* Note: Prices are in Million (M) USD.
Description:
Polaris Inc. designs, designs, manufactures and markets motor sports vehicles worldwide. The company is headquartered in Medina, Minnesota.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $324 M
Debt : $1,392 M
EBITDA : $177 M
Net Debt (Debt - Cash): $1,068 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Consumer cyclical
Industry: Recreational vehicles
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Message: Cannot calculate PE Ratio since EPS is either 0 or negative.
Using default values for calculation.
Forward PE Ratio (using default values): 20.00
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $251 M
Average Revenue: $4,619 M
Revenue Converted To Free Cash Flow (%): 5.4%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $7,175 M
Revenue 4 Years Ago (2020-12-31): $7,028 M
Last 5 Years Average Revenue Growth: 0%
Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $57 M
Share Count 5 Years Ago (2020-12-31): $63 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Message: Cannot calculate payout ratio because EPS is either 0 or negative.
Using default values for calculation.
Based on default values, 1 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 valid ROE years (max 20).Average ROE: 43.1%
Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $57
52-Week Low: $30
Threshold Price (15% Above 52-Week Low): $35
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $3,346 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 17 points to above Polaris Industries Inc (PII) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• ROE Based PE 44.51 (>2× median)
Further research is recommended; please use your own due diligence.
In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Last 20 Years Avg PE 20.67, Fair Value PE 12, Industry Based PE 18, RCFC Based PE 16.35, ROE Based PE 44.51, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 6 values, average assigned is 21.44. The fair value of Polaris Industries Inc (PII) stock cannot be calculated since EBITDA and EPS are either 0 or negative.
