BRP Inc. (DOOO)
Valuation Overview•Is BRP Inc. Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
Fragile underlying quality score of 34/100; weak margins or elevated debt leverage warrant caution.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Mixed fundamental profile with offsetting strengths and weaknesses.
Wall Street is highly bullish, projecting significant upside alongside robust expected earnings growth. This outlook is strongly supported by highly attractive capital returns, driven predominantly by aggressive share repurchases.
DOOO demonstrates adequate business quality with stable profitability. However, the balance sheet carries elevated leverage, requiring careful monitoring of debt servicing capabilities.
The company exhibits steady, low-single-digit revenue growth paired with stable bottom-line earnings. Operating efficiency remains adequate with margins around 6.2%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $2.3B | -24.5% | +0.8% | +5.3% | +8.3% | |
| EBITDA | $320.4M | — | -12.5% | — | — | |
| Net Income | $69.1M | -128.7% | — | — | — | |
| EPS (Diluted) | $0.93 | -130.4% | — | — | — | |
| Free Cash Flow | $339.2M | -70.7% | +63.1% | +6.9% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 21.8% | 24.2% | 25.1% | 24.5% |
| Operating Margin | 6.2% | 11.0% | 11.3% | 9.9% |
| Net Margin | 0.3% | 4.4% | 5.9% | 5.4% |
| FCF Margin | 9.4% | 4.8% | 5.3% | 5.4% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q4'25Latest | $0.88 | $1.15 | +30.7% | ||
| Q3'25 | $0.33 | $0.67 | +103.0% | ||
| Q2'25 | $0.29 | $0.33 | +13.8% | ||
| Q1'25 | $0.62 | $0.69 | +11.3% | ||
| Q4'24 | $0.49 | $0.85 | +73.5% | ||
| Q3'24 | $0.22 | $0.45 | +104.5% | ||
| Q2'24 | $0.65 | $0.70 | +7.7% | ||
| Q1'24 | $1.93 | $1.81 | -6.2% |
Total return is +36.2% (1Y), outperforming the benchmark by +11.2%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -10.4% | -19.7% | — |
| 1Y | +36.2% | +11.2% | +1.4% |
| 3YCAGR | -6.5% | -26.0% | +2.2% |
| 5YCAGR | -2.5% | -15.3% | +3.6% |
| 10YCAGR | +14.9% | +1.3% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about BRP Inc. (DOOO) valuation, health, and returns.
BRP Inc. is estimated to be fair under our discounted cash flow framework. relative multiples indicate the stock is Cheap versus peers compared to industry peers. trading near fair value (DCF: $71.44)
BRP Inc. has multiple valuation anchors: DCF Intrinsic Value: $71.44 | Peer Relative Fair Value: $124.70 | Wall Street Analyst Target: $102.85 (implying +60.1% upside). A convergence of these signals offers higher conviction.
BRP Inc. displays weak financial health with a composite quality score of 34/100, supported by a Altman Z-Score of 1.2 (distress zone), Piotroski F-Score of 3/9, Return on Invested Capital (ROIC) of 12.8%.
BRP Inc. pays a 0.9% dividend yield, covered by a 0% payout ratio with 9 years of growth, supplemented by a 6.6% buyback yield.
BRP Inc.'s current growth trajectory is Decelerating. The company achieved -24.5% 1Y revenue growth and -130.4% 1Y EPS growth, compared to its 3Y revenue CAGR of +0.8%.
Wall Street consensus is Buy based on 13 analysts, beating EPS expectations in 92% of recent quarters with a 7-quarter streak. The consensus price target represents a +60.1% change from current levels.
Investment risks for BRP Inc. include: -21.4% 1-year max drawdown, elevated distress risk. Volatility risk is characterized by a beta of 1.01x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.