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Polaris Inc. (PII) Fundamental Analysis & AI Grade 2026

PII NYSE Miscellaneous Transportation Equipment DE CIK: 0000931015
Updated This Month • Analysis: May 6, 2026 • SEC Data: 2026-03-31
Combined AI Grade
D
88% Confidence
N/A
D
88% Conf
Pending
Analysis scheduled

📊 PII Key Takeaways

Revenue: $1.7B
Net Margin: -2.9%
Free Cash Flow: $-349.9M
Current Ratio: 1.21x
Debt/Equity: 2.74x
EPS: $-0.83
AI Grade: D with 88% confidence
Polaris Inc. (PII) receives a D fundamental grade with 88% confidence from our AI analysis based on SEC 10-K filings. With revenue of $1.7B, net profit margin of -2.9%, and return on equity (ROE) of -6.3%, Polaris Inc. demonstrates mixed fundamentals in the Industrial sector. Below is our complete PII stock analysis for 2026.

Is Polaris Inc. (PII) a Good Investment?

Claude

Polaris is in acute financial distress with operating cash burn of $320M annually against only $282M in cash reserves, creating an imminent liquidity crisis. The company cannot cover interest obligations from operating income (coverage ratio: -1.3x) and carries unsustainable leverage of 2.74x debt-to-equity, while all profitability metrics are deeply negative with no revenue growth to provide relief.

Polaris Inc. Key Strengths (PII)

Claude
  • + Gross margin of 20.2% demonstrates basic pricing power and cost management at production level
  • + Total asset base of $5.2B provides some liquidation value and collateral foundation
  • + Maintains capital expenditure discipline at $29.7M despite operational challenges

PII Stock Risks: Polaris Inc. Investment Risks

Claude
  • ! Operating cash burn of -$320.2M annually with only $282M cash reserves creates less than 12-month runway before insolvency
  • ! Debt-to-equity ratio of 2.74x with interest coverage of -1.3x indicates debt service is unpayable from operations and default risk is severe
  • ! All profitability metrics are negative: net margin -2.9%, operating margin -2.4%, ROE -6.3%, ROA -0.9%, with net loss expanding 519.5% YoY on EPS basis
  • ! Free cash flow of -$349.9M (-21.1% FCF margin) indicates the business model is destroying value at scale
  • ! Liquidity position critically weak with quick ratio of only 0.48x and current ratio of 1.21x
  • ! Revenue declining -0.3% YoY provides no growth offset to operational deterioration

Key Metrics to Watch

Claude
  • * Operating cash flow trajectory - any improvement toward positive territory is essential for survival
  • * Cash position and burn rate - monitor monthly to assess runway remaining before covenant violation or insolvency
  • * Debt covenant compliance status - likely already in breach or approaching breach with negative earnings

Polaris Inc. (PII) Financial Metrics & Key Ratios

Revenue
$1.7B
Net Income
$-47.4M
EPS (Diluted)
$-0.83
Free Cash Flow
$-349.9M
Total Assets
$5.2B
Cash Position
$282.0M

💡 AI Analyst Insight

Polaris Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.

PII Profit Margin, ROE & Profitability Analysis

Gross Margin 20.2%
Operating Margin -2.4%
Net Margin -2.9%
ROE -6.3%
ROA -0.9%
FCF Margin -21.1%

PII vs Industrial Sector: How Polaris Inc. Compares

How Polaris Inc. compares to Industrial sector averages

Net Margin
PII -2.9%
vs
Sector Avg 10.0%
PII Sector
ROE
PII -6.3%
vs
Sector Avg 15.0%
PII Sector
Current Ratio
PII 1.2x
vs
Sector Avg 1.8x
PII Sector
Debt/Equity
PII 2.7x
vs
Sector Avg 0.7x
PII Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Polaris Inc. Stock Overvalued? PII Valuation Analysis 2026

Based on fundamental analysis, Polaris Inc. shows some fundamental concerns relative to the Industrial sector in 2026.

Return on Equity
-6.3%
Sector avg: 15%
Net Profit Margin
-2.9%
Sector avg: 10%
Revenue Growth
N/A
Year-over-year
Debt/Equity
2.74x
Sector avg: 0.7x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Polaris Inc. Balance Sheet: PII Debt, Cash & Liquidity

Current Ratio
1.21x
Quick Ratio
0.48x
Debt/Equity
2.74x
Debt/Assets
85.5%
Interest Coverage
-1.29x
Long-term Debt
$2.1B

PII Revenue & Earnings Growth: 5-Year Financial Trend

PII 5-year financial data: Year 2021: Revenue $8.2B, Net Income $324.0M, EPS $5.20. Year 2022: Revenue $8.6B, Net Income $124.8M, EPS $1.99. Year 2023: Revenue $8.9B, Net Income $493.9M, EPS $7.88. Year 2024: Revenue $8.9B, Net Income $447.1M, EPS $7.44. Year 2025: Revenue $8.9B, Net Income $502.8M, EPS $8.71.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Polaris Inc.'s revenue has shown modest growth of 9% over the 5-year period. The most recent EPS of $8.71 reflects profitable operations.

PII Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-21.1%
Free cash flow / Revenue

PII Quarterly Earnings & Performance

Quarterly financial performance data for Polaris Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $1.5B -$47.4M $-0.83
Q3 2025 $1.7B -$15.8M $-0.28
Q2 2025 $1.9B $68.7M $1.21
Q1 2025 $1.5B $3.8M $0.07
Q3 2024 $1.7B $27.7M $0.49
Q2 2024 $2.0B $68.7M $1.21
Q1 2024 $1.7B $3.8M $0.07
Q3 2023 $2.2B $151.7M $2.62

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Polaris Inc. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
-$320.2M
Cash generated from operations
Stock Buybacks
$9.2M
Shares repurchased (TTM)
Capital Expenditures
$29.7M
Investment in assets
Dividends Paid
$38.7M
Returned to shareholders

PII SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Polaris Inc. (CIK: 0000931015)

📋 Recent SEC Filings

Date Form Document Action
May 12, 2026 4 xslF345X06/wk-form4_1778620069.xml View →
May 1, 2026 4 xslF345X06/wk-form4_1777669838.xml View →
May 1, 2026 4 xslF345X06/wk-form4_1777669807.xml View →
May 1, 2026 4 xslF345X06/wk-form4_1777669757.xml View →
May 1, 2026 4 xslF345X06/wk-form4_1777669711.xml View →

Frequently Asked Questions about PII

What is the AI rating for PII?

Polaris Inc. (PII) has an AI grade of D with 88% confidence, based on fundamental analysis of SEC EDGAR filings.

What are PII's key strengths?

Claude: Gross margin of 20.2% demonstrates basic pricing power and cost management at production level. Total asset base of $5.2B provides some liquidation value and collateral foundation.

What are the risks of investing in PII?

Claude: Operating cash burn of -$320.2M annually with only $282M cash reserves creates less than 12-month runway before insolvency. Debt-to-equity ratio of 2.74x with interest coverage of -1.3x indicates debt service is unpayable from operations and default risk is severe.

What is PII's revenue and growth?

Polaris Inc. reported revenue of $1.7B.

Does PII pay dividends?

Polaris Inc. pays dividends, with $38.7M distributed to shareholders in the trailing twelve months.

Where can I find PII SEC filings?

Official SEC filings for Polaris Inc. (CIK: 0000931015) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is PII's EPS?

Polaris Inc. has a diluted EPS of $-0.83.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.

What is PII's fundamental grade?

Based on our AI fundamental analysis in May 2026, Polaris Inc. has a D grade with 88% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is PII stock overvalued or undervalued?

Valuation metrics for PII: ROE of -6.3% (sector avg: 15%), net margin of -2.9% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.

What is PII's AI grade for 2026?

Our dual AI analysis gives Polaris Inc. a combined D grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is PII's free cash flow?

Polaris Inc.'s operating cash flow is $-320.2M, with capital expenditures of $29.7M. FCF margin is -21.1%.

How does PII compare to other Industrial stocks?

Vs Industrial sector averages: Net margin -2.9% (avg: 10%), ROE -6.3% (avg: 15%), current ratio 1.21 (avg: 1.8).

Is Polaris Inc. carrying too much debt?

PII has a debt-to-equity ratio of 2.74x, which is above the Industrial sector average of 0.7x. However, the current ratio of 1.21 suggests adequate short-term liquidity.

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 6, 2026 | Data as of: 2026-03-31 | Powered by Claude AI