Polaris (PII) AI Stock Analysis

• Market Cap: $2.61B
• Dividend Yield: 5.77%
• Average Volume (3M): 1.56M
• Price to Earnings (P/E): 65.3
• Beta (1Y): 1.07
• Revenue Growth: -17.86%
• EPS Growth: -89.55%
• Country: US
• Employees: 15,000
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Auto - Recreational Vehicles
• EPS (TTM): -0.90
• Shares Outstanding: 56,197,770
• 10 Day Avg. Volume: 2,255,815
• 30 Day Avg. Volume: 1,564,515
• PEG Ratio: -0.92
• Price to Book (P/B): 1.90
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.62
• Enterprise Value/Market Cap: 1.61
• Enterprise Value/Revenue: 0.14
• Enterprise Value/Gross Profit: 3.08
• Enterprise Value/Ebitda: 1.65
• 1Y Price Target: $34.56
• Price Target Upside: -25.58% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 11

• Rating: 65 Neutral
• Price Target: $50.00 ▲(7.67%Upside)

Polaris's overall score is driven by strong operating cash flow and positive technical trends, but is tempered by high valuation concerns and challenging market conditions highlighted in the earnings call. The recent corporate event provides a positive outlook for financial flexibility.

Positive Factors

Innovation and Product Launch

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

Lean Process Improvements

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

Market Share Growth

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

Negative Factors

Retail Sales Weakness

Retail sales are down 7% in North America for Polaris powersports.

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 Inc. generates revenue through the sale of its extensive lineup of powersports vehicles, including all-terrain vehicles (ATVs), snowmobiles, side-by-side vehicles, and motorcycles. Additionally, the company earns income from its aftermarket segment, which offers parts, garments, and accessories to enhance and maintain its products. Polaris also benefits from its boat segment, which includes brands like Bennington, Godfrey, and Hurricane. The company leverages a network of independent dealers and distributors worldwide to reach its customers. Strategic partnerships and a focus on innovation in product development further bolster Polaris's revenue streams, ensuring a competitive edge in the powersports industry.

Polaris Financial Statement Overview

Summary

Polaris demonstrates strong operating cash flow and a stable balance sheet. However, it faces challenges with declining profitability, inconsistent revenue growth, and increased leverage, which raise concerns about future financial stability.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.97B	7.18B	8.93B	8.59B	8.20B	7.03B
Gross Profit	1.36B	1.47B	1.96B	1.96B	1.94B	1.71B
EBITDA	501.00M	290.60M	1.01B	1.07B	881.20M	462.70M
Net Income	40.20M	110.80M	502.80M	603.40M	493.90M	124.80M
Balance Sheet
Total Assets	5.45B	5.53B	5.52B	5.22B	5.05B	4.63B
Cash, Cash Equivalents and Short-Term Investments	291.70M	287.80M	367.80M	324.50M	502.30M	634.70M
Total Debt	2.18B	2.20B	2.05B	2.17B	1.89B	1.58B
Total Liabilities	4.22B	4.23B	4.10B	4.12B	3.82B	3.49B
Stockholders Equity	1.23B	1.29B	1.42B	1.10B	1.22B	1.14B
Cash Flow
Free Cash Flow	168.90M	6.50M	513.20M	202.00M	-4.60M	804.70M
Operating Cash Flow	456.80M	268.20M	925.80M	508.60M	293.70M	1.02B
Investing Cash Flow	-242.50M	-270.90M	-462.00M	-324.60M	-303.90M	-150.70M
Financing Cash Flow	-231.80M	-59.20M	-431.30M	-363.20M	-107.60M	-415.40M

Polaris Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 46.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• 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 46.44 is above the 20-day moving average (MA) of 41.55, above the 50-day MA of 38.59, and below the 200-day MA of 51.99, indicating a neutral trend. The MACD of 1.49 indicates Negative momentum. The RSI at 70.55 is Negative, neither overbought nor oversold. The STOCH value of 92.23 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	73 Outperform	$2.47B	16.04	11.44%	4.69%	1.04%	65.90%
THO	73 Outperform	$4.93B	22.22	5.42%	2.16%	-6.41%	-15.85%
HOG	69 Neutral	$3.10B	9.53	10.84%	2.82%	-17.15%	-40.76%
Sector *	66 Neutral	£1.86B	11.36	6.20%	3.10%	0.61%	-17.57%
PII	65 Neutral	$2.61B	65.33	3.09%	5.77%	-17.86%	-89.55%
BC	64 Neutral	$3.90B	49.00	5.16%	2.89%	-15.42%	-77.50%
WGO	46 Neutral	$883.80M	―	-1.35%	4.31%	-9.32%	-120.00%

Polaris Corporate Events

Polaris Amends Credit Facility for Financial Flexibility

On June 27, 2025, Polaris Inc. amended its existing credit facility with U.S. Bank National Association, extending the maturity date of the incremental term loan to June 26, 2026, and modifying financial covenants for a designated period. This amendment, alongside the full prepayment of $350 million in senior notes due 2028, aims to enhance financial flexibility and support long-term growth, reinforcing Polaris’s position as a leader in the powersports industry.

The most recent analyst rating on (PII) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on Polaris stock, see the PII Stock Forecast page.