Price movement of Brunswick
Brunswick (BC) fell by 5.6% to close at $39.85 per share at the end of the last week of January 2016. The stock’s price movements on a weekly, monthly, and year-to-date (or YTD) basis are -5.6%, -22.3%, and -21.1%, respectively.
Technically, the stock has broken its support and is trading below all of its moving averages. Currently, BC is trading 9.4% below its 20-day moving average, 18.1% below its 50-day moving average, and 21.3% below its 200-day moving average.
The Vanguard S&P Mid-Cap 400 Growth ETF (IVOG) invests 0.60% of its holdings in Brunswick. The ETF tracks a market-cap–weighted index of growth companies culled from the S&P 400. The YTD price movement of IVOG is -8.7% as of January 28, 2016.
The SPDR S&P 400 Mid Cap Growth ETF (MDYG) invests 0.58% of its holdings in Brunswick. The ETF tracks a market-cap–weighted index of growth companies culled from the S&P 400.
The competitors of Brunswick and their market capitalizations are:
Performance of Brunswick in 4Q15 and 2015
Brunswick reported 4Q15 net sales of $986.1 million, a rise of 5.1% compared to net sales of $938.6 million in 4Q14. Net sales of its marine engine and boat segments rose by 2.1% and 14.2%, respectively, in 4Q15 compared to 4Q14. It reported pension settlement charges and operating income of $82.3 million and -$27.0 million, respectively, in 4Q15 compared to $27.9 million and $14.6 million, respectively, in 4Q14.
The company’s net income and EPS (earnings per share) fell to -$9.3 million and -$0.10, respectively, in 4Q15, compared to -$4.3 million and -$0.05, respectively, in 4Q14.
In 2015, BC reported net sales of $4,105.7 million, a rise of 7.0% YoY (year-over-year). It reported restructuring, exit, and impairment charges of $12.4 million in 2015 compared to $4.2 million in 2014.
The company’s net income and EPS fell to $241.4 million and $2.56, respectively, in 2015, compared to $245.7 million and $2.58, respectively, in 2014.
Meanwhile, its cash and cash equivalents and net inventories rose by 18.9% and 5.0%, respectively, in 2015. Its debt-to-equity ratio fell to 1.5 in 2015 compared to 1.7 in 2014.
The price-to-earnings and price-to-book value ratios of Brunswick are 16.1x and 2.9x, respectively, as of January 29, 2016.
The company has made the following projections for 2016:
- Adjusted EPS in the range of $3.35–$3.50
- Free cash flow of over $200 million