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Brp Inc (TSE:DOO)
:DOO
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BRP
(NASDAQ:DOO)
Rating:59Neutral
Price Target:
C$76.00
▲(8.37% Upside)
Positive Factors
Financial Performance
Management expects double-digit top-line growth in the second half of the fiscal year, driven by new product introductions.
Financial Stability
The company's balance sheet is in excellent shape, with potential for significant free cash flow generation, leading to a strong free cash flow yield.
Stock Rating
The stock is considered to have an attractive valuation with significant potential upside, prompting an upgrade in the rating to Buy.
Negative Factors
Macroeconomic Challenges
The overall macroeconomic backdrop remains challenging, with DOO's retail expectations lowered from 'flat' last quarter to more in line with FY1Q26's -5%.
Retail Pressure
DOO continues to face retail pressure as competitors have more non-current inventory.
Tariff Uncertainty
Tariff uncertainty limits visibility for the company's future performance.
BRP (DOO) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$5.12B
Dividend Yield1.25%
Average Volume (3M)139.10K
Price to Earnings (P/E)19.7
Beta (1Y)0.90
Revenue Growth-22.34%
EPS Growth-110.04%
CountryCA
Employees16,500
SectorConsumer Cyclical
Sector Strength64
IndustryAuto - Recreational Vehicles
Share Statistics
EPS (TTM)0.47
Shares Outstanding34,512,676
10 Day Avg. Volume146,131
30 Day Avg. Volume139,104
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$68.82Price Target Upside-1.87% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering10
BRP Business Overview & Revenue Model
Company DescriptionBombardier Recreational Products (BRP), trading under the ticker symbol DOO, is a global leader in the design, development, manufacturing, distribution, and marketing of power sports vehicles and propulsion systems. The company is headquartered in Valcourt, Quebec, Canada, and operates in several sectors including snowmobiles, watercraft, all-terrain vehicles (ATVs), side-by-side vehicles, motorcycles, and marine products. BRP is known for its innovative and high-performance brands such as Ski-Doo, Sea-Doo, Can-Am, Lynx, Evinrude, and Rotax.
How the Company Makes MoneyBRP generates revenue primarily through the sale of its extensive range of power sports vehicles and propulsion systems. The company's key revenue streams include the sale of snowmobiles, watercraft, ATVs, side-by-side vehicles, and motorcycles. Additionally, BRP earns from the sale of marine propulsion systems and related parts, accessories, and clothing. The company benefits from a global distribution network and strategic partnerships with a wide range of dealers and distributors worldwide, which facilitate the broad reach and availability of its products. Seasonal demand for recreational vehicles and the company's focus on innovation and product development also significantly impact its earnings.
BRP Earnings Call Summary
Earnings Call Date:May 29, 2025
(Q1-2026)
| % Change Since: 41.57%|
Next Earnings Date:Aug 28, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong sales performance in certain regions and product lines, robust cash flow, and industry recognition for design excellence. However, it also pointed out challenges with revenue and EBITDA declines, soft demand in non-North American markets, significant tariff impacts, and declines in certain product lines. The sentiment is balanced with both positive achievements and notable challenges.Q1-2026 Updates
Positive Updates
Strong Snowmobile Sales
Snowmobile retail was strong, up over 80%, driven by favorable snow conditions, contributing to the strong end of season pre-orders.
Retail Growth in Canada and Latin America
Retail growth of 21% in Canada and 18% in Latin America, driven by strong momentum in ORV and personal watercraft.
Snowmobile Inventory Reduction
Achieved a year-over-year network inventory reduction of 15%, with a healthier inventory level combined with strong lineup resulting in strong spring pre-orders.
Record Retail Sales in Several Regions
Highest retail sales ever for the first quarter in Canada, Brazil, Mexico, China, and EMEA distributor markets.
Strong Free Cash Flow Generation
Generated strong free cash flow of $162 million.
Red Dot Design Team of the Year 2025
BRP's design and innovation team received a prestigious international title for design excellence.
Negative Updates
Revenue and EBITDA Decline
Revenue was down 8% to $1.8 billion and normalized EBITDA ended at $201 million, primarily due to lower shipments and higher sales programs.
Challenges in Non-North American Markets
Demand remains soft in EMEA and Asia Pacific with retail down 22% and 13% respectively.
Tariff Impact
Estimated total gross tariff impact for fiscal '26 to be between $60 million and $70 million, creating uncertainty and weighing on consumer confidence.
Decline in Certain Product Lines
Three-wheel vehicle retail was down high 20% and Can-Am side-by-side was down about 10%.
Seasonal Product Revenue Decline
Revenue for seasonal products was down 22% to $419 million, reflecting reduced shipments.
Company Guidance
During the BRP Inc. FY '26 First Quarter Results Conference Call, guidance indicated that the company is positioned for a stronger second half of the fiscal year, despite an 8% decline in revenue to $1.8 billion and a reduction in normalized EBITDA to $201 million. The company's approach focuses on aligning wholesale with retail, with expectations for double-digit top-line growth in the latter half of the year, contingent on current retail trends maintaining consistency. The call highlighted a 21% growth in Canadian powersport retail, contrasted by a 6% decrease in the United States. Despite challenges, the company is optimistic about upcoming product launches and a significant reduction in network inventory by the end of the second quarter, positioning them to capitalize on market opportunities and capitalize on the anticipated demand rebound.BRP Financial Statement Overview
Summary
BRP faces financial challenges with declining revenue and profitability. High leverage and negative equity growth pose risks, but solid cash flow generation provides a buffer for navigating these pressures. Improvements in operational efficiency and debt management are needed to enhance financial stability.Income Statement
The company has experienced a decline in revenue and net income over the past year. The TTM (Trailing-Twelve-Months) data shows a negative net profit margin, indicating a challenging period. However, the gross profit margin remains positive, suggesting that the core operations still maintain some efficiency.40
Negative
Balance Sheet
The debt-to-equity ratio is high due to significant debt levels, which increases financial risk. The equity ratio is low, indicating heavy reliance on debt financing. Return on Equity (ROE) is negative, reflecting recent losses and reduced shareholder value.35
Negative
Cash Flow
Despite declining net income, the company maintains positive operating cash flow. The free cash flow is growing, which supports liquidity and potential reinvestment. However, the operating cash flow to net income ratio suggests operational challenges impacting earnings.50
Neutral
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.83B | 10.37B | 10.03B | 7.65B | 5.95B |
| Gross Profit | 1.77B | 2.60B | 2.50B | 2.13B | 1.47B |
| EBITDA | 770.10M | 1.51B | 1.54B | 1.44B | 832.00M |
| Net Income | -213.10M | 743.40M | 863.90M | 793.90M | 363.40M |
Balance Sheet | |||||
| Total Assets | 6.29B | 6.78B | 6.46B | 5.03B | 4.89B |
| Cash, Cash Equivalents and Short-Term Investments | 260.80M | 491.80M | 324.90M | 339.40M | 1.40B |
| Total Debt | 3.13B | 2.95B | 3.02B | 2.19B | 2.65B |
| Total Liabilities | 6.05B | 5.96B | 5.92B | 5.16B | 5.36B |
| Stockholders Equity | 241.30M | 808.90M | 534.90M | -135.60M | -478.70M |
Cash Flow | |||||
| Free Cash Flow | 313.70M | 1.07B | -9.90M | 72.30M | 674.30M |
| Operating Cash Flow | 740.10M | 1.66B | 649.50M | 770.00M | 954.20M |
| Investing Cash Flow | -425.50M | -574.90M | -853.40M | -687.70M | -260.30M |
| Financing Cash Flow | -553.10M | -629.20M | 190.30M | -1.14B | 583.80M |
BRP Technical Analysis
Positive
70.13
Price Trends
65.63
Positive
57.75
Positive
62.83
Positive
Market Momentum
1.26
Positive
55.77
Neutral
47.07
Neutral
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 70.13 is above the 20-day moving average (MA) of 68.56, above the 50-day MA of 65.63, and above the 200-day MA of 62.83, indicating a bullish trend. The MACD of 1.26 indicates Positive momentum. The RSI at 55.77 is Neutral, neither overbought nor oversold. The STOCH value of 47.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:DOO.
BRP Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | kr10.10B | 16.98 | 8.94% | 3.12% | -0.68% | -21.31% | |
59 Neutral | C$5.12B | 19.66 | 26.57% | 1.25% | -22.34% | -110.04% | |
| ― | $11.76B | 9.73 | 10.06% | 4.65% | ― | ― | |
| ― | $183.64M | 10.87 | 6.01% | 6.26% | ― | ― | |
| ― | $2.99B | 15.40 | 4.66% | 1.51% | ― | ― | |
| ― | $440.77M | 5.32 | -3.98% | 2.40% | ― | ― | |
53 Neutral | C$2.15B | ― | -26.25% | ― | 9.12% | -182.49% |
* Consumer Cyclical Sector Average
Performance Comparison
TSE:DOO
BRP
70.13
-19.51
-21.77%
MGA
Magna International
41.77
4.75
12.83%
EXCOF
Exco Technologies
4.83
-0.28
-5.48%
LIMAF
Linamar
49.96
6.12
13.96%
MRETF
Martinrea International
6.05
-1.42
-19.01%
TSE:NFI
NFI Group Inc
18.06
-0.69
-3.68%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.