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BRP Inc Shs Subord.Voting DOOO

Morningstar Rating
$69.33 −1.27 (1.80%)
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Company Report

Proactive Pruning of Shipments Positions BRP to Exit Period of Soft Demand Competitively Standing

Fiscal 2024 (ending January) was solid, delivering another year of positive sales growth for BRP. However, in 2025 dealer demand has remained depressed, crimped by macroeconomic headwinds. We contend this is a function of higher borrowing costs and expect that BRP's continued focus on its long-term product and operational priorities will allow it to maintain strong competitive positioning. Strategic priorities focus on market share growth, lean operations, and cultivating an engaged workforce, all while honing in on evolving customer demands. With manufacturing facilities located near demand (for example, personal watercraft in Mexico) and tactical spending on capacity, BRP should be able to capture efficiencies from its plants. Firmwide centers of expertise and excellence allow BRP to manufacture optimally, improving utilization and allowing it to bring products to market quickly, ensuring a continually relevant and in-demand product lineup. Because BRP is exposed to many customer segments, we don’t believe acquisitions are required for expansion. However, we think entry into white-space categories (like motorcycles) and small acquisitions, particularly in parts and accessories or marine, are possible and could support growth.

Price vs Fair Value

DOOO is trading at a 76% premium.
Price
$69.33
Fair Value
$68.00
Uncertainty
High
1-Star Price
$565.00
5-Star Price
$73.00
Economic Moat
Xlbty
Capital Allocation
Zlvqcvxyzm

Bulls Say, Bears Say

Bulls

BRP has white-space opportunities to expand the business faster than we expect, particularly in the marine business and some niches (like electric) of the year-round lines.

Bears

Protracted inflation in costs, including commodities, labor, or logistics, could weigh on profitability for longer than we currently anticipate.

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News

Trading Information

Previous Close Price
$70.60
Day Range
$69.0170.76
52-Week Range
$57.1592.74
Bid/Ask
$68.56 / $70.07
Market Cap
$5.14 Bil
Volume/Avg
116,206 / 103,059

Key Statistics

Price/Earnings (Normalized)
9.67
Price/Sales
0.73
Dividend Yield (Trailing)
0.83%
Dividend Yield (Forward)
0.89%
Total Yield
6.93%

Company Profile

BRP designs, develops, manufactures, distributes, and markets snowmobiles, all-terrain vehicles, and personal watercraft under the Ski-Doo, Sea-Doo, Can-Am, and Lynx brand names. It also builds engines under the Rotax brand (after shuttering the Evinrude outboard engine business in 2020) and offers clothing, parts, and accessories that cater to its core consumers. In 2018, BRP created a marine group, acquiring boat manufacturers Alumacraft, Triton (which makes Manitou pontoon boats), and Telwater (in Australia). At the end of fiscal 2024, the company sold its products through a network of more than 2,450 independent dealers and 150 distributors in about 130 countries.
Sector
Consumer Cyclical
Industry
Recreational Vehicles
Stock Style Box
Mid Core
Total Number of Employees
20,000

Competitors

Valuation

Metric
DOOO
MBUU
HOG
Price/Earnings (Normalized)
9.677.127.69
Price/Book Value
10.911.391.42
Price/Sales
0.730.740.85
Price/Cash Flow
6.3315.446.60
Price/Earnings
DOOO
MBUU
HOG

Financial Strength

Metric
DOOO
MBUU
HOG
Quick Ratio
0.440.611.23
Current Ratio
1.351.671.54
Interest Coverage
5.07−27.6125.89
Quick Ratio
DOOO
MBUU
HOG

Profitability

Metric
DOOO
MBUU
HOG
Return on Assets (Normalized)
11.19%12.81%5.63%
Return on Equity (Normalized)
107.44%18.64%21.23%
Return on Invested Capital (Normalized)
23.66%17.86%6.81%
Return on Assets
DOOO
MBUU
HOG
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Recreational Vehicles Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Brunswick Corp
BC
GfcrjndmySnxzw$5.3 Bil
Thor Industries Inc
THO
QlhdgqywQkbss$5.1 Bil
Harley-Davidson Inc
HOG
JnbmycjfZvdd$4.7 Bil
Polaris Inc
PII
XqncmbbbyrBpvty$4.6 Bil
LCI Industries Inc
LCII
Pmwd$2.8 Bil
Winnebago Industries Inc
WGO
VcmwcrcTynq$1.6 Bil
Sanlorenzo SpA Ordinary Shares
SNLRF
Nvxyh$1.5 Bil
Malibu Boats Inc Class A
MBUU
LjqyhnhSblbpc$772.4 Mil
Marine Products Corp
MPX
Lzrm$352.0 Mil

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