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. There are concerns on the financial health of PII while its profitability can be described as average. PII is valied quite expensively at the moment, while it does show a decent growth rate. Finally 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.
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
PII's Return On Assets of 2.01% is fine compared to the rest of the industry. PII outperforms 66.67% of its industry peers.
PII has a better Return On Equity (8.59%) than 70.00% of its industry peers.
The Return On Invested Capital of PII (4.78%) is better than 63.33% of its industry peers.
PII had an Average Return On Invested Capital over the past 3 years of 13.19%. This is above the industry average of 8.27%.
The 3 year average ROIC (13.19%) for PII is well above the current ROIC(4.78%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.01% | ||
| ROE | 8.59% | ||
| ROIC | 4.78% |
ROA(3y)6.56%
ROA(5y)6.43%
ROE(3y)28.24%
ROE(5y)27.19%
ROIC(3y)13.19%
ROIC(5y)14.63%
1.3 Margins
PII has a Profit Margin (1.54%) which is in line with its industry peers.
In the last couple of years the Profit Margin of PII has declined.
Looking at the Operating Margin, with a value of 2.69%, PII is in line with its industry, outperforming 56.67% of the companies in the same industry.
In the last couple of years the Operating Margin of PII has declined.
PII's Gross Margin of 20.44% is on the low side compared to the rest of the industry. PII is outperformed by 80.00% of its industry peers.
PII's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.69% | ||
| PM (TTM) | 1.54% | ||
| GM | 20.44% |
OM growth 3Y-32.76%
OM growth 5Y-14.65%
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.
PII has less shares outstanding than it did 1 year ago.
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
A Debt/Equity ratio of 1.27 is on the high side and indicates that PII has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.27, PII is doing worse than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.61
WACC7.89%
2.3 Liquidity
PII has a Current Ratio of 1.15. 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 worse Current ratio (1.15) than 83.33% of its industry peers.
A Quick Ratio of 0.39 indicates that PII may have some problems paying its short term obligations.
With a Quick ratio value of 0.39, PII is not doing good in the industry: 90.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
The earnings per share for PII have decreased strongly by -64.41% in the last year.
PII shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.40% yearly.
The Revenue for PII has decreased by -19.69% in the past year. This is quite bad
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)-64.41%
EPS 3Y-29.08%
EPS 5Y-12.4%
EPS Q2Q%-53.54%
Revenue 1Y (TTM)-19.69%
Revenue growth 3Y-1.2%
Revenue growth 5Y1.13%
Sales Q2Q%-23.35%
3.2 Future
Based on estimates for the next years, PII will show a very strong growth in Earnings Per Share. The EPS will grow by 32.13% on average per year.
The Revenue is expected to grow by 2.89% on average over the next years.
EPS Next Y-66.28%
EPS Next 2Y-3.41%
EPS Next 3Y9.53%
EPS Next 5Y32.13%
Revenue Next Year-1.62%
Revenue Next 2Y1.66%
Revenue Next 3Y2.5%
Revenue Next 5Y2.89%
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 14.27 indicates a correct valuation of PII.
80.00% of the companies in the same industry are more expensive than PII, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.63. PII is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 42.33, PII can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PII indicates a slightly more expensive valuation: PII is more expensive than 60.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of PII to the average of the S&P500 Index (22.68), we can say PII is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.27 | ||
| Fwd PE | 42.33 |
4.2 Price Multiples
PII's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PII is cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.06 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.41%
EPS Next 3Y9.53%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.84%, PII is a good candidate for dividend investing.
The stock price of PII dropped by -31.52% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 4.09, PII pays a better dividend. On top of this PII pays more dividend than 93.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, PII pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.84% |
5.2 History
The dividend of PII has a limited annual growth rate of 1.53%.
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)1.53%
Div Incr Years29
Div Non Decr Years29
5.3 Sustainability
PII pays out 133.30% of its income as dividend. This is not a sustainable payout ratio.
The dividend of PII is growing, but earnings are growing more, so the dividend growth is sustainable.
DP133.3%
EPS Next 2Y-3.41%
EPS Next 3Y9.53%
46.53
+0.67 (+1.46%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners89.72%
Inst Owner Change5.68%
Ins Owners1.12%
Ins Owner Change12.03%
Market Cap2.59B
Analysts67.62
Price Target53.72 (15.45%)
Short Float %12.23%
Short Ratio4.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.84% |
Yearly Dividend2.63
Dividend Growth(5Y)1.53%
DP133.3%
Div Incr Years29
Div Non Decr Years29
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-8.07%
Min EPS beat(2)-18.12%
Max EPS beat(2)1.99%
EPS beat(4)2
Avg EPS beat(4)62.79%
Min EPS beat(4)-38.83%
Max EPS beat(4)306.14%
EPS beat(8)4
Avg EPS beat(8)31.71%
EPS beat(12)7
Avg EPS beat(12)21.57%
EPS beat(16)10
Avg EPS beat(16)20.44%
Revenue beat(2)1
Avg Revenue beat(2)-0.21%
Min Revenue beat(2)-3.51%
Max Revenue beat(2)3.1%
Revenue beat(4)1
Avg Revenue beat(4)-3.24%
Min Revenue beat(4)-10.94%
Max Revenue beat(4)3.1%
Revenue beat(8)4
Avg Revenue beat(8)-0.09%
Revenue beat(12)5
Avg Revenue beat(12)-1.67%
Revenue beat(16)6
Avg Revenue beat(16)-3.21%
PT rev (1m)-10.91%
PT rev (3m)-20.26%
EPS NQ rev (1m)-912.75%
EPS NQ rev (3m)-212.71%
EPS NY rev (1m)-71.44%
EPS NY rev (3m)-71.44%
Revenue NQ rev (1m)-5.65%
Revenue NQ rev (3m)-15.7%
Revenue NY rev (1m)-2.11%
Revenue NY rev (3m)-2.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.27 | ||
| Fwd PE | 42.33 | ||
| P/S | 0.36 | ||
| P/FCF | N/A | ||
| P/OCF | 9.68 | ||
| P/B | 2.01 | ||
| P/tB | 7.34 | ||
| EV/EBITDA | 9.06 |
EPS(TTM)3.26
EY7.01%
EPS(NY)1.1
Fwd EY2.36%
FCF(TTM)-1.01
FCFYN/A
OCF(TTM)4.81
OCFY10.34%
SpS128.66
BVpS23.13
TBVpS6.34
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.01% | ||
| ROE | 8.59% | ||
| ROCE | 5.97% | ||
| ROIC | 4.78% | ||
| ROICexc | 5.24% | ||
| ROICexgc | 7.69% | ||
| OM | 2.69% | ||
| PM (TTM) | 1.54% | ||
| GM | 20.44% | ||
| FCFM | N/A |
ROA(3y)6.56%
ROA(5y)6.43%
ROE(3y)28.24%
ROE(5y)27.19%
ROIC(3y)13.19%
ROIC(5y)14.63%
ROICexc(3y)14.76%
ROICexc(5y)17.29%
ROICexgc(3y)21.92%
ROICexgc(5y)29.42%
ROCE(3y)16.49%
ROCE(5y)18.29%
ROICexcg growth 3Y-42.96%
ROICexcg growth 5Y-21.43%
ROICexc growth 3Y-38.74%
ROICexc growth 5Y-14.88%
OM growth 3Y-32.76%
OM growth 5Y-14.65%
PM growth 3Y-38.5%
PM growth 5Y-20.22%
GM growth 3Y-4.59%
GM growth 5Y-3.41%
F-Score5
Asset Turnover1.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.42 | ||
| Cap/Depr | 113.31% | ||
| Cap/Sales | 4.52% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 55.96% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.39 | ||
| Altman-Z | N/A |
F-Score5
WACC7.89%
ROIC/WACC0.61
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)-64.41%
EPS 3Y-29.08%
EPS 5Y-12.4%
EPS Q2Q%-53.54%
EPS Next Y-66.28%
EPS Next 2Y-3.41%
EPS Next 3Y9.53%
EPS Next 5Y32.13%
Revenue 1Y (TTM)-19.69%
Revenue growth 3Y-1.2%
Revenue growth 5Y1.13%
Sales Q2Q%-23.35%
Revenue Next Year-1.62%
Revenue Next 2Y1.66%
Revenue Next 3Y2.5%
Revenue Next 5Y2.89%
EBIT growth 1Y-68.9%
EBIT growth 3Y-33.56%
EBIT growth 5Y-13.68%
EBIT Next Year49.27%
EBIT Next 3Y25.81%
EBIT Next 5Y27.45%
FCF growth 1Y-110.95%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-71.03%
OCF growth 3Y-2.98%
OCF growth 5Y-16.35%