PolarisMEX:PII 74 Gross Margin % is 20.18% as of Mar. 2026, which is 16% below its 10-year median of 23.93. GuruFocus rates MEX:PII with a GF Score™ of 74/100 and a GF Value™ of MXN1,160.38. The stock has 10 warning signs investors should review. Among 1,313 Vehicles & Parts companies, Polaris ranks better than 50.88% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Polaris's Gross Profit for the
three
months ended in Mar. 2026 was MXN6,037 Mil. Polaris's Revenue for the
three
months ended in Mar. 2026 was MXN29,911 Mil. Therefore, Polaris's Gross Margin % for the quarter that ended in Mar. 2026 was 20.18%.
Warning Sign:
Polaris Inc gross margin has been in long-term decline. The average rate of decline per year is -4.6%.
The historical rank and industry rank for Polaris's Gross Margin % or its related term are showing as below:
MEX:PII'
s Gross Margin % Range Over the Past 10 Years
Min: 19.14 Med: 23.93 Max: 24.7
Current: 20.05
During the past 13 years, the highestGross Margin % of Polaris was 24.70%. The lowest was 19.14%. And the median was 23.93%.
MEX:PII's Gross Margin % is ranked better than 50.88% of 1313
companies
in the Vehicles & Parts industry
Industry Median: 19.84
vs MEX:PII: 20.05
Polaris had a gross margin of 20.18% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Polaris was -4.60% per year.
Polaris (MEX:PII) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Polaris had a gross margin of 20.18% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Polaris Gross Margin % Related Terms
Polaris Gross Margin % Historical Data
* Premium members only.
The historical data trend for Polaris's Gross Margin % 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.
MEX:PII vs THO, PATK, LCII: Gross Margin % Comparison
For the Recreational Vehicles subindustry, Polaris's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Polaris's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Polaris's Gross Margin % 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Polaris (MEX:PII) has a Gross Margin % of 20.18% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Polaris and its competitors. This is 16% below median its historical median of 23.93. Over the past decade, Polaris' Gross Margin % has ranged from 19.14 to 24.70. According to the industry distribution chart, Polaris ranks #645 out of 1313 companies in the Vehicles & Parts industry, placing it in the top 49.1%.
Is Polaris' Gross Margin % too high?
Polaris' current Gross Margin % of 20.18% is 16% below median its 10-year median of 23.93. Over the past 10 years, this metric has ranged from a low of 19.14 to a high of 24.70. The Vehicles & Parts industry median Gross Margin % is 19.84. Polaris' value of 20.18% is 1.7% above this industry median. Based on the distribution chart, Polaris ranks #645 out of 1313 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Polaris has a GF Score™ of 74/100, reflecting its overall financial health beyond just this single metric.
How does Polaris' Gross Margin % compare to THO and PATK?
According to the Vehicles & Parts industry distribution chart, Polaris ranks #645 out of 1313 companies for Gross Margin %. This puts Polaris in the upper half of its industry. The industry median Gross Margin % is 19.84. Polaris' value of 20.18% is 1.7% above this benchmark. Historically, Polaris' own Gross Margin % has ranged from 19.14 to 24.70 over the past decade. While the company's 10-year median is 23.93 vs. the industry median of 19.84, Polaris has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.84, based on 1,313 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Polaris's current Gross Margin % of 20.18% is 1.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Polaris and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Polaris's current Gross Margin % is 20.18%, which is 16% below median its own 10-year median of 23.93. 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?
Polaris (MEX:PII) has a current Gross Margin % of 20.18%. The stock's GF Value™ is MXN1,160.38, compared to a current price of MXN1,213.00 — trading 4.5% above its estimated fair value. The current Gross Margin % is 20.18%, which is 16% below median its 10-year median of 23.93 and 1.7% above the Vehicles & Parts industry median of 19.84. Polaris' overall GF Score™ is 74/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Polaris (MEX:PII), the current Gross Margin % is 20.18% as of Mar. 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 (MEX:PII) Overvalued in 2026?
Based on GuruFocus' analysis, Polaris stock appears to be overvalued.
The current stock price of MXN1,213.00 is trading 4.5% above its estimated GF Value™ of MXN1,160.38.
Key valuation signals for MEX:PII:
Gross Margin %: 20.18% (16% below median its 10-year median of 23.93)
GF Value™: MXN1,160.38 vs. price of MXN1,213.00 (4.5% above fair value)
Industry Position: 1.7% above the Vehicles & Parts median (#645 of 1313)
No single metric tells the full story. See the MEX: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.
74GF Score
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