Polaris Industries Inc.Find Ratings Reports
POLARIS INDUSTRIES INC's gross profit margin for the first quarter of its fiscal year 2018 has decreased when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. 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 16.52% 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 FY18||Q1 FY17|
|Net Sales ($mil)||1297.39||1158.89|
|Net Income ($mil)||55.71||-2.91|
|Balance Sheet||Q1 FY18||Q1 FY17|
|Cash & Equiv. ($mil)||166.36||137.49|
|Total Assets ($mil)||3219.61||3136.0|
|Total Debt ($mil)||1029.48||1177.74|
|Profitability||Q1 FY18||Q1 FY17|
|Gross Profit Margin||25.38||28.34|
|Return on Assets||7.17||5.2|
|Return on Equity||23.46||19.3|
|Debt||Q1 FY18||Q1 FY17|
|Share Data||Q1 FY18||Q1 FY17|
|Shares outstanding (mil)||63.08||62.99|
|Div / share||0.6||0.58|
|Book value / share||15.61||13.42|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||677028.0||763969.0|
BUY. The current P/E ratio indicates a discount compared to an average of 34.98 for the Leisure Equipment & Products industry and a premium compared to the S&P 500 average of 24.78. Conducting a second comparison, its price-to-book ratio of 6.85 indicates a significant premium versus the S&P 500 average of 3.22 and a premium versus the industry average of 5.35. The current price-to-sales ratio is well below the S&P 500 average and is also below 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.
|PII 29.77||Peers 34.98||PII 12.82||Peers 85.52|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
PII is trading at a 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.
|PII 15.42||Peers 18.43||PII 0.23||Peers 0.62|
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 significant discount to its peers.
|PII 6.85||Peers 5.35||PII 43.02||Peers -87.70|
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.
|PII 1.21||Peers 1.50||PII 18.61||Peers 5.02|
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.