Polaris Industries Inc

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PII : NYSE : Consumer Goods
$74.45 -0.44 | -0.59%
Today's Range: 74.03 - 74.77
Avg. Daily Volume: 1,427,200
09/26/16 - 12:36 PM 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
Debt/Capital0.330.31
Interest Expense3.82.97
Interest Coverage25.3949.25


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)64.0966.14
Div / share0.550.53
EPS1.091.49
Book value / share14.5913.63
Institutional Own % n/a n/a
Avg Daily Volume1436352.01170900.0

Valuation


HOLD. This stock's P/E ratio indicates a discount compared to an average of 22.42 for the Leisure Equipment & Products industry and a significant discount compared to the S&P 500 average of 25.19. Conducting a second comparison, its price-to-book ratio of 5.06 indicates a significant premium versus the S&P 500 average of 2.82 and a premium versus the industry average of 4.67. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
PII 12.81 Peers 22.42   PII 6.82 Peers 13.30

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
PII 13.67 Peers 19.90   PII NM Peers 1.20

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.

 

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
PII 5.06 Peers 4.67   PII -15.67 Peers 2.45

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

PII is trading at a valuation on par with 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 1.01 Peers 1.64   PII -1.26 Peers 9.55

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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