POLARIS INC (PII)
US7310681025 - Common Stock
We assign a fundamental rating of 5 out of 10 to PII. PII was compared to 30 industry peers in the Leisure Products industry. PII scores excellent on profitability, but there are concerns on its financial health. PII has a valuation in line with the averages, but on the other hand it scores bad on growth. 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 3.62%, PII is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
The Return On Equity of PII (15.18%) is better than 86.67% of its industry peers.
PII has a better Return On Invested Capital (6.49%) than 66.67% 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 8.16%.
The 3 year average ROIC (17.86%) for PII is well above the current ROIC(6.49%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.62% | ||
| ROE | 15.18% | ||
| ROIC | 6.49% |
ROA(3y)9.16%
ROA(5y)7.49%
ROE(3y)38.82%
ROE(5y)31.32%
ROIC(3y)17.86%
ROIC(5y)15.92%
1.3 Margins
The Profit Margin of PII (2.64%) is better than 66.67% of its industry peers.
In the last couple of years the Profit Margin of PII has remained more or less at the same level.
PII's Operating Margin of 3.55% is in line compared to the rest of the industry. PII outperforms 56.67% of its industry peers.
In the last couple of years the Operating Margin of PII has remained more or less at the same level.
The Gross Margin of PII (20.57%) is worse than 80.00% of its industry peers.
PII's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.55% | ||
| PM (TTM) | 2.64% | ||
| GM | 20.57% |
OM growth 3Y-1.52%
OM growth 5Y1.08%
PM growth 3Y46.89%
PM growth 5Y0.4%
GM growth 3Y-3.4%
GM growth 5Y-2.34%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so PII is creating 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.
PII has a better debt/assets ratio than last year.
2.2 Solvency
PII has an Altman-Z score of 2.12. 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 has a Altman-Z score (2.12) which is comparable to the rest of the industry.
PII has a debt to FCF ratio of 8.54. This is a slightly negative value and a sign of low solvency as PII would need 8.54 years to pay back of all of its debts.
With a Debt to FCF ratio value of 8.54, PII perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
PII has a Debt/Equity ratio of 1.29. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.29, PII is doing worse than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 8.54 | ||
| Altman-Z | 2.12 |
ROIC/WACC0.75
WACC8.67%
2.3 Liquidity
PII has a Current Ratio of 1.21. This is a normal value and indicates that PII is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of PII (1.21) is worse than 83.33% of its industry peers.
A Quick Ratio of 0.32 indicates that PII may have some problems paying its short term obligations.
With a Quick ratio value of 0.32, 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 | 1.21 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
The earnings per share for PII have decreased strongly by -59.40% in the last year.
PII shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.04% yearly.
The Revenue for PII has decreased by -14.81% in the past year. This is quite bad
Measured over the past years, PII shows a quite strong growth in Revenue. The Revenue has been growing by 8.01% on average per year.
EPS 1Y (TTM)-59.4%
EPS 3Y5.91%
EPS 5Y7.04%
EPS Q2Q%-73.06%
Revenue 1Y (TTM)-14.81%
Revenue growth 3Y8.33%
Revenue growth 5Y8.01%
Sales Q2Q%-23.41%
3.2 Future
PII is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.55% yearly.
PII is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.35% yearly.
EPS Next Y-64.47%
EPS Next 2Y-35.19%
EPS Next 3Y-15.79%
EPS Next 5Y5.55%
Revenue Next Year-20.14%
Revenue Next 2Y-10.18%
Revenue Next 3Y-5.13%
Revenue Next 5Y-2.35%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.39 indicates a correct valuation of PII.
Based on the Price/Earnings ratio, PII is valued cheaply inside the industry as 86.67% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of PII to the average of the S&P500 Index (27.73), we can say PII is valued rather cheaply.
PII is valuated correctly with a Price/Forward Earnings ratio of 15.04.
The rest of the industry has a similar Price/Forward Earnings ratio as PII.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, PII is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.39 | ||
| Fwd PE | 15.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PII is valued a bit cheaper than 76.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PII is valued a bit cheaper than 73.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.63 | ||
| EV/EBITDA | 9.17 |
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 -15.79% in the coming years.
PEG (NY)N/A
PEG (5Y)1.9
EPS Next 2Y-35.19%
EPS Next 3Y-15.79%
5. Dividend
5.1 Amount
PII has a Yearly Dividend Yield of 4.08%, which is a nice return.
In the last 3 months the price of PII has falen by -31.39%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
PII's Dividend Yield is rather good when compared to the industry average which is at 3.82. PII pays more dividend than 86.67% of the companies in the same industry.
PII's Dividend Yield is rather good when compared to the S&P500 average which is at 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.08% |
5.2 History
The dividend of PII has a limited annual growth rate of 1.55%.
PII has been paying a dividend for at least 10 years, so it has a reliable track record.
PII has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)1.55%
Div Incr Years29
Div Non Decr Years29
5.3 Sustainability
PII pays out 72.40% 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.
DP72.4%
EPS Next 2Y-35.19%
EPS Next 3Y-15.79%
POLARIS INC
NYSE:PII (12/20/2024, 8:04:00 PM)
After market: 57.86 0 (0%)57.86
+0.93 (+1.63%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners80.61%
Inst Owner Change-0.83%
Ins Owners2.46%
Ins Owner Change0.29%
Market Cap3.23B
Analysts69.52
Price Target78.38 (35.46%)
Short Float %8.2%
Short Ratio5.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.08% |
Dividend Growth(5Y)1.55%
DP72.4%
Div Incr Years29
Div Non Decr Years29
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-28.47%
Min EPS beat(2)-38.83%
Max EPS beat(2)-18.12%
EPS beat(4)1
Avg EPS beat(4)56.35%
Min EPS beat(4)-38.83%
Max EPS beat(4)306.14%
EPS beat(8)4
Avg EPS beat(8)32.06%
EPS beat(12)7
Avg EPS beat(12)21.85%
EPS beat(16)10
Avg EPS beat(16)21.19%
Revenue beat(2)0
Avg Revenue beat(2)-7.22%
Min Revenue beat(2)-10.94%
Max Revenue beat(2)-3.51%
Revenue beat(4)1
Avg Revenue beat(4)-3.8%
Min Revenue beat(4)-10.94%
Max Revenue beat(4)0.85%
Revenue beat(8)3
Avg Revenue beat(8)-0.65%
Revenue beat(12)4
Avg Revenue beat(12)-2.55%
Revenue beat(16)6
Avg Revenue beat(16)-3.32%
PT rev (1m)-10.5%
PT rev (3m)-10.42%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-67.3%
EPS NY rev (1m)0%
EPS NY rev (3m)-14.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-25.8%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.39 | ||
| Fwd PE | 15.04 | ||
| P/S | 0.42 | ||
| P/FCF | 12.63 | ||
| P/OCF | 5.28 | ||
| P/B | 2.41 | ||
| P/tB | 8.42 | ||
| EV/EBITDA | 9.17 |
EPS(TTM)4.32
EY7.47%
EPS(NY)3.85
Fwd EY6.65%
FCF(TTM)4.58
FCFY7.91%
OCF(TTM)10.97
OCFY18.96%
SpS138.23
BVpS24.05
TBVpS6.87
PEG (NY)N/A
PEG (5Y)1.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.62% | ||
| ROE | 15.18% | ||
| ROCE | 8.1% | ||
| ROIC | 6.49% | ||
| ROICexc | 7.1% | ||
| ROICexgc | 10.3% | ||
| OM | 3.55% | ||
| PM (TTM) | 2.64% | ||
| GM | 20.57% | ||
| FCFM | 3.31% |
ROA(3y)9.16%
ROA(5y)7.49%
ROE(3y)38.82%
ROE(5y)31.32%
ROIC(3y)17.86%
ROIC(5y)15.92%
ROICexc(3y)20.65%
ROICexc(5y)18.62%
ROICexgc(3y)33.22%
ROICexgc(5y)33.07%
ROCE(3y)22.28%
ROCE(5y)19.87%
ROICexcg growth 3Y-18.62%
ROICexcg growth 5Y-3.45%
ROICexc growth 3Y-7.31%
ROICexc growth 5Y5.95%
OM growth 3Y-1.52%
OM growth 5Y1.08%
PM growth 3Y46.89%
PM growth 5Y0.4%
GM growth 3Y-3.4%
GM growth 5Y-2.34%
F-Score4
Asset Turnover1.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 8.54 | ||
| Debt/EBITDA | 3.12 | ||
| Cap/Depr | 127.8% | ||
| Cap/Sales | 4.62% | ||
| Interest Coverage | 2.01 | ||
| Cash Conversion | 110.76% | ||
| Profit Quality | 125.44% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.32 | ||
| Altman-Z | 2.12 |
F-Score4
WACC8.67%
ROIC/WACC0.75
Cap/Depr(3y)138.96%
Cap/Depr(5y)121.23%
Cap/Sales(3y)4.07%
Cap/Sales(5y)3.79%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-59.4%
EPS 3Y5.91%
EPS 5Y7.04%
EPS Q2Q%-73.06%
EPS Next Y-64.47%
EPS Next 2Y-35.19%
EPS Next 3Y-15.79%
EPS Next 5Y5.55%
Revenue 1Y (TTM)-14.81%
Revenue growth 3Y8.33%
Revenue growth 5Y8.01%
Sales Q2Q%-23.41%
Revenue Next Year-20.14%
Revenue Next 2Y-10.18%
Revenue Next 3Y-5.13%
Revenue Next 5Y-2.35%
EBIT growth 1Y-63.16%
EBIT growth 3Y6.68%
EBIT growth 5Y9.18%
EBIT Next Year-19.44%
EBIT Next 3Y-0.36%
EBIT Next 5Y7.39%
FCF growth 1Y759.95%
FCF growth 3Y-13.92%
FCF growth 5Y15.31%
OCF growth 1Y140.92%
OCF growth 3Y-3.13%
OCF growth 5Y14.18%