POLARIS INC (PII) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PII - US7310681025 - Common Stock
69.09 USD
-1.83 (-2.58%)
69.09 USD
0 (0%)
PII gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 31 industry peers in the Leisure Products industry. PII has only an average score on both its financial health and profitability. PII does not seem to be growing, but still is valued expensively. PII also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- PII had positive earnings in the past year.
- PII had a positive operating cash flow in the past year.
- PII had positive earnings in each of the past 5 years.
- PII had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a Return On Assets value of -2.85%, PII perfoms like the industry average, outperforming 48.39% of the companies in the same industry.
- PII has a Return On Equity of -13.16%. This is comparable to the rest of the industry: PII outperforms 45.16% of its industry peers.
- PII has a Return On Invested Capital (1.48%) which is in line with its industry peers.
- The Average Return On Invested Capital over the past 3 years for PII is significantly above the industry average of 7.35%.
- The 3 year average ROIC (13.27%) for PII is well above the current ROIC(1.48%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.85% | ||
| ROE | -13.16% | ||
| ROIC | 1.48% |
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
- In the last couple of years the Profit Margin of PII has declined.
- With a Operating Margin value of 0.73%, PII perfoms like the industry average, outperforming 41.94% of the companies in the same industry.
- PII's Operating Margin has declined in the last couple of years.
- With a Gross Margin value of 19.22%, PII is not doing good in the industry: 70.97% 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 | 19.22% |
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.
- Compared to 1 year ago, PII has less shares outstanding
- 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
- PII has an Altman-Z score of 1.90. This is not the best score and indicates that PII is in the grey zone with still only limited risk for bankruptcy at the moment.
- The Altman-Z score of PII (1.90) is comparable to the rest of the industry.
- The Debt to FCF ratio of PII is 2.98, which is a good value as it means it would take PII, 2.98 years of fcf income to pay off all of its debts.
- PII's Debt to FCF ratio of 2.98 is fine compared to the rest of the industry. PII outperforms 74.19% of its industry peers.
- A Debt/Equity ratio of 1.13 is on the high side and indicates that PII has dependencies on debt financing.
- With a Debt to Equity ratio value of 1.13, PII is not doing good in the industry: 67.74% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 2.98 | ||
| Altman-Z | 1.9 |
ROIC/WACC0.16
WACC9.31%
2.3 Liquidity
- PII has a Current Ratio of 1.02. 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 1.02, PII is doing worse than 83.87% of the companies in the same industry.
- A Quick Ratio of 0.36 indicates that PII may have some problems paying its short term obligations.
- PII has a worse Quick ratio (0.36) than 90.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
- PII shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -80.79%.
- 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.
- The Revenue has decreased by -9.39% in the past year.
- The Revenue has been growing slightly by 1.13% on average over the past years.
EPS 1Y (TTM)-80.79%
EPS 3Y-29.08%
EPS 5Y-12.4%
EPS Q2Q%-43.84%
Revenue 1Y (TTM)-9.39%
Revenue growth 3Y-1.2%
Revenue growth 5Y1.13%
Sales Q2Q%6.92%
3.2 Future
- Based on estimates for the next years, PII will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.90% on average per year.
- The Revenue is expected to grow by 1.33% on average over the next years.
EPS Next Y-101.98%
EPS Next 2Y-26.78%
EPS Next 3Y3.62%
EPS Next 5Y12.9%
Revenue Next Year-0.78%
Revenue Next 2Y-0.45%
Revenue Next 3Y1.66%
Revenue Next 5Y1.33%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
- PII is valuated quite expensively with a Price/Earnings ratio of 83.24.
- PII's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, PII is valued quite expensively.
- With a Price/Forward Earnings ratio of 39.53, PII can be considered very expensive at the moment.
- PII's Price/Forward Earnings ratio is in line with the industry average.
- When comparing the Price/Forward Earnings ratio of PII to the average of the S&P500 Index (24.26), we can say PII is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 83.24 | ||
| Fwd PE | 39.53 |
4.2 Price Multiples
- PII's Enterprise Value to EBITDA is on the same level as the industry average.
- 96.77% 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 | 6.68 | ||
| EV/EBITDA | 15.43 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-26.78%
EPS Next 3Y3.62%
5. Dividend
5.1 Amount
- PII has a Yearly Dividend Yield of 3.78%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.22, PII pays a better dividend. On top of this PII pays more dividend than 87.10% 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 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
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 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
- PII has negative earnings and hence a negative payout ratio. The dividend may be in danger.
- The dividend of PII is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-99.14%
EPS Next 2Y-26.78%
EPS Next 3Y3.62%
POLARIS INC / PII FAQ
Can you provide the ChartMill fundamental rating for POLARIS INC?
ChartMill assigns a fundamental rating of 4 / 10 to PII.
What is the valuation status for PII stock?
ChartMill assigns a valuation rating of 2 / 10 to POLARIS INC (PII). This can be considered as Overvalued.
What is the profitability of PII stock?
POLARIS INC (PII) has a profitability rating of 4 / 10.
What is the valuation of POLARIS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for POLARIS INC (PII) is 83.24 and the Price/Book (PB) ratio is 3.38.
Can you provide the financial health for PII stock?
The financial health rating of POLARIS INC (PII) is 4 / 10.