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. There are concerns on the financial health of PII while its profitability can be described as average. 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.
PII had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 0.74%, PII is doing good in the industry, outperforming 66.67% of the companies in the same industry.
The Return On Equity of PII (3.28%) is better than 66.67% of its industry peers.
With a decent Return On Invested Capital value of 3.24%, PII is doing good in the industry, outperforming 63.33% 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 7.91%.
The 3 year average ROIC (13.27%) for PII is well above the current ROIC(3.24%). The reason for the recent decline needs to be investigated.
| 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 has a Operating Margin (1.82%) which is comparable to the rest of the industry.
PII's Operating Margin has declined in the last couple of years.
PII has a worse Gross Margin (19.81%) than 76.67% of its industry peers.
PII's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PII is still creating some value.
The number of shares outstanding for PII has been reduced compared to 1 year ago.
PII has less shares outstanding than it did 5 years ago.
The debt/assets ratio for PII is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.75, we must say that PII is in the distress zone and has some risk of bankruptcy.
PII has a Altman-Z score of 1.75. This is in the lower half of the industry: PII underperforms 63.33% 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 has a Debt to FCF ratio (12.17) which is comparable to the rest of the industry.
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 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 12.17 | ||
| Altman-Z | 1.75 |
ROIC/WACC0.37
WACC8.75%
2.3 Liquidity
PII has a Current Ratio of 1.12. This is a normal value and indicates that PII is financially healthy and should not expect problems in meeting its short term obligations.
PII has a Current ratio of 1.12. This is amonst the worse of the industry: PII underperforms 86.67% of its industry peers.
A Quick Ratio of 0.37 indicates that PII may have some problems paying its short term obligations.
PII has a worse Quick ratio (0.37) than 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
PII shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -70.98%.
PII shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.40% yearly.
Looking at the last year, PII shows a very negative growth in Revenue. The Revenue has decreased by -17.86% in the last year.
PII shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.13% yearly.
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
The Earnings Per Share is expected to grow by 16.44% on average over the next years. This is quite good.
PII is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.82% yearly.
EPS Next Y-136.68%
EPS Next 2Y-41.69%
EPS Next 3Y-16.75%
EPS Next 5Y16.44%
Revenue Next Year-6.28%
Revenue Next 2Y-1.31%
Revenue Next 3Y0.38%
Revenue Next 5Y1.82%
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 21.02.
76.67% of the companies in the same industry are more expensive than PII, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of PII to the average of the S&P500 Index (27.15), we can say PII is valued slightly cheaper.
The Forward Price/Earnings Ratio is negative for PII. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.02 | ||
| Fwd PE | N/A |
4.2 Price Multiples
PII's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PII is cheaper than 66.67% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PII indicates a somewhat cheap valuation: PII is cheaper than 70.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.9 | ||
| EV/EBITDA | 9.55 |
4.3 Compensation for Growth
PII has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as PII's earnings are expected to decrease with -16.75% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-41.69%
EPS Next 3Y-16.75%
5. Dividend
5.1 Amount
PII has a Yearly Dividend Yield of 6.68%, which is a nice return.
PII's Dividend Yield is rather good when compared to the industry average which is at 4.42. PII pays more dividend than 93.33% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, PII pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.68% |
5.2 History
The dividend of PII has a limited annual growth rate of 1.47%.
PII has paid a dividend for at least 10 years, which is 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
PII pays out 367.91% of its income as dividend. This is not a sustainable payout ratio.
PII's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP367.91%
EPS Next 2Y-41.69%
EPS Next 3Y-16.75%
NYSE:PII (7/1/2025, 11:50:05 AM)
44.77
+4.12 (+10.14%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners96.79%
Inst Owner Change10.54%
Ins Owners1.04%
Ins Owner Change15.14%
Market Cap2.52B
Analysts53.91
Price Target35.42 (-20.88%)
Short Float %15.54%
Short Ratio4.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.68% |
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)2.13%
Min EPS beat(2)1.99%
Max EPS beat(2)2.26%
EPS beat(4)2
Avg EPS beat(4)-13.17%
Min EPS beat(4)-38.83%
Max EPS beat(4)2.26%
EPS beat(8)4
Avg EPS beat(8)29.71%
EPS beat(12)8
Avg EPS beat(12)24.11%
EPS beat(16)10
Avg EPS beat(16)17.91%
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)2.96%
PT rev (3m)-32.13%
EPS NQ rev (1m)-58.24%
EPS NQ rev (3m)-94.64%
EPS NY rev (1m)-13.48%
EPS NY rev (3m)-210.3%
Revenue NQ rev (1m)-1.02%
Revenue NQ rev (3m)-7.73%
Revenue NY rev (1m)-0.34%
Revenue NY rev (3m)-4.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.02 | ||
| Fwd PE | N/A | ||
| P/S | 0.36 | ||
| P/FCF | 14.9 | ||
| P/OCF | 5.51 | ||
| P/B | 2.05 | ||
| P/tB | 8.59 | ||
| EV/EBITDA | 9.55 |
EPS(TTM)2.13
EY4.76%
EPS(NY)-0.02
Fwd EYN/A
FCF(TTM)3.01
FCFY6.71%
OCF(TTM)8.13
OCFY18.16%
SpS124.11
BVpS21.82
TBVpS5.21
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 | 1.75 |
F-Score5
WACC8.75%
ROIC/WACC0.37
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-136.68%
EPS Next 2Y-41.69%
EPS Next 3Y-16.75%
EPS Next 5Y16.44%
Revenue 1Y (TTM)-17.86%
Revenue growth 3Y-1.2%
Revenue growth 5Y1.13%
Sales Q2Q%-11.55%
Revenue Next Year-6.28%
Revenue Next 2Y-1.31%
Revenue Next 3Y0.38%
Revenue Next 5Y1.82%
EBIT growth 1Y-74.21%
EBIT growth 3Y-32.49%
EBIT growth 5Y-12.85%
EBIT Next Year-7.11%
EBIT Next 3Y17.59%
EBIT Next 5Y19.46%
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%