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 31 industry peers in the Leisure Products industry. While PII is still in line with the averages on profitability rating, there are concerns on its financial health. PII is quite expensive at the moment. It does show a decent growth rate. PII also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
PII had positive earnings in the past year.
In the past year PII had a positive cash flow from operations.
Each year in the past 5 years PII has been profitable.
Each year in the past 5 years PII had a positive operating cash flow.
1.2 Ratios
PII has a Return On Assets of -2.00%. This is comparable to the rest of the industry: PII outperforms 54.84% of its industry peers.
PII's Return On Equity of -9.10% is in line compared to the rest of the industry. PII outperforms 54.84% of its industry peers.
PII's Return On Invested Capital of 1.38% is in line compared to the rest of the industry. PII outperforms 54.84% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PII is significantly above the industry average of 7.51%.
The 3 year average ROIC (13.27%) for PII is well above the current ROIC(1.38%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2% | ||
| ROE | -9.1% | ||
| ROIC | 1.38% |
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 has declined in the last couple of years.
PII has a Operating Margin (0.73%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of PII has declined.
With a Gross Margin value of 19.18%, PII is not doing good in the industry: 70.97% of the companies in the same industry are doing better.
PII's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.73% | ||
| PM (TTM) | N/A | ||
| GM | 19.18% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PII is creating some value.
The number of shares outstanding for PII has been reduced compared to 1 year ago.
Compared to 5 years ago, PII has less shares outstanding
PII has a worse debt/assets ratio than last year.
2.2 Solvency
PII has an Altman-Z score of 1.76. This is a bad value and indicates that PII is not financially healthy and even has some risk of bankruptcy.
PII has a Altman-Z score (1.76) which is in line with its industry peers.
The Debt to FCF ratio of PII is 4.38, which is a neutral value as it means it would take PII, 4.38 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.38, PII is in the better half of the industry, outperforming 77.42% of the companies in the same industry.
A Debt/Equity ratio of 1.17 is on the high side and indicates that PII has dependencies on debt financing.
With a Debt to Equity ratio value of 1.17, PII is not doing good in the industry: 77.42% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 4.38 | ||
| Altman-Z | 1.76 |
ROIC/WACC0.18
WACC7.67%
2.3 Liquidity
A Current Ratio of 1.04 indicates that PII should not have too much problems paying its short term obligations.
With a Current ratio value of 1.04, PII is not doing good in the industry: 83.87% of the companies in the same industry are doing better.
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 90.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
The earnings per share for PII have decreased strongly by -81.75% in the last year.
PII shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.40% yearly.
The Revenue for PII has decreased by -16.63% in the past year. This is quite bad
PII shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.13% yearly.
EPS 1Y (TTM)-81.75%
EPS 3Y-29.08%
EPS 5Y-12.4%
EPS Q2Q%-71.01%
Revenue 1Y (TTM)-16.63%
Revenue growth 3Y-1.2%
Revenue growth 5Y1.13%
Sales Q2Q%-5.53%
3.2 Future
The Earnings Per Share is expected to grow by 16.10% on average over the next years. This is quite good.
Based on estimates for the next years, PII will show a small growth in Revenue. The Revenue will grow by 1.98% on average per year.
EPS Next Y-141.25%
EPS Next 2Y-84.09%
EPS Next 3Y-13.99%
EPS Next 5Y16.1%
Revenue Next Year-6.18%
Revenue Next 2Y-1.21%
Revenue Next 3Y0.49%
Revenue Next 5Y1.98%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 47.88, PII can be considered very expensive at the moment.
PII's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.84, PII is valued quite expensively.
PII is valuated quite expensively with a Price/Forward Earnings ratio of 667.50.
Based on the Price/Forward Earnings ratio, PII is valued a bit more expensive than the industry average as 61.29% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.94, PII is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.88 | ||
| Fwd PE | 667.5 |
4.2 Price Multiples
PII's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PII is cheaper than 67.74% of the companies in the same industry.
93.55% of the companies in the same industry are more expensive than PII, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.42 | ||
| EV/EBITDA | 13.38 |
4.3 Compensation for Growth
A cheap valuation may be justified as PII's earnings are expected to decrease with -13.99% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-84.09%
EPS Next 3Y-13.99%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.56%, PII is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.15, PII pays a better dividend. On top of this PII pays more dividend than 83.87% of the companies listed in the same industry.
PII's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.56% |
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
The earnings of PII are negative and hence is the payout ratio. PII will probably not be able to sustain this dividend level.
The dividend of PII is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-137.94%
EPS Next 2Y-84.09%
EPS Next 3Y-13.99%
55.06
-1.55 (-2.74%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners96.75%
Inst Owner Change11.54%
Ins Owners1.04%
Ins Owner Change3.77%
Market Cap3.10B
Analysts55.65
Price Target49.45 (-10.19%)
Short Float %16.22%
Short Ratio5.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.56% |
Yearly Dividend2.62
Dividend Growth(5Y)1.47%
DP-137.94%
Div Incr Years29
Div Non Decr Years29
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13514.1%
Min EPS beat(2)2.26%
Max EPS beat(2)27026%
EPS beat(4)3
Avg EPS beat(4)6753.03%
Min EPS beat(4)-18.12%
Max EPS beat(4)27026%
EPS beat(8)4
Avg EPS beat(8)3406.9%
EPS beat(12)8
Avg EPS beat(12)2275.05%
EPS beat(16)10
Avg EPS beat(16)1705.73%
Revenue beat(2)1
Avg Revenue beat(2)2.62%
Min Revenue beat(2)-1.55%
Max Revenue beat(2)6.78%
Revenue beat(4)2
Avg Revenue beat(4)1.21%
Min Revenue beat(4)-3.51%
Max Revenue beat(4)6.78%
Revenue beat(8)3
Avg Revenue beat(8)-1%
Revenue beat(12)6
Avg Revenue beat(12)0.7%
Revenue beat(16)6
Avg Revenue beat(16)-2.47%
PT rev (1m)39.61%
PT rev (3m)43.75%
EPS NQ rev (1m)8.48%
EPS NQ rev (3m)-130.74%
EPS NY rev (1m)0%
EPS NY rev (3m)-27.61%
Revenue NQ rev (1m)0.77%
Revenue NQ rev (3m)-4.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.88 | ||
| Fwd PE | 667.5 | ||
| P/S | 0.45 | ||
| P/FCF | 7.42 | ||
| P/OCF | 4.91 | ||
| P/B | 2.61 | ||
| P/tB | 10.17 | ||
| EV/EBITDA | 13.38 |
EPS(TTM)1.15
EY2.09%
EPS(NY)0.08
Fwd EY0.15%
FCF(TTM)7.42
FCFY13.48%
OCF(TTM)11.22
OCFY20.38%
SpS122.13
BVpS21.08
TBVpS5.41
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2% | ||
| ROE | -9.1% | ||
| ROCE | 1.73% | ||
| ROIC | 1.38% | ||
| ROICexc | 1.56% | ||
| ROICexgc | 2.38% | ||
| OM | 0.73% | ||
| PM (TTM) | N/A | ||
| GM | 19.18% | ||
| FCFM | 6.08% |
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-Score3
Asset Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 4.38 | ||
| Debt/EBITDA | 3.98 | ||
| Cap/Depr | 71.09% | ||
| Cap/Sales | 3.11% | ||
| Interest Coverage | 0.35 | ||
| Cash Conversion | 180.18% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.37 | ||
| Altman-Z | 1.76 |
F-Score3
WACC7.67%
ROIC/WACC0.18
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)-81.75%
EPS 3Y-29.08%
EPS 5Y-12.4%
EPS Q2Q%-71.01%
EPS Next Y-141.25%
EPS Next 2Y-84.09%
EPS Next 3Y-13.99%
EPS Next 5Y16.1%
Revenue 1Y (TTM)-16.63%
Revenue growth 3Y-1.2%
Revenue growth 5Y1.13%
Sales Q2Q%-5.53%
Revenue Next Year-6.18%
Revenue Next 2Y-1.21%
Revenue Next 3Y0.49%
Revenue Next 5Y1.98%
EBIT growth 1Y-87.89%
EBIT growth 3Y-32.49%
EBIT growth 5Y-12.85%
EBIT Next Year-1.22%
EBIT Next 3Y17.65%
EBIT Next 5Y19.06%
FCF growth 1Y-19.75%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-30.95%
OCF growth 3Y-2.98%
OCF growth 5Y-16.35%