BRP INC/CA- SUB VOTING (DOO.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:DOO - CA05577W2004 - Common Stock
106.73 CAD
-1.43 (-1.32%)
We assign a fundamental rating of 5 out of 10 to DOO. DOO was compared to 2 industry peers in the Leisure Products industry. DOO has only an average score on both its financial health and profitability. DOO is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- DOO had positive earnings in the past year.
- DOO had a positive operating cash flow in the past year.
- Of the past 5 years DOO 4 years were profitable.
- DOO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a Return On Assets value of 0.37%, DOO perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- With an excellent Return On Equity value of 4.29%, DOO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- DOO has a better Return On Invested Capital (8.52%) than 100.00% of its industry peers.
- DOO had an Average Return On Invested Capital over the past 3 years of 16.59%. This is significantly above the industry average of 7.62%.
- The 3 year average ROIC (16.59%) for DOO is well above the current ROIC(8.52%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.37% | ||
| ROE | 4.29% | ||
| ROIC | 8.52% |
ROA(3y)6.98%
ROA(5y)8.83%
ROE(3y)55.03%
ROE(5y)N/A
ROIC(3y)16.59%
ROIC(5y)18.66%
1.3 Margins
- DOO has a Profit Margin (0.30%) which is in line with its industry peers.
- Looking at the Operating Margin, with a value of 6.88%, DOO is in line with its industry, outperforming 50.00% of the companies in the same industry.
- In the last couple of years the Operating Margin of DOO has declined.
- With a Gross Margin value of 21.81%, DOO perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- In the last couple of years the Gross Margin of DOO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.88% | ||
| PM (TTM) | 0.3% | ||
| GM | 21.81% |
OM growth 3Y-18.97%
OM growth 5Y-2.95%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-6.69%
GM growth 5Y-1.17%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), DOO is creating value.
- Compared to 1 year ago, DOO has less shares outstanding
- The number of shares outstanding for DOO has been reduced compared to 5 years ago.
- Compared to 1 year ago, DOO has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.46 indicates that DOO is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.46, DOO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- The Debt to FCF ratio of DOO is 3.73, which is a good value as it means it would take DOO, 3.73 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 3.73, DOO is in line with its industry, outperforming 50.00% of the companies in the same industry.
- A Debt/Equity ratio of 4.71 is on the high side and indicates that DOO has dependencies on debt financing.
- DOO has a Debt to Equity ratio (4.71) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.71 | ||
| Debt/FCF | 3.73 | ||
| Altman-Z | 2.46 |
ROIC/WACC1.03
WACC8.29%
2.3 Liquidity
- A Current Ratio of 1.23 indicates that DOO should not have too much problems paying its short term obligations.
- With an excellent Current ratio value of 1.23, DOO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- A Quick Ratio of 0.49 indicates that DOO may have some problems paying its short term obligations.
- DOO has a Quick ratio of 0.49. This is comparable to the rest of the industry: DOO outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
- DOO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.55%.
- The Earnings Per Share has been decreasing by -0.95% on average over the past years.
- DOO shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -22.69%.
- Measured over the past years, DOO shows a small growth in Revenue. The Revenue has been growing by 5.28% on average per year.
EPS 1Y (TTM)-23.55%
EPS 3Y-27.97%
EPS 5Y-0.95%
EPS Q2Q%37.07%
Revenue 1Y (TTM)-22.69%
Revenue growth 3Y0.79%
Revenue growth 5Y5.28%
Sales Q2Q%15.06%
3.2 Future
- The Earnings Per Share is expected to grow by 23.75% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 4.34% on average over the next years.
EPS Next Y36.65%
EPS Next 2Y28.69%
EPS Next 3Y27.6%
EPS Next 5Y23.75%
Revenue Next Year7.43%
Revenue Next 2Y6.72%
Revenue Next 3Y6.33%
Revenue Next 5Y4.34%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- DOO is valuated quite expensively with a Price/Earnings ratio of 26.95.
- DOO's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, DOO is valued at the same level.
- DOO is valuated rather expensively with a Price/Forward Earnings ratio of 17.42.
- The rest of the industry has a similar Price/Forward Earnings ratio as DOO.
- DOO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.95 | ||
| Fwd PE | 17.42 |
4.2 Price Multiples
- DOO's Enterprise Value to EBITDA is on the same level as the industry average.
- The rest of the industry has a similar Price/Free Cash Flow ratio as DOO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.45 | ||
| EV/EBITDA | 10.25 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of DOO may justify a higher PE ratio.
- A more expensive valuation may be justified as DOO's earnings are expected to grow with 27.60% in the coming years.
PEG (NY)0.74
PEG (5Y)N/A
EPS Next 2Y28.69%
EPS Next 3Y27.6%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.77%, DOO is not a good candidate for dividend investing.
- DOO's Dividend Yield is comparable with the industry average which is at 1.63.
- Compared to an average S&P500 Dividend Yield of 1.82, DOO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
5.2 History
- On average, the dividend of DOO grows each year by 15.83%, which is quite nice.
- DOO has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)15.83%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 256.15% of the earnings are spent on dividend by DOO. This is not a sustainable payout ratio.
- DOO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP256.15%
EPS Next 2Y28.69%
EPS Next 3Y27.6%
BRP INC/CA- SUB VOTING / DOO.CA FAQ
What is the ChartMill fundamental rating of BRP INC/CA- SUB VOTING (DOO.CA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to DOO.CA.
Can you provide the valuation status for BRP INC/CA- SUB VOTING?
ChartMill assigns a valuation rating of 4 / 10 to BRP INC/CA- SUB VOTING (DOO.CA). This can be considered as Fairly Valued.
How profitable is BRP INC/CA- SUB VOTING (DOO.CA) stock?
BRP INC/CA- SUB VOTING (DOO.CA) has a profitability rating of 6 / 10.
What is the financial health of BRP INC/CA- SUB VOTING (DOO.CA) stock?
The financial health rating of BRP INC/CA- SUB VOTING (DOO.CA) is 5 / 10.
What is the earnings growth outlook for BRP INC/CA- SUB VOTING?
The Earnings per Share (EPS) of BRP INC/CA- SUB VOTING (DOO.CA) is expected to grow by 36.65% in the next year.