I think the reason the stock is trading cheaply on last and this year's earnings is people believe those earnings were potentially so high because of the pandemic bump and could easily fall back. Prior to 2020, BRP only made around $2.25 per share, so if people start getting back into other activities, demand for products and revenues/profits could fall back. Plus, these recently purchased machines will all be in great condition still, so you could see an increase in used products hitting the market.
Not saying you aren't correct in your purchase, just that you have to believe that the increase in revenues and earnings from the last couple years and especially last year is sustainable going forward.
I think the reason the stock is trading cheaply on last and this year's earnings is people believe those earnings were potentially so high because of the pandemic bump and could easily fall back. Prior to 2020, BRP only made around $2.25 per share, so if people start getting back into other activities, demand for products and revenues/profits could fall back. Plus, these recently purchased machines will all be in great condition still, so you could see an increase in used products hitting the market.
Not saying you aren't correct in your purchase, just that you have to believe that the increase in revenues and earnings from the last couple years and especially last year is sustainable going forward.