POLARIS INC (PII) Stock Fundamental Analysis
NYSE:PII - New York Stock Exchange, Inc. - US7310681025 - Common Stock - Currency: USD
PII gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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. While showing a medium growth rate, PII is valued expensive at the moment. 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.
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
The Return On Assets of PII (0.74%) is better than 66.67% of its industry peers.
PII's Return On Equity of 3.28% is fine compared to the rest of the industry. PII outperforms 66.67% of its industry peers.
The Return On Invested Capital of PII (3.24%) is better than 63.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PII is significantly above the industry average of 7.91%.
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
PII has a Profit Margin of 0.58%. This is in the better half of the industry: PII outperforms 66.67% of its industry peers.
PII's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 1.82%, PII perfoms like the industry average, outperforming 56.67% 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 19.81%, PII is not doing good in the industry: 76.67% 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 | 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
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
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 1.83. 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.
PII's Altman-Z score of 1.83 is on the low side compared to the rest of the industry. PII is outperformed by 63.33% of its industry peers.
PII has a debt to FCF ratio of 12.17. This is a negative value and a sign of low solvency as PII would need 12.17 years to pay back of all of its debts.
PII has a Debt to FCF ratio of 12.17. This is comparable to the rest of the industry: PII outperforms 43.33% of its industry peers.
PII has a Debt/Equity ratio of 1.32. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.32, PII is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 12.17 | ||
| Altman-Z | 1.83 |
ROIC/WACC0.35
WACC9.19%
2.3 Liquidity
A Current Ratio of 1.12 indicates that PII should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.12, PII is doing worse than 86.67% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 0.37, PII is doing worse than 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
The earnings per share for PII have decreased strongly by -70.98% in the last year.
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%.
PII shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.13% yearly.
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
PII is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.44% yearly.
The Revenue is expected to grow by 1.82% on average over the next years.
EPS Next Y-136.68%
EPS Next 2Y-41.69%
EPS Next 3Y-16.75%
EPS Next 5Y16.44%
Revenue Next Year-6.28%
Revenue Next 2Y-1.31%
Revenue Next 3Y0.38%
Revenue Next 5Y1.82%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
Based on the Price/Earnings ratio of 23.47, the valuation of PII can be described as rather expensive.
63.33% 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 27.30. PII is around the same levels.
The Forward Price/Earnings Ratio is negative for PII. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.47 | ||
| Fwd PE | N/A |
4.2 Price Multiples
66.67% of the companies in the same industry are more expensive than PII, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, PII is valued a bit cheaper than the industry average as 63.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.63 | ||
| EV/EBITDA | 10.8 |
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 -16.75% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-41.69%
EPS Next 3Y-16.75%
5. Dividend
5.1 Amount
PII has a Yearly Dividend Yield of 5.77%, which is a nice return.
PII's Dividend Yield is rather good when compared to the industry average which is at 4.45. PII pays more dividend than 86.67% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, PII pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.77% |
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
PII pays out 367.91% 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.
DP367.91%
EPS Next 2Y-41.69%
EPS Next 3Y-16.75%
49.99
-0.08 (-0.16%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners96.79%
Inst Owner Change0%
Ins Owners1.04%
Ins Owner Change15.13%
Market Cap2.81B
Analysts53.91
Price Target35.42 (-29.15%)
Short Float %15.54%
Short Ratio4.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.77% |
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)2.96%
PT rev (3m)-30.31%
EPS NQ rev (1m)-222.22%
EPS NQ rev (3m)-106.55%
EPS NY rev (1m)-13.48%
EPS NY rev (3m)-210.3%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)-7.89%
Revenue NY rev (1m)-0.34%
Revenue NY rev (3m)-4.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.47 | ||
| Fwd PE | N/A | ||
| P/S | 0.4 | ||
| P/FCF | 16.63 | ||
| P/OCF | 6.15 | ||
| P/B | 2.29 | ||
| P/tB | 9.59 | ||
| EV/EBITDA | 10.8 |
EPS(TTM)2.13
EY4.26%
EPS(NY)-0.02
Fwd EYN/A
FCF(TTM)3.01
FCFY6.01%
OCF(TTM)8.13
OCFY16.26%
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 | 1.83 |
F-Score5
WACC9.19%
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-136.68%
EPS Next 2Y-41.69%
EPS Next 3Y-16.75%
EPS Next 5Y16.44%
Revenue 1Y (TTM)-17.86%
Revenue growth 3Y-1.2%
Revenue growth 5Y1.13%
Sales Q2Q%-11.55%
Revenue Next Year-6.28%
Revenue Next 2Y-1.31%
Revenue Next 3Y0.38%
Revenue Next 5Y1.82%
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 5Y19.46%
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%