BRP INC/CA- SUB VOTING (DOO.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:DOO - CA05577W2004 - Common Stock
108.16 CAD
-3.09 (-2.78%)
Overall DOO gets a fundamental rating of 5 out of 10. We evaluated DOO against 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
- In the past year DOO was profitable.
- In the past year DOO had a positive cash flow from operations.
- DOO had positive earnings in 4 of the past 5 years.
- DOO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- DOO has a Return On Assets (0.37%) which is comparable to the rest of the industry.
- DOO's Return On Equity of 4.29% is amongst the best of the industry. DOO outperforms 100.00% of its industry peers.
- DOO has a better Return On Invested Capital (8.52%) than 100.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for DOO is significantly above the industry average of 7.62%.
- The last Return On Invested Capital (8.52%) for DOO is well below the 3 year average (16.59%), which needs to be investigated, but indicates that DOO had better years and this may not be a problem.
| 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
- Looking at the Profit Margin, with a value of 0.30%, DOO is in line with its industry, outperforming 50.00% of the companies in the same industry.
- 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.
- DOO's Operating Margin has declined in the last couple of years.
- DOO has a Gross Margin (21.81%) which is in line with its industry peers.
- 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.
- DOO has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for DOO has been reduced compared to 5 years ago.
- The debt/assets ratio for DOO is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.47 indicates that DOO is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With an excellent Altman-Z score value of 2.47, DOO belongs to the best 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.
- DOO has a Debt/Equity ratio of 4.71. This is a high value indicating a heavy dependency on external financing.
- DOO's Debt to Equity ratio of 4.71 is in line compared to the rest of the industry. DOO outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.71 | ||
| Debt/FCF | 3.73 | ||
| Altman-Z | 2.47 |
ROIC/WACC1.02
WACC8.32%
2.3 Liquidity
- DOO has a Current Ratio of 1.23. This is a normal value and indicates that DOO is financially healthy and should not expect problems in meeting its short term obligations.
- DOO has a better Current ratio (1.23) than 100.00% of its industry peers.
- DOO has a Quick Ratio of 1.23. This is a bad value and indicates that DOO is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of DOO (0.49) is comparable to the rest of the industry.
| 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%.
- DOO shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.95% yearly.
- The Revenue for DOO has decreased by -22.69% in the past year. This is quite bad
- 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
- Based on estimates for the next years, DOO will show a very strong growth in Earnings Per Share. The EPS will grow by 23.75% on average per year.
- DOO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.34% yearly.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 27.31, which means the current valuation is very expensive for DOO.
- DOO's Price/Earnings ratio is in line with the industry average.
- DOO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.87, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 17.65 indicates a rather expensive valuation of DOO.
- DOO's Price/Forward Earnings is on the same level as the industry average.
- When comparing the Price/Forward Earnings ratio of DOO to the average of the S&P500 Index (25.96), we can say DOO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.31 | ||
| Fwd PE | 17.65 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as DOO.
- The rest of the industry has a similar Price/Free Cash Flow ratio as DOO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.59 | ||
| EV/EBITDA | 10.35 |
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.
- DOO has a very decent profitability rating, which 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)0.75
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.
- With a Dividend Yield of 0.77, DOO pays less dividend than the S&P500 average, which is at 1.82.
| 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.
- The dividend of DOO is growing, but earnings are growing more, so the dividend growth is 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.