Polaris Industries Inc. [NYSE:PII]: Analyst Rating and Earnings
Stock market traders oftentimes pay a lot of attention to what top analysts say regarding a potential investment. Regarding Polaris Industries Inc. [PII], the latest average analyst recommendation we can see is from the quarter closing in December. On average, stock market experts give PII an Hold rating. Its stock price has been found in the range of 16.69 to 41.57. This is compared to its latest closing price of $83.87.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Polaris Industries Inc. [PII] is sitting at 2.56. This is compared to 1 month ago, when its average rating was 2.56.
For the quarter ending in Dec-18 Polaris Industries Inc. [PII] generated $1.63 billion in sales. That’s 1.05% lower than the average estimate of $1.64 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Pay attention for this company’s financial results, of which the next release is scheduled to happen on Tue 23 Apr (In 72 Days).
Fundamental Analysis of Polaris Industries Inc. [PII]
Now let’s turn to look at profitability: with a current Operating Margin for Polaris Industries Inc. [PII] sitting at +6.58 and its Gross Margin at +24.70, this company’s Net Margin is now 4.70%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 17.11, and its Return on Invested Capital has reached 14.60%. Its Return on Equity is 37.28, and its Return on Assets is 9.29. These metrics all suggest that Polaris Industries Inc. is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Polaris Industries Inc. [PII] has generated a Total Debt to Total Equity ratio of 226.36. Similarly, its Total Debt to Total Capital is 69.36, while its Total Debt to Total Assets stands at 47.58. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 218.68, and its Long-Term Debt to Total Capital is 67.01. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 11.70 and its Total Debt to EBITDA Value is 3.21. The Enterprise Value to Sales for this firm is now 1.18, and its Total Debt to Enterprise Value stands at 0.29.
Similarly, this company’s Receivables Turnover is 26.24 and its Total Asset Turnover is 1.69. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.43 and its Current Ratio is 1.24. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
Let’s now turn our attention to trading performance: Polaris Industries Inc. [PII] has 61.33M shares outstanding, amounting to a total market cap of $5.09B. Its stock price has been found in the range of 70.27 to 131.25. At its current price, it has moved by -36.81% from its 52-week high, and it has moved 18.03% from its 52-week low.
This stock’s Beta value is currently 1.16, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 45.91. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Polaris Industries Inc. [PII] a Reliable Buy?
Polaris Industries Inc. [PII] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.