BC

Brunswick Corp.

Industrial/Transportation


Presented:12/03/2019
Price:$57.85
Cap:$4.72B
Current Price:$83.36
Cap:$5.52B

Presented

Date12/03/2019
Price$57.85
Market Cap$4.72B
Ent Value$5.24B
P/E RatioN/A
Book Value$17.21
Div Yield1.66%
Shares O/S81.57M
Ave Daily Vol893,269
Short Int3.07%

Current

Price$83.36
Market Cap$5.52B
Brunswick Corp. engages in the design, manufacture, and marketing of recreation products, including marine engines, boats, fitness equipment, and active recreation products. It operates through the following segments: Marine Engine, Boat, and Fitness. The Marine segment manufactures and sells recreational marine engines and marine parts and accessories. The Boat segment produces and markets boats such as fiberglass pleasure, sport cruiser, sport fishing and center-console, offshore fishing, aluminum and fiberglass fishing, pontoon, utility, deck, inflatable, and heavy-gauge aluminum. The Fitness segment designs, manufactures and markets fitness equipment, including treadmills, total body cross-trainers, stair climbers and stationary exercise bicycles, and strength-training equipment. The company was founded by John Brunswick in 1845 and is headquartered in Mettawa, IL.

Publicly traded companies mentioned herein: Brunswick Corp (BC), Yamaha Motor Co Ltd (7272 JP)

Highlights

The presenter is long shares of Brunswick Corp (BC) following the $490MM sale of their Life Fitness business, which closed on June 27, 2019, and management’s announcement of aggressive cost cuts. Taking those two factors into account, as well as an announced buyback program using the proceeds from the Life Fitness sale, he believes the company can achieve $6.00 of earnings in 2021. He applies a 15x multiple and looks for BC to trade toward $90 over time for ~58% upside. 

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Idea Discussion

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