Polaris (PII) AI Stock Analysis

• Market Cap: $3.19B
• Dividend Yield: 4.61%
• Average Volume (3M): 1.56M
• Price to Earnings (P/E): 69.6
• Beta (1Y): 1.05
• Revenue Growth: -16.63%
• EPS Growth: -132.70%
• Country: US
• Employees: 15,000
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Auto - Recreational Vehicles
• EPS (TTM): 0.40
• Shares Outstanding: 56,224,644
• 10 Day Avg. Volume: 1,162,775
• 30 Day Avg. Volume: 1,560,442
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 0.58
• Enterprise Value/Gross Profit: 3.00
• Enterprise Value/Ebitda: 12.21
• 1Y Price Target: $43.50
• Price Target Upside: -24.94% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 60 Neutral
• Price Target: $56.00 ▼(-3.36% Downside)

Polaris's overall stock score reflects significant financial challenges, particularly in profitability and growth, which weigh heavily on the score. However, positive technical indicators and strategic corporate actions provide some support. The high dividend yield offers value to income-focused investors, but valuation concerns persist due to negative earnings. Operational efficiencies and market share gains are promising, but current economic pressures and tariff impacts present ongoing challenges.

Positive Factors

Demand Trends

PII will benefit from positive long-term outdoor demand trends for its recreational vehicles as well as strong agricultural demand for its utility vehicles.

Market Recovery

PII highlighted positive trends that suggest an eventual volume recovery including 1.1mm new customers since pre-COVID, and a 10%+ increase in ORV ridership vs. pre-COVID.

Product Launch

The newly introduced Ranger 500 hits the right price-point and the industry channel inventory backdrop continues to improve.

Negative Factors

Economic Concerns

Ongoing concerns around the macro economy, the impact from rising interest rates and inflation on consumers' budgets, as well as potential tariff risk, suggest shares of Polaris are fairly valued.

Financial Performance

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

Retail Demand

Retail demand remains under pressure, particularly on the recreation side, and macroeconomic factors continue to pose challenges.

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: 57.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 57.95 is above the 20-day moving average (MA) of 55.49, above the 50-day MA of 50.80, and above the 200-day MA of 46.75, indicating a bullish trend. The MACD of 1.80 indicates Positive momentum. The RSI at 60.95 is Neutral, neither overbought nor oversold. The STOCH value of 73.74 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
LCII	73 Outperform	$2.56B	17.17	10.95%	4.35%	1.36%	25.97%
BC	72 Outperform	$4.15B	100.41	2.85%	2.61%	-11.58%	-87.27%
THO	69 Neutral	$5.94B	26.08	5.42%	1.79%	-6.41%	-15.85%
HOG	67 Neutral	$3.56B	15.17	7.19%	2.34%	-24.81%	-60.65%
Sector *	61 Neutral	$17.96B	13.14	-5.29%	3.00%	1.25%	-13.95%
PII	60 Neutral	$3.19B	69.60	-8.54%	4.61%	-16.63%	-132.70%
WGO	54 Neutral	$984.15M	―	-1.35%	3.73%	-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.