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. While PII is still in line with the averages on profitability rating, there are concerns on its financial health. PII has a correct valuation and a medium growth rate. 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.
Each year in the past 5 years PII has been profitable.
Each year in the past 5 years PII had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 2.01%, PII is doing good in the industry, outperforming 66.67% of the companies in the same industry.
PII has a better Return On Equity (8.59%) than 76.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.01%, PII is in the better half of the industry, outperforming 63.33% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PII is significantly above the industry average of 8.15%.
The 3 year average ROIC (13.27%) for PII is well above the current ROIC(5.01%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.01% | ||
| ROE | 8.59% | ||
| ROIC | 5.01% |
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
Looking at the Profit Margin, with a value of 1.54%, PII is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
PII's Profit Margin has declined in the last couple of years.
PII's Operating Margin of 2.82% is in line compared to the rest of the industry. PII outperforms 56.67% of its industry peers.
PII's Operating Margin has declined in the last couple of years.
PII has a Gross Margin of 20.44%. This is amonst the worse of the industry: PII underperforms 80.00% of its industry peers.
PII's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.82% | ||
| PM (TTM) | 1.54% | ||
| GM | 20.44% |
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.
The number of shares outstanding for PII has been reduced compared to 1 year ago.
Compared to 5 years ago, PII has less shares outstanding
Compared to 1 year ago, PII has a worse debt to assets ratio.
2.2 Solvency
PII has an Altman-Z score of 1.79. This is a bad value and indicates that PII is not financially healthy and even has some risk of bankruptcy.
PII has a Altman-Z score (1.79) which is in line with its industry peers.
A Debt/Equity ratio of 1.27 is on the high side and indicates that PII has dependencies on debt financing.
PII's Debt to Equity ratio of 1.27 is on the low side compared to the rest of the industry. PII is outperformed by 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.79 |
ROIC/WACC0.56
WACC8.94%
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.
PII's Quick ratio of 0.39 is on the low side compared to the rest of the industry. PII is outperformed by 90.00% of its industry peers.
| 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.
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 -19.69% in the last year.
The Revenue has been growing slightly by 1.13% on average over the past years.
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
PII is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.53% yearly.
The Revenue is expected to grow by 2.19% on average over the next years.
EPS Next Y-69.73%
EPS Next 2Y-17.7%
EPS Next 3Y0.55%
EPS Next 5Y20.53%
Revenue Next Year-2.19%
Revenue Next 2Y1.18%
Revenue Next 3Y1.92%
Revenue Next 5Y2.19%
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
PII is valuated reasonably with a Price/Earnings ratio of 10.40.
83.33% of the companies in the same industry are more expensive than PII, based on the Price/Earnings ratio.
PII is valuated cheaply when we compare the Price/Earnings ratio to 27.63, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 34.35, the valuation of PII can be described as expensive.
PII's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of PII to the average of the S&P500 Index (20.85), we can say PII is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.4 | ||
| Fwd PE | 34.35 |
4.2 Price Multiples
76.67% of the companies in the same industry are more expensive than PII, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.43 |
4.3 Compensation for Growth
The decent profitability rating of PII may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-17.7%
EPS Next 3Y0.55%
5. Dividend
5.1 Amount
PII has a Yearly Dividend Yield of 8.08%, which is a nice return.
In the last 3 months the price of PII has falen by -38.68%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 4.89, PII pays a better dividend. On top of this PII pays more dividend than 96.67% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.51, PII pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.08% |
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 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 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-17.7%
EPS Next 3Y0.55%
NYSE:PII (4/22/2025, 9:35:07 AM)
33.9
+0.89 (+2.7%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners89.72%
Inst Owner Change3.65%
Ins Owners1.12%
Ins Owner Change12.89%
Market Cap1.90B
Analysts65.71
Price Target50.83 (49.94%)
Short Float %15.48%
Short Ratio4.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.08% |
Yearly Dividend2.62
Dividend Growth(5Y)1.47%
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)-5.38%
PT rev (3m)-35.15%
EPS NQ rev (1m)-7.37%
EPS NQ rev (3m)-911.42%
EPS NY rev (1m)-18.96%
EPS NY rev (3m)-74.35%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)-5.17%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-2.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.4 | ||
| Fwd PE | 34.35 | ||
| P/S | 0.26 | ||
| P/FCF | N/A | ||
| P/OCF | 7.07 | ||
| P/B | 1.47 | ||
| P/tB | 5.36 | ||
| EV/EBITDA | 7.43 |
EPS(TTM)3.26
EY9.62%
EPS(NY)0.99
Fwd EY2.91%
FCF(TTM)-1.01
FCFYN/A
OCF(TTM)4.8
OCFY14.15%
SpS128.36
BVpS23.08
TBVpS6.33
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.01% | ||
| ROE | 8.59% | ||
| ROCE | 6.27% | ||
| ROIC | 5.01% | ||
| ROICexc | 5.5% | ||
| ROICexgc | 8.07% | ||
| OM | 2.82% | ||
| 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)13.27%
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 Turnover1.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.35 | ||
| Cap/Depr | 113.31% | ||
| Cap/Sales | 4.52% | ||
| Interest Coverage | 1.43 | ||
| Cash Conversion | 54.87% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.39 | ||
| Altman-Z | 1.79 |
F-Score5
WACC8.94%
ROIC/WACC0.56
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-69.73%
EPS Next 2Y-17.7%
EPS Next 3Y0.55%
EPS Next 5Y20.53%
Revenue 1Y (TTM)-19.69%
Revenue growth 3Y-1.2%
Revenue growth 5Y1.13%
Sales Q2Q%-23.35%
Revenue Next Year-2.19%
Revenue Next 2Y1.18%
Revenue Next 3Y1.92%
Revenue Next 5Y2.19%
EBIT growth 1Y-67.36%
EBIT growth 3Y-32.49%
EBIT growth 5Y-12.85%
EBIT Next Year45.62%
EBIT Next 3Y24.88%
EBIT Next 5Y21.63%
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%