NEW YORK ( TheStreet) -- Brunswick Corporation (NYSE: BC) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, notable return on equity and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally poor debt management on most measures that we evaluated. Highlights from the ratings report include:
- BRUNSWICK CORP has improved earnings per share by 43.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, BRUNSWICK CORP turned its bottom line around by earning $0.77 versus -$1.25 in the prior year. This year, the market expects an improvement in earnings ($1.45 versus $0.77).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Leisure Equipment & Products industry. The net income increased by 44.4% when compared to the same quarter one year prior, rising from $27.50 million to $39.70 million.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Leisure Equipment & Products industry and the overall market, BRUNSWICK CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has increased to -$69.70 million or 16.12% when compared to the same quarter last year. Despite an increase in cash flow of 16.12%, BRUNSWICK CORP is still growing at a significantly lower rate than the industry average of 91.97%.
- BC, with its decline in revenue, slightly underperformed the industry average of 3.2%. Since the same quarter one year prior, revenues slightly dropped by 1.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
-- Written by a member of TheStreet RatingsStaff