POLARIS INC (PII) Stock Fundamental Analysis
USA - NYSE:PII - US7310681025 - Common Stock
61.68 USD
+3.55 (+6.11%)
61.68 USD
0 (0%)
Overall PII gets a fundamental rating of 4 out of 10. We evaluated PII against 33 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. Finally 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.
PII had positive earnings in each of the past 5 years.
Each year in the past 5 years PII had a positive operating cash flow.
1.2 Ratios
PII has a Return On Assets (-2.00%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of -9.10%, PII is in line with its industry, outperforming 48.48% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 1.38%, PII is in line with its industry, outperforming 48.48% 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 7.78%.
The last Return On Invested Capital (1.38%) 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 | -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.
Looking at the Operating Margin, with a value of 0.73%, PII is in line with its industry, outperforming 48.48% of the companies in the same 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: 72.73% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of PII has declined.
| 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
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.
PII has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, PII has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.78, we must say that PII is in the distress zone and has some risk of bankruptcy.
PII's Altman-Z score of 1.78 is on the low side compared to the rest of the industry. PII is outperformed by 63.64% of 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.
With a decent Debt to FCF ratio value of 4.38, PII is doing good in the industry, outperforming 69.70% 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: 78.79% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 4.38 | ||
| Altman-Z | 1.78 |
ROIC/WACC0.13
WACC10.79%
2.3 Liquidity
PII has a Current Ratio of 1.04. This is a normal value and indicates that PII is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.04, PII is doing worse than 84.85% 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.
Looking at the Quick ratio, with a value of 0.37, PII is doing worse than 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| 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 -81.75%.
Measured over the past years, PII shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -12.40% on average per year.
PII shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -16.63%.
The Revenue has been growing slightly by 1.13% on average over the past years.
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
PII is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.10% yearly.
The Revenue is expected to grow by 1.98% on average over the next years.
EPS Next Y-117.61%
EPS Next 2Y-42.27%
EPS Next 3Y-3.17%
EPS Next 5Y16.1%
Revenue Next Year-3.45%
Revenue Next 2Y0.41%
Revenue Next 3Y1.74%
Revenue Next 5Y1.98%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 53.63 indicates a quite expensive valuation of PII.
PII's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.79. PII is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 56.77, which means the current valuation is very expensive for PII.
PII's Price/Forward Earnings is on the same level as the industry average.
PII's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.63 | ||
| Fwd PE | 56.77 |
4.2 Price Multiples
60.61% of the companies in the same industry are more expensive than PII, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PII indicates a rather cheap valuation: PII is cheaper than 93.94% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.31 | ||
| EV/EBITDA | 13.63 |
4.3 Compensation for Growth
PII's earnings are expected to decrease with -3.17% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-42.27%
EPS Next 3Y-3.17%
5. Dividend
5.1 Amount
PII has a Yearly Dividend Yield of 4.68%, which is a nice return.
PII's Dividend Yield is rather good when compared to the industry average which is at 4.31. PII pays more dividend than 81.82% 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 | 4.68% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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-42.27%
EPS Next 3Y-3.17%
61.68
+3.55 (+6.11%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners106.39%
Inst Owner Change11.56%
Ins Owners1.04%
Ins Owner Change2.87%
Market Cap3.47B
Analysts55.65
Price Target50.66 (-17.87%)
Short Float %15.72%
Short Ratio5.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.68% |
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)2.44%
PT rev (3m)43.02%
EPS NQ rev (1m)21.18%
EPS NQ rev (3m)38.74%
EPS NY rev (1m)3.24%
EPS NY rev (3m)51.99%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)1.19%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)3.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.63 | ||
| Fwd PE | 56.77 | ||
| P/S | 0.51 | ||
| P/FCF | 8.31 | ||
| P/OCF | 5.5 | ||
| P/B | 2.93 | ||
| P/tB | 11.4 | ||
| EV/EBITDA | 13.63 |
EPS(TTM)1.15
EY1.86%
EPS(NY)1.09
Fwd EY1.76%
FCF(TTM)7.42
FCFY12.04%
OCF(TTM)11.22
OCFY18.19%
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 | 1.78 |
F-Score3
WACC10.79%
ROIC/WACC0.13
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-117.61%
EPS Next 2Y-42.27%
EPS Next 3Y-3.17%
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-3.45%
Revenue Next 2Y0.41%
Revenue Next 3Y1.74%
Revenue Next 5Y1.98%
EBIT growth 1Y-87.89%
EBIT growth 3Y-32.49%
EBIT growth 5Y-12.85%
EBIT Next Year7.23%
EBIT Next 3Y20.41%
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%