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Polaris Industries Inc
PII : NYSE : Consumer Goods
$146.18 | %
Today's Range: 145.64 - 148.05
Avg. Daily Volume: 662,200
10/24/14 - 4:04 PM ET

Financial Analysis


POLARIS INDUSTRIES INC's gross profit margin for the third quarter of its fiscal year 2014 has decreased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. POLARIS INDUSTRIES INC has very weak liquidity. Currently, the Quick Ratio is 0.42 which clearly shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 9.94% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q3 FY14 Q3 FY13
Net Sales ($mil)1302.341102.65
EBITDA ($mil)0.0203.71
EBIT ($mil)205.53178.62
Net Income ($mil)140.83113.14


Balance Sheet Q3 FY14 Q3 FY13
Cash & Equiv. ($mil)169.02387.8
Total Assets ($mil)2008.831923.22
Total Debt ($mil)228.02107.22
Equity ($mil)839.04931.68


Profitability Q3 FY14 Q3 FY13
Gross Profit Margin29.8132.84
EBITDA Margin0.018.47
Operating Margin15.7816.2
Sales Turnover2.131.87
Return on Assets21.2718.54
Return on Equity50.9238.68
Debt Q3 FY14 Q3 FY13
Current Ratio1.311.42
Debt/Capital0.210.1
Interest Expense2.841.52
Interest Coverage72.5117.51


Share Data Q3 FY14 Q3 FY13
Shares outstanding (mil)65.9669.25
Div / share0.480.42
EPS2.061.64
Book value / share12.7213.45
Institutional Own % n/a n/a
Avg Daily Volume655400.0521147.0

Valuation


BUY. POLARIS INDUSTRIES INC's P/E ratio indicates a premium compared to an average of 18.30 for the Leisure Equipment & Products industry and a premium compared to the S&P 500 average of 18.69. For additional comparison, its price-to-book ratio of 11.33 indicates a significant premium versus the S&P 500 average of 2.58 and a significant premium versus the industry average of 5.75. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, POLARIS INDUSTRIES INC proves to trade at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
PII 23.14 Peers 18.30   PII 18.56 Peers 16.78

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

PII is trading at a significant premium to its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

PII is trading at a premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
PII 18.36 Peers 18.43   PII 1.05 Peers 0.80

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

PII is trading at a premium to its peers.

 

Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

PII trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
PII 11.33 Peers 5.75   PII 22.63 Peers 63.23

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

PII is trading at a significant premium to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, PII is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
PII 2.22 Peers 1.68   PII 19.31 Peers 5.70

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

PII is trading at a significant premium to its industry.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

PII has a sales growth rate that significantly exceeds its peers.

 

 

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