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BRP
(NASDAQ:DOO)
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Rating:55Neutral
Price Target:
C$93.00
▲(9.15% Upside)
Action:Reiterated
Date:05/29/26
The score is held back primarily by high leverage and compressed profitability despite positive revenue growth. Strong operating cash flow and free cash flow provide support, but technicals are mixed (below key longer-term moving averages with negative MACD), and valuation/dividend metrics are only moderate.
Positive Factors
Strong cash generation
Consistent, growing operating and free cash flow provides durable financial flexibility: it funds capex, supports working capital, and enables debt reduction or shareholder returns over the medium term. Strong cash conversion cushions cyclical revenue swings and underpins strategic options.
Negative Factors
High leverage
A debt-heavy capital structure materially raises refinancing and liquidity risk for a cyclical consumer company. High leverage limits strategic flexibility, increases interest expense sensitivity, and raises the probability that weaker demand or higher rates will impair cash available for investment or deleveraging.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent, growing operating and free cash flow provides durable financial flexibility: it funds capex, supports working capital, and enables debt reduction or shareholder returns over the medium term. Strong cash conversion cushions cyclical revenue swings and underpins strategic options.
Read all positive factors
BRP (DOO) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$6.40B
Dividend Yield1.04%
Average Volume (3M)257.78K
Price to Earnings (P/E)21.6
Beta (1Y)0.99
Revenue Growth16.09%
EPS GrowthN/A
CountryCA
Employees17,000
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Recreational Vehicles
Share Statistics
EPS (TTM)4.15
Shares Outstanding36,718,555
10 Day Avg. Volume286,868
30 Day Avg. Volume257,779
Financial Highlights & Ratios
PEG Ratio-0.88
Price to Book (P/B)21.22
Price to Sales (P/S)0.65
P/FCF Ratio30.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$94.79Price Target Upside11.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)3.22
Revenue Forecast (FY)C$9.28B
BRP Business Overview & Revenue Model
Company Description
BRP Inc., along with its affiliates, designs, manufactures, distributes, and sells a wide array of powersports vehicles and marine equipment across an extensive international footprint that includes the United States, Canada, Mexico, various Europ...
How the Company Makes Money
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BRP Earnings Call Summary
Earnings Call Date:May 28, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Sep 03, 2026
Earnings Call Sentiment Neutral
The call reflects a mixed but balanced picture: operationally BRP delivered a strong quarter with double-digit revenue growth, margin expansion, market share gains (notably in ORV/ATV) and robust cash generation. However, a large, uncertain tariff headwind materially reduces near-term earnings and pressures full-year margins despite partial mitigation plans. Management emphasizes confidence in long-term fundamentals and flexibility of the balance sheet while acknowledging meaningful short-term disruption from trade actions.Positive Updates
Quarterly Revenue and Profit Beat
Q1 revenue of $2.4 billion, up 30% year-over-year; normalized EBITDA of $334 million (up 67% YoY) and normalized EPS of $1.83 (nearly tripled YoY), results ahead of expectations driven by stronger volumes, disciplined cost control and a favorable promotional environment.
Negative Updates
Significant Section 232 Tariff Headwind
Amendment introduces a 25% tariff on full value of imported snowmobiles and most ORVs replacing prior metal-content tariff treatment; expected incremental tariff impact of $500M–$550M for fiscal '27 (annualized estimate $650M–$700M).
Read all updates
Q1-2027 Updates
Positive
Negative
Quarterly Revenue and Profit Beat
Q1 revenue of $2.4 billion, up 30% year-over-year; normalized EBITDA of $334 million (up 67% YoY) and normalized EPS of $1.83 (nearly tripled YoY), results ahead of expectations driven by stronger volumes, disciplined cost control and a favorable promotional environment.
Read all positive updates
Company Guidance
BRP issued revised fiscal 2027 guidance reflecting the new Section 232 tariff outlook: revenues $9.125–$9.375 billion, normalized EBITDA $925–$975 million and normalized EPS $3.00–$3.50, while still expecting free cash flow of over $600 million; at the midpoint gross margin is implied slightly north of 19%. Management said the company sees a total incremental tariff hit of $500–$550 million for the year (about $650–$700 million annualized), expects to offset roughly $200 million through mitigation (with another $25–$50 million of annualized benefit possible as initiatives ramp), and quantified the upside from stronger fundamentals as roughly $60 million of normalized EBITDA or $0.60 per share. By way of context, BRP began the year with EPS guidance of $5.50–$6.50 (implying $6.10–$7.10 earnings power before the new tariffs and after $90 million of previously assumed tariffs), and said the incremental net tariff impact of $3.10–$3.60 per share drives the revised $3.00–$3.50 range; Q2 is expected to show an EPS decline of about $1.60–$1.65 year‑over‑year and the tariff burden is expected to be fairly distributed (slightly higher in Q3). These targets follow a strong Q1 (revenue $2.4 billion, normalized EBITDA $334 million, normalized EPS $1.83, gross profit $562 million / 23.5% margin, free cash flow ~$367 million, cash ~ $700 million, net leverage 1.4x) and reflect working‑capital tailwinds including a ~ $150 million AR floor‑plan benefit.BRP Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
38
Negative
Cash Flow
70
Positive
| Breakdown | TTM | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 | Jan 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.99B | 8.44B | 7.83B | 9.96B | 10.03B | 7.65B |
| Gross Profit | 2.05B | 1.89B | 1.77B | 2.63B | 2.50B | 2.13B |
| EBITDA | 1.00B | 971.00M | 976.60M | 1.74B | 1.61B | 1.39B |
| Net Income | 270.90M | 291.60M | -213.10M | 743.40M | 863.90M | 793.90M |
Balance Sheet | ||||||
| Total Assets | 6.75B | 6.32B | 6.29B | 6.78B | 6.46B | 5.03B |
| Cash, Cash Equivalents and Short-Term Investments | 752.40M | 427.10M | 180.70M | 491.80M | 202.30M | 265.80M |
| Total Debt | 2.92B | 2.68B | 3.13B | 2.95B | 3.02B | 2.19B |
| Total Liabilities | 6.04B | 5.71B | 6.05B | 5.96B | 5.92B | 5.16B |
| Stockholders Equity | 696.60M | 604.10M | 241.30M | 808.90M | 534.90M | -135.60M |
Cash Flow | ||||||
| Free Cash Flow | 978.10M | 738.30M | 165.70M | 942.10M | -52.20M | 87.90M |
| Operating Cash Flow | 1.29B | 1.04B | 562.30M | 1.49B | 548.80M | 716.80M |
| Investing Cash Flow | -324.10M | -318.40M | -425.50M | -574.90M | -853.40M | -687.70M |
| Financing Cash Flow | -547.00M | -486.00M | -375.30M | -629.20M | 291.00M | -1.09B |
BRP Technical Analysis
Positive
85.20
Price Trends
85.83
Positive
84.72
Positive
91.53
Negative
Market Momentum
1.49
Negative
55.67
Neutral
48.78
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 85.2 is below the 20-day moving average (MA) of 87.82, below the 50-day MA of 85.83, and below the 200-day MA of 91.53, indicating a neutral trend. The MACD of 1.49 indicates Negative momentum. The RSI at 55.67 is Neutral, neither overbought nor oversold. The STOCH value of 48.78 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | C$25.90B | 25.79 | 6.14% | 2.92% | 1.59% | -35.21% | |
72 Outperform | C$6.27B | 9.21 | 10.37% | 1.14% | 9.32% | 227.52% | |
70 Outperform | C$16.32B | 21.02 | 14.41% | 1.52% | 5.44% | 4.67% | |
68 Neutral | C$764.82M | 6.39 | 7.89% | 1.98% | -2.65% | ― | |
62 Neutral | C$10.45B | 17.80 | 10.24% | 3.60% | 1.05% | -6.66% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | C$6.40B | 21.57 | 46.01% | 1.09% | 16.09% | ― |
* Consumer Cyclical Sector Average
TSE:DOO
BRP
89.51
10.19
12.85%
TSE:MG
Magna International
97.56
38.70
65.74%
TSE:LNR
Linamar
105.87
34.05
47.40%
TSE:MRE
Martinrea International
10.93
1.53
16.29%
TSE:CCL.A
CCL Industries (A)
97.12
18.41
23.38%
TSE:CTC.A
Canadian Tire
199.34
38.95
24.28%
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.