sterndrive, and inboard engine and propulsion systems; marine electronics and control integration systems, steering systems, instruments, controls, propellers, trolling motors, fuel systems, electrical systems, service parts, and lubricants; and integrated propulsion systems to the recreational and commercial marine markets, as well as parts and accessories. It provides its marine engine products for independent boat builders and governments through marine dealers and distributors, specialty marine retailers, and marine service centres under the Mercury, Mercury MerCruiser, Mercury Racing, and MotorGuide brands. The company also offers boats, such as fiberglass pleasure, sport cruisers, sport fishing and centre-console, offshore fishing, aluminium and fiberglass fishing, pontoon, utility, deck, inflatable, and heavy-gauge aluminium under the Bayliner, Heyday, Boston Whaler, Lund, Crestliner, Cypress Cay, Harris, Lowe, Princecraft, and Thunder Jet brands. It provides boats for commercial and government customers through dealers and distributors. Brunswick Corporation was founded in 1845 and is headquartered in Mettawa, Illinois. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 00:12
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.