BRP Story

DOOO -- USA Stock

USD 68.64 2.07 2.93%

Macroaxis Story

BRP Inc is scheduled to announce its earnings today. The next earnings report is expected on the 19th of March 2021. As many passive investors are finally getting excited about consumer cyclical space, BRP Inc could be a good starting point. Here we also measure the ability of BRP to meet its long-term debt obligations, such as interest payments on debt, the final principal payment on the debt, and any other fixed obligations like lease payments.

Published over a month ago

View all stories for BRP | View All Stories

You think BRP (NASDAQ:DOOO) debt is an issue for institutional investors?

BRP currently holds 917.33 M in liabilities. The firm shows a Beta (market volatility) of 0.4639, which signifies possible diversification benefits within a given portfolio. Let's try to break down what BRP's beta means in this case. As returns on the market increase, BRP returns are expected to increase less than the market. However, during the bear market, the loss on holding BRP will be expected to be smaller as well. Even though it is essential to pay attention to BRP Inc historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy in foreseeing any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. BRP Inc exposes twenty-eight different technical indicators, which can help you to evaluate its performance. BRP Inc has an expected return of -0.0301%. Please be advised to confirm BRP Inc maximum drawdown, as well as the relationship between the expected short fall and rate of daily change to decide if BRP Inc stock performance from the past will be repeated at future time.

BRP financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of BRP, including all of BRP's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of BRP assets, the company is considered highly leveraged. Understanding the composition and structure of overall BRP debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding BRP Total Debt

BRP Inc liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. BRP Inc has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on BRP balance sheet include debt obligations and money owed to different BRP vendors, workers, and loan providers. Below is the chart of BRP main long-term debt accounts currently reported on its balance sheet.

You can use BRP Inc financial leverage analysis tool to get a better grip on understanding its financial position

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

Breaking down the case for BRP

This firm reported the previous year's revenue of 3.76 B. Net Income was 187.78 M with profit before overhead, payroll, taxes, and interest of 1.45 B.

Asset Breakdown

2.1 B

Assets Non Current

591.9 M

Goodwill

Tax Assets

1.7 B

Current Assets

	Total Assets	3.81 Billion
	Current Assets	1.75 Billion
	Assets Non Current	2.06 Billion
	Goodwill	591.94 Million
	Tax Assets	245.25 Million

BRP may start a collapse in December

Downside deviation is down to 2.8. It may entail a possible volatility slide. BRP Inc currently demonstrates below-verage downside deviation. It has Information Ratio of -0.01 and Jensen Alpha of 0.03. 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

When is the right time to buy or sell BRP Inc? Buying stocks such as BRP isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily bases. To sum up, as of the 25th of November 2020, our current 30 days buy-or-sell advice on the company is Sell. However, we believe BRP is fairly valued with low chance of bankruptcy for the next two years.

About Contributor

Achuva Shats is a Member of Macroaxs Editorial Board. Achuva writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce View Profile

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 Achuva Shats do not own shares of BRP Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com

Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions

Feedback Blog

Made with optimal in San Francisco

2021 Macroaxis LLC