BRP INC/CA- SUB VOTING (DOOO) Stock Fundamental Analysis
NASDAQ:DOOO - Nasdaq - CA05577W2004 - Common Stock - Currency: USD
Taking everything into account, DOOO scores 4 out of 10 in our fundamental rating. DOOO was compared to 30 industry peers in the Leisure Products industry. DOOO has a medium profitability rating, but doesn't score so well on its financial health evaluation. DOOO has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year DOOO was profitable.
In the past year DOOO had a positive cash flow from operations.
Of the past 5 years DOOO 4 years were profitable.
DOOO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DOOO has a Return On Assets of -0.99%. This is in the better half of the industry: DOOO outperforms 63.33% of its industry peers.
The Return On Equity of DOOO (-13.55%) is worse than 60.00% of its industry peers.
DOOO's Return On Invested Capital of 11.14% is amongst the best of the industry. DOOO outperforms 86.67% of its industry peers.
DOOO had an Average Return On Invested Capital over the past 3 years of 16.59%. This is significantly above the industry average of 7.91%.
The 3 year average ROIC (16.59%) for DOOO is well above the current ROIC(11.14%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.99% | ||
| ROE | -13.55% | ||
| ROIC | 11.14% |
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
With an excellent Operating Margin value of 7.70%, DOOO belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
DOOO's Operating Margin has declined in the last couple of years.
DOOO has a Gross Margin of 22.41%. This is in the lower half of the industry: DOOO underperforms 66.67% of its industry peers.
In the last couple of years the Gross Margin of DOOO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.7% | ||
| PM (TTM) | N/A | ||
| GM | 22.41% |
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
DOOO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, DOOO has less shares outstanding
Compared to 5 years ago, DOOO has less shares outstanding
The debt/assets ratio for DOOO is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.62 indicates that DOOO is not a great score, but indicates only limited risk for bankruptcy at the moment.
DOOO has a Altman-Z score of 2.62. This is comparable to the rest of the industry: DOOO outperforms 43.33% of its industry peers.
DOOO has a debt to FCF ratio of 7.39. This is a slightly negative value and a sign of low solvency as DOOO would need 7.39 years to pay back of all of its debts.
DOOO's Debt to FCF ratio of 7.39 is in line compared to the rest of the industry. DOOO outperforms 50.00% of its industry peers.
A Debt/Equity ratio of 6.26 is on the high side and indicates that DOOO has dependencies on debt financing.
The Debt to Equity ratio of DOOO (6.26) is worse than 93.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.26 | ||
| Debt/FCF | 7.39 | ||
| Altman-Z | 2.62 |
ROIC/WACC1.55
WACC7.19%
2.3 Liquidity
A Current Ratio of 1.34 indicates that DOOO should not have too much problems paying its short term obligations.
The Current ratio of DOOO (1.34) is worse than 83.33% of its industry peers.
A Quick Ratio of 0.58 indicates that DOOO may have some problems paying its short term obligations.
DOOO's Quick ratio of 0.58 is on the low side compared to the rest of the industry. DOOO is outperformed by 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
DOOO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -66.88%.
Measured over the past years, DOOO shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.95% on average per year.
Looking at the last year, DOOO shows a decrease in Revenue. The Revenue has decreased by -2.94% in the last year.
The Revenue has been growing slightly by 5.28% on average over the past years.
EPS 1Y (TTM)-66.88%
EPS 3Y-27.97%
EPS 5Y-0.95%
EPS Q2Q%-51.99%
Revenue 1Y (TTM)-2.94%
Revenue growth 3Y0.79%
Revenue growth 5Y5.28%
Sales Q2Q%-11.59%
3.2 Future
DOOO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.70% yearly.
The Revenue is expected to grow by 3.12% on average over the next years.
EPS Next Y-3.21%
EPS Next 2Y19.16%
EPS Next 3Y19.43%
EPS Next 5Y21.7%
Revenue Next Year-1.13%
Revenue Next 2Y2.22%
Revenue Next 3Y3.95%
Revenue Next 5Y3.12%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
A Price/Earnings ratio of 22.24 indicates a rather expensive valuation of DOOO.
Compared to the rest of the industry, the Price/Earnings ratio of DOOO indicates a somewhat cheap valuation: DOOO is cheaper than 63.33% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.45, DOOO is valued at the same level.
Based on the Price/Forward Earnings ratio of 13.57, the valuation of DOOO can be described as correct.
DOOO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DOOO is cheaper than 80.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of DOOO to the average of the S&P500 Index (21.90), we can say DOOO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.24 | ||
| Fwd PE | 13.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DOOO is valued cheaply inside the industry as 93.33% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, DOOO is valued a bit cheaper than the industry average as 73.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.78 | ||
| EV/EBITDA | 6.59 |
4.3 Compensation for Growth
The decent profitability rating of DOOO may justify a higher PE ratio.
DOOO's earnings are expected to grow with 19.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y19.16%
EPS Next 3Y19.43%
5. Dividend
5.1 Amount
DOOO has a Yearly Dividend Yield of 1.21%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.23, DOOO pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.21, DOOO pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
5.2 History
On average, the dividend of DOOO grows each year by 15.83%, which is quite nice.
DOOO 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
DOOO has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of DOOO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-98.09%
EPS Next 2Y19.16%
EPS Next 3Y19.43%
52.48
+0.04 (+0.08%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners95.69%
Inst Owner Change5.02%
Ins Owners3.27%
Ins Owner ChangeN/A
Market Cap3.83B
Analysts73.64
Price Target49.83 (-5.05%)
Short Float %4.06%
Short Ratio5.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
Yearly Dividend0.62
Dividend Growth(5Y)15.83%
DP-98.09%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.01%
Min EPS beat(2)9.9%
Max EPS beat(2)12.12%
EPS beat(4)4
Avg EPS beat(4)30.79%
Min EPS beat(4)9.9%
Max EPS beat(4)66.87%
EPS beat(8)6
Avg EPS beat(8)15.74%
EPS beat(12)10
Avg EPS beat(12)16.09%
EPS beat(16)14
Avg EPS beat(16)23.23%
Revenue beat(2)2
Avg Revenue beat(2)3.14%
Min Revenue beat(2)1.19%
Max Revenue beat(2)5.09%
Revenue beat(4)3
Avg Revenue beat(4)2.3%
Min Revenue beat(4)-2.96%
Max Revenue beat(4)5.89%
Revenue beat(8)5
Avg Revenue beat(8)0.17%
Revenue beat(12)9
Avg Revenue beat(12)2.49%
Revenue beat(16)11
Avg Revenue beat(16)1.76%
PT rev (1m)4.87%
PT rev (3m)-15.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-30.95%
EPS NY rev (1m)0%
EPS NY rev (3m)-26.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.24 | ||
| Fwd PE | 13.57 | ||
| P/S | 0.54 | ||
| P/FCF | 12.78 | ||
| P/OCF | 6.4 | ||
| P/B | 11.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.59 |
EPS(TTM)2.36
EY4.5%
EPS(NY)3.87
Fwd EY7.37%
FCF(TTM)4.11
FCFY7.82%
OCF(TTM)8.19
OCFY15.61%
SpS97.51
BVpS4.68
TBVpS-1.42
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.99% | ||
| ROE | -13.55% | ||
| ROCE | 18.81% | ||
| ROIC | 11.14% | ||
| ROICexc | 12.36% | ||
| ROICexgc | 14.89% | ||
| OM | 7.7% | ||
| PM (TTM) | N/A | ||
| GM | 22.41% | ||
| FCFM | 4.21% |
ROA(3y)6.98%
ROA(5y)8.83%
ROE(3y)55.03%
ROE(5y)N/A
ROIC(3y)16.59%
ROIC(5y)18.66%
ROICexc(3y)18.49%
ROICexc(5y)24.92%
ROICexgc(3y)22.73%
ROICexgc(5y)33.81%
ROCE(3y)28.09%
ROCE(5y)31.56%
ROICexcg growth 3Y-38.03%
ROICexcg growth 5Y-14.78%
ROICexc growth 3Y-35.14%
ROICexc growth 5Y-10.86%
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%
F-Score4
Asset Turnover1.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.26 | ||
| Debt/FCF | 7.39 | ||
| Debt/EBITDA | 2.47 | ||
| Cap/Depr | 94.26% | ||
| Cap/Sales | 4.19% | ||
| Interest Coverage | 4.23 | ||
| Cash Conversion | 69.19% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 2.62 |
F-Score4
WACC7.19%
ROIC/WACC1.55
Cap/Depr(3y)153.9%
Cap/Depr(5y)164.81%
Cap/Sales(3y)5.97%
Cap/Sales(5y)6.34%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-66.88%
EPS 3Y-27.97%
EPS 5Y-0.95%
EPS Q2Q%-51.99%
EPS Next Y-3.21%
EPS Next 2Y19.16%
EPS Next 3Y19.43%
EPS Next 5Y21.7%
Revenue 1Y (TTM)-2.94%
Revenue growth 3Y0.79%
Revenue growth 5Y5.28%
Sales Q2Q%-11.59%
Revenue Next Year-1.13%
Revenue Next 2Y2.22%
Revenue Next 3Y3.95%
Revenue Next 5Y3.12%
EBIT growth 1Y-34.57%
EBIT growth 3Y-18.34%
EBIT growth 5Y2.18%
EBIT Next Year85.84%
EBIT Next 3Y32.25%
EBIT Next 5Y22.45%
FCF growth 1Y-28.91%
FCF growth 3Y63.1%
FCF growth 5Y6.89%
OCF growth 1Y-34.49%
OCF growth 3Y-1.31%
OCF growth 5Y5.91%