POLARIS INC (PII) Stock Fundamental Analysis
USA - NYSE:PII - US7310681025 - Common Stock
57.06 USD
-0.09 (-0.16%)
57.06 USD
0 (0%)
PII gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 33 industry peers in the Leisure Products industry. PII has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, PII is valued expensive at the moment. 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.
In the past 5 years PII has always been profitable.
In the past 5 years PII always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -2.00%, PII is in line with its industry, outperforming 48.48% of the companies in the same industry.
PII's Return On Equity of -9.10% is in line compared to the rest of the industry. PII outperforms 48.48% of its industry peers.
PII has a Return On Invested Capital (1.38%) which is comparable to the rest of the 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.
PII has a Operating Margin (0.73%) which is in line with its industry peers.
In the last couple of years the Operating Margin of PII has declined.
PII has a Gross Margin of 19.18%. This is in the lower half of the industry: PII underperforms 72.73% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PII 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.
Compared to 1 year ago, PII has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.77, we must say that PII is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.77, PII is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
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 72.73% of the companies in the same industry.
PII has a Debt/Equity ratio of 1.17. This is a high value indicating a heavy dependency on external financing.
PII has a worse Debt to Equity ratio (1.17) than 78.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 4.38 | ||
| Altman-Z | 1.77 |
ROIC/WACC0.13
WACC10.77%
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.
PII has a Quick Ratio of 1.04. This is a bad value and indicates that PII is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.37, PII is not doing good in the industry: 90.91% of the companies in the same industry are doing better.
| 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.
The earnings per share for PII have been decreasing by -12.40% on average. This is quite bad
Looking at the last year, PII shows a very negative growth in Revenue. The Revenue has decreased by -16.63% in the last year.
Measured over the past years, PII shows a small growth in Revenue. The Revenue has been growing by 1.13% on average per year.
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.
The Revenue is expected to grow by 1.98% on average over the next years.
EPS Next Y-118.2%
EPS Next 2Y-43.77%
EPS Next 3Y-6.93%
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
The Price/Earnings ratio is 49.62, which means the current valuation is very expensive for PII.
The rest of the industry has a similar Price/Earnings ratio as PII.
When comparing the Price/Earnings ratio of PII to the average of the S&P500 Index (27.41), we can say PII is valued expensively.
PII is valuated quite expensively with a Price/Forward Earnings ratio of 55.36.
PII's Price/Forward Earnings is on the same level as the industry average.
PII is valuated expensively when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.62 | ||
| Fwd PE | 55.36 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PII indicates a somewhat cheap valuation: PII is cheaper than 60.61% of the companies listed in the same industry.
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 | 7.69 | ||
| EV/EBITDA | 13.47 |
4.3 Compensation for Growth
PII's earnings are expected to decrease with -6.93% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-43.77%
EPS Next 3Y-6.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.47%, PII is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.97, PII pays a better dividend. On top of this PII pays more dividend than 84.85% 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.47% |
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-137.94%
EPS Next 2Y-43.77%
EPS Next 3Y-6.93%
57.06
-0.09 (-0.16%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners96.75%
Inst Owner Change11.56%
Ins Owners1.04%
Ins Owner Change2.87%
Market Cap3.21B
Analysts55.65
Price Target50.66 (-11.22%)
Short Float %14.82%
Short Ratio5.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.47% |
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)47.26%
EPS NQ rev (1m)32.31%
EPS NQ rev (3m)38.74%
EPS NY rev (1m)55.87%
EPS NY rev (3m)43.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.19%
Revenue NY rev (1m)2.91%
Revenue NY rev (3m)2.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.62 | ||
| Fwd PE | 55.36 | ||
| P/S | 0.47 | ||
| P/FCF | 7.69 | ||
| P/OCF | 5.09 | ||
| P/B | 2.71 | ||
| P/tB | 10.54 | ||
| EV/EBITDA | 13.47 |
EPS(TTM)1.15
EY2.02%
EPS(NY)1.03
Fwd EY1.81%
FCF(TTM)7.42
FCFY13.01%
OCF(TTM)11.22
OCFY19.66%
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 | 1.77 |
F-Score3
WACC10.77%
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-118.2%
EPS Next 2Y-43.77%
EPS Next 3Y-6.93%
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 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%