BRP INC/CA- SUB VOTING (DOO.CA) Stock Fundamental Analysis
TSX:DOO - Toronto Stock Exchange - CA05577W2004 - Common Stock - Currency: CAD
We assign a fundamental rating of 6 out of 10 to DOO. DOO was compared to 2 industry peers in the Leisure Products industry. DOO has an excellent profitability rating, but there are some minor concerns on its financial health. DOO is cheap, but on the other hand it scores bad on growth. This makes DOO very considerable for value investing!
1. Profitability
1.1 Basic Checks
DOO had positive earnings in the past year.
In the past year DOO had a positive cash flow from operations.
Each year in the past 5 years DOO has been profitable.
Each year in the past 5 years DOO had a positive operating cash flow.
1.2 Ratios
The Return On Assets of DOO (2.87%) is better than 100.00% of its industry peers.
DOO has a Return On Equity of 35.24%. This is amongst the best in the industry. DOO outperforms 100.00% of its industry peers.
DOO has a better Return On Invested Capital (17.42%) than 100.00% of its industry peers.
DOO had an Average Return On Invested Capital over the past 3 years of 28.71%. This is significantly above the industry average of 11.16%.
The last Return On Invested Capital (17.42%) for DOO is well below the 3 year average (28.71%), which needs to be investigated, but indicates that DOO had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.87% | ||
| ROE | 35.24% | ||
| ROIC | 17.42% |
ROA(3y)13.37%
ROA(5y)11.48%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)28.71%
ROIC(5y)25.64%
1.3 Margins
DOO's Profit Margin of 1.79% is amongst the best of the industry. DOO outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of DOO has grown nicely.
The Operating Margin of DOO (8.79%) is better than 100.00% of its industry peers.
DOO's Operating Margin has improved in the last couple of years.
The Gross Margin of DOO (23.69%) is comparable to the rest of the 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 | 8.79% | ||
| PM (TTM) | 1.79% | ||
| GM | 23.69% |
OM growth 3Y3.82%
OM growth 5Y6.43%
PM growth 3Y5.51%
PM growth 5Y10.62%
GM growth 3Y0.48%
GM growth 5Y0.98%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so DOO is creating value.
DOO has less shares outstanding than it did 1 year ago.
DOO has less shares outstanding than it did 5 years ago.
The debt/assets ratio for DOO has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.73 indicates that DOO is not a great score, but indicates only limited risk for bankruptcy at the moment.
DOO has a Altman-Z score of 2.73. This is amongst the best in the industry. DOO outperforms 100.00% of its industry peers.
The Debt to FCF ratio of DOO is 5.96, which is a neutral value as it means it would take DOO, 5.96 years of fcf income to pay off all of its debts.
DOO has a better Debt to FCF ratio (5.96) than 100.00% of its industry peers.
DOO has a Debt/Equity ratio of 5.54. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 5.54, DOO is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.54 | ||
| Debt/FCF | 5.96 | ||
| Altman-Z | 2.73 |
ROIC/WACC2.38
WACC7.31%
2.3 Liquidity
A Current Ratio of 1.37 indicates that DOO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.37, DOO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
A Quick Ratio of 0.57 indicates that DOO may have some problems paying its short term obligations.
DOO has a Quick ratio of 0.57. This is comparable to the rest of the industry: DOO outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
DOO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -58.56%.
DOO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 29.08% yearly.
The Revenue has decreased by -2.75% in the past year.
DOO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.60% yearly.
EPS 1Y (TTM)-58.56%
EPS 3Y27.58%
EPS 5Y29.08%
EPS Q2Q%-62.09%
Revenue 1Y (TTM)-2.75%
Revenue growth 3Y20.31%
Revenue growth 5Y14.6%
Sales Q2Q%-20.75%
3.2 Future
Based on estimates for the next years, DOO will show a decrease in Earnings Per Share. The EPS will decrease by -0.11% on average per year.
The Revenue is expected to decrease by -3.31% on average over the next years.
EPS Next Y-59.33%
EPS Next 2Y-32.31%
EPS Next 3Y-13.35%
EPS Next 5Y-0.11%
Revenue Next Year-25.98%
Revenue Next 2Y-13%
Revenue Next 3Y-6.46%
Revenue Next 5Y-3.31%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.82, the valuation of DOO can be described as very reasonable.
Based on the Price/Earnings ratio, DOO is valued cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 30.08. DOO is valued rather cheaply when compared to this.
DOO is valuated correctly with a Price/Forward Earnings ratio of 12.03.
The rest of the industry has a similar Price/Forward Earnings ratio as DOO.
The average S&P500 Price/Forward Earnings ratio is at 96.30. DOO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.82 | ||
| Fwd PE | 12.03 |
4.2 Price Multiples
DOO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DOO is cheaper than 100.00% of the companies in the same industry.
DOO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DOO is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.75 | ||
| EV/EBITDA | 5.28 |
4.3 Compensation for Growth
DOO has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as DOO's earnings are expected to decrease with -13.35% in the coming years.
PEG (NY)N/A
PEG (5Y)0.41
EPS Next 2Y-32.31%
EPS Next 3Y-13.35%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.35%, DOO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.45, DOO has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, DOO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
5.2 History
On average, the dividend of DOO grows each year by 15.23%, which is quite nice.
DOO has been paying a dividend for over 5 years, so it has already some track record.
DOO has decreased its dividend recently.
Dividend Growth(5Y)15.23%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
DOO pays out 32.19% of its income as dividend. This is a sustainable payout ratio.
DP32.19%
EPS Next 2Y-32.31%
EPS Next 3Y-13.35%
BRP INC/CA- SUB VOTING
TSX:DOO (2/14/2025, 7:00:00 PM)
61.23
+0.59 (+0.97%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners92.22%
Inst Owner ChangeN/A
Ins Owners3.33%
Ins Owner ChangeN/A
Market Cap4.47B
Analysts74.78
Price Target89.14 (45.58%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
Yearly Dividend0.72
Dividend Growth(5Y)15.23%
DP32.19%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)50.57%
Min EPS beat(2)34.27%
Max EPS beat(2)66.87%
EPS beat(4)3
Avg EPS beat(4)24.57%
Min EPS beat(4)-6.09%
Max EPS beat(4)66.87%
EPS beat(8)6
Avg EPS beat(8)13.39%
EPS beat(12)10
Avg EPS beat(12)19.48%
EPS beat(16)14
Avg EPS beat(16)27.65%
Revenue beat(2)1
Avg Revenue beat(2)1.46%
Min Revenue beat(2)-2.96%
Max Revenue beat(2)5.89%
Revenue beat(4)2
Avg Revenue beat(4)0.15%
Min Revenue beat(4)-4.44%
Max Revenue beat(4)5.89%
Revenue beat(8)5
Avg Revenue beat(8)0.41%
Revenue beat(12)8
Avg Revenue beat(12)1.69%
Revenue beat(16)11
Avg Revenue beat(16)1.86%
PT rev (1m)-1.01%
PT rev (3m)-5.86%
EPS NQ rev (1m)-9.83%
EPS NQ rev (3m)-64.57%
EPS NY rev (1m)43.47%
EPS NY rev (3m)45.11%
Revenue NQ rev (1m)-6.44%
Revenue NQ rev (3m)-25.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.82 | ||
| Fwd PE | 12.03 | ||
| P/S | 0.43 | ||
| P/FCF | 8.75 | ||
| P/OCF | 4.31 | ||
| P/B | 8.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.28 |
EPS(TTM)5.18
EY8.46%
EPS(NY)5.09
Fwd EY8.31%
FCF(TTM)7
FCFY11.43%
OCF(TTM)14.21
OCFY23.21%
SpS143.21
BVpS7.27
TBVpS-1.02
PEG (NY)N/A
PEG (5Y)0.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.87% | ||
| ROE | 35.24% | ||
| ROCE | 22.96% | ||
| ROIC | 17.42% | ||
| ROICexc | 18.6% | ||
| ROICexgc | 22.18% | ||
| OM | 8.79% | ||
| PM (TTM) | 1.79% | ||
| GM | 23.69% | ||
| FCFM | 4.89% |
ROA(3y)13.37%
ROA(5y)11.48%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)28.71%
ROIC(5y)25.64%
ROICexc(3y)34.88%
ROICexc(5y)33.58%
ROICexgc(3y)45.47%
ROICexgc(5y)46.77%
ROCE(3y)37.8%
ROCE(5y)33.73%
ROICexcg growth 3Y-18.8%
ROICexcg growth 5Y-6.24%
ROICexc growth 3Y-11.84%
ROICexc growth 5Y-1.12%
OM growth 3Y3.82%
OM growth 5Y6.43%
PM growth 3Y5.51%
PM growth 5Y10.62%
GM growth 3Y0.48%
GM growth 5Y0.98%
F-Score5
Asset Turnover1.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.54 | ||
| Debt/FCF | 5.96 | ||
| Debt/EBITDA | 2.19 | ||
| Cap/Depr | 124.5% | ||
| Cap/Sales | 5.04% | ||
| Interest Coverage | 5.26 | ||
| Cash Conversion | 77.33% | ||
| Profit Quality | 273.21% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 2.73 |
F-Score5
WACC7.31%
ROIC/WACC2.38
Cap/Depr(3y)205.67%
Cap/Depr(5y)173.12%
Cap/Sales(3y)7.12%
Cap/Sales(5y)6.3%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-58.56%
EPS 3Y27.58%
EPS 5Y29.08%
EPS Q2Q%-62.09%
EPS Next Y-59.33%
EPS Next 2Y-32.31%
EPS Next 3Y-13.35%
EPS Next 5Y-0.11%
Revenue 1Y (TTM)-2.75%
Revenue growth 3Y20.31%
Revenue growth 5Y14.6%
Sales Q2Q%-20.75%
Revenue Next Year-25.98%
Revenue Next 2Y-13%
Revenue Next 3Y-6.46%
Revenue Next 5Y-3.31%
EBIT growth 1Y-35.92%
EBIT growth 3Y24.91%
EBIT growth 5Y21.97%
EBIT Next Year-28.73%
EBIT Next 3Y0.38%
EBIT Next 5Y3.71%
FCF growth 1Y58.86%
FCF growth 3Y16.72%
FCF growth 5Y32.5%
OCF growth 1Y-1.27%
OCF growth 3Y20.22%
OCF growth 5Y24.19%