POLARIS INC (PII) Stock Fundamental Analysis
NYSE:PII - New York Stock Exchange, Inc. - US7310681025 - Common Stock - Currency: USD
Taking everything into account, PII scores 4 out of 10 in our fundamental rating. PII was compared to 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 is valied quite expensively at the moment, while it does show a decent growth rate. 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.
PII had positive earnings in each of the past 5 years.
In the past 5 years PII always reported a positive cash flow from operatings.
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.
PII has a better Return On Equity (3.28%) 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 8.16%.
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
With a decent Profit Margin value of 0.58%, PII is doing good in the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Profit Margin of PII has declined.
PII has a Operating Margin (1.82%) which is in line with its industry peers.
PII's Operating Margin has declined in the last couple of years.
The Gross Margin of PII (19.81%) is worse 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
PII has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
PII has less shares outstanding than it did 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 1.74. This is a bad value and indicates that PII is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.74, PII is doing worse than 63.33% of the companies in the same industry.
The Debt to FCF ratio of PII is 12.17, which is on the high side as it means it would take PII, 12.17 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 12.17, PII perfoms like the industry average, outperforming 43.33% of the companies in the same industry.
PII has a Debt/Equity ratio of 1.32. This is a high value indicating a heavy dependency on external 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 | 1.74 |
ROIC/WACC0.35
WACC9.24%
2.3 Liquidity
A Current Ratio of 1.12 indicates that PII should not have too much problems paying its short term obligations.
The Current ratio of PII (1.12) is worse than 86.67% of its industry peers.
PII has a Quick Ratio of 1.12. This is a bad value and indicates that PII is not financially healthy enough and could expect problems in meeting 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%.
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
The Earnings Per Share is expected to grow by 20.53% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 2.19% on average over the next years.
EPS Next Y-132.32%
EPS Next 2Y-80.89%
EPS Next 3Y-12.37%
EPS Next 5Y20.53%
Revenue Next Year-5.96%
Revenue Next 2Y-1.14%
Revenue Next 3Y0.38%
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 18.41.
Based on the Price/Earnings ratio, PII is valued a bit cheaper than 73.33% of the companies in the same industry.
PII's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.25.
With a Price/Forward Earnings ratio of 329.28, PII can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, PII is valued a bit more expensive than 60.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.15, PII is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.41 | ||
| Fwd PE | 329.28 |
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 73.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.05 | ||
| EV/EBITDA | 9.36 |
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 -12.37% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-80.89%
EPS Next 3Y-12.37%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.72%, PII is a good candidate for dividend investing.
PII's Dividend Yield is rather good when compared to the industry average which is at 4.49. PII pays more dividend than 93.33% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, PII pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.72% |
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
367.91% of the earnings are spent on dividend by PII. 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-80.89%
EPS Next 3Y-12.37%
39.22
-0.67 (-1.68%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners89.72%
Inst Owner Change10.54%
Ins Owners1.12%
Ins Owner Change15.13%
Market Cap2.20B
Analysts53.91
Price Target34.4 (-12.29%)
Short Float %16.64%
Short Ratio4.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.72% |
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)-17.92%
PT rev (3m)-35.96%
EPS NQ rev (1m)-79.95%
EPS NQ rev (3m)-88.01%
EPS NY rev (1m)-206.77%
EPS NY rev (3m)-186.52%
Revenue NQ rev (1m)-2.22%
Revenue NQ rev (3m)-6.38%
Revenue NY rev (1m)-3.47%
Revenue NY rev (3m)-4.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.41 | ||
| Fwd PE | 329.28 | ||
| P/S | 0.32 | ||
| P/FCF | 13.05 | ||
| P/OCF | 4.83 | ||
| P/B | 1.8 | ||
| P/tB | 7.52 | ||
| EV/EBITDA | 9.36 |
EPS(TTM)2.13
EY5.43%
EPS(NY)0.12
Fwd EY0.3%
FCF(TTM)3.01
FCFY7.66%
OCF(TTM)8.13
OCFY20.72%
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 | 1.74 |
F-Score5
WACC9.24%
ROIC/WACC0.35
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-132.32%
EPS Next 2Y-80.89%
EPS Next 3Y-12.37%
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-5.96%
Revenue Next 2Y-1.14%
Revenue Next 3Y0.38%
Revenue Next 5Y2.19%
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 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%