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Polaris Inc. (PII) Stock Fundamental Analysis & AI Rating 2026

PII NYSE Miscellaneous Transportation Equipment DE CIK: 0000931015
Recently Updated • Analysis: Apr 14, 2026 • SEC Data: 2025-12-31
STRONG SELL
78% Conf
Pending
Analysis scheduled

📊 PII Key Takeaways

Revenue: $7.2B
Net Margin: -6.5%
Free Cash Flow: $558.1M
Current Ratio: 0.98x
Debt/Equity: 1.82x
EPS: $-8.18
AI Rating: STRONG SELL with 78% confidence
Polaris Inc. (PII) receives a STRONG SELL rating with 78% confidence from our AI fundamental analysis based on SEC 10-K filings. With revenue of $7.2B, net profit margin of -6.5%, and return on equity (ROE) of -56.2%, 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 operating at significant losses with negative operating income (-$348.7M) and net income (-$465.5M) despite $7.2B in revenue, indicating fundamental business profitability challenges. High leverage (Debt/Equity 1.82x) combined with inability to cover interest from operations (Interest Coverage -2.7x) and deteriorating liquidity (Current Ratio 0.98x, Quick Ratio 0.35x) creates material financial distress risk. While positive free cash flow ($558.1M) provides near-term runway, the combination of operational losses, flat revenue growth, and debt-heavy balance sheet presents significant downside without substantial operational turnaround.

Why Buy Polaris Inc. Stock? PII Key Strengths

Claude
  • + Operating cash flow remains positive at $741.0M despite net losses, suggesting potential for asset sales or working capital recovery
  • + Free cash flow generation of $558.1M (7.8% FCF margin) provides liquidity runway for debt service and operations
  • + Gross margin of 19.1% indicates reasonable control at the product level before operational expenses

PII Stock Risks: Polaris Inc. Investment Risks

Claude
  • ! Operating losses of -$348.7M with negative operating margin of -4.9% indicate unprofitable core business operations
  • ! High financial leverage with Debt/Equity of 1.82x ($1.5B debt) combined with negative interest coverage (-2.7x) creates debt serviceability risk
  • ! Critical liquidity stress with Current Ratio of 0.98x and Quick Ratio of 0.35x indicating potential working capital crisis
  • ! Severe profitability deterioration with EPS declining 519.5% YoY alongside revenue stagnation (-0.3% growth)

Key Metrics to Watch

Claude
  • * Operating margin trajectory and return to operating profitability
  • * Operating cash flow sustainability and cash position relative to debt maturities
  • * Current ratio and quick ratio improvement to healthy levels above 1.0x
  • * Revenue growth acceleration and gross margin expansion under current operational structure

Polaris Inc. (PII) Financial Metrics & Key Ratios

Revenue
$7.2B
Net Income
$-465.5M
EPS (Diluted)
$-8.18
Free Cash Flow
$558.1M
Total Assets
$4.9B
Cash Position
$138.0M

💡 AI Analyst Insight

The current ratio below 1.0x warrants monitoring of short-term liquidity.

PII Profit Margin, ROE & Profitability Analysis

Gross Margin 19.1%
Operating Margin -4.9%
Net Margin -6.5%
ROE -56.2%
ROA -9.5%
FCF Margin 7.8%

PII vs Industrial Sector: How Polaris Inc. Compares

How Polaris Inc. compares to Industrial sector averages

Net Margin
PII -6.5%
vs
Sector Avg 10.0%
PII Sector
ROE
PII -56.2%
vs
Sector Avg 15.0%
PII Sector
Current Ratio
PII 1.0x
vs
Sector Avg 1.8x
PII Sector
Debt/Equity
PII 1.8x
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
-56.2%
Sector avg: 15%
Net Profit Margin
-6.5%
Sector avg: 10%
Revenue Growth
N/A
Year-over-year
Debt/Equity
1.82x
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
0.98x
Quick Ratio
0.35x
Debt/Equity
1.82x
Debt/Assets
82.8%
Interest Coverage
-2.65x
Long-term Debt
$1.5B

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
7.8%
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
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
Q2 2023 $2.1B -$4.6M $-0.08

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
$741.0M
Cash generated from operations
Stock Buybacks
$2.4M
Shares repurchased (TTM)
Capital Expenditures
$182.9M
Investment in assets
Dividends Paid
$150.3M
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
Apr 2, 2026 4 xslF345X06/wk-form4_1775161260.xml View →
Apr 2, 2026 4 xslF345X06/wk-form4_1775161214.xml View →
Apr 2, 2026 4 xslF345X06/wk-form4_1775161167.xml View →
Apr 2, 2026 4 xslF345X06/wk-form4_1775161116.xml View →
Apr 2, 2026 4 xslF345X06/wk-form4_1775161063.xml View →

Frequently Asked Questions about PII

What is the AI rating for PII?

Polaris Inc. (PII) has an AI rating of STRONG SELL with 78% confidence, based on fundamental analysis of SEC EDGAR filings.

What are PII's key strengths?

Claude: Operating cash flow remains positive at $741.0M despite net losses, suggesting potential for asset sales or working capital recovery. Free cash flow generation of $558.1M (7.8% FCF margin) provides liquidity runway for debt service and operations.

What are the risks of investing in PII?

Claude: Operating losses of -$348.7M with negative operating margin of -4.9% indicate unprofitable core business operations. High financial leverage with Debt/Equity of 1.82x ($1.5B debt) combined with negative interest coverage (-2.7x) creates debt serviceability risk.

What is PII's revenue and growth?

Polaris Inc. reported revenue of $7.2B.

Does PII pay dividends?

Polaris Inc. pays dividends, with $150.3M 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 $-8.18.

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 rating reflects both perspectives for balanced insights.

Is PII a good stock to buy right now?

Based on our AI fundamental analysis in April 2026, Polaris Inc. has a STRONG SELL rating with 78% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.

Is PII stock overvalued or undervalued?

Valuation metrics for PII: ROE of -56.2% (sector avg: 15%), net margin of -6.5% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.

Should I buy PII stock in 2026?

Our dual AI analysis gives Polaris Inc. a combined STRONG SELL rating 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 $741.0M, with capital expenditures of $182.9M. FCF margin is 7.8%.

How does PII compare to other Industrial stocks?

Vs Industrial sector averages: Net margin -6.5% (avg: 10%), ROE -56.2% (avg: 15%), current ratio 0.98 (avg: 1.8).

Is Polaris Inc. carrying too much debt?

PII has a debt-to-equity ratio of 1.82x, which is above the Industrial sector average of 0.7x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.

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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: Apr 14, 2026 | Data as of: 2025-12-31 | Powered by Claude AI