Brunswick (BC) AI Stock Analysis

• Market Cap: $3.00B
• Dividend Yield: 3.68%
• Average Volume (3M): 1.35M
• Price to Earnings (P/E): 38.4
• Beta (1Y): 1.13
• Revenue Growth: -15.42%
• EPS Growth: -77.50%
• Country: US
• Employees: 15,000
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Auto - Recreational Vehicles
• EPS (TTM): 0.56
• Shares Outstanding: 65,683,410
• 10 Day Avg. Volume: 1,150,230
• 30 Day Avg. Volume: 1,350,784
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.96
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 4.34
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $54.25
• Price Target Upside: 12.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

Brunswick's stock score reflects a mix of strengths and challenges. Strong cash flow and recurring revenue growth are positive, but declining margins and high leverage pose risks. Technical indicators suggest weak momentum, and the high P/E ratio raises valuation concerns. The balanced sentiment from the earnings call, with both strategic achievements and challenges, adds nuance to the overall assessment.

Positive Factors

Cash Flow

BC expects improved efficiency, guiding for $350M+ in free cash flow following a strong cash quarter.

Financial Performance

BC reported 1Q25 results that beat expectations, focusing on structural cost reductions and managing production, working cap, and inventory.

Negative Factors

Guidance

BC's 2025 guidance was reduced due to tariff and retail pressure.

Tariffs

Tariffs are estimated to create a significant headwind, negatively impacting EPS by approximately $1.00.

Brunswick Business Overview & Revenue Model

Company Description

Brunswick Corporation designs, manufactures, and markets recreation products worldwide. It operates through Propulsion; Parts & Accessories; and Boat segments. 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, 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.

How the Company Makes Money

Brunswick Corporation generates revenue through its diversified portfolio across three main segments. The Propulsion segment is the largest revenue generator, primarily selling marine engines under well-known brands such as Mercury and MerCruiser. This segment benefits from both direct sales to boat manufacturers and aftermarket sales to boat owners. The Parts & Accessories segment contributes to revenue through the sale of marine-related products like electronics, engine parts, and maintenance supplies, often through distribution networks and retail channels. The Boat segment adds to the revenue stream by selling boats under various brands, including Bayliner, Boston Whaler, and Sea Ray. Brunswick's earnings are further bolstered by strategic partnerships and a strong dealer network that enhances market reach and customer engagement, as well as a focus on expanding its presence in international markets.

Brunswick Financial Statement Overview

Summary

Brunswick faces challenges in revenue growth and profitability, with declining margins indicating cost pressures. The balance sheet shows high leverage, raising potential risks in a declining revenue environment, but a reasonable equity ratio provides some stability. Cash flow metrics are strong, with significant free cash flow growth and solid cash flow ratios, offering some resilience. Overall, while cash flow strength is a positive, the company needs to address revenue and margin pressures to improve financial health.

Income Statement

Brunswick has shown a decline in total revenue from $5.24 billion in 2024 to $5.09 billion in the TTM (Trailing-Twelve-Months) period of 2025. This represents a revenue decline of approximately 2.75%, which is a concern for growth. Gross Profit Margin in the TTM is approximately 24.56%, a decrease from 25.79% in 2024, indicating pressure on profitability. The Net Profit Margin has also decreased to 1.61% in the TTM from 2.49% in 2024, showing reduced profitability. The EBIT Margin stands at 5.13%, down from 5.95% in 2024, while the EBITDA Margin is 9.48%, down from 11.82% in 2024. Overall, the declining margins signal challenges in cost management and profitability.

Balance Sheet

Brunswick's Debt-to-Equity Ratio in the TTM is approximately 1.40, which is relatively high, indicating significant leverage. However, the Equity Ratio of 31.97% suggests a reasonable level of equity to total assets. Return on Equity (ROE) is low at 4.40% in the TTM, down from 6.87% in 2024, reflecting decreased profitability relative to equity. While the company maintains a solid equity base, the high leverage poses potential risks, especially if revenue and profitability continue to decline.

Cash Flow

The Free Cash Flow in the TTM has increased to $406.3 million from $264 million in 2024, indicating a strong growth of 53.94%, which is a positive sign. The Operating Cash Flow to Net Income Ratio is robust at 6.77, showcasing strong cash flow generation relative to net income. The Free Cash Flow to Net Income Ratio is also strong at 4.94, suggesting effective cash management. Overall, the cash flow situation appears strong despite the challenges in income and balance sheet metrics.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.24B	6.40B	6.81B	5.85B	4.35B
	Gross Profit
1.35B	1.83B	1.95B	1.67B	1.21B
	EBIT
311.60M	734.90M	947.80M	812.90M	539.30M
	EBITDA
618.80M	1.01B	1.18B	980.50M	693.50M
	Net Income Common Stockholders
130.10M	420.40M	677.00M	593.30M	372.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
269.80M	468.60M	600.10M	355.30M	576.30M
	Total Assets
5.68B	6.23B	6.32B	5.42B	3.77B
	Total Debt
2.51B	2.59B	2.51B	1.82B	951.40M
	Net Debt
2.24B	2.12B	1.91B	1.46B	431.80M
	Total Liabilities
3.79B	4.14B	4.28B	3.51B	2.26B
	Stockholders Equity
1.89B	2.09B	2.04B	1.91B	1.51B
Cash Flow		Free Cash Flow
264.00M	444.30M	197.80M	306.90M	615.90M
	Operating Cash Flow
431.40M	733.60M	586.10M	574.00M	798.30M
	Investing Cash Flow
-168.90M	-378.90M	-443.20M	-1.35B	-246.90M
	Financing Cash Flow
-442.70M	-487.00M	110.80M	621.80M	-361.80M

Brunswick Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 48.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BC, the sentiment is Neutral. The current price of 48.08 is above the 20-day moving average (MA) of 45.54, below the 50-day MA of 51.36, and below the 200-day MA of 68.78, indicating a neutral trend. The MACD of -1.18 indicates Negative momentum. The RSI at 50.90 is Neutral, neither overbought nor oversold. The STOCH value of 56.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BC.

Brunswick Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHEF	74 Outperform	$2.49B	40.77	12.90%	―	7.85%	79.89%
CAKE	73 Outperform	$2.45B	15.82	46.60%	2.15%	4.42%	48.23%
THO	68 Neutral	$3.93B	19.59	5.13%	2.68%	-8.45%	-25.41%
WEN	66 Neutral	$2.28B	13.36	90.40%	8.50%	2.18%	-5.15%
SON	64 Neutral	$4.41B	29.06	5.54%	4.71%	-4.58%	-61.14%
BC	63 Neutral	$3.00B	38.42	5.16%	3.68%	-15.42%	-77.50%
Sector *	61 Neutral	$6.59B	11.77	3.06%	3.98%	2.56%	-20.85%