NYSE:PII

Stock Analysis Report

Executive Summary

Polaris Inc. designs, engineers, manufactures, and markets power sports vehicles worldwide.

Snowflake

Fundamentals

Established dividend payer and fair value.


Similar Companies

Share Price & News

How has Polaris's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.6%

NYSE:PII

4.2%

US Leisure

1.1%

US Market


1 Year Return

-16.8%

NYSE:PII

-13.9%

US Leisure

2.1%

US Market

PII underperformed the Leisure industry which returned -13.9% over the past year.

PII underperformed the Market in United States of America which returned 2.1% over the past year.


Share holder returns

PIIIndustryMarket
7 Day3.6%4.2%1.1%
30 Day13.6%8.1%3.7%
90 Day-1.3%3.0%2.3%
1 Year-14.4%-16.8%-12.5%-13.9%4.4%2.1%
3 Year36.8%26.9%-0.8%-5.8%47.0%37.4%
5 Year-31.5%-38.8%13.1%0.5%61.6%43.8%

Price Volatility Vs. Market

How volatile is Polaris's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Polaris undervalued based on future cash flows and its price relative to the stock market?

27%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Polaris's share price is below the future cash flow value, and at a moderate discount (> 20%).

Polaris's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Polaris is good value based on earnings compared to the US Leisure industry average.

Polaris is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Polaris is poor value based on expected growth next year.


Price Based on Value of Assets

Polaris is overvalued based on assets compared to the US Leisure industry average.


Next Steps

Future Growth

How is Polaris expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

10.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Polaris's revenue is expected to grow by 3.5% yearly, however this is not considered high growth (20% yearly).

Polaris's earnings are expected to grow by 10.3% yearly, however this is not considered high growth (20% yearly).

Polaris's revenue growth is positive but not above the United States of America market average.

Polaris's earnings growth is positive but not above the United States of America market average.

Polaris's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Polaris is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

How has Polaris performed over the past 5 years?

-13.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Polaris's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Polaris's 1-year earnings growth exceeds its 5-year average (23.7% vs -13.9%)

Polaris's earnings growth has exceeded the US Leisure industry average in the past year (23.7% vs 17.2%).


Return on Equity

Whilst Polaris has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

Polaris used its assets more efficiently than the US Leisure industry average last year based on Return on Assets.


Return on Capital Employed

Polaris's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Polaris's financial position?


Financial Position Analysis

Polaris is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Polaris's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Polaris's level of debt (198.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (48.2% vs 198.5% today).

Debt is well covered by operating cash flow (27.2%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 6.2x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.8x debt.


Next Steps

Dividend

What is Polaris's current dividend yield, its reliability and sustainability?

2.80%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Polaris's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).

Polaris's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.7x coverage).


Next Steps

Management

What is the CEO of Polaris's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Scott Wine (52yo)

11yrs

Tenure

US$9,300,911

Compensation

Mr. Scott W. Wine has been the Chief Executive Officer of Polaris Industries Inc. since September 1, 2008 and its Chairman since January 31, 2013. Mr. Wine worked for a variety of outstanding international ...


CEO Compensation Analysis

Scott's remuneration is higher than average for companies of similar size in United States of America.

Scott's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.8yrs

Average Tenure

52yo

Average Age

The average tenure for the Polaris management team is less than 2 years, this suggests a new team.


Board Age and Tenure

6.3yrs

Average Tenure

59yo

Average Age

The tenure for the Polaris board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$786,53903 May 19
Stephen Eastman
EntityIndividual
Shares8,028
Max PriceUS$98.00
BuyUS$99,66001 Mar 19
Kevin Farr
EntityIndividual
Role
Member of the Board of Directors
Shares1,125
Max PriceUS$88.59

Ownership Breakdown


Management Team

  • Kevin Farr (61yo)

    • Tenure: 5.9yrs
    • Compensation: US$247.56k
  • Annette Clayton (56yo)

    Independent Director

    • Tenure: 16.7yrs
    • Compensation: US$273.59k
  • Mike Donoughe (60yo)

    Senior VP & Chief Technical Officer

    • Tenure: 1.7yrs
  • Ken Pucel (52yo)

    Executive VP of Global Operations

    • Tenure: 4.8yrs
    • Compensation: US$3.72m
  • Richard Edwards

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Scott Wine (52yo)

    Chairman & CEO

    • Tenure: 11yrs
    • Compensation: US$9.30m
  • Mike Speetzen (49yo)

    Executive VP of Finance & CFO

    • Tenure: 4.1yrs
    • Compensation: US$2.90m
  • Matt Emmerich

    VP & Chief Information Officer

    • Tenure: 5.7yrs
  • Chris Musso (44yo)

    President of Off-Road Vehicles

    • Tenure: 1.8yrs
    • Compensation: US$4.08m
  • Lucy Dougherty (49yo)

    Senior VP

    • Tenure: 1.7yrs
    • Compensation: US$5.69m

Board Members

  • John Wiehoff (58yo)

    Lead Director

    • Tenure: 6.7yrs
    • Compensation: US$267.56k
  • Kevin Farr (61yo)

    • Tenure: 5.9yrs
    • Compensation: US$247.56k
  • George Bilicic (56yo)

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: US$230.06k
  • Annette Clayton (56yo)

    Independent Director

    • Tenure: 16.7yrs
    • Compensation: US$273.59k
  • Greg Adler (79yo)

    Executive Vice Chairman for TAP

    • Tenure: 1.4yrs
  • Larry Kingsley (56yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: US$227.56k
  • Gary Hendrickson (62yo)

    Independent Director

    • Tenure: 8.7yrs
    • Compensation: US$242.56k
  • Bernd Kessler (60yo)

    Independent Director

    • Tenure: 9.7yrs
    • Compensation: US$232.56k
  • Gwenne Henricks (62yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$227.56k
  • Scott Wine (52yo)

    Chairman & CEO

    • Tenure: 11yrs
    • Compensation: US$9.30m

Company Information

Polaris Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Polaris Inc.
  • Ticker: PII
  • Exchange: NYSE
  • Founded: 1954
  • Industry: Leisure Products
  • Sector: Consumer Durables
  • Market Cap: US$5.549b
  • Shares outstanding: 61.12m
  • Website: https://www.polaris.com

Number of Employees


Location

  • Polaris Inc.
  • 2100 Highway 55
  • Medina
  • Minnesota
  • 55340
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PIINYSE (New York Stock Exchange)YesCommon StockUSUSDSep 1987
PL6DB (Deutsche Boerse AG)YesCommon StockDEEURSep 1987
PII *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNSep 1987
0KJQLSE (London Stock Exchange)YesCommon StockGBUSDSep 1987

Biography

Polaris Inc. designs, engineers, manufactures, and markets power sports vehicles worldwide. It operates in five segments: ORV/Snowmobiles, Motorcycles, Global Adjacent Markets, Aftermarket, and Boats. The  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/17 23:49
End of Day Share Price2019/09/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.