Polaris Industries IncFind Ratings Reports
POLARIS INDUSTRIES INC's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged 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 0.37 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 decreased by 10.38% 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||Q1 FY17||Q1 FY16|
|Net Sales ($mil)||1158.89||983.0|
|Net Income ($mil)||-2.91||46.89|
|Balance Sheet||Q1 FY17||Q1 FY16|
|Cash & Equiv. ($mil)||137.49||145.76|
|Total Assets ($mil)||3136.0||2379.77|
|Total Debt ($mil)||1177.74||532.4|
|Profitability||Q1 FY17||Q1 FY16|
|Gross Profit Margin||28.34||28.07|
|Return on Assets||5.2||17.38|
|Return on Equity||19.3||43.86|
|Debt||Q1 FY17||Q1 FY16|
|Share Data||Q1 FY17||Q1 FY16|
|Shares outstanding (mil)||62.99||64.62|
|Div / share||0.58||0.55|
|Book value / share||13.42||14.59|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||783652.0||882639.0|
HOLD. The current P/E ratio indicates a significant premium compared to an average of 23.97 for the Leisure Equipment & Products industry and a premium compared to the S&P 500 average of 25.73. Conducting a second comparison, its price-to-book ratio of 6.50 indicates a significant premium versus the S&P 500 average of 3.08 and a premium versus the industry average of 5.66. The price-to-sales ratio is well below both the S&P 500 average and 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.
|PII 34.76||Peers 23.97||PII 11.30||Peers 14.39|
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.
Discount. 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 discount to its peers.
|PII 17.01||Peers 19.39||PII 1.00||Peers 1.17|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
PII is trading at a valuation on par with its peers.
Discount. 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 discount to its peers.
|PII 6.50||Peers 5.66||PII -59.26||Peers 19.52|
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 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.
|PII 1.17||Peers 1.74||PII 0.50||Peers 6.44|
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 significant discount to its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
PII significantly trails its peers on the basis of sales growth