Brunswick Corporation (BC)
Valuation Overview•Is Brunswick Corporation Overvalued or Undervalued?
Priced at a premium to peer multiples and intrinsic cash flows, demanding strong execution to justify current levels.
Fragile underlying quality score of 24/100; weak margins or elevated debt leverage warrant caution.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Highly distressed profile flashing severe fundamental warning signs.
Wall Street is broadly bullish, projecting solid upside alongside robust expected earnings growth. This is paired with healthy capital returns, anchored by a strong, well-covered dividend yield.
BC struggles with subpar profitability and pressured margins. However, this is severely offset by a highly leveraged balance sheet (Debt/EBITDA > 4.0x) and elevated financial risk.
The company is facing top-line contraction (-7.7% 3Y CAGR) paired with stable bottom-line earnings. Operating efficiency remains adequate with margins around 5.2%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $1.4B | +2.4% | -7.7% | +4.3% | +3.6% | |
| EBITDA | $50.3M | — | -40.1% | — | — | |
| Net Income | $21.0M | -205.5% | — | — | — | |
| EPS (Diluted) | $0.32 | -207.8% | — | — | — | |
| Free Cash Flow | -$120.9M | +50.1% | +26.1% | -8.4% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 18.0% | 26.2% | 27.1% | 26.9% |
| Operating Margin | 5.2% | 5.6% | 8.9% | 9.6% |
| Net Margin | -2.5% | 2.2% | 5.3% | 4.8% |
| FCF Margin | 6.2% | 6.5% | 5.5% | 6.1% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.46 | $0.70 | +52.2% | ||
| Q1'26 | $0.58 | $0.58 | +0.0% | ||
| Q4'25 | $0.87 | $0.97 | +12.0% | ||
| Q3'25 | $0.89 | $1.16 | +30.3% | ||
| Q2'25 | $0.25 | $0.56 | +124.0% | ||
| Q1'25 | $0.22 | $0.24 | +9.1% | ||
| Q4'24 | $1.18 | $1.17 | -0.8% | ||
| Q3'24 | $1.90 | $1.80 | -5.3% |
Total return is +53.7% (1Y), outperforming the benchmark by +28.7%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +11.3% | +2.0% | — |
| 1Y | +53.7% | +28.7% | +3.1% |
| 3YCAGR | +1.9% | -18.8% | +6.1% |
| 5YCAGR | -0.5% | -13.3% | +8.5% |
| 10YCAGR | +7.1% | -6.5% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Brunswick Corporation (BC) valuation, health, and returns.
Brunswick Corporation is estimated to be overvalued under our discounted cash flow framework. relative multiples indicate the stock is Slightly expensive versus peers compared to industry peers. overvalued (implying -42.2% downside from DCF intrinsic value of $48.33)
Brunswick Corporation has multiple valuation anchors: DCF Intrinsic Value: $48.33 | Peer Relative Fair Value: $76.86 | Wall Street Analyst Target: $89.13 (implying +6.7% upside). A convergence of these signals offers higher conviction.
Brunswick Corporation displays weak financial health with a composite quality score of 24/100, supported by a Altman Z-Score of 2.4 (grey zone), Piotroski F-Score of 4/9, Return on Invested Capital (ROIC) of -0.8%.
Brunswick Corporation pays a 2.1% dividend yield, covered by a 0% payout ratio with 13 years of growth, supplemented by a 1.5% buyback yield.
Brunswick Corporation's current growth trajectory is Accelerating. The company achieved +2.4% 1Y revenue growth and -207.8% 1Y EPS growth, compared to its 3Y revenue CAGR of -7.7%.
Wall Street consensus is Buy based on 31 analysts, beating EPS expectations in 50% of recent quarters with a 1-quarter streak. The consensus price target represents a +6.7% change from current levels.
Investment risks for Brunswick Corporation include: -22.8% 1-year max drawdown, high beta (1.58x market volatility). Volatility risk is characterized by a beta of 1.58x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.