BRP, Inc. (DOO) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

BRP, Inc.

Spectra Products, Inc.

Buhler Industries, Inc.

Vicinity Motor Corp.

Westport Fuel Systems, Inc.

NFI Group, Inc.

dynaCERT, Inc.

Clean Seed Capital Group Ltd.

CubicFarm Systems Corp.

Why is BRP, Inc. ?

High Management Efficiency with a high ROCE of 47.48%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 8.81

Healthy long term growth as Net Sales has grown by an annual rate of 6.36% and Operating profit at -1.14%

The company has declared Negative results for the last 6 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CAD 637.2 MM
NET PROFIT(HY) At CAD 174.9 MM has Grown at -33.68%
ROCE(HY) Lowest at 27.17%

With ROE of 57.01%, it has a expensive valuation with a 6.35 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 5.67%, its profits have fallen by -46.6%

High Institutional Holdings at 99.31%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 2.74% over the previous quarter.

Underperformed the market in the last 1 year

The stock has generated a return of 5.67% in the last 1 year, much lower than market (S&P/TSX 60) returns of 22.54%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to BRP, Inc. should be less than 10%
Overall Portfolio exposure to Automobiles should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Automobiles)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is BRP, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

BRP, Inc.

54.16%

0.00

45.56%

S&P/TSX 60

19.1%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.36%

EBIT Growth (5y)

-1.14%

EBIT to Interest (avg)

8.81

Debt to EBITDA (avg)

1.72

Net Debt to Equity (avg)

5.46

Sales to Capital Employed (avg)

2.67

Tax Ratio

29.41%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

47.48%

ROE (avg)

109.76%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

6.71

EV to EBIT

11.85

EV to EBITDA

6.28

EV to Capital Employed

1.91

EV to Sales

0.75

PEG Ratio

Dividend Yield

ROCE (Latest)

16.10%

ROE (Latest)

57.01%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

11What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at CAD 12.39

PRE-TAX PROFIT(Q)

Highest at CAD 163.7 MM

NET PROFIT(Q)

Highest at CAD 150.7 MM

EPS(Q)

Highest at CAD 2.04

-13What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CAD 637.2 MM

NET PROFIT(HY)

At CAD 174.9 MM has Grown at -33.68%

ROCE(HY)

Lowest at 27.17%

DEBTORS TURNOVER RATIO(HY)

Lowest at 12.39%

RAW MATERIAL COST(Y)

Grown by 18.77% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 581.25 %

Here's what is working for BRP, Inc.

Pre-Tax Profit

At CAD 163.7 MM has Grown at 406.81%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 150.7 MM has Grown at 538.79%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CAD MM)

Dividend per share

Highest at CAD 12.39 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Pre-Tax Profit

Highest at CAD 163.7 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Net Profit

Highest at CAD 150.7 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

EPS

Highest at CAD 2.04

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Here's what is not working for BRP, Inc.

Debtors Turnover Ratio

Lowest at 12.39% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Operating Cash Flow

Lowest at CAD 637.2 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Debt-Equity Ratio

Highest at 581.25 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 18.77% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales