Polaris (PII) AI Stock Analysis

• Market Cap: $3.90B
• Dividend Yield: 3.87%
• Average Volume (3M): 804.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.07
• 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: 895,023
• 30 Day Avg. Volume: 804,060
• 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: 1.24
• Enterprise Value/Revenue: 0.69
• Enterprise Value/Gross Profit: 3.79
• Enterprise Value/Ebitda: 17.79
• 1Y Price Target: $66.67
• Price Target Upside: -4.40% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 10
• EPS Forecast (FY): -0.01
• Revenue Forecast (FY): $7.05B

• Rating: 61 Neutral
• Price Target: $71.00 ▲(1.81% Upside)

Polaris' stock score is driven by strong technical momentum and strategic corporate actions, despite challenges in profitability and valuation. The company's focus on operational efficiencies and strategic divestitures are positive, but high leverage and tariff impacts remain concerns.

Positive Factors

Market Share Gains

Gaining market share in the Off-Road Vehicles segment indicates strong competitive positioning and customer preference, supporting long-term growth.

Strategic Divestiture

Divesting Indian Motorcycle allows Polaris to focus on core high-margin growth areas, potentially enhancing profitability and strategic focus.

Cash Flow Growth

Robust cash flow growth enhances financial flexibility, enabling Polaris to invest in innovation and strategic initiatives for sustained growth.

Negative Factors

High Leverage

Significant leverage poses risks to financial stability, potentially limiting Polaris's ability to navigate economic downturns and invest in growth.

Tariff Impacts

Rising tariffs could pressure margins and profitability, challenging Polaris's cost structure and competitive pricing in the long term.

Profitability Challenges

Ongoing profitability issues, reflected in negative net margins, could hinder Polaris's ability to reinvest in the business and sustain growth.

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: 69.74
• 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 69.74 is above the 20-day moving average (MA) of 66.59, above the 50-day MA of 65.57, and above the 200-day MA of 50.28, indicating a bullish trend. The MACD of 1.35 indicates Negative momentum. The RSI at 62.10 is Neutral, neither overbought nor oversold. The STOCH value of 63.50 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	79 Outperform	$2.95B	17.00	12.89%	3.78%	5.74%	39.40%
THO	69 Neutral	$5.50B	19.69	6.75%	1.94%	1.43%	34.76%
WGO	69 Neutral	$1.17B	45.59	2.06%	3.42%	-5.90%	119.79%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PII	61 Neutral	$3.90B	-26.26	-12.15%	3.87%	-9.39%	-173.86%
HOG	60 Neutral	$2.50B	5.14	14.31%	3.40%	-15.99%	-6.76%
BC	52 Neutral	$4.88B	-20.89	-12.31%	2.29%	-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.

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.