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PolarisPII -0.06%77 Degree of Operating Leverage is -103.83 as of Jun. 2026. GuruFocus rates PII with a GF Score™ of 77/100 and a GF Value™ of $69.12 (Fairly Valued). The stock has 6 warning signs investors should review. Among 1,300 Vehicles & Parts companies, Polaris ranks better than 97.62% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Polaris's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was -103.83. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Polaris's Degree of Operating Leverage or its related term are showing as below:
PII's Degree of Operating Leverage is ranked better than 97.62% of 1300
companies
in the Vehicles & Parts industry
Industry Median: 0.97
vs PII: -103.83
Polaris (NYSE:PII) Degree of Operating Leverage Explanation
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
Polaris Degree of Operating Leverage Related Terms
Polaris Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Polaris's Degree of Operating Leverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
PII vs THO, BC, PATK: Degree of Operating Leverage Comparison
For the Recreational Vehicles subindustry, Polaris's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Polaris Degree of Operating Leverage vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Polaris's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Polaris's Degree of Operating Leverage falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Operating Leverage of -103.83 mean?
Polaris (PII) has a Degree of Operating Leverage of -103.83 as of Jun. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Polaris and its competitors. According to the industry distribution chart, Polaris ranks #31 out of 1300 companies in the Vehicles & Parts industry, placing it in the top 2.4%.
Is Polaris' Degree of Operating Leverage too high?
Polaris' current Degree of Operating Leverage is -103.83. Based on the distribution chart, Polaris ranks #31 out of 1300 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Polaris has a GF Score™ of 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Polaris' Degree of Operating Leverage compare to THO and BC?
According to the Vehicles & Parts industry distribution chart, Polaris ranks #31 out of 1300 companies for Degree of Operating Leverage. This places Polaris in the top 2% of its industry — outperforming the majority of peers. The industry median Degree of Operating Leverage is 0.97. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Vehicles & Parts company?
The median Degree of Operating Leverage among Vehicles & Parts companies is 0.97, based on 1,300 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Polaris and its competitors. For the Vehicles & Parts industry, the median Degree of Operating Leverage is 0.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Polaris's current Degree of Operating Leverage is -103.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Polaris stock overvalued right now?
Based on GuruFocus' analysis, Polaris (PII) is currently considered Fairly Valued. The stock's GF Value™ is $69.12, compared to a current price of $64.39 — trading 6.8% below its estimated fair value. The current Degree of Operating Leverage is -103.83. Polaris' overall GF Score™ is 77/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Polaris (PII), the current Degree of Operating Leverage is -103.83 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Polaris (PII) Overvalued in 2026?
Based on GuruFocus' analysis, Polaris stock appears to be undervalued.
The current stock price of $64.39 is trading 6.8% below its estimated GF Value™ of $69.12.
GuruFocus considers Polaris to be Fairly Valued.
Key valuation signals for PII:
Degree of Operating Leverage: -103.83
GF Value™: $69.12 vs. price of $64.39 (6.8% below fair value)
No single metric tells the full story. See the PII stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Polaris designs and manufactures off-road vehicles, including all-terrain vehicles and side-by-side vehicles for recreational and utility purposes, snowmobiles, and on-road vehicles, along with the related replacement parts, garments, and accessories. The firm entered the marine market after acquiring Boat Holdings in 2018, offering exposure to pontoon and deck boat users. It is slated to divest its Indian motorcycle brand to Carolwood in the first quarter of 2026. Polaris products are retailed through more than 2,500 dealers in North America and 1,500 international dealers as well as more than 25 subsidiaries and 90 distributors in more than 100 countries outside North America.
77GF Score
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