Brunswick Corp
BC
Engines & Turbines
Mkt Cap
$5.523BPE
11.02Debt
$2.916BCash
$342MEV
$8.097BFCF
$408.3MP/E Ratio
11.02Debt
$2.916BCash
$342MEV
$8.097BFCF
$408.3MBrunswick 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.
DCF
Discounted Cash Flow Valuation of Brunswick Corp
Value
Growth
%
%
Discount
%
%
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 | $408.3M | $427.4M | $447.3M | $468.2M | $490M | $512.9M | $536.8M | $561.9M | $588.1M | $615.6M | $644.3M | $6.443B |
| DCF | $371.6M | $338.2M | $307.8M | $280.2M | $255M | $232.1M | $211.2M | $192.3M | $175M | $159.3M | $1.593B | |
| Value | $4.115B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 15%
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.
| Years | 12-2014 | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 6.4% | 5.9% | 6.1% | 3% | 5.1% | -3.2% | 8.6% | 10% | 9.9% | 7.6% |
| ROA | 10% | 11% | 13% | 11% | 8.6% | 13% | 14% | 15% | 15% | 13% |
| ROE | 21% | 19% | 19% | 9.9% | 17% | -10% | 25% | 31% | 33% | 24% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +5.61%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is +1.75%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +12.86%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is +1.16%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +17.57%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is +5.54%.
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.
| Years | 12-2014 | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | 4.13 | 2.21 | 1.94 | 1.95 | 8.83 | 4.83 | 1.64 | 5.90 | 13.31 | 7.14 |
| Debt Equity | 0.39 | 0.35 | 0.31 | 0.30 | 0.80 | 0.90 | 0.67 | 0.98 | 1.29 | 1.40 |
| MIN | ||||||||||
| Graham Stability | - | - | 66% | 58% | 100% | -57% | 100% | 100% | 100% | -57% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 7.14.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is 1.28.
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.
| Years | 12-2015 | 12-2017 | 12-2019 | 12-2021 | Trend |
|---|---|---|---|---|---|
| Revenue | 7.5% | 7.1% | 18% | 17% | 2% |
| Net Income | 16% | 36% | - | 14% | 10% |
| Stockholders Equity | 6.9% | 6.6% | 16% | 6.7% | 0.24% |
| FCF | -0.56% | -2.8% | -6.6% | -38% | -9.7% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +7.09%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is +1.98%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is +35.83%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is +10.28%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +6.61%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is +0.24%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is -2.79%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is -9.73%.