Polaris Industries Inc

Find Ratings Reports
PII : NYSE : Consumer Goods
$89.66 up 0.33 | 0.37%
Today's Range: 89.14 - 90.61
Avg. Daily Volume: 652100.0
08/17/17 - 2:48 PM ET

Financial Analysis


POLARIS INDUSTRIES INC's gross profit margin for the second 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. POLARIS INDUSTRIES INC has very weak liquidity. Currently, the Quick Ratio is 0.30 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.

During the same period, stockholders' equity ("net worth") has decreased by 7.56% 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)1358.761130.78
EBITDA ($mil)145.55136.75
EBIT ($mil)98.9696.54
Net Income ($mil)62.0471.17


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)127.38146.63
Total Assets ($mil)3114.972395.64
Total Debt ($mil)1067.8468.13
Equity ($mil)864.5935.21


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin29.1227.85
EBITDA Margin10.7112.09
Operating Margin7.288.54
Sales Turnover1.581.95
Return on Assets4.9416.02
Return on Equity17.8141.05
Debt Q2 FY17 Q2 FY16
Current Ratio1.161.21
Debt/Capital0.550.33
Interest Expense8.033.8
Interest Coverage12.3225.39


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)62.5664.09
Div / share0.580.55
EPS0.971.09
Book value / share13.8214.59
Institutional Own % n/a n/a
Avg Daily Volume660916.0833879.0

Valuation


BUY. POLARIS INDUSTRIES INC's P/E ratio indicates a significant premium compared to an average of 22.70 for the Leisure Equipment & Products industry and a significant premium compared to the S&P 500 average of 24.31. Conducting a second comparison, its price-to-book ratio of 6.37 indicates a significant premium versus the S&P 500 average of 3.03 and a premium versus the industry average of 5.24. 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 36.85 Peers 22.70   PII 11.22 Peers 14.05

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
PII 17.00 Peers 19.09   PII 1.02 Peers 0.95

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.

 

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 6.37 Peers 5.24   PII -58.51 Peers 2.13

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
PII 1.12 Peers 1.54   PII 5.24 Peers 6.59

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 trails its peers on the basis of sales growth

 

 

Latest Stock Upgrades/Downgrades