Polaris Industries Inc.

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PII : NYSE : Consumer Durables
$116.46 up 0.88 | 0.76%
Today's Range: 115.07 - 117.805
Avg. Daily Volume: 745100.0
02/22/18 - 2:15 PM ET

Financial Analysis


POLARIS INDUSTRIES INC's gross profit margin for the fourth quarter of its fiscal year 2017 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. POLARIS INDUSTRIES INC has very weak liquidity. Currently, the Quick Ratio is 0.33 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity decreased from the same period a year ago, despite already having very weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 7.71% 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 Q4 FY17 Q4 FY16
Net Sales ($mil)1429.731217.79
EBITDA ($mil)0.0128.9
EBIT ($mil)119.1183.29
Net Income ($mil)31.4762.58


Balance Sheet Q4 FY17 Q4 FY16
Cash & Equiv. ($mil)138.35127.33
Total Assets ($mil)3089.593099.6
Total Debt ($mil)913.011141.91
Equity ($mil)943.38875.77


Profitability Q4 FY17 Q4 FY16
Gross Profit Margin26.127.7
EBITDA Margin0.010.58
Operating Margin8.336.84
Sales Turnover1.761.46
Return on Assets5.586.87
Return on Equity18.2824.31
Debt Q4 FY17 Q4 FY16
Current Ratio1.111.24
Debt/Capital0.490.57
Interest Expense7.725.6
Interest Coverage15.4314.87


Share Data Q4 FY17 Q4 FY16
Shares outstanding (mil)62.5463.11
Div / share0.580.55
EPS0.490.97
Book value / share15.0813.88
Institutional Own % n/a n/a
Avg Daily Volume775568.0867507.0

Valuation


HOLD. POLARIS INDUSTRIES INC's P/E ratio indicates a significant premium compared to an average of 32.00 for the Leisure Equipment & Products industry and a significant premium compared to the S&P 500 average of 25.51. For additional comparison, its price-to-book ratio of 7.84 indicates a significant premium versus the S&P 500 average of 3.26 and a significant premium versus the industry average of 5.46. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. After reviewing 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 43.94 Peers 32.00   PII 12.75 Peers 13.99

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.

 

Average. 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 valuation on par 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 16.95 Peers 116.18   PII 0.35 Peers 0.38

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

PII is trading at a significant discount to its peers.

 

Average. 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 valuation on par to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
PII 7.84 Peers 5.46   PII -17.74 Peers -70.79

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.

 

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

PII is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
PII 1.36 Peers 1.58   PII 20.17 Peers 8.63

Discount. 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 discount to its industry on this measurement.

 

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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