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Polaris Inc PII

Morningstar Rating
$92.57 +0.29 (0.31%)
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Company Report

Cautious Consumer Behavior Doesn't Derail Polaris' Long-Term Potential Bolstered by Brand Prowess

Polaris is one of the longest-operating brands in powersports. We believe that its brands, innovative products, and lean manufacturing yield the firm a wide economic moat and that it stands to capitalize on its research and development, solid quality, operational excellence, and acquisition strategy. However, Polaris' brands do not benefit from switching costs, and with peers innovating more quickly than in the past, it could jeopardize the firm's ability to take price and share consistently, particularly in periods of inflated recalls or aggressive industry discounting.

Price vs Fair Value

PII is trading at a 36% discount.
Price
$92.57
Fair Value
$651.00
Uncertainty
Medium
1-Star Price
$852.97
5-Star Price
$645.90
Economic Moat
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Capital Allocation
Zvxjnfmb

Bulls Say, Bears Say

Bulls

Polaris has historically had a strong reputation for innovation, and new product lines and strategic acquisitions have supported solid performance in both strong and difficult environments.

Bears

Higher inflation could impact costs, with expenses stemming from rising commodity prices, labor, or logistics expenses. This could hurt profitability.

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News

Trading Information

Previous Close Price
$92.28
Day Range
$91.7692.99
52-Week Range
$82.00138.49
Bid/Ask
$91.86 / $93.02
Market Cap
$5.22 Bil
Volume/Avg
377,494 / 763,501

Key Statistics

Price/Earnings (Normalized)
8.53
Price/Sales
0.59
Dividend Yield (Trailing)
2.81%
Dividend Yield (Forward)
2.85%
Total Yield
6.23%

Company Profile

Polaris designs and manufactures off-road vehicles, including all-terrain vehicles and side-by-side vehicles for recreational and utility purposes, snowmobiles, and on-road vehicles, including motorcycles, along with the related replacement parts, garments, and accessories. The firm entered the marine market after acquiring Boat Holdings in 2018, offering exposure to new segments of the outdoor lifestyle market. Polaris products retailed through more than 2,500 dealers in North America and through 1,500 international dealers as well as more than 25 subsidiaries and 90 distributors in more than 100 countries outside North America.
Sector
Consumer Cyclical
Industry
Recreational Vehicles
Stock Style Box
Small Value
Total Number of Employees
18,500

Competitors

Valuation

Metric
PII
HOG
MBUU
Price/Earnings (Normalized)
8.537.507.34
Price/Book Value
3.621.581.55
Price/Sales
0.590.920.81
Price/Cash Flow
7.597.0910.72
Price/Earnings
PII
HOG
MBUU

Financial Strength

Metric
PII
HOG
MBUU
Quick Ratio
0.351.610.60
Current Ratio
1.392.031.82
Interest Coverage
5.9629.7439.15
Quick Ratio
PII
HOG
MBUU

Profitability

Metric
PII
HOG
MBUU
Return on Assets (Normalized)
9.71%6.51%17.34%
Return on Equity (Normalized)
42.30%25.43%25.51%
Return on Invested Capital (Normalized)
18.29%7.86%23.86%
Return on Assets
PII
HOG
MBUU
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Recreational Vehicles Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
THO
Thor Industries IncSzvnf$6.6 Bil
BC
Brunswick CorpKrfmnf$6.0 Bil
HOG
Harley-Davidson IncNbqs$5.0 Bil
DOOO
BRP Inc Shs Subord.VotingSsqxh$5.0 Bil
LCII
LCI Industries IncTxln$3.1 Bil
WGO
Winnebago Industries IncTxh$2.1 Bil
BTEAF
Beneteau SAXhtcl$1.1 Bil
MBUU
Malibu Boats Inc Class ANqsxydj$862.0 Mil
MCFT
MasterCraft Boat Holdings IncBrdzn$382.4 Mil

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