BRP (TSX:DOO) Interest Coverage: 5.29 (As of Apr. 2026) — 26% Below Median


TSX:DOO BRP Inc TSX:DOO
82 GF Score
Price C$88.53
GF Value C$86.36
Valuation Fairly Valued
! 4 Warning Signs
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What is BRP Interest Coverage?

BRP TSX:DOO +0.16% 82 Interest Coverage is 5.29 as of Apr. 2026, which is 26% below its 10-year median of 7.14. GuruFocus rates TSX:DOO with a GF Score™ of 82/100 and a GF Value™ of C$86.36 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,066 Vehicles & Parts companies, BRP ranks worse than 66.32% on this metric.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. BRP's Operating Income for the three months ended in Apr. 2026 was C$222 Mil. BRP's Interest Expense for the three months ended in Apr. 2026 was C$-42 Mil. BRP's interest coverage for the quarter that ended in Apr. 2026 was 5.29. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for BRP's Interest Coverage or its related term are showing as below:

TSX:DOO' s Interest Coverage Range Over the Past 10 Years
Min: 3.28   Med: 7.14   Max: 19.06
Current: 3.96


TSX:DOO's Interest Coverage is ranked worse than
66.32% of 1066 companies
in the Vehicles & Parts industry
Industry Median: 8.295 vs TSX:DOO: 3.96

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


BRP  (TSX:DOO) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


BRP Interest Coverage Related Terms


BRP Interest Coverage Historical Data

* Premium members only.

The historical data trend for BRP's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

BRP Interest Coverage Chart

BRP Annual Data
Trend Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25 Jan26
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 19.06 11.92 7.91 3.38 3.28

BRP Quarterly Data
Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.30 1.97 3.92 4.85 5.29

TSX:DOO vs BC, THO, PII: Interest Coverage Comparison

For the Recreational Vehicles subindustry, BRP's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


BRP Interest Coverage vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, BRP's Interest Coverage distribution charts can be found below:

* The bar in red indicates where BRP's Interest Coverage falls into.


TSX:DOO
82GF Score
BRP Inc TSX:DOO
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

BRP Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

BRP's Interest Coverage for the fiscal year that ended in Jan. 2026 is calculated as

Here, for the fiscal year that ended in Jan. 2026, BRP's Interest Expense was C$-189 Mil. Its Operating Income was C$618 Mil. And its Long-Term Debt & Capital Lease Obligation was C$2,575 Mil.

Interest Coverage=-1* Operating Income (A: Jan. 2026 )/Interest Expense (A: Jan. 2026 )
=-1*617.8/-188.6
=3.28

BRP's Interest Coverage for the quarter that ended in Apr. 2026 is calculated as

Here, for the three months ended in Apr. 2026, BRP's Interest Expense was C$-42 Mil. Its Operating Income was C$222 Mil. And its Long-Term Debt & Capital Lease Obligation was C$2,817 Mil.

Interest Coverage=-1* Operating Income (Q: Apr. 2026 )/Interest Expense (Q: Apr. 2026 )
=-1*222.3/-42
=5.29

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 5.29 mean?
BRP (TSX:DOO) has a Interest Coverage of 5.29 as of Apr. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on BRP and its competitors. This is 26% below median its historical median of 7.14. Over the past decade, BRP's Interest Coverage has ranged from 3.28 to 19.06. According to the industry distribution chart, BRP ranks #707 out of 1066 companies in the Vehicles & Parts industry, placing it in the top 66.3%.
Is BRP's Interest Coverage too high?
BRP's current Interest Coverage of 5.29 is 26% below median its 10-year median of 7.14. Over the past 10 years, this metric has ranged from a low of 3.28 to a high of 19.06. The Vehicles & Parts industry median Interest Coverage is 8.30. BRP's value of 5.29 is 36.2% below this industry median. Based on the distribution chart, BRP ranks #707 out of 1066 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, BRP has a GF Score™ of 82/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does BRP's Interest Coverage compare to BC and THO?
According to the Vehicles & Parts industry distribution chart, BRP ranks #707 out of 1066 companies for Interest Coverage. This places BRP in the lower half of its industry. The industry median Interest Coverage is 8.30. BRP's value of 5.29 is 36.2% below this benchmark. Historically, BRP's own Interest Coverage has ranged from 3.28 to 19.06 over the past decade. While the company's 10-year median is 7.14 vs. the industry median of 8.30, BRP has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Vehicles & Parts company?
The median Interest Coverage among Vehicles & Parts companies is 8.30, based on 1,066 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. BRP's current Interest Coverage of 5.29 is 36.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on BRP and its competitors. For the Vehicles & Parts industry, the median Interest Coverage is 8.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BRP's current Interest Coverage is 5.29, which is 26% below median its own 10-year median of 7.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BRP stock overvalued right now?
Based on GuruFocus' analysis, BRP (TSX:DOO) is currently considered Fairly Valued. The stock's GF Value™ is C$86.36, compared to a current price of C$88.53 — trading 2.5% above its estimated fair value. The current Interest Coverage is 5.29, which is 26% below median its 10-year median of 7.14 and 36.2% below the Vehicles & Parts industry median of 8.30. BRP's overall GF Score™ is 82/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For BRP (TSX:DOO), the current Interest Coverage is 5.29 as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is BRP (TSX:DOO) Overvalued in 2026?

Based on GuruFocus' analysis, BRP stock appears to be overvalued. The current stock price of C$88.53 is trading 2.5% above its estimated GF Value™ of C$86.36. GuruFocus considers BRP to be Fairly Valued.

Key valuation signals for TSX:DOO:

  • Interest Coverage: 5.29 (26% below median its 10-year median of 7.14)
  • GF Value™: C$86.36 vs. price of C$88.53 (2.5% above fair value)
  • GF Score™: 82/100 with 4 warning signs
  • Industry Position: 36.2% below the Vehicles & Parts median (#707 of 1066)

No single metric tells the full story. See the TSX:DOO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


BRP Business Description

Other Exchanges DOO:USAB15A:Germany
Address 726 Saint-Joseph Street, Valcourt, QC, CAN, J0E 2L0
BRP designs, develops, manufactures, distributes, and markets snowmobiles, all-terrain vehicles, and personal watercraft under the Ski-Doo, Sea-Doo, Can-Am, and Lynx brand names. It also builds engines under the Rotax brand (after shuttering the Evinrude outboard engine business in 2020) and offers clothing, parts, and accessories that cater to its core consumers. In 2018, BRP created a marine group, which has largely been divested; Manitou was sold in the third quarter of fiscal 2026, and Telwater remains up for sale. At the end of fiscal 2026, the company sold its products through a network of more than 2,050 independent dealers and 140 distributors in around 110 countries.
82GF Score

Get the complete analysis for TSX:DOO

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

C$88.53
Price
C$86.36
GF Value