BRP Stock Story


USD 74.06  0.36  0.49%   

It looks like Fox Factory will be up for a correction way faster as its share price whent up 5.70% today to BRP's 2.6437%. As many baby boomers are still indifferent towards consumer cyclical space, we will concentrate on both BRP Inc as well as Fox Factory Cp. We are going to inspect some of the competitive aspects of both BRP and Fox Factory.
Published over two months ago
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Will Fox Factory and BRP (NASDAQ:DOOO) make up?

By analyzing existing basic indicators between BRP and Fox Factory, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Fox Factory with a short position in BRP. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. BRP has an asset utilization ratio of 252.39 percent. This suggests that the company is making $2.52 for each dollar of assets. An increasing asset utilization means that BRP Inc is more efficient with each dollar of assets it utilizes for everyday operations.

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

A Deeper look at BRP

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Now, let's check BRP revenue. Based on the latest financial disclosure, BRP Inc reported 7.65 B of revenue. This is 7.29% higher than that of the Consumer Cyclical sector and 158.0% higher than that of the Recreational Vehicles industry. The revenue for all United States stocks is 18.92% higher than that of BRP. As for Fox Factory we see revenue of 1.4 B, which is 52.78% lower than that of the Recreational Vehicles

BRP7.65 Billion
Sector2.97 Billion
Fox Factory1.4 Billion
7.7 B
Fox Factory

Our take on today BRP rise

The market risk adjusted performance is down to 0.15 as of today. BRP Inc shows above-average downside volatility for the selected time horizon. We advise investors to inspect BRP Inc further and ensure that all market timing and asset allocation strategies are consistent with the estimation of BRP future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure BRP's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact BRP's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

BRP Implied Volatility

BRP's implied volatility exposes the market's sentiment of BRP Inc stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if BRP's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that BRP stock will not fluctuate a lot when BRP's options are near their expiration.

Our Conclusion on BRP

Whereas many of the other players 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 a somewhat neutral outlook on your 90 days horizon, it may be better to hold off any trading activity and neither buy new shares of BRP nor short your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. 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.

Editorial Staff

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 Raphi Shpitalnik 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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