POLARIS INC (PII)

US7310681025 - Common Stock

100.38  +1.3 (+1.31%)

Fundamental Rating

5

Taking everything into account, PII scores 5 out of 10 in our fundamental rating. PII was compared to 32 industry peers in the Leisure Products industry. PII has an excellent profitability rating, but there are some minor concerns on its financial health. PII has a decent growth rate and is not valued too expensively. Finally PII also has an excellent dividend rating.



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1. Profitability

1.1 Basic Checks

PII had positive earnings in the past year.
PII had a positive operating cash flow in the past year.
Each year in the past 5 years PII has been profitable.
PII had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

PII has a Return On Assets of 9.11%. This is amongst the best in the industry. PII outperforms 81.25% of its industry peers.
With an excellent Return On Equity value of 35.45%, PII belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.88%, PII belongs to the top of the industry, outperforming 84.38% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PII is significantly above the industry average of 11.31%.
Industry RankSector Rank
ROA 9.11%
ROE 35.45%
ROIC 13.88%
ROA(3y)9.16%
ROA(5y)7.49%
ROE(3y)38.82%
ROE(5y)31.32%
ROIC(3y)17.86%
ROIC(5y)15.92%

1.3 Margins

PII has a Profit Margin of 5.63%. This is in the better half of the industry: PII outperforms 75.00% of its industry peers.
PII's Profit Margin has been stable in the last couple of years.
PII has a better Operating Margin (6.95%) than 62.50% of its industry peers.
In the last couple of years the Operating Margin of PII has remained more or less at the same level.
Looking at the Gross Margin, with a value of 21.94%, PII is doing worse than 90.63% of the companies in the same industry.
PII's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 6.95%
PM (TTM) 5.63%
GM 21.94%
OM growth 3Y-1.52%
OM growth 5Y1.08%
PM growth 3Y46.89%
PM growth 5Y0.4%
GM growth 3Y-3.4%
GM growth 5Y-2.34%

4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), PII is creating value.
Compared to 1 year ago, PII has less shares outstanding
The number of shares outstanding for PII has been reduced compared to 5 years ago.
Compared to 1 year ago, PII has an improved debt to assets ratio.

2.2 Solvency

PII has an Altman-Z score of 3.04. This indicates that PII is financially healthy and has little risk of bankruptcy at the moment.
PII's Altman-Z score of 3.04 is in line compared to the rest of the industry. PII outperforms 50.00% of its industry peers.
PII has a debt to FCF ratio of 3.72. This is a good value and a sign of high solvency as PII would need 3.72 years to pay back of all of its debts.
PII has a Debt to FCF ratio of 3.72. This is comparable to the rest of the industry: PII outperforms 50.00% of its industry peers.
PII has a Debt/Equity ratio of 1.31. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of PII (1.31) is worse than 81.25% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.31
Debt/FCF 3.72
Altman-Z 3.04
ROIC/WACC1.56
WACC8.87%

2.3 Liquidity

A Current Ratio of 1.39 indicates that PII should not have too much problems paying its short term obligations.
PII has a worse Current ratio (1.39) than 81.25% of its industry peers.
PII has a Quick Ratio of 1.39. This is a bad value and indicates that PII is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.46, PII is doing worse than 87.50% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.39
Quick Ratio 0.46

4

3. Growth

3.1 Past

The earnings per share for PII have decreased strongly by -12.09% in the last year.
PII shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.04% yearly.
Looking at the last year, PII shows a small growth in Revenue. The Revenue has grown by 4.02% in the last year.
The Revenue has been growing by 8.01% on average over the past years. This is quite good.
EPS 1Y (TTM)-12.09%
EPS 3Y5.91%
EPS 5Y7.04%
EPS growth Q2Q-42.77%
Revenue 1Y (TTM)4.02%
Revenue growth 3Y8.33%
Revenue growth 5Y8.01%
Revenue growth Q2Q-4.78%

3.2 Future

PII is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.07% yearly.
The Revenue is expected to grow by 2.25% on average over the next years.
EPS Next Y-13.31%
EPS Next 2Y1.03%
EPS Next 3Y6.78%
EPS Next 5Y16.07%
Revenue Next Year-5.55%
Revenue Next 2Y-0.94%
Revenue Next 3Y0.32%
Revenue Next 5Y2.25%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 10.96, the valuation of PII can be described as reasonable.
78.13% of the companies in the same industry are more expensive than PII, based on the Price/Earnings ratio.
PII is valuated cheaply when we compare the Price/Earnings ratio to 26.42, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 12.64, PII is valued correctly.
71.88% of the companies in the same industry are more expensive than PII, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.74. PII is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 10.96
Fwd PE 12.64

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, PII is valued a bit cheaper than 71.88% of the companies in the same industry.
65.63% of the companies in the same industry are more expensive than PII, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 11.03
EV/EBITDA 8.11

4.3 Compensation for Growth

PII has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.56
EPS Next 2Y1.03%
EPS Next 3Y6.78%

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5. Dividend

5.1 Amount

PII has a Yearly Dividend Yield of 2.79%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.30, PII pays a better dividend. On top of this PII pays more dividend than 84.38% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, PII has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.79%

5.2 History

The dividend of PII has a limited annual growth rate of 1.55%.
PII has been paying a dividend for at least 10 years, so it has a reliable track record.
PII has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)1.55%
Div Incr Years11
Div Non Decr Years11

5.3 Sustainability

PII pays out 29.30% of its income as dividend. This is a sustainable payout ratio.
PII's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP29.3%
EPS Next 2Y1.03%
EPS Next 3Y6.78%

POLARIS INC

NYSE:PII (3/28/2024, 10:53:06 AM)

100.38

+1.3 (+1.31%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.66B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.79%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 10.96
Fwd PE 12.64
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.56
Profitability
Industry RankSector Rank
ROA 9.11%
ROE 35.45%
ROCE
ROIC
ROICexc
ROICexgc
OM 6.95%
PM (TTM) 5.63%
GM 21.94%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.62
Health
Industry RankSector Rank
Debt/Equity 1.31
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.39
Quick Ratio 0.46
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-12.09%
EPS 3Y5.91%
EPS 5Y
EPS growth Q2Q
EPS Next Y-13.31%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.02%
Revenue growth 3Y8.33%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y