Polaris Inc Intrinsic Value Calculation – Polaris Inc Reports Record Q4 Earnings for Fiscal Year 2022
March 28, 2023
Earnings Overview
On January 31, 2023, POLARIS INC ($NYSE:PII) reported their fourth quarter 2022 (ending December 31, 2022) earnings results. Year over year, total revenue saw an increase of 125.2%, amounting to USD 195.5 million. Net income for the period also rose by 10.8%, reaching USD 2404.1 million.
Transcripts Simplified
Q4 was a record quarter for Polaris, with contributions from volume, price and mix up to higher priced vehicles. International sales grew 7% year-over-year, overcoming a 9 percentage point drag from currency. Adjusted EBITDA margin expanded 272 basis points, and Polaris executed $400 million in 3-year floating to fixed swaps at an all-in rate of approximately 5%, starting in February 2023.
Additionally, the company repurchased 1.2 million shares in the quarter. In the Off-Road segment, sales rose 19% to $1.9 billion, driven by price and mix, which more than offset higher warranty expenses commodity costs. Retail performance was down about 4% in North America, with declines in recreation, somewhat offset by growth in utility. Sequentially, Polaris was able to gain share with higher shipments and healthier dealer inventory. On-Road sales of $302 million were up 29%, with whole goods up 35%, while PG& A was flat. Polaris looks to gain market share in 2023 with healthier inventory across their Off-Road portfolio as well as new innovations.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Polaris Inc. More…
| Total Revenues | Net Income | Net Margin |
| 8.59k | 447.1 | 7.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Polaris Inc. More…
| Operations | Investing | Financing |
| 508.6 | -324.6 | -363.2 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Polaris Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.22k | 4.12k | 19.28 |
Key Ratios Snapshot
Some of the financial key ratios for Polaris Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 8.2% | 18.5% | 9.7% |
| FCF Margin | ROE | ROA |
| 2.4% | 49.2% | 10.0% |
Share Price
On Tuesday, Polaris Inc reported record Q4 earnings for the fiscal year 2022. The stock opened at $111.0 and closed at $114.8, a rise of 7.7% from the previous day’s closing price of 106.6. The figures demonstrate the company’s strong financial performance in the fourth quarter of the year. This performance is a testament to the hard work and dedication of the company’s management and employees.
Polaris Inc is a major manufacturer of snowmobiles, ATVs, side-by-side vehicles, motorcycles, and related parts and accessories. It is one of the most well-known and respected companies in the off-road vehicle industry. With the strong fourth quarter performance, the company is poised to continue to grow and succeed in the future. Live Quote…
Analysis – Polaris Inc Intrinsic Value Calculation
GoodWhale has conducted an analysis of POLARIS INC‘s financials, and our proprietary Valuation Line has determined that the fair value of a share of POLARIS INC is around $126.5. At the current trading price of $114.8, the stock is undervalued by 9.2%, making this a good time to invest in POLARIS INC. We believe that an investor who purchases shares of POLARIS INC now can expect to benefit from a good return on investment in the near future. More…
Peers
Polaris Inc, Zhejiang CF Moto Power Co Ltd, Nissan Shatai Co Ltd, and Auto Parts 4Less Group Inc are all companies that manufacture and sell vehicles. Each company has its own unique history and set of products.
– Zhejiang CF Moto Power Co Ltd ($SHSE:603129)
Zhejiang CF Moto Power Co Ltd is a Chinese company that manufactures and sells motorcycles, ATVs, and scooters. The company has a market cap of 21.52B as of 2022 and a Return on Equity of 11.52%. CF Moto was founded in 1989 and is headquartered in Hangzhou, China. The company sells its products in over 80 countries and has over 6,000 dealers worldwide. CF Moto’s product line includes street bikes, dirt bikes, and ATVs. The company also offers a line of electric vehicles.
– Nissan Shatai Co Ltd ($TSE:7222)
Nissan Shatai Co Ltd is a Japanese automotive manufacturer with a market cap of 112.16B as of 2022. The company has a Return on Equity of -1.77%. Nissan Shatai Co Ltd manufactures cars, trucks, and SUVs. The company also manufactures and sells electric vehicles and vehicle parts.
Summary
POLARIS INC‘s fourth quarter financial performance for the fiscal year 2022 was impressive, with total revenue increasing 125.2% year over year to USD 195.5 million. Net income was up 10.8% year over year to USD 2404.1 million. This strong result was reflected in the stock market, as the stock price rose on the same day. Investors looking to capitalize on this strong performance should look toward POLARIS INC as a potential investment opportunity, as the company is likely well-positioned to achieve further growth in the future.
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