Polaris Industries Inc. in 3 Charts

By Markets Fool.com

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Image source: Getty Images.

Polaris Industries Inc. (NYSE: PII) has made an incredible turnaround since the recession as people have opened up their pocketbooks to buy recreational vehicles. But the company's improved product offerings have been a huge driver of its success. Here's a look at a few charts that show how that product line is driving growth.

Polaris the growth engine

Over the past decade, Polaris Industries has put up impressive growth numbers, particularly compared to a major rival like Harley-Davidson (NYSE: HOG). You can see below that Polaris has nearly tripled revenue and has grown net income 230% over that time while Harley-Davidson has barely grown, and net income has dropped.

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PII Revenue (TTM) data by YCharts.

While the top- and bottom-line numbers are impressive, it's what's driving those numbers that should matter most to investors.

Off-road vehicles clear the path

Unlike the motorcycle-focused Harley-Davidson, Polaris is a highly diversified into many markets: motorcycles, snowmobiles, and adjacent markets like industrial vehicles. But it's off-road vehicles that really drive the company's results.

You can see below that revenue from off-road vehicles has risen nearly $1 billion in the last four years with a 5-year compound annual growth rate of 15%.

Image source: Polaris investor presentation.

Polaris now holds double the market share of the next biggest competitor, and with popular Ranger and RZR vehicles in the lineup, it's positioned to hold share for a long time.

What will be important to watch is the disposable income available to off-road customers. If the economy goes south, the disposable income to buy vehicles will also dry up, which could lead to lower demand. The last five years have been solid economic conditions, so a change in those trends could change the trajectory you see above.

Motorcycles are the growth engine

What's been truly astounding at Polaris over the past five years is the growth in motorcycles. This includes the Indian brand and Slingshot on top of the traditional Victory motorcycles. And you can see below that the segment is growing off the charts.

Image source: Polaris investor presentation.

Within the motorcycle category, Slingshot is the hit product every consumer company hopes for. It has a first-mover advantage and lots of global growth ahead. And in a little over two years, it's becoming a big contributor to the company's top line.

Indian is the comeback story, acquired off the scrap heap in 2011 after years of neglect. Between 2013 and 2015, Indian gained 1.8% of the overall motorcycle market share while Harley-Davidson lost 3.6%. And with classic-looking motorcycles growing in popularity, the opportunity is tremendous for the brand.

Hitting on all cylinders

From a product standpoint, Polaris has been firing on all cylinders for most of the past decade. There will be ups and downs with the economy, and lately, results have been hurt by a RZRrecall, but these are parts of the business, and the trajectory continues to be strong. These three charts show that strength, and investors hope there's more growth in the future.

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Travis Hoium has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Polaris Industries. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.