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BRP’s return on capital employed outperforms industry average
BRP’s return on capital employed outperforms industry average By Investing.com
Breaking News
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EditorRachael RajanStock Markets
Published Oct 02, 2023 04:00PM ET
(C) Reuters.
The financial performance of BRP (NASDAQ:DOOO), listed as TSE:DOO, has been underlined by its impressive Return On Capital Employed (ROCE), which stands at 36%, significantly outpacing the industry standard of 16%. This was highlighted in a recent analysis that emphasized the importance of ROCE in identifying potentially high-performing stocks.
BRP’s ROCE is a result of the company’s consistent strategy of reinvesting profits at increasing returns. Over the past five years, BRP has managed to maintain its high ROCE while concurrently deploying 243% more capital, a testament to the firm’s effective capital management. This strategy aligns with an InvestingPro Tip that suggests strong earnings should allow management to continue dividend payments, which can be a strong incentive for investors.
Analysts’ forecasts have been referenced to further illustrate BRP’s financial position. A key highlight from these forecasts is a reduction in BRP’s current liabilities, which now stand at 38% of total assets. This shrinkage in liabilities is an encouraging sign for investors, as it indicates improved financial health and stability for the company. Yet, it’s important to note that according to InvestingPro data, the company’s P/E ratio stands at 8.15, indicating that it is trading at a low earnings multiple, another point highlighted by InvestingPro Tips.
In summary, BRP’s excellent ROCE, coupled with its consistent strategy of increasing capital deployment and reducing liabilities, makes it a compelling example of a company that effectively uses its capital to generate significant returns. BRP’s current market cap is $5816.89M, and the company’s revenue growth for the last twelve months stands at 34.33%, according to InvestingPro data.
For additional insights and tips like these, potential investors can explore the InvestingPro product which includes nine more tips for BRP.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
BRP’s return on capital employed outperforms industry average
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