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PII

Polaris NYSE:PII Stock Report

Last Price

US$106.92

Market Cap

US$6.4b

7D

9.6%

1Y

-20.5%

Updated

27 Jun, 2022

Data

Company Financials +
PII fundamental analysis
Snowflake Score
Valuation5/6
Future Growth3/6
Past Performance4/6
Financial Health3/6
Dividends4/6

PII Stock Overview

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

Polaris Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Polaris
Historical stock prices
Current Share PriceUS$106.92
52 Week HighUS$139.79
52 Week LowUS$94.24
Beta1.58
1 Month Change-0.31%
3 Month Change-4.66%
1 Year Change-20.46%
3 Year Change18.56%
5 Year Change14.04%
Change since IPO5,218.30%

Recent News & Updates

Jun 10

Pros And Cons Of Buying Polaris For Its Dividend

Polaris is one of the best performers in the past few decades, returning 18% per year since 1987. This has changed. Over the past 10 years, the stock has underperformed with a dividend yield somewhere between low yield and high yield. While the valuation is very low given high free cash flow and steady EBITDA, the company continues to suffer from supply chain issues and fears of significant consumer weakness.

May 20
We Think Polaris (NYSE:PII) Might Have The DNA Of A Multi-Bagger

We Think Polaris (NYSE:PII) Might Have The DNA Of A Multi-Bagger

There are a few key trends to look for if we want to identify the next multi-bagger. Typically, we'll want to notice a...

Shareholder Returns

PIIUS LeisureUS Market
7D9.6%7.4%6.3%
1Y-20.5%-50.8%-18.8%

Return vs Industry: PII exceeded the US Leisure industry which returned -49.9% over the past year.

Return vs Market: PII underperformed the US Market which returned -18.4% over the past year.

Price Volatility

Is PII's price volatile compared to industry and market?
PII volatility
PII Average Weekly Movement7.8%
Leisure Industry Average Movement7.6%
Market Average Movement8.1%
10% most volatile stocks in US Market16.7%
10% least volatile stocks in US Market3.2%

Stable Share Price: PII is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: PII's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
195416,000Mike Speetzenhttps://www.polaris.com

Polaris Inc. designs, engineers, manufactures, and markets power sports vehicles worldwide. It operates through six segments: ORV, Snowmobiles, Motorcycles, Global Adjacent Markets, Aftermarket, and Boats. The company offers off-road vehicles (ORVs), including all-terrain vehicles and side-by-side vehicles; snowmobiles and snow bikes conversion kit systems; motorcycles; and low emission, light duty hauling, passenger, and industrial vehicles.

Polaris Fundamentals Summary

How do Polaris's earnings and revenue compare to its market cap?
PII fundamental statistics
Market CapUS$6.36b
Earnings (TTM)US$429.70m
Revenue (TTM)US$8.25b

14.8x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PII income statement (TTM)
RevenueUS$8.25b
Cost of RevenueUS$6.35b
Gross ProfitUS$1.91b
Other ExpensesUS$1.48b
EarningsUS$429.70m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)7.22
Gross Margin23.11%
Net Profit Margin5.21%
Debt/Equity Ratio172.8%

How did PII perform over the long term?

See historical performance and comparison

Dividends

2.4%

Current Dividend Yield

36%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is PII undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PII?

Other financial metrics that can be useful for relative valuation.

PII key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1x
Enterprise Value/EBITDA9.5x
PEG Ratio1x

Price to Earnings Ratio vs Peers

How does PII's PE Ratio compare to its peers?

PII PE Ratio vs Peers
The above table shows the PE ratio for PII vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average17.1x
MAT Mattel
8x11.5%US$8.3b
BC Brunswick
8.7x11.8%US$5.2b
HAS Hasbro
32x13.4%US$11.9b
YETI YETI Holdings
19.7x14.7%US$4.1b
PII Polaris
14.8x15.3%US$6.4b

Price-To-Earnings vs Peers: PII is good value based on its Price-To-Earnings Ratio (14.8x) compared to the peer average (17.1x).


Price to Earnings Ratio vs Industry

How does PII's PE Ratio compare vs other companies in the US Leisure Industry?

Price-To-Earnings vs Industry: PII is expensive based on its Price-To-Earnings Ratio (14.8x) compared to the US Leisure industry average (10.3x)


Price to Earnings Ratio vs Fair Ratio

What is PII's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PII PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.8x
Fair PE Ratio15.5x

Price-To-Earnings vs Fair Ratio: PII is good value based on its Price-To-Earnings Ratio (14.8x) compared to the estimated Fair Price-To-Earnings Ratio (15.5x).


Share Price vs Fair Value

What is the Fair Price of PII when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PII ($106.92) is trading below our estimate of fair value ($372.26)

Significantly Below Fair Value: PII is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: PII is good value based on its PEG Ratio (1x)


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Future Growth

How is Polaris forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


15.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PII's forecast earnings growth (15.3% per year) is above the savings rate (1.9%).

Earnings vs Market: PII's earnings (15.3% per year) are forecast to grow faster than the US market (13.9% per year).

High Growth Earnings: PII's earnings are forecast to grow, but not significantly.

Revenue vs Market: PII's revenue (4.2% per year) is forecast to grow slower than the US market (8.4% per year).

High Growth Revenue: PII's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PII's Return on Equity is forecast to be high in 3 years time (38.5%)


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Past Performance

How has Polaris performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


17.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PII has a high level of non-cash earnings.

Growing Profit Margin: PII's current net profit margins (5.2%) are higher than last year (3.5%).


Past Earnings Growth Analysis

Earnings Trend: PII's earnings have grown by 17.4% per year over the past 5 years.

Accelerating Growth: PII's earnings growth over the past year (62.6%) exceeds its 5-year average (17.4% per year).

Earnings vs Industry: PII earnings growth over the past year (62.6%) exceeded the Leisure industry 27%.


Return on Equity

High ROE: Whilst PII's Return on Equity (38.37%) is high, this metric is skewed due to their high level of debt.


Discover strong past performing companies

Financial Health

How is Polaris's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: PII's short term assets ($2.7B) exceed its short term liabilities ($2.3B).

Long Term Liabilities: PII's short term assets ($2.7B) exceed its long term liabilities ($1.8B).


Debt to Equity History and Analysis

Debt Level: PII's net debt to equity ratio (139%) is considered high.

Reducing Debt: PII's debt to equity ratio has increased from 138.4% to 172.8% over the past 5 years.

Debt Coverage: PII's debt is not well covered by operating cash flow (9.7%).

Interest Coverage: PII's interest payments on its debt are well covered by EBIT (13.9x coverage).


Balance Sheet


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Dividend

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

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.39%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: PII's dividend (2.39%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: PII's dividend (2.39%) is low compared to the top 25% of dividend payers in the US market (4.23%).


Stability and Growth of Payments

Stable Dividend: PII's dividends per share have been stable in the past 10 years.

Growing Dividend: PII's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (35.8%), PII's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: PII is paying a dividend but the company has no free cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

5.3yrs

Average management tenure


CEO

Mike Speetzen (51 yo)

1.42yrs

Tenure

US$9,758,906

Compensation

Mr. Michael T. Speetzen, also known as Mike, serves as the Chief Executive Officer of Polaris Inc. since April 30, 2021 and its Director since May 2021. He had been an Interim Chief Executive Officer at Po...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD9.76M) is about average for companies of similar size in the US market ($USD8.23M).

Compensation vs Earnings: Mike's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: PII's management team is seasoned and experienced (5.3 years average tenure).


Board Members

Experienced Board: PII's board of directors are considered experienced (6.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Polaris Inc.
  • Ticker: PII
  • Exchange: NYSE
  • Founded: 1954
  • Industry: Leisure Products
  • Sector: Consumer Durables
  • Implied Market Cap: US$6.361b
  • Shares outstanding: 59.50m
  • Website: https://www.polaris.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/27 00:00
End of Day Share Price2022/06/27 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.