Your thoughts on BRP (DOOO) as a company to invest in??

[CharltonHeston]

Hello all,

I’m curious what everyone thinks about BRP from the lens of an investor. Here are some 2024 highlights that I found:

- BRP laid off over 100 people in 2024
- Stock price was $60.96 Dec 2023 and now $50.02 in Dec 2024
- Stock essentially down 18% over the last year
- Earnings per share cut 54%
- 2024 revenue cut $200 million

I’m looking at from an investment perspective and a customer perspective. All companies go through ebbs and tides. With a warm-ish winter 2023, sales of winter products may have hurt. But watercraft and on-road should have been less impacted.

What are your thoughts as an investor? Would you buy DOOO stock? There are risks for
tariffs impacting BRP imports to the US. Will that further hurt the company in 2025?

Regards,
CH

 

[BajaRon]

I don't know about BRP specifically. But regardless of what they tell you, the economy has been in the tank for some time. They report rosy numbers and then several months down the road they revise them closer to reality when no one is looking. This has been especially true in the labor market. The only real expansion in the last few years has been in government. The private sector has been shrinking. Many big companies have downsized and laid off. This is what happens, generally, in a bad economy. Stellantis, owner of Chrysler, Dodge, Ram, Jeep, Peugeot, and Fiat is in big trouble. But so are all the other auto manufacturers, to varying degrees.

I would suppose they are all hoping the economy will turn around and bail them out. Barring this, who knows how it will go?

As always, investing can be hazardous. Just the nature of the beast.

 

[racoon]

I found this information about BRP selling off it's marine business, excluding the SEA-DOO products:

https://finance.yahoo.com/news/brp-launches-process-sale-marine-113000080.html

In light of the challenging economic context, BRP has decided to channel its efforts and investments towards its Powersports Year-Round Products, Seasonal Products, Parts, Accessories and Apparel portfolio, as well as its Original Equipment Manufacturer (OEM) Engine business.

 

[JayBros]

Here's DOOO's YTD performance.
https://finance.yahoo.com/quote/DOOO/

Compare it to Ferrari's YTD performance.
https://finance.yahoo.com/quote/RACE/

 

[FrogmanDave]

Here's DOOO's YTD performance.
https://finance.yahoo.com/quote/DOOO/http://

Compare it to Ferrari's YTD performance.
https://finance.yahoo.com/quote/RACE/://

Links don't work for me. But how is comparing BRP to Ferrari relevant?

 

[racoon]

Links don't work for me. But how is comparing BRP to Ferrari relevant?

Didn't work for me, either. :::shrug:::

 

[JKMSPYDER]

I also could not open the link. But having been a financial advisor before I retired and a current Spyder owner I would not buy the stock. As much as I love my Spyder BRP's customer service and dealer network is below par IMO. I don't know how they treat their watercraft, side by side, and ATV customers but it feels to me that their Spyder customers get short shrift.

 

[CharltonHeston]

I also could not open the link. But having been a financial advisor before I retired and a current Spyder owner I would not buy the stock. As much as I love my Spyder BRP's customer service and dealer network is below par IMO. I don't know how they treat their watercraft, side by side, and ATV customers but it feels to me that their Spyder customers get short shrift.

Interesting feedback from a financial advisor. I tend to agree with you although I wish their future was brighter. I realize the current global economy has many consumer discretionary companies struggling. I’ve been following the current Volkswagen situation and that is not good.



Capital equipment is service intensive. Not having either a large network or a high quality network is a big customer service challenge. It seems the big Japanese companies do a good job at having large service networks. I suppose this is more related to the after sales service market. These service centers are all individually owned and “certified” to provide service. I suppose this only works when you have the sales numbers. Meaning, when there are not thousands of units in the field, service centers have no financial right to exist.

 

[JayBros]

Links don't work for me. But how is comparing BRP to Ferrari relevant?

Charlton said he was llooking at DOOO from an investment perspective, so I just used Ferrari as a motorsport stock as an example. My apologies that the links didn't work. Go to Yahoo Finance, type in the stock symbols and look at the YTD performance. I agree with JKMSPYDER; wouldn't spend one thin dime on DOOO stock.

 

[racoon]

Another thought.

At one point I was having an issue with a company, and was basically being ignored concerning my complaint.

So I found an investment company that wouldn't charge me for setting up a personal investment account, and then purchased enough shares of stock that they were required to provide me access to all of their financial reports.
I then attended every public stock holders meeting using the online meeting connection, each time submitting questions to the queue about the issue.
Someone did eventually contact me after one of the meetings and addressed my issue.

I then sold the stock and made a few dollars in profit.

 

[Peter Aawen]

Here's DOOO's YTD performance.
https://finance.yahoo.com/quote/DOOO/

Compare it to Ferrari's YTD performance.
https://finance.yahoo.com/quote/RACE/

.... < snip > .... My apologies that the links didn't work. .... < snip >....

The links in your original post should work fine now Jay. hyea:

I fixed the links a little while after post #8 went up; then I spent some time looking into why the links as originally entered didn't work in the first place... :dontknow:

The only thing I can really suggest is that if you (ie. anyone posting) wants to add a link to anything in one of their posts, then open the page you want us all to see in another window; and copy and paste the browser address for that page directly into your post as plain text - don't use any of the shortcut buttons like 'Insert URL' or 'Insert Link', cos they don't always work; and DEFINITELY don't try to hide a link behind a word or one of those 'Click Here' things - alongside is OK, but not under/hidden behind words! :lecturef_smilie:

If you want your links to work every time, then simply copy and paste the entire link address as text into your post preferably with a blank line before and after (so it's easy to see & doesn't fail due to bleeding into words/punctuation before or after! ) then submit the post - the platform software will then automatically convert the text address into a URL link displayed in your post, and if you've copied the entire address correctly, it'll work for everything except those instances where you've entered a search and are trying to post a link to the search results page... In that case, the results page address won't necessarily have the search criteria you entered included in the address and if that's what happens, then it won't work as a link - so if you want people to see the results of a search you've made, you'll need to tell us where you're searching and what search criteria you entered to get you the desired results. :thumbup:

Over to you. :2thumbs:

 

[JayBros]

Thanks much for the tip, Peter; will use it in the future.