Polaris (PII) AI Stock Analysis

• Market Cap: $3.72B
• Dividend Yield: 4.03%
• Average Volume (3M): 1.32M
• Price to Earnings (P/E): 69.6
• Beta (1Y): 1.09
• Revenue Growth: -16.63%
• EPS Growth: -132.70%
• Country: US
• Employees: 15,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Recreational Vehicles
• EPS (TTM): 0.40
• Shares Outstanding: 56,224,644
• 10 Day Avg. Volume: 1,637,629
• 30 Day Avg. Volume: 1,322,736
• 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: 1.06
• Enterprise Value/Revenue: 0.58
• Enterprise Value/Gross Profit: 3.00
• Enterprise Value/Ebitda: 12.21
• 1Y Price Target: $58.57
• Price Target Upside: -11.95% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 60 Neutral
• Price Target: $56.00 ▼(-15.81% Downside)

Polaris' stock score is primarily influenced by its financial challenges, including declining profitability and high leverage. Technical analysis shows strong momentum, which is a positive sign. Valuation concerns due to a negative P/E ratio are partially offset by a decent dividend yield. The earnings call provided mixed signals, with operational efficiencies and tariff mitigation being positive, but sales declines and a negative EPS forecast are concerning.

Positive Factors

Operational Efficiencies

Achieving operational efficiencies enhances profitability and competitiveness, allowing Polaris to better navigate economic pressures and invest in growth.

Market Share Gains

Increasing market share indicates strong competitive positioning and brand strength, which can lead to sustained revenue growth and industry leadership.

Financial Flexibility

Improved financial flexibility through credit facility amendments supports long-term growth initiatives and provides a buffer against economic uncertainties.

Negative Factors

Revenue Decline

Declining sales can pressure profitability and limit growth opportunities, challenging Polaris's ability to maintain its market position.

Tariff Costs

Ongoing tariff costs reduce profitability and cash flow, potentially hindering investment in innovation and market expansion.

Negative EPS Forecast

A negative EPS forecast indicates challenges in maintaining profitability, which could affect investor confidence and limit financial resources for growth.

Polaris Business Overview & Revenue Model

Company Description

Polaris Industries Inc. (PII) is an American manufacturer known for its diverse portfolio of outdoor recreational vehicles, including snowmobiles, all-terrain vehicles (ATVs), side-by-sides, motorcycles, and electric off-road vehicles. Established in 1954, Polaris operates primarily in the powersports sector and has expanded its offerings to include accessories, apparel, and service parts, catering to a wide range of outdoor enthusiasts. The company is also committed to innovation in electric vehicle technology and sustainability, positioning itself as a leader in the powersports industry.

How the Company Makes Money

Polaris generates revenue through multiple streams, primarily from the sale of its recreational vehicles and related accessories. The company offers a variety of models across different categories, allowing it to cater to various market segments. In addition to vehicle sales, Polaris earns significant income from the sale of parts, garments, and accessories, which enhances the consumer experience and encourages brand loyalty. The company also benefits from its financing solutions, which allow customers to purchase vehicles through third-party financing arrangements. Strategic partnerships with dealers and other industry stakeholders further amplify its distribution capabilities, while ongoing innovation and a strong brand presence help maintain a competitive edge in the market.

Polaris Financial Statement Overview

Summary

Polaris faces significant challenges in its financial performance, particularly with profitability and growth. The income statement shows declining revenue and profit margins, while the balance sheet indicates high leverage. Cash flows remain a relatively stronger aspect, but the company's financial stability is at risk if it cannot reverse recent negative trends.

Income Statement

The TTM (Trailing-Twelve-Months) income statement reveals a concerning decline in performance. The company registered a negative net profit margin due to a net loss, which raises red flags about profitability. Revenue growth has been inconsistent, with a decline in recent years. The gross profit margin remains positive but is under pressure. Overall, the income statement indicates significant challenges in maintaining profitability and growth.

Balance Sheet

The balance sheet shows a relatively high level of debt compared to equity, with a debt-to-equity ratio indicating leveraged financials. However, the equity ratio suggests a reasonable proportion of assets financed by shareholders. Although the return on equity has been positive in previous years, recent performance challenges this trend. Stability could be at risk if profitability does not improve.

Cash Flow

Cash flow analysis reveals robust operating cash flow, which is a positive indicator. However, the free cash flow growth rate has been inconsistent, and the recent trends point to potential cash generation issues. The operating cash flow to net income ratio indicates a strong ability to convert earnings into cash, albeit with recent profitability concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.87B	7.18B	8.93B	8.59B	8.20B	7.03B
Gross Profit	1.32B	1.47B	1.96B	1.96B	1.94B	1.71B
EBITDA	323.40M	290.60M	1.01B	1.07B	881.20M	462.70M
Net Income	-107.80M	110.80M	502.80M	447.10M	493.90M	124.80M
Balance Sheet
Total Assets	5.39B	5.53B	5.52B	5.22B	5.05B	4.63B
Cash, Cash Equivalents and Short-Term Investments	324.30M	287.80M	367.80M	324.50M	502.30M	634.70M
Total Debt	1.95B	2.20B	2.05B	2.17B	1.89B	1.58B
Total Liabilities	4.20B	4.23B	4.10B	4.12B	3.82B	3.49B
Stockholders Equity	1.19B	1.29B	1.42B	1.10B	1.22B	1.14B
Cash Flow
Free Cash Flow	417.40M	6.50M	513.20M	202.00M	-4.60M	804.70M
Operating Cash Flow	630.80M	268.20M	925.80M	508.60M	293.70M	1.02B
Investing Cash Flow	-164.80M	-270.90M	-462.00M	-324.60M	-303.90M	-150.70M
Financing Cash Flow	-475.50M	-59.20M	-431.30M	-363.20M	-107.60M	-415.40M

Polaris Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 66.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 66.52 is above the 20-day moving average (MA) of 61.64, above the 50-day MA of 58.64, and above the 200-day MA of 46.70, indicating a bullish trend. The MACD of 2.33 indicates Negative momentum. The RSI at 59.51 is Neutral, neither overbought nor oversold. The STOCH value of 67.76 is Neutral, 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
THO	67 Neutral	$5.50B	21.58	6.19%	1.91%	-4.62%	-2.29%
BC	67 Neutral	$4.09B	98.94	2.85%	2.73%	-11.58%	-87.27%
LCII	66 Neutral	$2.12B	14.59	10.95%	5.22%	1.36%	25.97%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PII	60 Neutral	$3.72B	69.60	-8.54%	4.03%	-16.63%	-132.70%
HOG	58 Neutral	$3.26B	13.88	7.19%	2.66%	-24.81%	-60.65%
WGO	53 Neutral	$840.36M	―	-1.35%	4.57%	-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.