BRP INC/CA- SUB VOTING (DOOO) Stock Fundamental Analysis
NASDAQ:DOOO - Nasdaq - CA05577W2004 - Common Stock - Currency: USD
DOOO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
DOOO had positive earnings in the past year.
DOOO had a positive operating cash flow in the past year.
DOOO had positive earnings in 4 of the past 5 years.
DOOO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DOOO has a Return On Assets (-3.51%) which is in line with its industry peers.
DOOO's Return On Equity of -91.46% is on the low side compared to the rest of the industry. DOOO is outperformed by 86.67% of its industry peers.
DOOO has a better Return On Invested Capital (12.00%) than 86.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DOOO is significantly above the industry average of 8.16%.
The 3 year average ROIC (16.59%) for DOOO is well above the current ROIC(12.00%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.51% | ||
| ROE | -91.46% | ||
| ROIC | 12% |
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 Operating Margin, with a value of 7.94%, DOOO belongs to the top 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.
The Gross Margin of DOOO (22.85%) is worse than 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 | 7.94% | ||
| PM (TTM) | N/A | ||
| GM | 22.85% |
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), DOOO is creating value.
DOOO has less shares outstanding than it did 1 year ago.
The number of shares outstanding for DOOO has been reduced compared to 5 years ago.
The debt/assets ratio for DOOO is higher compared to a year ago.
2.2 Solvency
DOOO has an Altman-Z score of 2.47. This is not the best score and indicates that DOOO is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of DOOO (2.47) is comparable to the rest of the industry.
DOOO has a debt to FCF ratio of 9.98. This is a negative value and a sign of low solvency as DOOO would need 9.98 years to pay back of all of its debts.
DOOO has a Debt to FCF ratio of 9.98. This is comparable to the rest of the industry: DOOO outperforms 46.67% of its industry peers.
DOOO has a Debt/Equity ratio of 12.55. This is a high value indicating a heavy dependency on external financing.
DOOO's Debt to Equity ratio of 12.55 is on the low side compared to the rest of the industry. DOOO is outperformed by 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 12.55 | ||
| Debt/FCF | 9.98 | ||
| Altman-Z | 2.47 |
ROIC/WACC1.71
WACC7%
2.3 Liquidity
A Current Ratio of 1.31 indicates that DOOO should not have too much problems paying its short term obligations.
The Current ratio of DOOO (1.31) is worse than 80.00% of its industry peers.
DOOO has a Quick Ratio of 1.31. This is a bad value and indicates that DOOO is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of DOOO (0.60) is worse than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
The earnings per share for DOOO have decreased strongly by -66.70% in the last year.
The Earnings Per Share has been decreasing by -0.95% on average over the past years.
DOOO shows a decrease in Revenue. In the last year, the revenue decreased by -4.88%.
DOOO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.28% yearly.
EPS 1Y (TTM)-66.7%
EPS 3Y-27.97%
EPS 5Y-0.95%
EPS Q2Q%-60.16%
Revenue 1Y (TTM)-4.88%
Revenue growth 3Y0.79%
Revenue growth 5Y5.28%
Sales Q2Q%-22.07%
3.2 Future
DOOO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.80% yearly.
Based on estimates for the next years, DOOO will show a small growth in Revenue. The Revenue will grow by 4.87% on average per year.
EPS Next Y-3.21%
EPS Next 2Y19.16%
EPS Next 3Y20.46%
EPS Next 5Y24.8%
Revenue Next Year-1.13%
Revenue Next 2Y2.22%
Revenue Next 3Y2.47%
Revenue Next 5Y4.87%
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.
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
With a Price/Earnings ratio of 13.42, DOOO is valued correctly.
Based on the Price/Earnings ratio, DOOO is valued cheaper than 90.00% of the companies in the same industry.
DOOO is valuated rather cheaply when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 13.88, which indicates a correct valuation of DOOO.
Based on the Price/Forward Earnings ratio, DOOO is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.76. DOOO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.42 | ||
| Fwd PE | 13.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DOOO is valued cheaper than 93.33% of the companies in the same industry.
DOOO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DOOO is cheaper than 76.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.57 | ||
| EV/EBITDA | 5.31 |
4.3 Compensation for Growth
A more expensive valuation may be justified as DOOO's earnings are expected to grow with 20.46% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y19.16%
EPS Next 3Y20.46%
5. Dividend
5.1 Amount
DOOO has a Yearly Dividend Yield of 1.74%. Purely for dividend investing, there may be better candidates out there.
DOOO's Dividend Yield is a higher than the industry average which is at 4.44.
DOOO's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
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.
DOOO has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)15.83%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
The earnings of DOOO are negative and hence is the payout ratio. DOOO will probably not be able to sustain this dividend level.
The dividend of DOOO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-28.05%
EPS Next 2Y19.16%
EPS Next 3Y20.46%
35.84
-0.14 (-0.39%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners100.6%
Inst Owner Change5%
Ins Owners3.33%
Ins Owner ChangeN/A
Market Cap2.62B
Analysts70
Price Target47.52 (32.59%)
Short Float %5.02%
Short Ratio6.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
Yearly Dividend0.6
Dividend Growth(5Y)15.83%
DP-28.05%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)38.39%
Min EPS beat(2)9.9%
Max EPS beat(2)66.87%
EPS beat(4)4
Avg EPS beat(4)28.56%
Min EPS beat(4)3.21%
Max EPS beat(4)66.87%
EPS beat(8)6
Avg EPS beat(8)14.42%
EPS beat(12)10
Avg EPS beat(12)18.84%
EPS beat(16)14
Avg EPS beat(16)27.86%
Revenue beat(2)2
Avg Revenue beat(2)5.49%
Min Revenue beat(2)5.09%
Max Revenue beat(2)5.89%
Revenue beat(4)3
Avg Revenue beat(4)2.53%
Min Revenue beat(4)-2.96%
Max Revenue beat(4)5.89%
Revenue beat(8)5
Avg Revenue beat(8)0.72%
Revenue beat(12)8
Avg Revenue beat(12)2%
Revenue beat(16)11
Avg Revenue beat(16)2.15%
PT rev (1m)1.44%
PT rev (3m)-23.44%
EPS NQ rev (1m)0.81%
EPS NQ rev (3m)-59.2%
EPS NY rev (1m)0%
EPS NY rev (3m)-29.65%
Revenue NQ rev (1m)0.28%
Revenue NQ rev (3m)-5.31%
Revenue NY rev (1m)-2.72%
Revenue NY rev (3m)-3.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.42 | ||
| Fwd PE | 13.88 | ||
| P/S | 0.37 | ||
| P/FCF | 11.57 | ||
| P/OCF | 4.9 | ||
| P/B | 15.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.31 |
EPS(TTM)2.67
EY7.45%
EPS(NY)2.58
Fwd EY7.21%
FCF(TTM)3.1
FCFY8.64%
OCF(TTM)7.31
OCFY20.39%
SpS97.39
BVpS2.38
TBVpS-3.58
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.51% | ||
| ROE | -91.46% | ||
| ROCE | 20.26% | ||
| ROIC | 12% | ||
| ROICexc | 12.86% | ||
| ROICexgc | 15.45% | ||
| OM | 7.94% | ||
| PM (TTM) | N/A | ||
| GM | 22.85% | ||
| FCFM | 3.18% |
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 Turnover1.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 12.55 | ||
| Debt/FCF | 9.98 | ||
| Debt/EBITDA | 2.5 | ||
| Cap/Depr | 99.72% | ||
| Cap/Sales | 4.32% | ||
| Interest Coverage | 4.4 | ||
| Cash Conversion | 61.13% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 2.47 |
F-Score4
WACC7%
ROIC/WACC1.71
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)-66.7%
EPS 3Y-27.97%
EPS 5Y-0.95%
EPS Q2Q%-60.16%
EPS Next Y-3.21%
EPS Next 2Y19.16%
EPS Next 3Y20.46%
EPS Next 5Y24.8%
Revenue 1Y (TTM)-4.88%
Revenue growth 3Y0.79%
Revenue growth 5Y5.28%
Sales Q2Q%-22.07%
Revenue Next Year-1.13%
Revenue Next 2Y2.22%
Revenue Next 3Y2.47%
Revenue Next 5Y4.87%
EBIT growth 1Y-39.5%
EBIT growth 3Y-18.34%
EBIT growth 5Y2.18%
EBIT Next Year87.8%
EBIT Next 3Y30.36%
EBIT Next 5Y26.5%
FCF growth 1Y-70.75%
FCF growth 3Y63.1%
FCF growth 5Y6.89%
OCF growth 1Y-55.36%
OCF growth 3Y-1.31%
OCF growth 5Y5.91%