BRP Return On Equity vs. Price To Sales

DOOO Stock  USD 48.51  0.22  0.46%   
Considering BRP's profitability and operating efficiency indicators, BRP Inc may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in December. Profitability indicators assess BRP's ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
0.91902584
Current Value
0.96
Quarterly Volatility
3.79403703
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, BRP's Price To Sales Ratio is very stable compared to the past year. As of the 22nd of November 2024, Days Sales Outstanding is likely to grow to 28.69, while Operating Cash Flow Sales Ratio is likely to drop 0.09. At this time, BRP's Net Income Per Share is very stable compared to the past year. As of the 22nd of November 2024, Income Quality is likely to grow to 3.11, while Income Before Tax is likely to drop about 494.4 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.20.2509
Significantly Down
Slightly volatile
Net Profit Margin0.04290.0717
Way Down
Slightly volatile
Operating Profit Margin0.07720.1116
Way Down
Slightly volatile
Pretax Profit Margin0.05960.092
Way Down
Slightly volatile
Return On Assets0.06620.1097
Way Down
Slightly volatile
For BRP profitability analysis, we use financial ratios and fundamental drivers that measure the ability of BRP to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well BRP Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between BRP's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of BRP Inc over time as well as its relative position and ranking within its peers.
  
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Is Leisure Products space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of BRP. If investors know BRP will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about BRP listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.98)
Dividend Share
0.78
Earnings Share
2.37
Revenue Per Share
120.205
Quarterly Revenue Growth
(0.34)
The market value of BRP Inc is measured differently than its book value, which is the value of BRP that is recorded on the company's balance sheet. Investors also form their own opinion of BRP's value that differs from its market value or its book value, called intrinsic value, which is BRP's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because BRP's market value can be influenced by many factors that don't directly affect BRP's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between BRP's value and its price as these two are different measures arrived at by different means. Investors typically determine if BRP is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, BRP's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

BRP Inc Price To Sales vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining BRP's current stock value. Our valuation model uses many indicators to compare BRP value to that of its competitors to determine the firm's financial worth.
BRP Inc is one of the top stocks in return on equity category among its peers. It is rated below average in price to sales category among its peers fabricating about  1.04  of Price To Sales per Return On Equity. At this time, BRP's Return On Equity is very stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the BRP's earnings, one of the primary drivers of an investment's value.

BRP Price To Sales vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

BRP

Return On Equity

 = 

Net Income

Total Equity

 = 
0.38
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.

BRP

P/S

 = 

MV Per Share

Revenue Per Share

 = 
0.39 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.

BRP Price To Sales Comparison

BRP is currently under evaluation in price to sales category among its peers.

BRP Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in BRP, profitability is also one of the essential criteria for including it into their portfolios because, without profit, BRP will eventually generate negative long term returns. The profitability progress is the general direction of BRP's change in net profit over the period of time. It can combine multiple indicators of BRP, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income45.5 M47.8 M
Operating Income1.3 B1.4 B
Net Income From Continuing Ops744.5 M781.7 M
Income Before Tax954.1 M494.4 M
Total Other Income Expense Net-333.8 M-317.1 M
Net Income Applicable To Common Shares913 M958.6 M
Net Income743.4 M780.6 M
Income Tax Expense209.6 M132.2 M
Interest Income16.6 M18.8 M
Net Interest Income-170 M-161.5 M
Change To Netincome187.9 M95.2 M
Net Income Per Share 9.63  10.12 
Income Quality 2.00  3.11 
Net Income Per E B T 0.78  0.55 

BRP Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on BRP. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of BRP position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the BRP's important profitability drivers and their relationship over time.

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Our tools can tell you how much better you can do entering a position in BRP without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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When determining whether BRP Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of BRP's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Brp Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Brp Inc Stock:
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You can also try the Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
To fully project BRP's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of BRP Inc at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include BRP's income statement, its balance sheet, and the statement of cash flows.
Potential BRP investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although BRP investors may work on each financial statement separately, they are all related. The changes in BRP's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on BRP's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.