Polaris (PII) AI Stock Analysis

• Market Cap: $3.73B
• Dividend Yield: 4.04%
• Average Volume (3M): 1.10M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.06
• Revenue Growth: -9.39%
• EPS Growth: -173.86%
• Country: US
• Employees: 15,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Recreational Vehicles
• EPS (TTM): 0.41
• Shares Outstanding: 56,248,333
• 10 Day Avg. Volume: 821,182
• 30 Day Avg. Volume: 1,100,384
• PEG Ratio: -0.38
• Price to Book (P/B): 2.52
• Price to Sales (P/S): 0.45
• P/FCF Ratio: 500.85
• Enterprise Value/Market Cap: 1.29
• Enterprise Value/Revenue: 0.69
• Enterprise Value/Gross Profit: 3.79
• Enterprise Value/Ebitda: 17.79
• 1Y Price Target: $66.67
• Price Target Upside: 0.42% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10
• EPS Forecast (FY): -0.01
• Revenue Forecast (FY): $7.05B

• Rating: 52 Neutral
• Price Target: $60.00 ▼(-9.62% Downside)

Polaris's overall score is driven by financial challenges, particularly in profitability and leverage, despite strong sales growth and strategic initiatives. Technical indicators suggest bearish momentum, while valuation metrics are pressured by negative earnings. The earnings call provided positive future guidance, but tariff impacts and segment-specific declines remain concerns.

Positive Factors

Market Share Gains

The gain in market share in the Off-Road Vehicles segment indicates strong competitive positioning and potential for sustained revenue growth.

Operational Efficiencies

Achieving significant operational efficiencies can improve margins and profitability, providing a durable competitive advantage.

Strategic Focus

Divesting non-core assets allows Polaris to focus on high-margin growth areas, enhancing long-term profitability and strategic focus.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting long-term financial health and stability.

Tariff Impacts

Rising tariffs can significantly increase costs, pressuring margins and affecting competitive positioning in the global market.

Profitability Challenges

Ongoing profitability challenges, as indicated by net losses, can hinder reinvestment in growth and innovation, affecting long-term viability.

Polaris Business Overview & Revenue Model

Company Description

Polaris Industries Inc. (PII) is a leading manufacturer of outdoor recreational products, primarily known for its innovative all-terrain vehicles (ATVs), side-by-side vehicles (SxS), snowmobiles, and electric vehicles. The company operates in several sectors, including off-road vehicles, snowmobiles, and on-road vehicles, with a focus on performance, durability, and customer satisfaction. Polaris also offers parts, garments, and accessories to enhance the riding experience, catering to a diverse range of customers from recreational users to professional racers.

How the Company Makes Money

Polaris generates revenue primarily through the sale of its vehicles, including ATVs, SxS, and snowmobiles, which account for a significant portion of its earnings. The company also earns money from the sale of aftermarket parts, accessories, and clothing related to their vehicles. Additionally, Polaris has established strategic partnerships with various dealers and distributors, enhancing its market reach and sales capabilities. The company benefits from seasonal demand fluctuations, particularly in winter for snowmobiles and in warmer months for ATVs and SxS vehicles. Polaris also invests in innovation and product development, allowing it to capture new market opportunities and expand its customer base.

Polaris Financial Statement Overview

Summary

Polaris faces challenges with profitability, evidenced by negative net income and declining margins. However, improved cash flow is a positive sign amidst operational difficulties. The balance sheet shows high leverage, posing potential risks if not managed carefully.

Income Statement

Polaris shows a mixed performance in its income statement. The TTM data reveals a slight revenue growth of 1.74%, but the company is currently experiencing a net loss, leading to a negative net profit margin of -2.17%. The gross profit margin has decreased over time, indicating pressure on profitability. EBIT and EBITDA margins are also low, suggesting challenges in operational efficiency.

Balance Sheet

The balance sheet indicates a high debt-to-equity ratio of 1.13 in the TTM, which is an improvement from previous years but still suggests significant leverage. The return on equity is negative, reflecting recent losses. However, the equity ratio is stable, showing that equity forms a reasonable portion of total assets.

Cash Flow

Cash flow analysis shows a strong free cash flow growth of 39.29% in the TTM, indicating improved cash generation. The operating cash flow to net income ratio is positive, suggesting that cash flows are more robust than net income figures imply. However, the free cash flow to net income ratio is below 1, indicating that not all net income is translating into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.99B	7.18B	8.93B	8.59B	7.44B	7.03B
Gross Profit	1.28B	1.40B	1.91B	1.91B	1.70B	1.63B
EBITDA	271.70M	569.40M	1.01B	1.07B	881.20M	462.70M
Net Income	-151.30M	110.80M	502.80M	589.70M	493.90M	124.80M
Balance Sheet
Total Assets	5.31B	5.53B	5.52B	5.22B	5.05B	4.63B
Cash, Cash Equivalents and Short-Term Investments	335.50M	287.80M	367.80M	324.50M	502.30M	634.70M
Total Debt	1.86B	2.20B	2.05B	2.17B	1.89B	1.58B
Total Liabilities	4.14B	4.23B	4.10B	4.12B	3.82B	3.49B
Stockholders Equity	1.15B	1.29B	1.42B	1.10B	1.22B	1.14B
Cash Flow
Free Cash Flow	581.40M	6.50M	513.20M	202.00M	-4.60M	804.70M
Operating Cash Flow	768.60M	268.20M	925.80M	508.60M	293.70M	1.02B
Investing Cash Flow	-129.50M	-270.90M	-462.00M	-324.60M	-303.90M	-150.70M
Financing Cash Flow	-601.20M	-59.20M	-431.30M	-363.20M	-107.60M	-415.40M

Polaris Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 66.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PII, the sentiment is Positive. The current price of 66.39 is above the 20-day moving average (MA) of 64.69, above the 50-day MA of 63.69, and above the 200-day MA of 48.90, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 55.31 is Neutral, neither overbought nor oversold. The STOCH value of 81.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PII.

Polaris Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LCII	77 Outperform	$2.80B	16.16	12.89%	4.05%	5.74%	39.40%
WGO	62 Neutral	$1.03B	40.13	2.06%	3.76%	-5.90%	119.79%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
THO	61 Neutral	$5.58B	21.89	6.19%	1.91%	-4.62%	-2.29%
HOG	60 Neutral	$3.08B	6.15	14.31%	2.92%	-15.99%	-6.76%
PII	52 Neutral	$3.73B	―	-12.15%	4.04%	-9.39%	-173.86%
BC	52 Neutral	$4.33B	―	-12.31%	2.58%	-4.78%	-189.89%

Polaris Corporate Events

Polaris Issues $500 Million in Senior Notes

On November 13, 2025, Polaris Inc. issued $500 million in 5.600% Senior Notes due 2031, facilitated by an underwriting agreement with several financial institutions. This strategic financial move, governed by an Indenture with U.S. Bank Trust Company, aims to strengthen Polaris’s financial position and potentially enhance its market standing.

The most recent analyst rating on (PII) stock is a Hold with a $57.00 price target. To see the full list of analyst forecasts on Polaris stock, see the PII Stock Forecast page.

Polaris Industries Reports Solid Sales Growth Amid Challenges

Polaris Industries, a global leader in the powersports sector, specializes in manufacturing off-road vehicles, motorcycles, and boats, with a strong emphasis on innovation and outdoor experiences. In its third quarter of 2025, Polaris reported a seven percent increase in sales, reaching $1.842 billion, despite a reported net loss of $15.8 million. The company saw significant market share gains in off-road vehicles and motorcycles, with retail sales up nine percent compared to the previous year. Operating cash flow for the year-to-date was $562 million, and the company reintroduced its full-year guidance for adjusted sales and earnings.

Polaris Industries’ Earnings Call Highlights Growth and Strategic Moves

Polaris Industries’ latest earnings call revealed a generally positive sentiment, driven by significant sales growth and strategic moves aimed at enhancing profitability. The company reported notable market share gains and a major strategic decision to sell a majority stake in Indian Motorcycle, which is expected to focus efforts on high-margin growth areas. Despite these positive developments, challenges such as tariff impacts and segment-specific declines persist, particularly in the Youth segment.

Polaris Industries Advances NASH Treatment with ADI-PEG 20 Study

Polaris Industries is currently conducting a clinical study titled ‘A Phase 2A, Randomized, Double-Blind, Placebo-Controlled, Multi-Center Trial of ADI-PEG 20 or Placebo in Subjects With Nonalcoholic Steatohepatitis (NASH)’. The study aims to evaluate the efficacy and safety of the drug ADI-PEG 20 in treating patients with NASH, a significant liver condition. This research is crucial as it could lead to new therapeutic options for NASH, a disease with limited treatment choices.

Polaris Group’s Phase 3 Trial for Leiomyosarcoma: A Potential Game-Changer

Study Overview: Polaris Group is conducting a Phase 3 clinical trial titled ADI-PEG 20 or Placebo Plus Gemcitabine and Docetaxel in Previously Treated Subjects With Leiomyosarcoma (ARGSARC). The study aims to evaluate the efficacy and safety of ADI-PEG 20 combined with Gemcitabine and Docetaxel in patients with advanced or metastatic leiomyosarcoma (LMS) who have previously been treated with an anthracycline. This trial is significant as it explores new treatment avenues for LMS, a challenging soft tissue sarcoma.

Polaris Industries’ Promising Study on ADI-PEG 20 for Liver Cancer

Study Overview: Polaris Industries is conducting a study titled A Randomized, Double-Blind, Multi-Center Study of ADI-PEG 20 Versus Placebo in Subjects with High Arginine Level and Unresectable Hepatocellular Carcinoma. The study aims to evaluate the efficacy and safety of ADI-PEG 20 in patients with high arginine levels and hepatocellular carcinoma (HCC), a significant concern in liver cancer treatment.

Polaris Sells Majority Stake in Indian Motorcycle

On October 10, 2025, Polaris announced its decision to separate Indian Motorcycle into a standalone business by selling a majority stake to Carolwood LP. This strategic move is expected to enhance Polaris’ focus on high-growth areas and improve its financial performance, with anticipated benefits to its adjusted EBITDA and earnings per share. The transaction, expected to close in the first quarter of 2026, will see Indian Motorcycle continue its operations independently, retaining its workforce and facilities. Mike Dougherty, President of Polaris’ On Road and International business, will retire following the transaction’s completion. The deal is positioned to benefit both Polaris and Indian Motorcycle by allowing each to concentrate on their respective strengths and market opportunities.

The most recent analyst rating on (PII) stock is a Hold with a $54.00 price target. To see the full list of analyst forecasts on Polaris stock, see the PII Stock Forecast page.