Polaris Industries Inc

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PII : NYSE : Consumer Goods
$78.13 -0.91 | -1.20%
Today's Range: 78.35 - 79.46
Avg. Daily Volume: 1,285,900
10/21/16 - 9:38 AM ET

Financial Analysis

POLARIS INDUSTRIES INC's gross profit margin for the second quarter of its fiscal year 2016 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 0.35 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 3.74% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)1130.781124.33
EBITDA ($mil)136.75181.67
EBIT ($mil)96.54146.38
Net Income ($mil)71.17100.94

Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)146.63118.82
Total Assets ($mil)2395.642181.55
Total Debt ($mil)468.13403.48
Equity ($mil)935.21901.49

Profitability Q2 FY16 Q2 FY15
Gross Profit Margin27.8530.79
EBITDA Margin12.0916.15
Operating Margin8.5413.02
Sales Turnover1.952.17
Return on Assets16.0221.34
Return on Equity41.0551.66
Debt Q2 FY16 Q2 FY15
Current Ratio1.211.56
Interest Expense3.82.97
Interest Coverage25.3949.25

Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)64.0966.14
Div / share0.550.53
Book value / share14.5913.63
Institutional Own % n/a n/a
Avg Daily Volume1383558.01251173.0


HOLD. This stock's P/E ratio indicates a discount compared to an average of 21.20 for the Leisure Equipment & Products industry and a significant discount compared to the S&P 500 average of 24.54. Conducting a second comparison, its price-to-book ratio of 5.17 indicates a significant premium versus the S&P 500 average of 2.72 and a premium versus the industry average of 4.49. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. The valuation analysis reveals that, POLARIS INDUSTRIES INC seems to be trading at a discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
PII 13.10 Peers 21.20   PII 6.98 Peers 12.67

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

PII is trading at a significant discount 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 significant discount to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
PII 14.43 Peers 19.04   PII NM Peers 1.14

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.


Neutral. 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's negative PEG ratio makes this valuation measure meaningless.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
PII 5.17 Peers 4.49   PII -15.67 Peers -10.17

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
PII 1.03 Peers 1.56   PII -1.26 Peers 9.43

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



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