NYSE:PII

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Reasonable growth potential with adequate balance sheet and pays a dividend.


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

Stable Share Price: PII is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: PII's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

4.0%

PII

2.2%

US Leisure

2.1%

US Market


1 Year Return

-4.5%

PII

57.2%

US Leisure

19.8%

US Market

Return vs Industry: PII underperformed the US Leisure industry which returned 57.1% over the past year.

Return vs Market: PII underperformed the US Market which returned 19.7% over the past year.


Shareholder returns

PIIIndustryMarket
7 Day4.0%2.2%2.1%
30 Day3.9%-0.8%8.1%
90 Day-8.2%21.4%6.0%
1 Year-2.0%-4.5%60.1%57.2%22.5%19.8%
3 Year-19.2%-24.7%10.2%4.2%46.5%36.8%
5 Year4.2%-7.5%18.7%7.7%96.9%75.3%

Long-Term 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 compared to its fair value and its price relative to the market?

236.61x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PII ($95.66) is trading above our estimate of fair value ($90.88)

Significantly Below Fair Value: PII is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PII is poor value based on its PE Ratio (236.6x) compared to the US Leisure industry average (25x).

PE vs Market: PII is poor value based on its PE Ratio (236.6x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: PII is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: PII is overvalued based on its PB Ratio (6.2x) compared to the US Leisure industry average (4.4x).


Next Steps

Future Growth

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

182.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PII's forecast earnings growth (182.5% per year) is above the savings rate (2.2%).

Earnings vs Market: PII's earnings (182.5% per year) are forecast to grow faster than the US market (22% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PII's revenue (5.1% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: PII's revenue (5.1% 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 very high in 3 years time (43.7%).


Next Steps

Past Performance

How has Polaris performed over the past 5 years?

-16.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PII has a large one-off loss of $379.2M impacting its September 30 2020 financial results.

Growing Profit Margin: PII's current net profit margins (0.4%) are lower than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: PII's earnings have declined by 16.2% per year over the past 5 years.

Accelerating Growth: PII's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PII had negative earnings growth (-92.1%) over the past year, making it difficult to compare to the Leisure industry average (22.4%).


Return on Equity

High ROE: PII's Return on Equity (2.6%) is considered low.


Next Steps

Financial Health

How is Polaris's financial position?


Financial Position Analysis

Short Term Liabilities: PII's short term assets ($2.4B) exceed its short term liabilities ($2.2B).

Long Term Liabilities: PII's short term assets ($2.4B) exceed its long term liabilities ($1.6B).


Debt to Equity History and Analysis

Debt Level: PII's debt to equity ratio (197.2%) is considered high.

Reducing Debt: PII's debt to equity ratio has increased from 29.9% to 197.2% over the past 5 years.

Debt Coverage: PII's debt is well covered by operating cash flow (47.9%).

Interest Coverage: PII's interest payments on its debt are well covered by EBIT (6.8x coverage).


Balance Sheet


Next Steps

Dividend

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

2.59%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: PII's dividend (2.59%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: PII's dividend (2.59%) is low compared to the top 25% of dividend payers in the US market (4.05%).


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.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (610.9%), PII's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PII's dividends in 3 years are forecast to be well covered by earnings (32.3% payout ratio).


Next Steps

Management

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

4.9yrs

Average management tenure


CEO

Scott Wine (53 yo)

12.17yrs

Tenure

US$10,158,452

Compensation

Mr. Scott W. Wine has been the Chief Executive Officer of Polaris Inc. (formerly known as Polaris Industries Inc.) since September 1, 2008 and its Chairman since January 31, 2013. Mr. Wine worked for a var...


CEO Compensation Analysis

Compensation vs Market: Scott's total compensation ($USD10.16M) is above average for companies of similar size in the US market ($USD6.86M).

Compensation vs Earnings: Scott's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Scott Wine
Chairman & CEO12.17yrsUS$10.16m0.52%
$ 30.6m
Michael Speetzen
Executive VP & CFO5.25yrsUS$3.33m0.014%
$ 820.4k
James Williams
Senior VP & Chief Human Resources Officer5.17yrsUS$2.48m0.024%
$ 1.4m
Kenneth Pucel
Executive VP of Global Operations5.92yrsUS$3.97m0.034%
$ 2.0m
Christopher Musso
Senior Vice President of Electrification Strategy3yrsUS$2.91m0.043%
$ 2.5m
Michael Donoughe
Senior VP & Chief Technical Officer2.83yrsno datano data
Matthew Emmerich
VP & Chief Information Officer6.83yrsno datano data
Richard Edwards
Vice President of Investor Relationsno datano datano data
Lucy Dougherty
Senior VP2.83yrsUS$5.69m0.039%
$ 2.3m
Timothy Larson
Chief Marketing Officer and Senior Vice President of Customer Experience3.67yrsno datano data
Robert Mack
Senior VP of Corporate Development & Strategy and President of Global Adjacent Markets & Boats4.58yrsUS$3.76m0.030%
$ 1.8m
Truls Tvete
Managing Director of Polaris Sales Internationalno datano datano data

4.9yrs

Average Tenure

50yo

Average Age

Experienced Management: PII's management team is considered experienced (4.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Scott Wine
Chairman & CEO12.17yrsUS$10.16m0.52%
$ 30.6m
John Wiehoff
Lead Independent Director7.83yrsUS$267.55kno data
Kevin Farr
Independent Director7.08yrsUS$278.83k0.0052%
$ 308.7k
George Bilicic
Independent Director3.25yrsUS$240.23k0.0065%
$ 385.4k
Annette Clayton
Independent Director17.83yrsUS$271.70kno data
George Adler
Executive Vice Chairman for TAP2.58yrsno datano data
Lawrence Kingsley
Independent Director4.83yrsUS$237.62k0.016%
$ 963.8k
Gary Hendrickson
Independent Director9.83yrsUS$242.60k0.0081%
$ 478.1k
Bernd Kessler
Independent Director10.83yrsUS$230.33kno data
Gwynne Shotwell
Independent Director1.67yrsUS$227.44kno data
Gwenne Henricks
Independent Director5.33yrsUS$232.55k0.0019%
$ 114.5k

7.1yrs

Average Tenure

59yo

Average Age

Experienced Board: PII's board of directors are considered experienced (7.1 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 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$5.902b
  • Shares outstanding: 61.70m
  • 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 Analysis2020/11/26 23:31
End of Day Share Price2020/11/25 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.