One-glance verdict
Within fair range
$54.68 our estimate vs market $64.37
Wall Street consensus: $91.62 (67.6% higher than our fair-value estimate)
18% above our estimate
Fundamentals snapshot
Brunswick Corporation
BC · NYQ · Consumer Cyclical · Recreational Vehicles
Current price
$64.37
52-week range
$59.06 - $90.25
Market cap
$4.17B
Balance sheet
Stretched
2.80x Stretched
Net debt $2.00B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 5.0% last year.
- Reward Free cash flow was positive in 10/10 years.
- Risk Operating margin compressed from 14.3% to 6.8% over 3 years.
- Risk Return on equity was -4.8% last year — the company lost money on shareholders' equity.
What this company does
Brunswick Corporation
Brunswick is a major company in the recreational boating world, selling everything from boats themselves, like the Sea Ray and Boston Whaler brands, to the Mercury engines that power them. The company makes a significant portion of its money not just from the initial boat sale but from the ongoing sales of engines, electronics, and replacement parts, which often have higher margins (the share of the sale price that is pure profit). This creates a more stable business because boat owners continue to spend money on maintenance and upgrades long after their first purchase.
How the company got here
Founded in 1845 by a Swiss immigrant to make carriages, Brunswick quickly pivoted to making something more lucrative: billiard tables. Over the next century, the company expanded into a wide array of products including bowling alleys, school furniture, and even phonograph records. Starting in the 1960s, Brunswick began building its presence in the marine industry, acquiring iconic boat brands like Sea Ray and Boston Whaler. In a major turning point, the company sold off its fitness and bowling businesses in recent years to become a company focused purely on marine recreation.
What it actually does
Brunswick is a global leader in recreational boating, making everything from the boat itself to the engine that powers it and the electronics that help you navigate. Think of them as a one-stop-shop for getting out on the water. They own many of the most recognizable brands you would see at a boat show or marina. Beyond selling products, the company also operates the world's largest boat club, Freedom Boat Club, which offers a subscription-style service for accessing boats.
Propulsion
This is Brunswick's largest and most profitable business, centered around the famous Mercury Marine brand. This segment builds and sells the engines that power boats, including outboard, sterndrive (a hybrid of inboard and outboard), and inboard engines. They sell these engines both to other boat manufacturers and directly to consumers who might be upgrading their current boat. This part of the business is a major profit driver for the company.
Engine P&A
The 'P&A' stands for Parts and Accessories, and this division provides all the necessary items to maintain, repair, and upgrade boat engines. This includes everything from engine oil and lubricants to replacement parts and electrical components. A key aspect of this segment is its recurring revenue (income that is likely to continue in the future), as the millions of Brunswick engines already in use create steady demand for maintenance products. This business provides a stable source of income that is less sensitive to economic downturns than new boat sales.
Navico Group
This segment is the technology hub of the company, providing the electronic systems that make modern boating safer and easier. It offers products like fish finders, navigation displays, radar, and sonar under well-known brands like Lowrance and Simrad. These products are sold to boat builders, as well as directly to boat owners looking to upgrade their electronics. This division was significantly expanded with the acquisition of Navico in 2021.
Boat
This is the part of the company that manufactures and sells the actual boats. The Boat Group includes a wide variety of well-known brands catering to different types of boaters, such as Sea Ray sport boats, Boston Whaler offshore fishing boats, and Lund fishing boats. This segment also includes the Freedom Boat Club, which provides a membership-based alternative to boat ownership. While a crucial part of the business, boat manufacturing can be cyclical (sensitive to economic ups and downs) and competitive.
What management is betting on now
Brunswick's main focus is to be more than just a boat builder; they aim to be a comprehensive marine technology company. A key part of their strategy is to sell integrated systems where the engine, electronics, and boat all work together seamlessly. They are also focused on growing their higher-margin (more profitable) businesses like propulsion and parts & accessories, which are less cyclical than boat sales. Finally, the company is investing in new business models like their Freedom Boat Club to make boating more accessible to a wider range of people.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$276.10M
FY2025 Q1
$-65.10M
FY2025 Q2
$271.30M
FY2025 Q3
$106.50M
FY2025 Q4
$83.60M
FY2026 Q2
$-121.30M
FY2026 Q3
$272.40M
Revenue
$1.56B
Net income
$109.80M
Diluted EPS
1.68
Operating cash flow
$313.80M
Free cash flow
$272.40M
Fetching…
Sources
Revenue
$1.38B
Net income
$21.00M
Diluted EPS
0.32
Operating cash flow
$-64.10M
Free cash flow
$-121.30M
Fetching…
Sources
Revenue
$1.33B
Net income
$18.70M
Diluted EPS
0.32
Operating cash flow
$132.90M
Free cash flow
$83.60M
Fetching…
Sources
Revenue
$1.36B
Net income
$-235.50M
Diluted EPS
-3.59
Operating cash flow
$140.40M
Free cash flow
$106.50M
Fetching…
Sources
Revenue
$1.45B
Net income
$59.30M
Diluted EPS
0.89
Operating cash flow
$316.20M
Free cash flow
$271.30M
Fetching…
Sources
Revenue
$1.22B
Net income
$20.20M
Diluted EPS
0.30
Operating cash flow
$-27.40M
Free cash flow
$-65.10M
Fetching…
Sources
Revenue
$1.15B
Net income
$-82.50M
Diluted EPS
-1.21
Operating cash flow
$306.40M
Free cash flow
$276.10M
Fetching…
Sources
Is it cheap or expensive?
Fair value $54.68 vs current price $64.37
Wall Street consensus is the average analyst price target: $91.62 (67.6% higher than our fair-value estimate).
Our most-likely fair value is $54.68 a share — about 15.0% away from today's price of $64.37, so the stock currently looks fairly priced.
Is it drowning in debt?
Stretched
Net debt $2.0B. Interest coverage 2.8x.
Net debt
$2.00B
Interest coverage
2.80x
Brunswick Corporation's profit covers its interest bill about 2.8 times over. which is stronger than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
BC
BASELINE
Brunswick Corporation
Total debt $2.29B Interest coverage 2.80x This is the baseline the peer rows are being compared against.
Total debt $2.06B Interest coverage 0.26x -91% vs BC Carries about 10.7x less debt cushion than BC.
Total debt $909.97M Interest coverage 6.17x +121% vs BC Carries about 2.2x more debt cushion than BC.
Total debt $482.90M Interest coverage 2.21x -21% vs BC Carries about 1.3x less debt cushion than BC.
Total debt $176.75M Interest coverage 0.87x -69% vs BC Carries about 3.2x less debt cushion than BC.
Total debt $0.00 Interest coverage 41.56x +1,386% vs BC Carries about 14.9x more debt cushion than BC.
What you should know
The case for and against BC
3 Rewards
3 Risks
Rewards
-
Revenue grew 5.0% last year.
-
Free cash flow was positive in 10/10 years.
-
Dividend yield is 2.7% with 45-year payout history.
Risks
-
Operating margin compressed from 14.3% to 6.8% over 3 years.
-
Return on equity was -4.8% last year — the company lost money on shareholders' equity.
-
Insider ownership is only 0.9% (peer median: 5.0%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
11.87x
P/B
2.49x
P/S
0.74x
EV/EBITDA
10.23x
PEG ratio
0.72x
Profitability
How much profit each dollar creates
Gross margin
25.9%
Operating margin
6.8%
Net margin
-1.5%
ROE
-4.8%
ROA
3.4%
Health
Liquidity and balance-sheet strength
Debt / equity
1.36x
Current ratio
1.45x
Quick ratio
0.56x
Total debt
$2.29B
Total cash
$288.90M
Growth
How the business has been compounding
Revenue TTM
$5.63B
Revenue 5Y CAGR
-2.1%
EPS TTM
-1.32
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$523.00M
Free CF TTM
$396.30M
FCF margin
7.0%
Dividend
Shareholder payout
Yield
2.7%
Payout ratio
200.0%
Last ex-div date
2026-08-20