Polaris Inc. (PII) AI Stock Analysis

Polaris Inc. is a global designer, engineer, manufacturer, and marketer of power sports vehicles operating across Off-Road, On-Road, and Marine segments. Its Off-Road business offers all-terrain vehicles (ATVs), side-by-side vehicles, snowmobiles, and snow bike conversion kit systems. The On-Road segment manufactures motorcycles, quadricycles, moto-roadsters, and light duty hauling and passenger vehicles, supported by accessories like winches, plows, lighting, and cargo solutions. The Marine segment provides pontoon and deck boats for recreational boating. Polaris also markets accessories, gear, and apparel such as helmets, jackets, boots, and marine-specific equipment through dealers, distributors, and online channels.

Polaris grew revenue from $7.44B in FY2021 to a peak of $8.93B in FY2023 before falling 19.7% to $7.18B in FY2024 and dipping 0.3% to $7.15B in FY2025. Gross margin contracted steadily from 22.8% in FY2021 to 18.5% in FY2025, while operating margin fell from 8.8% to -0.4%. Net income dropped from $493.9M in FY2021 to a loss of -$465.5M in FY2025, with EPS sinking from $9.14 to -$0.01. Over the trailing twelve months, revenue totaled $7.52B with a profit margin of -3.5% and EPS of -$4.61. In the latest quarter ended June 30, 2026, quarterly revenue grew 8.8% year-over-year, while quarterly earnings dropped 89.6%.

As of June 30, 2026, Polaris held $302.1M in cash and short-term investments against $1.95B in total debt, resulting in net debt of $1.65B. Shareholders' equity was $836.5M against total assets of $5.20B, yielding a debt-to-equity ratio of 2.33 and a current ratio of 1.20. In FY2025, operating cash flow stood at $741.0M and free cash flow reached $558.1M. Capital allocation in FY2025 included capital expenditures of $182.9M, share buybacks of $2.4M, and dividend distributions of $150.3M.

Polaris trades at a forward P/E of 13.1x, below the 14.1x median of its US-listed Consumer Cyclical peers. Its price-to-sales ratio is 0.4x compared to the peer median of 0.7x, while its EV-to-EBITDA stands elevated at 46.6x against the peer median of 11.1x. Over the past year, the stock fell 17.9% compared to a 16.8% return for the S&P 500. Over a five-year period, the stock declined 52.6% while the S&P 500 gained 83.0%.

Polaris pays a quarterly dividend totaling $2.72 forward annually, which represents a 5.22% dividend yield at its recent close of $52.15. The payout ratio stands at 104.6%. The company has paid dividends for 40 consecutive years, with a 5-year annualized dividend growth rate of 1.6%. The last ex-dividend date was September 1, 2026.

Wall Street coverage includes 2 Strong Buy, 2 Buy, 13 Hold, and 1 Sell recommendations. The mean price target is $71.00, representing 36.1% upside over the last close of $52.15. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $3.14 on revenue of $7.44B. For FY2027, 16 analysts project EPS of $3.36 on $7.68B in revenue. Polaris beat EPS estimates in all 4 of its last 4 quarters, with next earnings scheduled for October 27, 2026.

This page is an AI-written research summary of Polaris Inc. (PII). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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