Brunswick Story

<div class='circular--portrait' style='background:#4E8BFC;color: #ffffff;font-size:4em;'>BR</div>
BC -- USA Stock  

USD 58.56  0.03  0.05%

It looks like Drive Shack will be up for a correction way faster as its share price whent up 5.71% today to Brunswick's 4.43%. As many rational traders are trying to avoid consumer cyclical space, it makes sense to go over Brunswick a little further and understand how it stands against Drive Shack and other similar entities. We are going to analyze some of the competitive aspects of both Brunswick and Drive.
Published over a month ago
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What should I take in Drive (NYSE:DS) or Brunswick (NYSE:BC)?
By analyzing existing basic indicators between Brunswick and Drive, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Drive with a short position in Brunswick. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Brunswick has an asset utilization ratio of 127.52 percent. This suggests that the company is making $1.28 for each dollar of assets. An increasing asset utilization means that Brunswick is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Brunswick or Drive is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING Brunswick dividends

A dividend is the distribution of a portion of Brunswick earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Brunswick dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Brunswick one year expected dividend income is about $0.6 per share.
The current year Dividends per Basic Common Share is expected to grow to 0.94, whereas Payment of Dividends and Other Cash Distributions is forecasted to decline to (75.3 M).
Last ReportedProjected for 2020
Payment of Dividends and Other Cash Distributions-73.4 M-75.3 M
Dividend Yield 0.015  0.0125 
Dividends per Basic Common Share 0.87  0.94 
Investing in dividend-paying stocks, such as Brunswick is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Brunswick must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Brunswick. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Brunswick's Liquidity

Brunswick financial leverage refers to using borrowed capital as a funding source to finance Brunswick ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Brunswick financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Brunswick's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Brunswick, but it might be worth checking our own buy vs. sell analysis

Correlation Between Brunswick and Drive Shack

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Brunswick together with similar or unrelated positions with a negative correlation. For example, you can also add Drive Shack to your portfolio. If Drive Shack is not perfectly correlated to Brunswick it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Brunswick for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between BC and DS for more information.

Note

Are you currently holding both Brunswick and Drive Shack in your portfolio? Please note if you are using this as a pair-trade strategy between Brunswick and Drive Shack, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Brunswick exotic insider transaction detected

Legal trades by Brunswick insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Brunswick insider trading alert for general transaction of common stock by Randall Altman, Vice President and Controller, on 17th of August 2020. This event was filed by Brunswick Corp with SEC on 2020-08-17. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Another Deeper Perspective

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Now, let's check Brunswick revenue. Based on the latest financial disclosure, Brunswick reported 4.02 B of revenue. This is 43.62% lower than that of the Consumer Cyclical sector and 47.76% higher than that of the Leisure industry. The revenue for all United States stocks is 57.39% higher than that of the entity. As for Drive Shack we see revenue of 279.25 M, which is 89.74% lower than that of the Leisure

Brunswick4.02 Billion
Sector2.72 Billion
Drive279.25 Million
B
Brunswick
2.7 B
Sector
Drive

Will Brunswick current build-up continue?

Brunswick current kurtosis builds up over 0.75. Brunswick shows above-average downside volatility for the selected time horizon. We advise investors to inspect Brunswick further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Brunswick future alpha.

The Bottom Line

Whereas some companies within the leisure industry are still a little expensive, even after the recent corrections, Brunswick may offer a potential longer-term growth to investors. The bottom line, as of the 30th of July 2020, our concluding 30 days recommendation on the company is Strong Buy. However, we believe Brunswick is currently overvalued with below average probability of distress for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Brunswick. Please refer to our Terms of Use for any information regarding our disclosure principles.

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