BC - Brunswick: Plenty To Like At The Right Valuation But More Expensive Now

2024-01-24 09:53:06 ET

Summary

• Brunswick has seen a double-digit return on investment since May and has a history of generating over $7 billion in annual sales.
• The company has solid profitability and a leadership position in the leisure sector, but its low dividend, cyclicality, and lower-end IG rating pose risks.
• Despite growing its US market share and executing share repurchases, Brunswick's latest results show a decline in sales and adjusted EPS due to macroeconomic pressures and customer hesitancy.

Dear readers/followers,

Brunswick ( BC ) is a consumer discretionary business that I reviewed not that long ago. I was actually positive on Brunswick last time around, and I've seen a double-digit return on my investment since that time. My investments in this sector over the past few years have actually been numerous - and I made a very impressive rate of return on my investment in THOR Industries ( THO ). I want to make a similar RoR on other investments like Brunswick because this company is certainly not a high yielder.

At less than 2% yield, most of the upside from this company is from the growth-related RoR - but how much can this be after the double-digit RoR we've seen since May, which is the last article I published on the company?...

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