BRP (DOO) AI Stock Analysis

• Market Cap: C$7.99B
• Dividend Yield: 0.86%
• Average Volume (3M): 171.43K
• Price to Earnings (P/E): 328.3
• Beta (1Y): 0.93
• Revenue Growth: -5.14%
• EPS Growth: -87.15%
• Country: CA
• Employees: 16,500
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Recreational Vehicles
• EPS (TTM): 1.59
• Shares Outstanding: 36,378,124
• 10 Day Avg. Volume: 213,603
• 30 Day Avg. Volume: 171,425
• PEG Ratio: 0.26
• Price to Book (P/B): 21.22
• Price to Sales (P/S): 0.65
• P/FCF Ratio: 30.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$120.12
• Price Target Upside: 10.24% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 4.99
• Revenue Forecast (FY): C$8.30B

• Rating: 48 Neutral
• Price Target: C$100.00 ▼(-8.22% Downside)

The score is held back mainly by weak financial quality (negative profitability and high leverage) and an expensive valuation (P/E 298.43 with a low dividend yield). Technicals are comparatively supportive, with the price above key moving averages and neutral-to-positive momentum indicators, but not enough to offset the fundamental and valuation risks.

Positive Factors

Leading brand portfolio

BRP's globally recognized brands and diversified product lines (snowmobiles, watercraft, ATVs, side-by-sides) create durable competitive advantage. Strong brand equity and a broad dealer network support pricing power, customer loyalty, and market share resilience across cycles.

Strong free cash flow growth

A 79.3% TTM rise in free cash flow signals materially improved cash generation, increasing capacity to fund R&D, aftermarket investments, and deleveraging. Sustainable cash conversion supports strategic flexibility and buffers operations during cyclical downturns.

Aftermarket and diversified revenue streams

Recurring aftermarket sales (parts, accessories, apparel) add higher-margin, repeat revenue that dampens vehicle-sale cyclicality. This multi-channel revenue base improves lifetime customer value, enhances gross margin stability, and supports predictable cash flows.

Negative Factors

High financial leverage

A TTM debt-to-equity of 6.25 reflects heavy reliance on debt financing, which constrains strategic flexibility. Elevated leverage raises interest burden and refinancing risk, limiting capacity for capex, M&A, or cushioning during demand slowdowns over the medium term.

Profitability pressure

Negative net margin and falling EBIT/EBITDA margins point to structural cost or pricing pressures despite moderate gross margin. Continued margin erosion undermines reinvestment capacity and return generation, making sustainable profit recovery necessary for long-term value creation.

Regulatory setback on divestiture

The ACCC blocking the Telwater sale leaves BRP owning a non-core business, complicating portfolio simplification and capital allocation. Regulatory obstacles to M&A create execution risk, potential operational distraction, and may delay strategic redeployment of proceeds.

BRP Business Overview & Revenue Model

Company Description

BRP Inc., together with its subsidiaries, designs, develops, manufactures, distributes, and markets powersports vehicles and marine products in the United States, Canada, Europe, the Asia Pacific, Mexico, Austria, and internationally. The company operates through two segments, Powersports and Marine. It offers all-terrain, side-by-side, and three-wheeled vehicles; seasonal products, such as snowmobiles and personal watercraft; and engines for jet boats, outboards, karts, motorcycles, and recreational aircraft. The company also provides parts, accessories, and apparel, as well as other services. It sells its products through a network of independent dealers and distributors, as well as to original equipment manufacturers. The company was formerly known as J.A. Bombardier (J.A.B.) Inc. and changed its name to BRP Inc. in April 2013. BRP Inc. was founded in 1937 and is headquartered in Valcourt, Canada.

How the Company Makes Money

BRP generates revenue through multiple streams, primarily from the sale of its recreational vehicles and related parts and accessories. The company's core revenue comes from the sale of its ATV, snowmobile, and watercraft units, which are sold through a network of independent dealers and distributors globally. Additionally, BRP earns money from aftermarket sales of parts, accessories, and apparel, which enhance the customer experience and vehicle performance. The company also benefits from strategic partnerships with other firms in the powersports industry, which can include collaborations for technology development or co-marketing initiatives. BRP's focus on innovation and consumer demand for high-performance recreational vehicles further drives its revenue growth, as does its commitment to expanding its product lines and entering new markets.

BRP Financial Statement Overview

Summary

Mixed fundamentals: moderate gross margin (21.22%) and modest revenue growth (3.8% TTM), but negative net margin and declining EBIT/EBITDA margins. Balance sheet leverage is high (debt-to-equity 6.25) with negative ROE and a low equity ratio, partially offset by strong free cash flow growth (79.3% TTM).

Income Statement

BRP's income statement shows a mixed performance. The TTM gross profit margin is moderate at 21.22%, but the net profit margin is negative, indicating profitability challenges. Revenue growth is positive at 3.8% TTM, showing some recovery, but EBIT and EBITDA margins have declined compared to previous years, suggesting pressure on operational efficiency.

Balance Sheet

The balance sheet reveals high leverage with a TTM debt-to-equity ratio of 6.25, indicating significant reliance on debt financing. The return on equity is negative, reflecting recent losses. The equity ratio is low, suggesting limited equity buffer against liabilities.

Cash Flow

Cash flow analysis shows a strong free cash flow growth of 79.3% TTM, indicating improved cash generation. However, the operating cash flow to net income ratio is low, suggesting that cash flow is not fully translating into profitability. The free cash flow to net income ratio is moderate, reflecting some efficiency in cash utilization.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.05B	7.83B	9.96B	10.03B	7.65B	5.95B
Gross Profit	1.76B	1.77B	2.63B	2.50B	2.13B	1.55B
EBITDA	856.90M	976.60M	1.74B	1.61B	1.39B	943.40M
Net Income	24.40M	-213.10M	743.40M	863.90M	793.90M	363.40M
Balance Sheet
Total Assets	6.51B	6.29B	6.78B	6.46B	5.03B	4.89B
Cash, Cash Equivalents and Short-Term Investments	289.40M	180.70M	491.80M	202.30M	265.80M	1.33B
Total Debt	2.79B	3.13B	2.95B	3.02B	2.19B	2.65B
Total Liabilities	5.93B	6.05B	5.96B	5.92B	5.16B	5.36B
Stockholders Equity	568.90M	241.30M	808.90M	534.90M	-135.60M	-478.70M
Cash Flow
Free Cash Flow	606.40M	165.70M	942.10M	-52.20M	87.90M	608.80M
Operating Cash Flow	911.50M	562.30M	1.49B	548.80M	716.80M	862.10M
Investing Cash Flow	-323.00M	-425.50M	-574.90M	-853.40M	-687.70M	-260.30M
Financing Cash Flow	-463.90M	-375.30M	-629.20M	291.00M	-1.09B	675.90M

BRP Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 108.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DOO, the sentiment is Positive. The current price of 108.96 is above the 20-day moving average (MA) of 101.12, above the 50-day MA of 98.05, and above the 200-day MA of 77.08, indicating a bullish trend. The MACD of 2.12 indicates Negative momentum. The RSI at 67.45 is Neutral, neither overbought nor oversold. The STOCH value of 89.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:DOO.

BRP Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MG	77 Outperform	C$21.51B	15.00	8.31%	3.69%	0.66%	-0.61%
CCL.A	74 Outperform	C$14.81B	18.74	15.16%	1.44%	7.12%	17.15%
LNR	73 Outperform	C$5.24B	21.41	4.01%	1.32%	-5.33%	-57.58%
CTC.A	69 Neutral	C$9.51B	13.32	13.16%	4.10%	-0.13%	13.73%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MRE	51 Neutral	C$770.50M	-18.93	-2.64%	1.93%	-7.25%	-143.07%
DOO	48 Neutral	C$7.99B	328.29	45.71%	0.86%	-5.14%	-87.15%

BRP Corporate Events

BRP’s Principal Shareholder Bain Capital Trims Stake in C$185 Million Secondary Share Offering

BRP Inc. announced the closing of a previously disclosed bought deal secondary offering in which its principal shareholder, Bain Capital Integral Investors II, L.P., sold 1,850,000 BRP subordinate voting shares at C$100 per share for gross proceeds of C$185 million, with all proceeds going to Bain and no new capital raised for the company. The transaction, underwritten by RBC Capital Markets without an over-allotment option, reduces Bain’s stake while leaving it with 8,603,493 multiple voting shares representing roughly 11.72% of BRP’s outstanding shares and about 20.73% of the company’s voting power, signaling a partial liquidity event for the private equity backer without altering BRP’s capital structure or exchange listings on the TSX and Nasdaq.

The most recent analyst rating on (TSE:DOO) stock is a Hold with a C$109.00 price target. To see the full list of analyst forecasts on BRP stock, see the TSE:DOO Stock Forecast page.

BRP and Bain Capital Announce Secondary Offering of Subordinate Shares

BRP and its principal shareholder, Bain Capital Integral Investors II, have announced a secondary offering of 1,850,000 subordinate voting shares at C$100.00 per share, structured as a bought deal through RBC Capital Markets. The move will reduce Bain’s ownership stake and voting power in BRP, while the company itself will not receive any proceeds from the offering, which is expected to conclude on December 23, 2025, subject to customary conditions.

The most recent analyst rating on (TSE:DOO) stock is a Buy with a C$120.00 price target. To see the full list of analyst forecasts on BRP stock, see the TSE:DOO Stock Forecast page.