Polaris Inc. Common Stock (PII)

FairStock Score: 30/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn high returns on capital, carry modest debt, and sell at a prudent price. Polaris fails several of those tests today. At the close on 2026-10-13, the stock was $51.58; FairStock's calculations show a price-to-book of 3.51, a negative P/E of -11.21, return on equity of -25.57%, return on capital employed of only 2.64%, and debt-to-equity of 2.45. Its Altman Z-Score of 0.85 and EV/EBITDA of 45.29 suggest financial stress and an expensive valuation relative to operating earnings. The filed record shows why: in FY2023 revenue was $8.9B with net income of $502.8M and EPS of $8.71; FY2024 revenue was $7.2B with net income of $110.8M and EPS of $1.95; then FY2025 revenue was $7.2B but net income turned to a loss of $465.5M and EPS of -$8.18. The most recent filed quarter I can use, fiscal Q1 2026 ended 2026-03-31, still showed revenue of $1.7B and a net loss of $47.4M, or EPS -$0.83. That is not a durable moat showing up in numbers. The Lynch category is TURNAROUND, because the latest year had a loss after earlier profits. Still, Piotroski F-Score is 8/9, TTM free cash flow is $66.9M, and the dividend yield is 5.03%, so there are signs of stabilization. But FCF yield is only 2.3%, and FairStock score is 30/100. I would need evidence that returns on capital recover before calling this a bargain.

In plain English: Polaris makes off-road vehicles, snowmobiles, motorcycles, and boats. The business looks weak right now: it lost money in its latest full year, carries a lot of debt, and earns very little on the capital it uses. At the recent share price, the stock looks expensive compared with those weak profits and cash generation, even though the dividend is high.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · fiscal Q1 2025 10-Q (period ended 2025-03-31) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer