Polaris Industries designs, engineers, manufactures, and markets off-road vehicles, snowmobiles, motorcycles, and small vehicles primarily in the United States, Canada, Western Europe, Australia, and Mexico. The company was founded in 1987 and is based in Medina, Minnesota.
PII Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for PII, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Polaris Inc ranked in the 57th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 61% on a DCF basis. The most interesting components of our discounted cash flow analysis for Polaris Inc ended up being:
The company's balance sheet shows it gets 75% of its capital from equity, and 25% of its capital from debt. Notably, its equity weight is greater than 60.86% of US equities in the Consumer Cyclical sector yielding a positive free cash flow.
Polaris Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than just 0% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as PII, try LOCO, SON, LSYN, GOLF, and FND.
Longbow Research is out with a positive note on Polaris ([[PII]] +5.2%) after channel checks came back in glowing hot. The firm expects Polaris to post a strong quarter and sees momentum building into next year."We are upgrading PII shares to BUY and raising our FY2H20 & FY21 estimates after...
Polaris (PII) has signed a 10-year partnership with Zero Motorcycles in off-road vehicles ((ORV)) and snowmobiles, to co-develop electric vehicles as a cornerstone of rev’d up—company’ new electrification strategy.Through rEV’d up, company aims to offer customers an electric vehicle option within each of its core product segments by 2025, with the first vehicle...
During Tuesday's Mad Money program, Jim Cramer told viewers that during most economic downturns discretionary spending plunges. All four companies are in uptrends but let's check the charts of Polaris Industries because it gapped up to a new high yesterday. With the rally in PII yesterday on heavy trading volume another look at PII is a good idea.