Last Updated: 16 Sep 2024
Executive Summary
BRP Inc. (DOOO) is a leading manufacturer of motor sports vehicles and marine products. The company has a strong financial position with a market capitalization of $45.75 billion, EBITDA of $1.17 billion, and EPS of $2.43. BRP's stock price is currently trading at $62.63, which is below its 52-week high of $78.89. The company's fundamentals are strong, and analysts have a positive outlook on its future prospects.
Company Overview
BRP Inc. is headquartered in Valcourt, Canada, and has operations in over 100 countries. The company designs, develops, manufactures, distributes, and markets a wide range of motor sports vehicles, including snowmobiles, all-terrain vehicles (ATVs), side-by-side vehicles (SSVs), personal watercraft (PWCs), and boats. BRP also offers a variety of parts, accessories, and services.
Fundamental Analysis
BRP's financial performance has been strong in recent years. The company's revenue has grown from $5.6 billion in 2017 to $9.03 billion in 2023. Net income has also increased, from $440 million in 2017 to $623 million in 2023. BRP's profit margin is 2.77%, and its operating margin is 4.84%. The company's return on assets is 8.04%, and its return on equity is 37.6%.
BRP has a strong balance sheet with $1.5 billion in cash and equivalents and $2.3 billion in debt. The company's debt-to-equity ratio is 0.67, which is below the industry average. BRP also has a strong cash flow from operations, which was $734 million in 2023.
Technical Analysis
BRP's stock price has been trending lower in recent months. The stock is currently trading below its 50-day and 200-day moving averages. The relative strength index (RSI) is also below 50, which indicates that the stock is oversold.
Short Term Outlook
The short-term outlook for BRP's stock is mixed. The stock is currently trading below its key moving averages, and the RSI is oversold. This suggests that the stock could continue to decline in the short term. However, BRP's fundamentals are strong, and the company is expected to continue to grow in the long term.
Long Term Outlook
The long-term outlook for BRP's stock is positive. The company has a strong brand, a loyal customer base, and a growing product portfolio. BRP is also well-positioned to benefit from the growing demand for motor sports vehicles and marine products.
Analyst Recommendations
Analysts have a positive outlook on BRP's stock. The consensus price target for the stock is $71.68, which is above the current price of $62.63. Two analysts have a strong buy rating on the stock, while one analyst has a hold rating.
