Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, all-terrain vehicle maker Polaris Industries (PII -1.57%) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Polaris and see what CAPS investors are saying about the stock right now.
Polaris facts
Headquarters (founded) |
Medina, Minn. (1987) |
Market Cap |
$6.6 billion |
Industry |
Leisure products |
Trailing-12-Month Revenue |
$3.3 billion |
Management |
Chairman/CEO Scott Wine President/COO Bennett Morgan |
Return on Equity (average, past 3 years) |
53.5% |
Cash/Debt |
$380.8 million / $106.4 million |
Dividend Yield |
1.8% |
Competitors |
Arctic Cat Honda Motor Kawasaki Heavy Industries |
On CAPS, 90% of the 349 members who have rated Polaris believe the stock will outperform the S&P 500 going forward.
Just yesterday, one of those bulls, TMFInnovator, explained why the stock still has plenty of room to run:
Polaris is a constant reminder to me on why I should never 'anchor' on a stock's current price. PII has had a seat on my watchlist since Aug '11, when it traded at $50. Since then, the company has executed almost perfectly and the stock price rose accordingly, hitting many new 52-week highs over the next two years.
I don't think they're done yet.
-Even at $95, PII is trading at a respectable 18 times earnings.
-There are still plenty of drivers. The US DoD awarded a $382 million contract for Polaris 'fire and emergency vehicles' through 2018. Consumer spending also continues to recover, and additional discretionary income is good for recreational vehicle sales.
-The dividend has increased 121% in four years and is still just 37% of LTM's free cash flow.