Brunswick Corp

BC

Engines & Turbines

Mkt Cap

$5.307B

PE

14.11

Debt

$3.315B

Cash

$559.5M

EV

$8.062B

FCF

$361.8M

Market Cap

$5.307B

P/E Ratio

14.11

Debt

$3.315B

Cash

$559.5M

EV

$8.062B

FCF

$361.8M

Charts data: {"Earnings":[{"time":"2014-12-30","value":245700000},{"time":"2015-12-30","value":241400000},{"time":"2016-12-30","value":276000000},{"time":"2017-12-30","value":146400000},{"time":"2018-12-30","value":265300000},{"time":"2019-12-30","value":-131000000},{"time":"2020-12-30","value":372700000},{"time":"2021-12-30","value":593300000},{"time":"2022-12-30","value":677000000},{"time":"2023-12-30","value":420400000}],"Sales":[{"time":"2014-12-30","value":3838700000},{"time":"2015-12-30","value":4105700000},{"time":"2016-12-30","value":4488500000},{"time":"2017-12-30","value":4835900000},{"time":"2018-12-30","value":5159200000},{"time":"2019-12-30","value":4108400000},{"time":"2020-12-30","value":4347500000},{"time":"2021-12-30","value":5846200000},{"time":"2022-12-30","value":6812200000},{"time":"2023-12-30","value":6401400000}],"Net Margins":[{"time":"2014-12-30","value":0.06400604371271525},{"time":"2015-12-30","value":0.05879630757239935},{"time":"2016-12-30","value":0.06149047566002005},{"time":"2017-12-30","value":0.030273578858123616},{"time":"2018-12-30","value":0.05142270119398357},{"time":"2019-12-30","value":-0.03188589231817739},{"time":"2020-12-30","value":0.0857274295572168},{"time":"2021-12-30","value":0.10148472512059116},{"time":"2022-12-30","value":0.09938052317900238},{"time":"2023-12-30","value":0.06567313400193707}],"Assets":[{"time":"2014-12-30","value":3134400000},{"time":"2015-12-30","value":3152500000},{"time":"2016-12-30","value":3284700000},{"time":"2017-12-30","value":3358200000},{"time":"2018-12-30","value":4285700000},{"time":"2019-12-30","value":3564400000},{"time":"2020-12-30","value":3770600000},{"time":"2021-12-30","value":5425000000},{"time":"2022-12-30","value":6321300000},{"time":"2023-12-30","value":6230500000}],"Stockholders Equity":[{"time":"2014-12-30","value":1171500000},{"time":"2015-12-30","value":1281300000},{"time":"2016-12-30","value":1440100000},{"time":"2017-12-30","value":1482900000},{"time":"2018-12-30","value":1582600000},{"time":"2019-12-30","value":1300900000},{"time":"2020-12-30","value":1510000000},{"time":"2021-12-30","value":1914200000},{"time":"2022-12-30","value":2042300000},{"time":"2023-12-30","value":2087400000}],"ROE":[{"time":"2014-12-30","value":0.20973111395646607},{"time":"2015-12-30","value":0.18840240380863185},{"time":"2016-12-30","value":0.19165335740573572},{"time":"2017-12-30","value":0.09872547036212827},{"time":"2018-12-30","value":0.16763553645899154},{"time":"2019-12-30","value":-0.10069951571988624},{"time":"2020-12-30","value":0.24682119205298014},{"time":"2021-12-30","value":0.3099467140319716},{"time":"2022-12-30","value":0.33148900749155363},{"time":"2023-12-30","value":0.2013988694069177}],"ROA":[{"time":"2014-12-30","value":0.10480474732006126},{"time":"2015-12-30","value":0.10880253766851705},{"time":"2016-12-30","value":0.12701312144183638},{"time":"2017-12-30","value":0.11008873801441248},{"time":"2018-12-30","value":0.08591361971206571},{"time":"2019-12-30","value":0.1321400516215913},{"time":"2020-12-30","value":0.1432132817058293},{"time":"2021-12-30","value":0.14984331797235023},{"time":"2022-12-30","value":0.15055447455428472},{"time":"2023-12-30","value":0.11897921515127197}]}

Brunswick Corporation designs, manufactures, and markets recreation products worldwide. It operates through three segments: Propulsion, Parts & Accessories, and Boat. The Propulsion segment provides outboard, sterndrive, and inboard engines for independent boat builders and governments through marine dealers and distributors, specialty marine retailers, and marine service centers; and propulsion-related controls, rigging, and propellers to original equipment manufacturers and aftermarket retailers, distributors, and distribution businesses. This segment offers its products under the Mercury, Mercury MerCruiser, Mariner, Mercury Racing, and Mercury Diesel brands. The Parts & Accessories segment provides engine parts and consumables, electrical products, boat parts and systems, engine oils and lubricants, marine electronics and control systems, instruments, trolling motors, fuel systems, and electrical systems, as well as specialty vehicle, mobile, and transportation aftermarket products for aftermarket retailers, distributors, and distribution businesses, as well for as for the original equipment manufacturers in marine and non-marine markets; and supplies parts and accessories. This segment offers its products under the under the Mercury, Mercury Precision Parts, Quicksilver, and Seachoice brands. The Boat segment provides Sea Ray sport boats and cruisers; Bayliner sport cruisers, runabouts and Heyday wake; Boston Whaler fiberglass offshore boats; Lund fiberglass fishing boats; Crestliner, Cypress Cay, Harris, Lowe, Lund, Princecraft aluminum fishing, Veer recreational and fishing, utility, pontoon, and deck boats; and Thunder Jet heavy-gauge aluminum boats, as well as the freedom boat club, dealer services, and technology to the marine industry through dealers and distributors. Brunswick Corporation was founded in 1845 and is headquartered in Mettawa, Illinois.

Sector

10-Q
9/30/23
10-Q
7/1/23
10-Q
4/1/23
10-K
12/31/22
10-Q
10/1/22
10-Q
7/2/22
10-Q
4/2/22
10-K
12/31/21
10-Q
10/2/21
10-Q
7/3/21
10-Q
4/3/21
10-K
12/31/20
10-Q
9/26/20
10-Q
6/27/20
10-Q
3/28/20
10-K
12/31/19
10-Q
9/28/19
10-Q
6/29/19
10-Q
3/30/19
10-K
12/31/18
10-Q
9/29/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Brunswick Corp

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$361.8M	$376.5M	$391.9M	$407.8M	$424.4M	$441.7M	$459.7M	$478.5M	$497.9M	$518.2M	$539.3M	$5.393B
DCF		$327.4M	$296.3M	$268.2M	$242.7M	$219.6M	$198.8M	$179.9M	$162.8M	$147.3M	$133.3M	$1.333B
Value	$3.509B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 14%

Earnings Stability 40%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	5.9%	6.1%	3%	5.1%	-3.2%	8.6%	10%	9.9%	6.6%	6.2%
ROA	11%	13%	11%	8.6%	13%	14%	15%	15%	12%	9.5%
ROE	19%	19%	9.9%	17%	-10%	25%	31%	33%	20%	18%

What is the average Net Margin?

The average Net Margin over the past 5 years is +6.2%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +1.37%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +13.01%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +0.65%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +19.28%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +4.37%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	2.21	1.94	1.95	8.83	4.83	1.64	5.90	13.31	6.40	9.16
Debt Equity	0.35	0.31	0.30	0.80	0.90	0.67	0.98	1.29	1.40	1.62
MIN
Graham Stability	-	-	58%	100%	-57%	100%	100%	100%	77%	-57%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 9.16.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 0.50.

What is the Graham’s Stability?

Graham’s Stability measure stands at -0.57.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	5.2%	4.4%	14%	-6%	0.37%
Net Income	6.2%	9.6%	4.1%	-38%	-0.042%
Stockholders Equity	5.4%	5.7%	11%	2.2%	0.19%
FCF	10%	26%	-9.6%	130%	2.2%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +4.41%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +0.37%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +9.64%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -0.04%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +5.69%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +0.19%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +25.99%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +2.2%.