BRP (DOO) AI Stock Analysis

• Market Cap: C$7.60B
• Dividend Yield: 0.81%
• Average Volume (3M): 150.36K
• Price to Earnings (P/E): 319.7
• Beta (1Y): 0.99
• 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: 34,610,350
• 10 Day Avg. Volume: 232,774
• 30 Day Avg. Volume: 150,364
• 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$118.75
• Price Target Upside: 11.90% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 4.87
• Revenue Forecast (FY): C$8.28B

• Rating: 54 Neutral
• Price Target: C$92.00 ▼(-13.31% Downside)

BRP's overall stock score is driven by strong technical indicators and revenue growth, but is significantly hampered by poor profitability and high leverage. The technical analysis shows bullish momentum, which is a positive sign for short-term investors. However, the negative P/E ratio and high debt levels present substantial risks. Investors should be cautious of the overbought technical indicators, which could lead to a correction.

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

BRP's financial performance shows strong revenue growth but is hindered by profitability challenges and high leverage. The income statement reveals a significant revenue growth rate of 59.8%, yet the company struggles with a negative net profit margin of -0.48%. The balance sheet indicates high financial risk with a debt-to-equity ratio of 6.25 and negative return on equity. Cash flow is improving, with a 32.57% growth in free cash flow, but there is room for better conversion of earnings to cash.

Income Statement

BRP's income statement shows a mixed performance. The TTM data indicates a significant revenue growth rate of 59.8%, but the company is struggling with profitability, as evidenced by a negative net profit margin of -0.48%. The gross profit margin is relatively low at 21.21%, and the EBIT margin is modest at 5.41%. The company needs to improve its cost management to enhance profitability.

Balance Sheet

The balance sheet reveals high leverage, with a debt-to-equity ratio of 6.25 in the TTM period, indicating significant financial risk. The return on equity is negative at -8.74%, reflecting the company's challenges in generating returns for shareholders. The equity ratio is low, suggesting a reliance on debt financing.

Cash Flow

BRP's cash flow statement shows some positive trends, with a 32.57% growth in free cash flow in the TTM period. The operating cash flow to net income ratio is 0.38, indicating decent cash generation relative to net income. However, the free cash flow to net income ratio is 0.56, suggesting room for improvement in converting earnings to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.75B	7.83B	9.96B	10.03B	7.65B	5.95B
Gross Profit	1.65B	1.77B	2.63B	2.50B	2.13B	1.55B
EBITDA	843.10M	976.60M	1.74B	1.61B	1.39B	943.40M
Net Income	-37.60M	-213.10M	743.40M	863.90M	793.90M	363.40M
Balance Sheet
Total Assets	6.29B	6.29B	6.78B	6.46B	5.03B	4.89B
Cash, Cash Equivalents and Short-Term Investments	271.60M	180.70M	491.80M	202.30M	265.80M	1.33B
Total Debt	3.04B	3.13B	2.95B	3.02B	2.19B	2.65B
Total Liabilities	5.80B	6.05B	5.96B	5.92B	5.16B	5.36B
Stockholders Equity	485.60M	241.30M	808.90M	534.90M	-135.60M	-478.70M
Cash Flow
Free Cash Flow	338.20M	165.70M	942.10M	-52.20M	87.90M	608.80M
Operating Cash Flow	685.00M	562.30M	1.49B	548.80M	716.80M	862.10M
Investing Cash Flow	-363.90M	-425.50M	-574.90M	-853.40M	-687.70M	-260.30M
Financing Cash Flow	-173.10M	-375.30M	-629.20M	291.00M	-1.09B	675.90M

BRP Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 106.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 106.12 is above the 20-day moving average (MA) of 93.90, above the 50-day MA of 92.12, and above the 200-day MA of 70.68, indicating a bullish trend. The MACD of 3.34 indicates Negative momentum. The RSI at 78.98 is Negative, neither overbought nor oversold. The STOCH value of 87.13 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	$19.12B	13.33	8.31%	4.02%	0.66%	-0.61%
LNR	77 Outperform	$4.49B	21.39	4.01%	1.45%	-5.33%	-57.58%
XTC	64 Neutral	$245.31M	10.43	6.05%	6.20%	-3.53%	-17.19%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DOO	54 Neutral	C$7.60B	319.73	45.71%	0.81%	-5.14%	-87.15%
MRE	51 Neutral	$708.95M	―	-2.64%	2.05%	-7.25%	-143.07%
NFI	50 Neutral	C$1.67B	-7.37	-52.38%	―	14.40%	-1117.18%

BRP Corporate Events

BRP to Unveil Mission 28 Strategic Plan at Investor Day

BRP Inc. announced it will introduce its new Mission 28 (M28) Strategic Plan during its 2025 Investor and Analyst Day webcast on October 9, 2025. The event will feature presentations by CEO José Boisjoli and CFO Sébastien Martel, who will discuss the company’s current activities and future strategies. This announcement is significant as it outlines BRP’s future direction and could impact its market positioning and stakeholder interests.

BRP and Bain Capital Announce Secondary Offering of Shares

BRP Inc. and its principal shareholder, Bain Capital Integral Investors II, L.P., have announced a secondary offering of 1,500,000 subordinate voting shares on a bought deal basis with BMO Capital Markets. The offering, priced at C$90.71 per share, will not provide proceeds to BRP but will reduce Bain’s voting power in the company. The transaction is expected to close around September 12, 2025, and is part of a strategic move that includes a distribution in kind of multiple voting shares to Bain’s affiliates, impacting the company’s shareholder structure.