Polaris (PII) Faces Sell Call as Analysts Cite Weak Sales, Cash Flow and Returns

Polaris Inc. (PII) drew a negative stock view on May 13, 2026, as analysts cited stagnant long-term revenue, expected free cash flow deterioration and declining returns on invested capital. Shares were little changed over the prior six months, up 4% at $67.75. The report said Polaris generated $7.24 billion in trailing 12-month sales, roughly in line with revenue five years earlier, signaling weak demand growth. Analysts also expect the company’s free cash flow margin to fall to 5.4% over the next year from 7.7% in the last 12 months. Polaris trades at 48.9 times forward earnings, a valuation the report said already reflects favorable expectations despite weakening fundamentals. The analysts said they prefer a Latin America-focused e-commerce and payments company instead, a likely reference to MercadoLibre Inc. (MELI).