BRP Inc. (DOO) AI Stock Analysis
DOO AI stock analysis summary
AI ResearchBRP Inc. is a global manufacturer of powersports vehicles and marine products operating under brands like Ski-Doo, Sea-Doo, and Can-Am. Following net income of -$213.1M in FY2025, annual net income rebounded to $291.6M in FY2026 alongside $871.3M in free cash flow. The stock trades at a forward P/E of 14.4x while carrying total debt of $3.00B and a debt-to-equity ratio of 9.13.
- Market cap
- $3.89B
- Revenue (TTM)
- $9.34B
- P/E
- 48.4x fwd 14.4x
- 1Y return
- -17.1% S&P 500 16.8%
- Avg. target
- $70.17 28.3% vs last close
Bull case
- Free cash flow recovered strongly to $871.3M in FY2026, up from $313.7M in FY2025.
- Analyst projections anticipate EPS will rebound 29.4% to $5.51 in the fiscal year following FY2027 on $9.82B in revenue.
- The forward P/E ratio sits at 14.4x with a PEG ratio of 0.94, supported by an annualized 5-year dividend growth rate of 38.6%.
Bear case
- Total debt of $3.00B creates substantial leverage against shareholders' equity of $328.9M, yielding a debt-to-equity ratio of 9.13.
- Operating margin for the trailing twelve months was negative at -2.4%, down from 7.3% achieved in FY2026.
- The stock has underperformed broader equities over the long term, falling 34.1% over 5 years while the S&P 500 rose 83.0%.
What BRP does
BRP Inc., founded in 1937 and headquartered in Valcourt, Canada, designs, develops, manufactures, and sells powersports vehicles and marine products internationally across two segments: Powersports and Marine. The Powersports segment offers year-round products like all-terrain vehicles, side-by-side vehicles, and three-wheeled and two vehicles, alongside seasonal products including snowmobiles, personal watercraft, and pontoons. It also supplies OEM engines, parts, accessories and apparel, as well as engines for karts, recreational aircraft, and jet boats. The Marine segment provides boats, pontoons, parts, accessories, apparel, and services. Products are marketed under brands including SKI-DOO, LYNX, CAN-AM, SEA-DOO, QUINTREX, and ROTAX.
Growth and profitability
Between FY2022 and FY2026, BRP delivered a 5-year revenue CAGR of 7.2%. Annual revenue reached $10.03B in FY2023 before contracting 21.4% in FY2025 to $7.83B, resulting in net income of -$213.1M. The business rebounded in FY2026, with revenue rising 7.8% to $8.44B, operating margin reaching 7.3%, and net income recovering to $291.6M, representing EPS of $5.19. Over the trailing twelve months ended July 31, 2026, revenue stood at $9.34B with a profit margin of 1.2% and an operating margin of -2.4%. In the latest quarter, quarterly revenue grew 18.5% year-over-year, while quarterly earnings declined 14.2%.
Balance sheet and cash flow
As of July 31, 2026, BRP held $648.1M in cash and short-term investments against total debt of $3.00B, yielding net debt of $2.35B. Shareholders' equity was $328.9M, resulting in a debt-to-equity ratio of 9.13 and a current ratio of 1.19. For FY2026, the company generated $1.21B in operating cash flow and $871.3M in free cash flow. Capital expenditures totaled $341.2M. Cash deployment included $50.3M dedicated to share buybacks and $62.9M paid in dividends, contributing to a 12.9% reduction in share count over 5 years.
Valuation and performance
DOO closed at $54.70 on October 16, 2026, with a market capitalization of $3.89B and enterprise value of $5.69B. Its forward P/E of 14.4x aligns closely with the 14.1x median of its US-listed Consumer Cyclical peers, while its trailing P/E of 48.4x sits above the peer median of 18.0x. DOO trades at an EV/EBITDA of 10.0x and price-to-sales of 0.4x, compared to peer medians of 11.1x and 0.7x, respectively. Over the trailing 1-year period, DOO declined 17.1%, while the S&P 500 (SPY) gained 16.8%. Over 5 years, DOO fell 34.1% against an 83.0% increase for the S&P 500.
DOO dividend
BRP pays a quarterly dividend with an annualized forward rate of $0.70 per share, offering a dividend yield of 1.28%. The payout ratio is 13.8%, and the company has paid consecutive dividends for 14 years. Over the last 5 years, the dividend grew at an annualized rate of 38.6%. The last ex-dividend date was September 29, 2026.
What analysts expect
Wall Street sentiment includes 7 Strong Buy, 5 Buy, and 8 Hold ratings, with zero Sell or Strong Sell recommendations. The mean price target of $70.17 implies a 28.3% upside above the last close of $54.70. BRP has exceeded EPS consensus in 4 of its last 4 quarters. For the current fiscal year ending January 31, 2027, analysts forecast revenue of $9.41B and EPS of $4.26, an 18.3% decline. For the next fiscal year, 19 analysts project revenue to reach $9.82B and EPS to grow 29.4% to $5.51. The next earnings date is December 3, 2026.
Key risks and what to watch
- High balance sheet leverage is reflected in net debt of $2.35B and a current ratio of 1.19.
- In the latest quarter ended July 31, 2026, quarterly earnings declined 14.2% year-over-year despite revenue rising 18.5%.
- Analyst estimates call for an 18.3% contraction in EPS to $4.26 for the fiscal year ending January 31, 2027.
- The stock trades 14.4% below its 200-day average and remains volatile with a beta of 1.10.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this DOO AI stock analysis
This page is an AI-written research summary of BRP Inc. (DOO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: DOO income statement, DOO balance sheet, DOO key metrics, DOO analyst forecast, DOO chart. See the DOO stock overview for the latest quote and news.
DOO AI stock analysis FAQ
What brands does BRP Inc. operate?
BRP manufactures and sells powersports and marine products under the SKI-DOO, LYNX, CAN-AM, SEA-DOO, QUINTREX, and ROTAX brand names.
Does BRP Inc. pay a dividend?
Yes, BRP offers a forward annual dividend of $0.70 per share, yielding 1.28% with a payout ratio of 13.8%, and has paid dividends for 14 consecutive years.
What is BRP's debt position?
As of July 31, 2026, BRP carried total debt of $3.00B and cash of $648.1M, resulting in net debt of $2.35B and a debt-to-equity ratio of 9.13.
When does BRP report its next quarterly earnings?
BRP's next quarterly earnings date is scheduled for December 3, 2026.