Polaris Industries (PII) has a market cap of $6.1 billion. It rose by 9.1% to close at $95.03 per share on July 20, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 8.5%, 12.5%, and 12.0%, respectively, on the same day.
PII is currently trading 12.7% above its 20-day moving average, 13.2% above its 50-day moving average, and 2.8% above its 200-day moving average.
Related ETFs and peers
The VanEck Vectors Morningstar Wide Moat ETF (MOAT) invests 3.6% of its holdings in Polaris. The ETF tracks an equal-weighted index of 20 companies that Morningstar determines to have the highest fair value among companies with a sustainable competitive advantage. The YTD price movement of MOAT was 18.3% on July 20, 2016.
The Vanguard S&P Mid-Cap 400 Growth ETF (IVOG) invests 0.84% of its holdings in Polaris. The ETF tracks a market-cap-weighted index of growth companies culled from the S&P 400.
The market caps of Polaris’s competitors are as follows:
Performance of Polaris Industries in 2Q16
Polaris Industries reported 2Q16 sales of $1.13 billion, a rise of 0.58% compared to sales of $1.12 billion in 2Q15. Sales for the motorcycles and global adjacent markets segments rose by 23.3% and 14.2%, respectively. Sales of the off-road vehicles (or ORV)–snowmobiles segment fell by 5.7% in 1Q16 compared to the prior year period.
The company’s gross profit margin and operating income fell by 11.4% and 28.7%, respectively, in 2Q16 compared to 2Q15. Its net income and EPS (earnings per share) fell to $71.2 million and $1.09, respectively, in 2Q16 compared to $100.9 million and $1.49, respectively, in 2Q15.
Polaris’s cash and cash equivalents rose by 23.4%, and its inventories fell by 2.3% in 2Q16 compared to the prior year period. Its current ratio fell to 1.2x, and its debt-to-equity ratio rose to 1.6x in 2Q16. That compares to a current ratio and debt-to-equity ratio of 1.6x and 1.4x, respectively, in 2Q15.
During 2Q16, it repurchased and retired 652,000 shares of its common stock worth $58.9 million. As of June 30, 2016, it has the authorization to repurchase up to an additional 8.7 million shares.
Polaris Industries has declared a regular quarterly dividend of $0.55 per share on its common stock. The dividend will be paid on September 15, 2016, to shareholders of record at the close of business on September 1, 2016.
The company has revised the following projections for fiscal 2016:
- sales growth of -2% to flat – It expects ORV-snowmobiles sales to decline in the mid-single-digit percentage, motorcycle sales to increase in the double-digit percentage, and global adjacent market sales to increase in the mid-teens percentage.
- EPS of $6–$6.30
Now we’ll take a look at Mattel.