Polaris (PII) AI Stock Analysis

• Market Cap: $1.89B
• Dividend Yield: 7.83%
• Average Volume (3M): 1.86M
• Price to Earnings (P/E): 17.3
• Beta (1Y): 1.04
• Revenue Growth: -17.86%
• EPS Growth: -89.55%
• Country: US
• Employees: 15,000
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Auto - Recreational Vehicles
• EPS (TTM): 1.95
• Shares Outstanding: 55,900,510
• 10 Day Avg. Volume: 1,926,735
• 30 Day Avg. Volume: 1,858,453
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.75
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 3.53
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $34.38
• Price Target Upside: 1.24% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

Polaris faces significant challenges with declining profitability and market uncertainties, particularly around tariffs. Despite these, strong cash flow and operational efficiencies provide some resilience. The bearish technical indicators and withdrawal of guidance further weigh on the stock's outlook.

Positive Factors

Innovation and Market Expansion

PII highlighted new innovation that it expects to help grow its market share including an entry level priced ORV launch later this year.

Market Share Growth

Polaris gained market share in mid-size motorcycles with the new Indian Scout Lineup.

Operational Improvements

PII highlighted significant progress in lean process improvements including a new training program for assemblers and model line implementations informed by former Toyota consultants.

Negative Factors

Consumer Environment Challenges

PII highlighted near-term industry headwinds, including consumer uncertainty, elevated rates, aggressive promotional levels, dealer caution, and inventory destocking.

Sales Decline

Polaris reported a decline in off-road, on-road, and marine sales due to lower volume and higher promotional activity.

Tariff Uncertainty

Polaris lowered its price objective to reflect incremental tariff uncertainty and the demand environment.

Polaris Business Overview & Revenue Model

Company Description

Polaris Inc. designs, engineers, manufactures, and markets power sports vehicles worldwide. It operates through three segments: Off-Road, On-Road and Marine. The company offers off-road vehicles (ORVs), including all-terrain vehicles and side-by-side vehicles; snowmobiles and snow bikes conversion kit systems; motorcycles; and low emission, light duty hauling, passenger, and industrial vehicles. It also provides quadricycles and moto-roadsters; ORV accessories comprising winches, bumper, plows, racks, wheels and tires, pull-behinds, cab systems, lighting and audio systems, cargo box accessories, tracks, and oil; snowmobile accessories, which include covers, traction products, electric starters, reverse kits, tracks, bags, windshields, oil, and lubricants; and motorcycle accessories, such as saddle bags, handlebars, backrests, exhausts, windshields, seats, oil, and various chrome accessories. In addition, the company offers gear and apparel, such as helmets, jackets, gloves, pants, hats, goggles, boots, bibs, and leathers; and pontoon and deck boats. The company provides its products through dealers and distributors, and online; and aftermarket parts, garments, and accessories through 101 brick-and-mortar retail centers, call centers, and e-commerce sites. The company was formerly known as Polaris Industries Inc. Polaris Inc. was founded in 1954 and is headquartered in Medina, Minnesota.

How the Company Makes Money

Polaris generates revenue primarily through the sale of its wide range of powersports vehicles and related products. The company's key revenue streams include the sale of off-road vehicles (such as all-terrain vehicles and side-by-sides), snowmobiles, and motorcycles, as well as parts, garments, and accessories (PG&A) that complement their core product offerings. Additionally, Polaris has expanded into the marine industry, acquiring boat brands that contribute to its earnings. The company benefits from a robust dealership network, both domestically and internationally, which facilitates the distribution and sale of its products. Strategic partnerships and a focus on innovation, including advancements in electric vehicle technology, also play a significant role in Polaris's revenue generation.

Polaris Financial Statement Overview

Summary

Polaris demonstrates resilience with strong operating cash flow despite challenges in profitability and inconsistent revenue growth. Increased leverage is a concern, although equity remains stable.

Income Statement

Polaris has shown fluctuating revenues, with a notable decline in both EBIT and net income over the TTM period. The gross profit margin is healthy, yet the net profit margin is low due to decreased net income. Revenue growth has been inconsistent, indicating potential market challenges.

Balance Sheet

The company's debt-to-equity ratio has increased slightly, indicating higher leverage, which could pose risks. However, the equity ratio remains stable, reflecting a decent balance between the company's assets and liabilities. Return on equity is low, impacted by declining net income.

Cash Flow

Operating cash flow is strong, showing improvement over previous periods. However, free cash flow growth is volatile, with a significant drop in the TTM period. The operating cash flow to net income ratio is high, suggesting strong cash conversion.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
7.18B	8.93B	8.59B	8.20B	7.03B
	Gross Profit
1.47B	1.96B	1.96B	1.94B	1.71B
	EBIT
290.60M	700.90M	804.50M	709.00M	587.30M
	EBITDA
290.60M	1.01B	1.07B	881.20M	462.70M
	Net Income Common Stockholders
110.80M	502.80M	603.40M	493.90M	124.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
287.80M	367.80M	324.50M	509.20M	634.70M
	Total Assets
5.53B	5.52B	5.22B	5.05B	4.63B
	Total Debt
1.64B	2.05B	2.17B	1.97B	1.58B
	Net Debt
1.35B	1.69B	1.84B	1.46B	943.00M
	Total Liabilities
4.23B	4.10B	4.12B	3.82B	3.49B
	Stockholders Equity
1.29B	1.42B	1.10B	1.22B	1.14B
Cash Flow		Free Cash Flow
6.50M	513.20M	202.00M	-4.60M	804.70M
	Operating Cash Flow
268.20M	925.80M	508.60M	293.70M	1.02B
	Investing Cash Flow
-270.90M	-462.00M	-324.60M	-303.90M	-150.70M
	Financing Cash Flow
-59.20M	-431.30M	-363.20M	-107.60M	-415.40M

Polaris Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 33.96
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PII, the sentiment is Negative. The current price of 33.96 is below the 20-day moving average (MA) of 34.59, below the 50-day MA of 40.01, and below the 200-day MA of 61.50, indicating a bearish trend. The MACD of -1.86 indicates Negative momentum. The RSI at 41.39 is Neutral, neither overbought nor oversold. The STOCH value of 40.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PII.

Polaris Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LCII	71 Outperform	$1.95B	13.76	10.42%	5.57%	-1.15%	121.43%
THO	68 Neutral	$3.85B	19.22	5.13%	2.64%	-8.45%	-25.41%
HOG	65 Neutral	$2.79B	6.55	14.19%	3.01%	-11.13%	-31.78%
BC	64 Neutral	$3.04B	38.11	5.16%	3.65%	-15.42%	-77.50%
WGO	61 Neutral	$872.15M	―	-0.45%	3.99%	-12.29%	-105.55%
Sector *	60 Neutral	$6.58B	11.55	3.14%	4.05%	2.58%	-21.37%
PII	60 Neutral	$1.89B	17.30	3.09%	7.83%	-17.86%	-89.55%

Polaris Corporate Events

Polaris Announces Leadership Changes with Eastman’s Retirement

Polaris Inc. will see a leadership change as Stephen L. Eastman, the President of Parts, Garments, and Accessories, plans to retire at the end of 2024. Following his retirement announcement, Eastman’s roles will be redistributed among other company leaders starting January 2025, while he transitions to a strategic advisory role until December 2025, maintaining his current compensation.