(PII) Polaris Industries - Overview
Sector: Consumer Cyclical | Industry: Recreational Vehicles | Exchange: NYSE (USA) | Market Cap: 3.859m USD | Total Return: 86.1% in 12m
Avg Turnover: 50.1M
Qual. Beats: 1
Rev. Trend: -90.5%
Qual. Beats: 0
Warnings
High Debt/EBITDA (8.4) with thin interest coverage (-0.3)
Interest Coverage Ratio -0.3 is critical
Altman Z'' 0.04 < 1.0 - financial distress zone
Tailwinds
Confidence
Polaris Inc. (PII) is a global manufacturer of powersports vehicles operating through Off Road, On Road, and Marine segments. Its product portfolio includes all-terrain vehicles (ATVs), side-by-side vehicles, snowmobiles, motorcycles, and pontoon boats. The company supports its hardware sales with a comprehensive aftermarket business providing parts, garments, and specialized accessories.
The leisure products sector is highly cyclical and sensitive to changes in consumer discretionary income and interest rates. Polaris utilizes a dealer-based distribution model, which requires effective inventory management to align factory production with seasonal retail demand. For a deeper look at the companys historical financial performance, you may wish to consult ValueRay.
Headquartered in Minnesota, Polaris has expanded from its 1945 origins as a snowmobile pioneer into a diversified manufacturer serving military, commercial, and recreational markets. The integration of digital sales channels alongside traditional physical dealerships reflects the evolving retail landscape for high-ticket recreational goods.
- High interest rates and tightening credit conditions reduce consumer powersports demand
- Off-road vehicle volume and dealer inventory levels dictate quarterly revenue performance
- Promotional spending and discounting to clear aged inventory weigh on gross margins
- Marine segment sales face cyclical headwinds from declining discretionary leisure spending
- Efficient supply chain management and raw material costs impact manufacturing profitability
| Net Income: -446.1m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.03 > 0.02 and ΔFCF/TA -0.03 > 1.0 |
| NWC/Revenue: 6.27% < 20% (prev 4.05%; Δ 2.22% < -1%) |
| CFO/TA 0.06 > 3% & CFO 337.6m > Net Income -446.1m |
| Net Debt (2.04b) to EBITDA (241.6m): 8.44 < 3 |
| Current Ratio: 1.21 > 1.5 & < 3 |
| Outstanding Shares: last quarter (57.4m) vs 12m ago 0.88% < -2% |
| Gross Margin: 19.64% > 18% (prev 0.19%; Δ 1.95k% > 0.5%) |
| Asset Turnover: 136.1% > 50% (prev 128.0%; Δ 8.11% > 0%) |
| Interest Coverage Ratio: -0.27 > 6 (EBITDA TTM 241.6m / Interest Expense TTM 128.6m) |
| A: 0.09 (Total Current Assets 2.59b - Total Current Liabilities 2.13b) / Total Assets 5.24b |
| B: -0.11 (Retained Earnings -560.3m / Total Assets 5.24b) |
| C: -0.01 (EBIT TTM -34.7m / Avg Total Assets 5.35b) |
| D: -0.13 (Book Value of Equity -598.4m / Total Liabilities 4.49b) |
| Altman-Z'' = 0.04 = B |
| DSRI: 1.13 (Receivables 284.7m/240.5m, Revenue 7.27b/6.97b) |
| GMI: 0.96 (GM 19.64% / 18.83%) |
| AQI: 1.02 (AQ_t 0.29 / AQ_t-1 0.29) |
| SGI: 1.04 (Revenue 7.27b / 6.97b) |
| TATA: -0.15 (NI -446.1m - CFO 337.6m) / TA 5.24b) |
| Beneish M = -3.06 (Cap -4..+1) = AA |
As of May 31, 2026, the stock is trading at USD 70.57 with a total of 585,598 shares traded.
Over the past week, the price has changed by +6.49%,
over one month by +4.98%,
over three months by +17.50% and
over the past year by +86.08%.
Polaris Industries has received a consensus analysts rating of 3.22. Therefore, it is recommended to hold PII.
- StrongBuy: 2
- Buy: 1
- Hold: 14
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 68 | -3.6% |
P/E Forward = 49.0196
P/S = 0.5247
P/B = 5.0238
P/EG = 3.3368
Revenue TTM = 7.27b USD
EBIT TTM = -34.7m USD
EBITDA TTM = 241.6m USD
Long Term Debt = 2.06b USD (from longTermDebt, last quarter)
Short Term Debt = 59.3m USD (from shortTermDebt, last quarter)
Debt = 2.32b USD (from shortLongTermDebtTotal, last quarter) + Leases 114.6m
Net Debt = 2.04b USD (calculated: Debt 2.32b - CCE 282.0m)
Enterprise Value = 5.90b USD (3.86b + Debt 2.32b - CCE 282.0m)
Interest Coverage Ratio = -0.27 (Ebit TTM -34.7m / Interest Expense TTM 128.6m)
EV/FCF = 36.72x (Enterprise Value 5.90b / FCF TTM 160.6m)
FCF Yield = 2.72% (FCF TTM 160.6m / Enterprise Value 5.90b)
FCF Margin = 2.21% (FCF TTM 160.6m / Revenue TTM 7.27b)
Net Margin = -6.13% (Net Income TTM -446.1m / Revenue TTM 7.27b)
Gross Margin = 19.64% ((Revenue TTM 7.27b - Cost of Revenue TTM 5.85b) / Revenue TTM)
Gross Margin QoQ = 20.18% (prev 20.22%)
Tobins Q-Ratio = 1.13 (Enterprise Value 5.90b / Total Assets 5.24b)
Interest Expense / Debt = 5.54% (Interest Expense 128.6m / Debt 2.32b)
Taxrate = 21.0% (US default 21%)
NOPAT = -27.4m (EBIT -34.7m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 1.21 (Total Current Assets 2.59b / Total Current Liabilities 2.13b)
Debt / Equity = 3.09 (Debt 2.32b / totalStockholderEquity, last quarter 750.4m)
Debt / EBITDA = 8.44 (Net Debt 2.04b / EBITDA 241.6m)
Debt / FCF = 12.69 (Net Debt 2.04b / FCF TTM 160.6m)
Total Stockholder Equity = 978.4m (last 4 quarters mean from totalStockholderEquity)
RoA = -8.34% (Net Income -446.1m / Total Assets 5.24b)
RoE = -28.99% (Net Income TTM -446.1m / Total Stockholder Equity 1.54b)
RoCE = -0.97% (EBIT -34.7m / Capital Employed (Equity 1.54b + L.T.Debt 2.06b))
RoIC = -0.87% (negative operating profit) (NOPAT -27.4m / Invested Capital 3.17b)
WACC = 8.22% (E(3.86b)/V(6.18b) * Re(10.53%) + D(2.32b)/V(6.18b) * Rd(5.54%) * (1-Tc(0.21)))
Discount Rate = 10.53% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 5.11 | Cagr: 0.16%
[DCF] Terminal Value 74.75% ; FCFF base≈163.9m ; Y1≈157.8m ; Y5≈153.7m
[DCF] Fair Price = 6.59 (EV 2.41b - Net Debt 2.04b = Equity 374.7m / Shares 56.9m; r=8.35% [WACC [floored]]; 5y FCF grow -4.91% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.99 | # QB: 1
Revenue Correlation: -90.45 | Revenue CAGR: -10.57% | SUE: 0.21 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.70 | Chg30d=+20.31% | Revisions=+53% | Analysts=16
EPS next Quarter (2026-09-30): EPS=0.72 | Chg30d=-19.88% | Revisions=-53% | Analysts=16
EPS current Year (2026-12-31): EPS=1.82 | Chg30d=+9.61% | Revisions=+75% | GrowthEPS=+18288.6% | GrowthRev=+1.8%
EPS next Year (2027-12-31): EPS=3.12 | Chg30d=+1.05% | Revisions=+33% | GrowthEPS=+71.7% | GrowthRev=+3.8%
[Analyst] Revisions Ratio: +75%