Polaris Industries Inc

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PII : NYSE : Consumer Goods
$89.72 up 0.84 | 0.95%
Today's Range: 87.89 - 89.95
Avg. Daily Volume: 757200.0
06/23/17 - 4:03 PM ET

Financial Analysis

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 ($mil)1158.89983.0
EBITDA ($mil)105.9895.54
EBIT ($mil)61.4457.65
Net Income ($mil)-2.9146.89

Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)137.49145.76
Total Assets ($mil)3136.02379.77
Total Debt ($mil)1177.74532.4
Equity ($mil)845.1943.06

Profitability Q1 FY17 Q1 FY16
Gross Profit Margin28.3428.07
EBITDA Margin9.149.71
Operating Margin5.35.86
Sales Turnover1.51.96
Return on Assets5.217.38
Return on Equity19.343.86
Debt Q1 FY17 Q1 FY16
Current Ratio1.271.36
Interest Expense7.912.87
Interest Coverage7.7620.12

Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)62.9964.62
Div / share0.580.55
Book value / share13.4214.59
Institutional Own % n/a n/a
Avg Daily Volume783652.0882639.0


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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
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



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