BRP Inc. Fundamental Analysis (NASDAQ: DOO)
BRP Inc. (NASDAQ: DOO) shows weak financial fundamentals with a PE ratio of 54.01, profit margin of 1.19%, and ROE of 20.24%. The company generates $9.4B in annual revenue with weak year-over-year growth of -21.41%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 20.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze DOO's fundamental strength across five key dimensions:
Efficiency Score
WeakDOO struggles to generate sufficient returns from assets.
Valuation Score
ModerateDOO shows balanced valuation metrics.
Growth Score
WeakDOO faces weak or negative growth trends.
Financial Health Score
ModerateDOO shows balanced financial health with some risks.
Profitability Score
ModerateDOO maintains healthy but balanced margins.
Key Financial Metrics
Is DOO Expensive or Cheap?
P/E Ratio
DOO trades at 54.01 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, DOO's PEG of 0.03 indicates potential undervaluation.
Price to Book
The market values BRP Inc. at 18.04 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 4.16 times EBITDA. This is generally considered low.
How Well Does DOO Make Money?
Net Profit Margin
For every $100 in sales, BRP Inc. keeps $1.19 as profit after all expenses.
Operating Margin
Core operations generate 6.44 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.24 in profit for every $100 of shareholder equity.
ROA
BRP Inc. generates $1.68 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
BRP Inc. produces operating cash flow of $1.50B, showing steady but balanced cash generation.
Free Cash Flow
BRP Inc. generates strong free cash flow of $1.17B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $15.94 in free cash annually.
FCF Yield
DOO converts 19.44% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
54.008
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
18.04
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.64
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
9.13
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.19
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How DOO Stacks Against Its Sector Peers
| Metric | DOO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 54.01 | 23.93 | Worse (Expensive) |
| ROE | 20.24% | 997.00% | Weak |
| Net Margin | 1.19% | -2995.00% (disorted) | Weak |
| Debt/Equity | 9.13 | 0.60 | Weak (High Leverage) |
| Current Ratio | 1.19 | 2.31 | Neutral |
| ROA | 1.68% | 337.00% | Weak |
DOO outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews BRP Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
62.90%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
-172.25%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
47.52%
Industry Style: Cyclical, Growth, Discretionary
High Growth