BRP logged a 1.8% change during today's afternoon session, and is now trading at a price of $75.34 per share. The S&P 500 index moved 1.0% and the Nasdaq posted a 1.0% change.
BRP shares moved -10.8 over the last 52 weeks, with a high of $90.42 and a low of $58.71. BRP Inc., together with its subsidiaries, designs, develops, manufactures, distributes, and markets powersports vehicles and marine products in North America, Europe, Australia, New Zealand, and Latin America. The mid-cap Consumer Cyclical company has 23,000 full time employees and is based in Valcourt, Canada. BRP has returned a 0.9% dividend yield over the last 12 months.
Exceptional EPS Growth with Healthy Leverage Levels:
|Gross Margins Growth||n/a||2.92%||12.96%|
|Operating Margins Growth||n/a||17.89%||37.5%|
|Net Margins Growth||n/a||-0.65%||70.16%|
|Earnings Per Share||$3.96||$4.1||$7.69|
|Diluted Shares (MM)||94||89||37|
|Free Cash Flow (MM)||$225||$674||$72|
|Capital Expenditures (MM)||-$331||-$280||-$698|
|Net Debt / EBITDA||1.99||1.17||1.28|
BRP Is Reasonably Valued:
Compared to the Consumer Cyclical sector's average of 22.33, BRP has a trailing twelve month P/E ratio of 9.8 and, according to its EPS guidance of 10.03, an expected P/E ratio of 7.5. BRP's PEG ratio is 0.24 based on its 40.67% annual average growth rate of historical and projected earnings per share. However, we believe that it is more prudent to calculate the PEG ratio using the broader market's 5-year expected EPS growth rate of 13.05%, because the growth rate implied by BRP's past and expected EPS is probably not sustainable. This more prudent approach shows a PEG ratio of 0.75, which still suggests that company's shares are possibly undervalued.
BRP's P/B ratio is 11.1 compared to its sector average of 3.12. The company is likely overvalued in terms of its equity.
BRP's elevated P/B ratio notwithstanding, the company's strong cash flows, decent earnings multiple, and healthy debt levels factor towards it being fairly valued.
Most of the Market Indicators on BRP Are Negative:
3 analysts are following BRP and have set target prices ranging from $85.36 to $132.96 per share. On average, they have given the company a rating of buy. At the current price of $75.34, DOOO is trading -29.31% away from its average analyst target price of $106.58 per share, implying an analyst consensus of strong upside potential for the stock.