POLARIS INC (PII) Stock Fundamental Analysis
NYSE:PII - New York Stock Exchange, Inc. - US7310681025 - Common Stock - Currency: USD
Overall PII gets a fundamental rating of 4 out of 10. We evaluated PII against 30 industry peers in the Leisure Products industry. PII has a medium profitability rating, but doesn't score so well on its financial health evaluation. PII has a decent growth rate and is not valued too expensively. Finally PII also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year PII was profitable.
In the past year PII had a positive cash flow from operations.
In the past 5 years PII has always been profitable.
Each year in the past 5 years PII had a positive operating cash flow.
1.2 Ratios
The Return On Assets of PII (0.74%) is better than 66.67% of its industry peers.
PII has a better Return On Equity (3.28%) than 66.67% of its industry peers.
PII has a Return On Invested Capital of 3.24%. This is in the better half of the industry: PII outperforms 63.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PII is above the industry average of 8.28%.
The last Return On Invested Capital (3.24%) for PII is well below the 3 year average (13.27%), which needs to be investigated, but indicates that PII had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.74% | ||
| ROE | 3.28% | ||
| ROIC | 3.24% |
ROA(3y)6.56%
ROA(5y)6.43%
ROE(3y)28.24%
ROE(5y)27.19%
ROIC(3y)13.27%
ROIC(5y)14.68%
1.3 Margins
PII's Profit Margin of 0.58% is fine compared to the rest of the industry. PII outperforms 66.67% of its industry peers.
PII's Profit Margin has declined in the last couple of years.
PII's Operating Margin of 1.82% is in line compared to the rest of the industry. PII outperforms 56.67% of its industry peers.
In the last couple of years the Operating Margin of PII has declined.
PII has a worse Gross Margin (19.81%) than 76.67% of its industry peers.
In the last couple of years the Gross Margin of PII has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.82% | ||
| PM (TTM) | 0.58% | ||
| GM | 19.81% |
OM growth 3Y-31.67%
OM growth 5Y-13.83%
PM growth 3Y-38.5%
PM growth 5Y-20.22%
GM growth 3Y-4.59%
GM growth 5Y-3.41%
2. Health
2.1 Basic Checks
PII has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for PII has been reduced compared to 1 year ago.
The number of shares outstanding for PII has been reduced compared to 5 years ago.
PII has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.74, we must say that PII is in the distress zone and has some risk of bankruptcy.
PII has a worse Altman-Z score (1.74) than 66.67% of its industry peers.
PII has a debt to FCF ratio of 12.17. This is a negative value and a sign of low solvency as PII would need 12.17 years to pay back of all of its debts.
PII's Debt to FCF ratio of 12.17 is on the low side compared to the rest of the industry. PII is outperformed by 60.00% of its industry peers.
A Debt/Equity ratio of 1.32 is on the high side and indicates that PII has dependencies on debt financing.
PII's Debt to Equity ratio of 1.32 is on the low side compared to the rest of the industry. PII is outperformed by 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 12.17 | ||
| Altman-Z | 1.74 |
ROIC/WACC0.34
WACC9.64%
2.3 Liquidity
A Current Ratio of 1.12 indicates that PII should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.12, PII is doing worse than 83.33% of the companies in the same industry.
A Quick Ratio of 0.37 indicates that PII may have some problems paying its short term obligations.
The Quick ratio of PII (0.37) is worse than 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
The earnings per share for PII have decreased strongly by -70.98% in the last year.
The earnings per share for PII have been decreasing by -12.40% on average. This is quite bad
PII shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -17.86%.
The Revenue has been growing slightly by 1.13% on average over the past years.
EPS 1Y (TTM)-70.98%
EPS 3Y-29.08%
EPS 5Y-12.4%
EPS Q2Q%-491.3%
Revenue 1Y (TTM)-17.86%
Revenue growth 3Y-1.2%
Revenue growth 5Y1.13%
Sales Q2Q%-11.55%
3.2 Future
Based on estimates for the next years, PII will show a very strong growth in Earnings Per Share. The EPS will grow by 20.53% on average per year.
Based on estimates for the next years, PII will show a small growth in Revenue. The Revenue will grow by 2.19% on average per year.
EPS Next Y-69.73%
EPS Next 2Y-17.7%
EPS Next 3Y0.55%
EPS Next 5Y20.53%
Revenue Next Year-5.94%
Revenue Next 2Y-1.13%
Revenue Next 3Y0.43%
Revenue Next 5Y2.19%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
PII is valuated rather expensively with a Price/Earnings ratio of 18.14.
73.33% of the companies in the same industry are more expensive than PII, based on the Price/Earnings ratio.
PII's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.95.
With a Price/Forward Earnings ratio of 17.50, PII is valued on the expensive side.
PII's Price/Forward Earnings is on the same level as the industry average.
PII is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.14 | ||
| Fwd PE | 17.5 |
4.2 Price Multiples
PII's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PII is cheaper than 70.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PII is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.79 | ||
| EV/EBITDA | 9.25 |
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)N/A
EPS Next 2Y-17.7%
EPS Next 3Y0.55%
5. Dividend
5.1 Amount
PII has a Yearly Dividend Yield of 7.54%, which is a nice return.
PII's Dividend Yield is rather good when compared to the industry average which is at 4.62. PII pays more dividend than 96.67% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, PII pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.54% |
5.2 History
The dividend of PII has a limited annual growth rate of 1.47%.
PII has been paying a dividend for at least 10 years, so it has a reliable track record.
PII has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)1.47%
Div Incr Years29
Div Non Decr Years29
5.3 Sustainability
367.91% of the earnings are spent on dividend by PII. This is not a sustainable payout ratio.
The dividend of PII is growing, but earnings are growing more, so the dividend growth is sustainable.
DP367.91%
EPS Next 2Y-17.7%
EPS Next 3Y0.55%
38.64
-0.25 (-0.64%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners89.72%
Inst Owner Change1.81%
Ins Owners1.12%
Ins Owner Change14.92%
Market Cap2.16B
Analysts53.91
Price Target34.4 (-10.97%)
Short Float %16.64%
Short Ratio4.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.54% |
Yearly Dividend2.62
Dividend Growth(5Y)1.47%
DP367.91%
Div Incr Years29
Div Non Decr Years29
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.29%
Min EPS beat(2)1.99%
Max EPS beat(2)2.58%
EPS beat(4)2
Avg EPS beat(4)-13.09%
Min EPS beat(4)-38.83%
Max EPS beat(4)2.58%
EPS beat(8)4
Avg EPS beat(8)29.75%
EPS beat(12)8
Avg EPS beat(12)24.14%
EPS beat(16)10
Avg EPS beat(16)17.93%
Revenue beat(2)1
Avg Revenue beat(2)0.77%
Min Revenue beat(2)-1.55%
Max Revenue beat(2)3.1%
Revenue beat(4)1
Avg Revenue beat(4)-3.22%
Min Revenue beat(4)-10.94%
Max Revenue beat(4)3.1%
Revenue beat(8)3
Avg Revenue beat(8)-1.55%
Revenue beat(12)5
Avg Revenue beat(12)-0.41%
Revenue beat(16)5
Avg Revenue beat(16)-3.57%
PT rev (1m)-32.32%
PT rev (3m)-50.74%
EPS NQ rev (1m)-52.73%
EPS NQ rev (3m)-54.72%
EPS NY rev (1m)-8.96%
EPS NY rev (3m)-68.98%
Revenue NQ rev (1m)-5.06%
Revenue NQ rev (3m)-5.26%
Revenue NY rev (1m)-3.84%
Revenue NY rev (3m)-4.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.14 | ||
| Fwd PE | 17.5 | ||
| P/S | 0.31 | ||
| P/FCF | 12.79 | ||
| P/OCF | 4.73 | ||
| P/B | 1.76 | ||
| P/tB | 7.37 | ||
| EV/EBITDA | 9.25 |
EPS(TTM)2.13
EY5.51%
EPS(NY)2.21
Fwd EY5.71%
FCF(TTM)3.02
FCFY7.82%
OCF(TTM)8.17
OCFY21.15%
SpS124.77
BVpS21.94
TBVpS5.24
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.74% | ||
| ROE | 3.28% | ||
| ROCE | 4.05% | ||
| ROIC | 3.24% | ||
| ROICexc | 3.57% | ||
| ROICexgc | 5.32% | ||
| OM | 1.82% | ||
| PM (TTM) | 0.58% | ||
| GM | 19.81% | ||
| FCFM | 2.42% |
ROA(3y)6.56%
ROA(5y)6.43%
ROE(3y)28.24%
ROE(5y)27.19%
ROIC(3y)13.27%
ROIC(5y)14.68%
ROICexc(3y)14.84%
ROICexc(5y)17.35%
ROICexgc(3y)22.05%
ROICexgc(5y)29.49%
ROCE(3y)16.58%
ROCE(5y)18.35%
ROICexcg growth 3Y-42.04%
ROICexcg growth 5Y-20.67%
ROICexc growth 3Y-37.75%
ROICexc growth 5Y-14.06%
OM growth 3Y-31.67%
OM growth 5Y-13.83%
PM growth 3Y-38.5%
PM growth 5Y-20.22%
GM growth 3Y-4.59%
GM growth 5Y-3.41%
F-Score5
Asset Turnover1.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 12.17 | ||
| Debt/EBITDA | 3.82 | ||
| Cap/Depr | 97% | ||
| Cap/Sales | 4.13% | ||
| Interest Coverage | 0.9 | ||
| Cash Conversion | 107.74% | ||
| Profit Quality | 420.15% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.37 | ||
| Altman-Z | 1.74 |
F-Score5
WACC9.64%
ROIC/WACC0.34
Cap/Depr(3y)134.79%
Cap/Depr(5y)122.45%
Cap/Sales(3y)4.24%
Cap/Sales(5y)3.95%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-70.98%
EPS 3Y-29.08%
EPS 5Y-12.4%
EPS Q2Q%-491.3%
EPS Next Y-69.73%
EPS Next 2Y-17.7%
EPS Next 3Y0.55%
EPS Next 5Y20.53%
Revenue 1Y (TTM)-17.86%
Revenue growth 3Y-1.2%
Revenue growth 5Y1.13%
Sales Q2Q%-11.55%
Revenue Next Year-5.94%
Revenue Next 2Y-1.13%
Revenue Next 3Y0.43%
Revenue Next 5Y2.19%
EBIT growth 1Y-74.21%
EBIT growth 3Y-32.49%
EBIT growth 5Y-12.85%
EBIT Next Year45.62%
EBIT Next 3Y24.88%
EBIT Next 5Y21.63%
FCF growth 1Y-50.07%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-33.01%
OCF growth 3Y-2.98%
OCF growth 5Y-16.35%