Brunswick Corp (BC) stock analysis

P/E above its 5-year median

Brunswick's P/E of 24.2 is above its own 5-year median of 12.6.

P/E below the industry

Brunswick's P/E of 24.2 is below the Industrial and Commercial Machinery and Computer Equipment median of 27.1.

EV/EBITDA above its 5-year median

Brunswick's EV/EBITDA of 10.9 is above its 5-year median of 8.3.

P/B above the industry

Brunswick's price-to-book of 3.00 is above the Industrial and Commercial Machinery and Computer Equipment median of 2.71.

Trading above fair value

The share price of $78.38 is above our fair value estimate of $72.44.

Margin of safety under 20%

The price is 8.2% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -7.7% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 10.4% over the last twelve months; the Industrial and Commercial Machinery and Computer Equipment median is 10.1%.

Guidance lowered

Brunswick lowered its full-year Share repurchases outlook on Oct 29, 2026.

Gross margin improving

Gross margin was 26.2% over the last twelve months, against 24.6% a year earlier.

Return on equity under 15%

Return on equity was 12.7% over the last twelve months and averaged 17.6% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 8.2%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Brunswick's return on equity of 12.7% is above the Industrial and Commercial Machinery and Computer Equipment median of 7.0%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was 3.7% over the last twelve months, against a 5-year average of 5.3%.

Net margin below the industry

Brunswick's net margin of 3.7% is below the Industrial and Commercial Machinery and Computer Equipment median of 4.8%.

High debt

Debt is 118% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 63.0% five years ago to 118%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 28.4% of total debt.

Interest not well covered

Operating income covers interest expense 3.3 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 1.51 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.12; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Brunswick paid dividends worth 2.2% of the share price over the last twelve months.

Yield below Treasuries

The 2.2% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Brunswick yields 2.2%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 53.9% of net income.

Covered by free cash flow

Dividends take 30.6% of free cash flow.