BRP Story

<div class='circular--portrait' style='background:#000000;color: #f2f2f2;font-size:3em;'>BRP</div>
DOOO -- USA Stock  

USD 51.42  0.24  0.46%

It seems BRP will continue to recover much faster as its share price surged up 2.55% today. The company's current daily volatility is 2.92 percent, with a beta of 0.29 and an alpha of 0.76 over DOW. As many millenniums are excited about overall trading value increase, it is only fair to outline BRP Inc. We will analyze why BRP investors may still consider a stake in the business.
Published over a month ago
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Will BRP (NASDAQ:DOOO) latest volatility rise scare institutional investors?
BRP Inc currently holds roughly 59.61 M in cash with 474.19 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.61. BRP currently holds 917.33 M in liabilities. This firm has a current ratio of 0.9, indicating that it has a negative working capital and may not be able to pay financial obligations when due.
Investing in BRP, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding BRP along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.

How important is BRP's Liquidity

BRP financial leverage refers to using borrowed capital as a funding source to finance BRP Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. BRP financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between BRP's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for BRP, but it might be worth checking our own buy vs. sell analysis

BRP Correlation with Peers

Investors in BRP can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in BRP Inc. Diversification will allow for the same portfolio return with reduced risk. The correlation table of BRP and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities BRP is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of BRP for more details

Breaking down the case for BRP

BRP appears to be very steady, given 1 month investment horizon. BRP Inc secures Sharpe Ratio (or Efficiency) of 0.24, which signifies that the company had 0.24% of return per unit of risk over the last month. Our philosophy in foreseeing the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. By analyzing BRP Inc technical indicators you can now evaluate if the expected return of 0.69% is justified by implied risk. Please makes use of BRP Inc risk adjusted performance of 0.3554, and Mean Deviation of 2.52 to double-check if our risk estimates are consistent with your expectations.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Will BRP growth be viable after the rise?

Jensen alpha is down to 0.76. It may entail a possible volatility slide. BRP Inc currently demonstrates below-verage downside deviation. It has Information Ratio of 0.19 and Jensen Alpha of 0.76. However, we do advice investors to further question BRP Inc expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Final Take On BRP

Whereas some firms within the recreational vehicles industry are still a little expensive, even after the recent corrections, BRP may offer a potential longer-term growth to institutional investors. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither buy nor short any shares of BRP at this time. The BRP Inc risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to BRP.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of BRP Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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