Value Investing with Sven Carlin, Ph.D. on $PII (Nov 8, 2026)
Polaris still grows EPS and looks good on the surface, but carries significant debt and leverage versus its 3.5 billion market cap. Off-road, boat and RV vehicles are a very difficult sector with weak competitive advantages and purely extravagant spending; rising rates, recession, weak consumer spending, or an AI bubble burst that makes AI winners cut spending could change things.
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Now, next is Polaris, with a market value of 3.5 billion, for off-road vehicles. Yes, it is still growing, and earnings per share and everything looks good, so some may get excited, but there is significant debt, some dividends, and significant leverage relative to market capitalization in particular.
Everything looks good. However, when it comes to these off-road vehicles, boats, recreational vehicles, and things like that, I also remember that people loved the tourism industries about 10 years ago as they got older .
I should buy myself an amusement park vehicle, but nothing is happening there. There is this prosperity, this expansion, this acquisition, this and that. Everything looks great, but it's a very difficult sector to invest in due to competitive advantages.
It is truly the ultimate in extravagant spending. I don't know what to do with my money with rising interest rates and things like that . With recession and weak consumer spending, things could change , especially if the AI bubble bursts and all those AI millionaires are forced to tighten their spending . We'll see.