POLARIS INC (PII) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PII - US7310681025 - Common Stock
65.15 USD
-3.96 (-5.73%)
Overall PII gets a fundamental rating of 4 out of 10. We evaluated PII against 30 industry peers in the Leisure Products industry. PII has an average financial health and profitability rating. PII is valued expensive and it does not seem to be growing. 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.
- PII had positive earnings in each of the past 5 years.
- Each year in the past 5 years PII had a positive operating cash flow.
1.2 Ratios
- PII's Return On Assets of -2.85% is in line compared to the rest of the industry. PII outperforms 46.67% of its industry peers.
- PII's Return On Equity of -13.16% is in line compared to the rest of the industry. PII outperforms 43.33% of its industry peers.
- The Return On Invested Capital of PII (1.48%) is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for PII is significantly above the industry average of 7.61%.
- The last Return On Invested Capital (1.48%) 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 | -2.85% | ||
| ROE | -13.16% | ||
| ROIC | 1.48% |
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
- In the last couple of years the Profit Margin of PII has declined.
- PII has a Operating Margin (0.73%) which is comparable to the rest of the industry.
- PII's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 19.22%, PII is doing worse than 70.00% of the companies in the same industry.
- PII's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.73% | ||
| PM (TTM) | N/A | ||
| GM | 19.22% |
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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PII is still creating some value.
- The number of shares outstanding for PII has been reduced compared to 1 year ago.
- The number of shares outstanding for PII has been reduced compared to 5 years ago.
- PII has a worse debt/assets ratio than last year.
2.2 Solvency
- PII has an Altman-Z score of 1.89. 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 (1.89) which is comparable to the rest of the industry.
- PII has a debt to FCF ratio of 2.98. This is a good value and a sign of high solvency as PII would need 2.98 years to pay back of all of its debts.
- PII's Debt to FCF ratio of 2.98 is fine compared to the rest of the industry. PII outperforms 73.33% of its industry peers.
- A Debt/Equity ratio of 1.13 is on the high side and indicates that PII has dependencies on debt financing.
- PII has a Debt to Equity ratio of 1.13. This is in the lower half of the industry: PII underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 2.98 | ||
| Altman-Z | 1.89 |
ROIC/WACC0.15
WACC9.87%
2.3 Liquidity
- A Current Ratio of 1.02 indicates that PII should not have too much problems paying its short term obligations.
- The Current ratio of PII (1.02) is worse than 83.33% of its industry peers.
- A Quick Ratio of 0.36 indicates that PII may have some problems paying its short term obligations.
- PII has a worse Quick ratio (0.36) than 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
- The earnings per share for PII have decreased strongly by -80.79% 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 decrease in Revenue. In the last year, the revenue decreased by -9.39%.
- 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)-80.79%
EPS 3Y-29.08%
EPS 5Y-12.4%
EPS Q2Q%-43.84%
Revenue 1Y (TTM)-9.39%
Revenue growth 3Y-1.2%
Revenue growth 5Y1.13%
Sales Q2Q%6.92%
3.2 Future
- The Earnings Per Share is expected to grow by 12.90% on average over the next years. This is quite good.
- PII is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.33% yearly.
EPS Next Y-101.96%
EPS Next 2Y-26.59%
EPS Next 3Y4.19%
EPS Next 5Y12.9%
Revenue Next Year-0.78%
Revenue Next 2Y-0.44%
Revenue Next 3Y1.67%
Revenue Next 5Y1.33%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- PII is valuated quite expensively with a Price/Earnings ratio of 78.49.
- PII's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, PII is valued quite expensively.
- The Price/Forward Earnings ratio is 37.08, which means the current valuation is very expensive for PII.
- PII's Price/Forward Earnings ratio is in line with the industry average.
- PII is valuated rather expensively when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 78.49 | ||
| Fwd PE | 37.08 |
4.2 Price Multiples
- PII's Enterprise Value to EBITDA ratio is in line with the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of PII indicates a rather cheap valuation: PII is cheaper than 96.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.3 | ||
| EV/EBITDA | 15.13 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-26.59%
EPS Next 3Y4.19%
5. Dividend
5.1 Amount
- PII has a Yearly Dividend Yield of 3.78%.
- Compared to an average industry Dividend Yield of 1.27, PII pays a better dividend. On top of this PII pays more dividend than 86.67% 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 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
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 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-99.14%
EPS Next 2Y-26.59%
EPS Next 3Y4.19%
POLARIS INC / PII FAQ
Can you provide the ChartMill fundamental rating for POLARIS INC?
ChartMill assigns a fundamental rating of 4 / 10 to PII.
What is the valuation status for PII stock?
ChartMill assigns a valuation rating of 2 / 10 to POLARIS INC (PII). This can be considered as Overvalued.
What is the profitability of PII stock?
POLARIS INC (PII) has a profitability rating of 4 / 10.
What is the valuation of POLARIS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for POLARIS INC (PII) is 78.49 and the Price/Book (PB) ratio is 3.19.
Can you provide the financial health for PII stock?
The financial health rating of POLARIS INC (PII) is 4 / 10.