Brunswick (BC) AI Stock Analysis

• Market Cap: $4.70B
• Dividend Yield: 2.63%
• Average Volume (3M): 812.52K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.37
• Revenue Growth: -4.78%
• EPS Growth: -189.89%
• Country: US
• Employees: 15,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Recreational Vehicles
• EPS (TTM): 0.97
• Shares Outstanding: 65,330,800
• 10 Day Avg. Volume: 1,008,292
• 30 Day Avg. Volume: 812,521
• PEG Ratio: -0.49
• Price to Book (P/B): 2.30
• Price to Sales (P/S): 0.83
• P/FCF Ratio: 16.46
• Enterprise Value/Market Cap: 1.29
• Enterprise Value/Revenue: 1.17
• Enterprise Value/Gross Profit: 4.74
• Enterprise Value/Ebitda: 67.21
• 1Y Price Target: $73.00
• Price Target Upside: 2.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 58 Neutral
• Price Target: $75.00 ▲(5.74% Upside)

Brunswick's overall stock score reflects a mixed performance. The most significant factor is the company's financial performance, which is challenged by declining margins and a negative net income. However, technical analysis shows bullish momentum, suggesting potential for price appreciation. Valuation remains a concern due to the negative P/E ratio, although the dividend yield provides some support. The earnings call highlights strong operational performance and market leadership, but also notes challenges that need addressing.

Positive Factors

Market Share Leadership

Maintaining a leading market share in outboard engines indicates strong brand recognition and competitive positioning, which can drive sustained revenue and profitability in the marine segment.

Free Cash Flow Generation

Strong free cash flow generation enhances financial flexibility, allowing for reinvestment in growth opportunities, debt reduction, and shareholder returns, supporting long-term business health.

Product Innovation

Innovative product launches like the Simrad AutoCaptain can strengthen Brunswick's competitive edge and appeal to tech-savvy consumers, driving future sales and market expansion.

Negative Factors

Profitability Challenges

Declining margins and negative net income highlight operational inefficiencies and cost pressures, which could hinder long-term financial performance if not addressed.

Impact of Tariffs

Significant tariff impacts can erode profit margins and increase costs, posing a challenge to maintaining competitive pricing and profitability in global markets.

Intangible Asset Impairment

Large noncash impairment charges indicate potential overvaluation of assets, which can affect financial statements and investor confidence, impacting long-term valuation.

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 generates revenue through multiple key streams, including the sale of boats and engines, fitness equipment, and billiards products. The marine segment, which includes brands like Mercury Marine, is a significant contributor, as it encompasses both the manufacturing and sale of outboard engines and the boats themselves. Additionally, the company earns income through aftermarket parts and accessories, which are essential for maintaining and enhancing its products. Partnerships with retailers and distributors play a crucial role in expanding market reach, while strategic acquisitions help diversify the product offerings and bolster revenue. The company's focus on innovation and sustainability also attracts a growing customer base, further driving sales and profitability.

Brunswick Financial Statement Overview

Summary

Brunswick demonstrates a stable financial position with strong cash flow generation and low leverage. Despite concerns over declining profit margins and return on equity, the company's revenue growth and cash flow metrics provide a solid foundation for future growth.

Income Statement

Brunswick's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) data indicates a modest revenue growth rate of 6.1%, but the net profit margin is relatively low at 0.82%. The gross profit margin has decreased slightly from previous years, indicating potential cost pressures. EBIT and EBITDA margins have also declined, reflecting reduced operational efficiency. However, the company has managed to maintain a positive revenue trajectory, which is a positive sign.

Balance Sheet

The balance sheet reflects a strong financial position with a low debt-to-equity ratio of 0.03 in the TTM period, indicating low leverage and financial stability. The equity ratio is robust, suggesting a solid capital structure. However, the return on equity has decreased significantly compared to previous years, which could indicate challenges in generating returns for shareholders.

Cash Flow

Brunswick's cash flow statement shows strong performance with a significant free cash flow growth rate of 31.43% in the TTM period. The operating cash flow to net income ratio is healthy, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is also strong, suggesting good cash conversion. These metrics highlight the company's ability to generate cash and support future investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.18B	5.24B	6.40B	6.81B	5.85B	4.35B
Gross Profit	1.28B	1.35B	1.72B	1.85B	1.67B	1.18B
EBITDA	90.10M	618.80M	1.01B	1.18B	980.50M	693.50M
Net Income	-237.00M	130.10M	420.40M	677.00M	593.30M	372.70M
Balance Sheet
Total Assets	5.41B	5.68B	6.23B	6.32B	5.42B	3.77B
Cash, Cash Equivalents and Short-Term Investments	298.50M	269.80M	468.60M	600.10M	355.30M	576.30M
Total Debt	2.19B	2.51B	2.59B	2.63B	1.92B	1.04B
Total Liabilities	3.78B	3.79B	4.14B	4.28B	3.51B	2.26B
Stockholders Equity	5.41B	1.89B	2.09B	2.04B	1.91B	1.51B
Cash Flow
Free Cash Flow	631.00M	264.00M	444.30M	197.80M	306.90M	615.90M
Operating Cash Flow	757.50M	431.40M	733.60M	586.10M	574.00M	798.30M
Investing Cash Flow	-112.40M	-168.90M	-378.90M	-443.20M	-1.35B	-246.90M
Financing Cash Flow	-608.90M	-442.70M	-487.00M	110.80M	621.80M	-361.80M

Brunswick Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 70.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BC, the sentiment is Positive. The current price of 70.93 is above the 20-day moving average (MA) of 64.52, above the 50-day MA of 64.42, and above the 200-day MA of 58.27, indicating a bullish trend. The MACD of 1.50 indicates Negative momentum. The RSI at 66.23 is Neutral, neither overbought nor oversold. The STOCH value of 92.14 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BC.

Brunswick Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MPX	―	$318.11M	23.03	10.54%	6.22%	-21.97%	-46.09%
MCFT	―	$371.33M	73.44	5.84%	―	-22.47%	-29.30%
LCII	―	$2.23B	15.34	10.95%	5.00%	1.36%	25.97%
MBUU	―	$664.34M	44.09	2.85%	―	-2.59%	―
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BC	―	$4.70B	-19.58	-12.31%	2.63%	-4.78%	-189.89%
ONEW	―	$244.25M	―	-2.85%	―	-3.02%	87.87%

Brunswick Corporate Events

Brunswick Corp Earnings Call: Strong Growth Amid Challenges

Brunswick Corporation’s recent earnings call highlighted a period of solid performance, with revenue growth across all segments and strong market positions, particularly in the propulsion and boat segments. The company demonstrated exceptional free cash flow and effective debt management. However, challenges related to tariffs, a significant noncash impairment charge, and flat boat retail sales have impacted overall margins.

Brunswick Corporation Reports Strong Third Quarter Results

Brunswick Corporation, a leader in the marine recreation industry, is known for its innovative technology-driven solutions and a diverse portfolio of brands ranging from marine propulsion to boat manufacturing. In its latest earnings report, Brunswick Corporation announced a strong third quarter performance, driven by sales growth and efficient operational execution, despite a challenging macroeconomic environment. The company reported net sales of $1,360.2 million, marking a 6.8% increase from the previous year, with an adjusted diluted EPS of $0.97. Brunswick’s propulsion segment led the growth with a 10% increase in sales, while its engine parts and accessories segment saw an 8% rise, supported by strong boater participation and market share gains. The Navico Group and boat segments also contributed to the positive results, with modest sales growth and improved operating margins. Looking ahead, Brunswick remains optimistic about its future prospects, confirming its full-year guidance and highlighting its strategic initiatives to optimize manufacturing capacity and drive medium-term profitability. The company continues to focus on technology investments and maintaining a strong balance sheet to support growth and shareholder returns.