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Marinemax (HZO)
NYSE:HZO
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Marinemax
(NYSE:HZO)
63Neutral
Positive Factors
Earnings
HZO beat 2Q25 expectations, with the stock up nearly 10% at the open.
Financial Performance
HZO has meaningfully higher gross margin percentage than its peers.
Gross Margins
Gross profit improved 290bps to 36.2%, exceeding the 32% estimate.
Negative Factors
Market Conditions
Post-tariff uncertainty has slowed sales, prompting a guidance cut.
Retail Environment
Disruptions from Hurricanes Helene and Milton compounded an already soft retail environment.
Sales Performance
Sales of $468.5M were down -11% and came in below expectations.
Marinemax (HZO) vs. S&P 500 (SPY)
Market Cap
$455.45M
Dividend YieldN/A
Average Volume (3M)467.51K
Price to Earnings (P/E)8.6
Beta (1Y)1.91
Revenue Growth-0.24%
EPS Growth-10.33%
CountryUS
Employees4,050
SectorConsumer Cyclical
Sector Strength58
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.23
Shares Outstanding21,473,400
10 Day Avg. Volume457,021
30 Day Avg. Volume467,511
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap3.60
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit2.05
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$32.60Price Target Upside55.46% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Marinemax Business Overview & Revenue Model
Company DescriptionMarineMax, Inc. operates as a recreational boat and yacht retailer and superyacht services company in the United States. It operates through two segments, Retail Operations and Product Manufacturing. The company sells new and used recreational boats, including pleasure and fishing boats, mega-yachts, yachts, sport cruisers, motor yachts, pontoon boats, ski boats, jet boats, and other recreational boats. It also offers marine parts and accessories comprising marine electronics; dock and anchoring products that include boat fenders, lines, and anchors; boat covers; trailer parts; water sport accessories, which comprise tubes, lines, wakeboards, and skis; engine parts; oils; lubricants; steering and control systems; corrosion control products and service products; high-performance accessories, including propellers and instruments; and a line of boating accessories, such as life jackets, inflatables, and water sports equipment. In addition, the company provides novelty items, such as shirts, caps, and license plates; marine engines and equipment; maintenance, repair, and slip and storage accommodation services; and boat or yacht brokerage services, as well as charters yachts and power catamarans. Further, it offers new or used boat finance services; arranges insurance coverage, including boat property, disability, undercoating, gel sealant, fabric protection, and casualty insurance coverage; and manufactures and sells sport yachts and yachts. Additionally, the company operates vacations in Tortola, British Virgin Islands. It also markets and sells its products through offsite locations and print catalog. The company has 79 retail locations in Alabama, California, Connecticut, Florida, Georgia, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Jersey, New York, North Carolina, Ohio, Oklahoma, Rhode Island, South Carolina, Texas, Washington, and Wisconsin. MarineMax, Inc. was incorporated in 1998 and is based in Clearwater, Florida.
How the Company Makes MoneyMarineMax generates revenue primarily through the sale of new and used boats and yachts, which constitutes the majority of its income. Additional revenue streams include providing boat repair and maintenance services, offering boat storage facilities, and selling related marine products such as parts and accessories. The company also offers financing and insurance services to enhance the purchasing experience for customers. Strategic partnerships with leading boat manufacturers and financial institutions bolster its market presence and facilitate sales, while its extensive service offerings enhance customer loyalty and contribute to recurring revenue.
Marinemax Financial Statement Overview
Summary
Marinemax exhibits strong revenue potential and operational profitability, as seen in stable gross margins. However, challenges persist in net profitability and cash flow consistency, exacerbated by increased financial leverage. While the business fundamentals remain solid, future growth will rely on improving cash generation and managing financial risks effectively.Income Statement
Marinemax has shown resilient revenue growth over the years, peaking at $2.43 billion in 2024 before a slight decline to $2.42 billion in the TTM. The Gross Profit Margin remains healthy at 32.8% TTM, indicating strong pricing power. However, the Net Profit Margin has slightly decreased to 2.35% TTM compared to earlier periods, reflecting increased expenses or operational challenges. The EBITDA Margin stands at 7.11% TTM, suggesting stable operational earnings.―
Balance Sheet
The company's financial leverage has increased, with a Debt-to-Equity ratio of 0.97 in TTM, indicating substantial use of debt financing. Stockholders' Equity is robust at $993 million, but the Equity Ratio has declined to 37.16% TTM. Return on Equity stands at 5.73% TTM, showing profitability challenges compared to previous periods. Overall, the balance sheet shows moderate financial health but with increased leverage risks.65
Cash Flow
Marinemax's cash flow generation has been inconsistent, with a negative Free Cash Flow of -$50.95 million in the TTM. The Operating Cash Flow to Net Income Ratio is low at 0.21, suggesting cash flow generation issues relative to net income. The erratic cash flow trends highlight the need for improved operational cash management.―
| Breakdown | ||||
| Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.43B | 2.39B | 2.31B | 2.06B | 1.51B | Gross Profit |
| 801.20M | 835.33M | 805.75M | 659.43M | 398.71M | EBIT |
| 128.23M | 200.80M | 265.20M | 209.46M | 106.72M | EBITDA |
| 172.71M | 241.83M | 284.62M | 225.06M | 119.49M | Net Income Common Stockholders |
| 38.07M | 109.28M | 197.99M | 154.98M | 74.63M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 224.33M | 201.46M | 228.27M | 222.19M | 155.49M | Total Assets |
| 2.61B | 2.42B | 1.35B | 1.01B | 775.32M | Total Debt |
| 1.23B | 1.09B | 279.56M | 182.55M | 192.06M | Net Debt |
| 1.01B | 892.46M | 51.28M | -39.64M | 36.57M | Total Liabilities |
| 1.62B | 1.50B | 570.11M | 412.93M | 319.92M | Stockholders Equity |
| 975.79M | 915.84M | 782.67M | 594.89M | 455.40M |
| Cash Flow | Free Cash Flow | |||
| -86.08M | -287.64M | 18.14M | 347.76M | 291.87M | Operating Cash Flow |
| -25.66M | -222.24M | 76.59M | 373.88M | 304.68M | Investing Cash Flow |
| -81.35M | -576.37M | -140.45M | -161.13M | -30.11M | Financing Cash Flow |
| 128.51M | 770.40M | 73.06M | -145.74M | -158.13M |
Marinemax Technical Analysis
Negative
20.97
Price Trends
21.92
Negative
25.42
Negative
28.58
Negative
Market Momentum
0.05
Negative
48.05
Neutral
36.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HZO, the sentiment is Negative. The current price of 20.97 is above the 20-day moving average (MA) of 20.51, below the 50-day MA of 21.92, and below the 200-day MA of 28.58, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 48.05 is Neutral, neither overbought nor oversold. The STOCH value of 36.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HZO.
Marinemax Risk Analysis
Marinemax disclosed 46 risk factors in its most recent earnings report. Marinemax reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Marinemax Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $14.92B | 13.50 | 40.08% | 2.42% | 3.53% | 13.86% | |
75 Outperform | $15.79B | 42.44 | 101.78% | ― | 6.40% | 891.13% | |
75 Outperform | $5.68B | 15.79 | 26.89% | 3.13% | 10.01% | 4.13% | |
66 Neutral | $2.51B | 6.60 | 21.14% | 1.22% | -3.67% | -14.66% | |
63 Neutral | $455.45M | 8.64 | 5.91% | ― | -0.24% | -10.33% | |
61 Neutral | $6.58B | 11.81 | 3.06% | 3.99% | 2.54% | -21.54% | |
59 Neutral | $14.12B | 15.81 | 31.63% | 5.65% | -4.43% | -24.58% |
* Consumer Cyclical Sector Average
Performance Comparison
HZO
Marinemax
20.97
-5.04
-19.38%
BBY
Best Buy Co
68.38
-1.77
-2.52%
DKS
Dick's Sporting Goods
188.37
-3.71
-1.93%
CHWY
Chewy
38.35
22.91
148.38%
ASO
Academy Sports and Outdoors
38.88
-17.12
-30.57%
MNSO
MINISO Group Holding
17.66
-6.45
-26.75%
Marinemax Earnings Call Summary
Earnings Call Date:Apr 24, 2025
(Q2-2025)
| % Change Since: 8.54%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mix of strong financial performance and strategic achievements, such as record revenue and expansion in marinas, against the backdrop of significant challenges, including soft retail demand, declining gross margins, and economic uncertainty related to tariffs. While the company is well-positioned with a strong balance sheet and strategic initiatives, the near-term outlook is tempered by external macroeconomic factors.Q2-2025 Updates
Positive Updates
Record March Quarter Revenue
Achieved a record revenue of more than $631 million for the March quarter, reflecting exceptional execution and leveraging digital marketing tools.
Strong Same-Store Sales Growth
Comparable store sales grew by 11%, benefiting from aggressive pricing and targeted promotional initiatives.
Adjusted EBITDA Increase
Adjusted EBITDA increased by 5% year-over-year to $30.9 million.
Expansion of Marina Portfolio
Expanded Marina portfolio with the acquisition of Shelter Bay Marine and strengthened partnership with Treasure Island Marina.
Recognition as a Great Place to Work
MarineMax was recognized as a Great Place to Work for the second consecutive year.
Negative Updates
Soft Retail Demand and Economic Uncertainty
The company faced continued soft retail demand and an uncertain economic climate affecting the boating industry.
Decline in Gross Margins
Experienced historically low new and used boat margins due to aggressive pricing strategies.
Updated Guidance Reflects Uncertainty
Lowered fiscal 2025 guidance due to macroeconomic concerns related to tariffs and potential pressure on top line and margins.
Impact of Tariffs and Consumer Uncertainty
Tariff uncertainty is affecting consumer behavior, leading to slower decision-making and potential volume issues.
Company Guidance
In the second quarter of fiscal year 2025, MarineMax reported robust financial performance despite challenging market conditions, achieving a record March quarter revenue exceeding $631 million, with same-store sales growth of 11%. The company's diversified strategy, including a focus on premium brands and digital marketing investments, contributed to this success. However, aggressive pricing led to historically low margins in new and used boats, though the impact was mitigated by high-margin businesses like marinas and superyacht services, keeping the gross margin decline to just 30 basis points year-to-date. Adjusted EBITDA increased by 5% compared to the previous year, indicating improved profitability. Despite the strong quarter, the company adjusted its fiscal 2025 guidance, anticipating adjusted net income between $1.40 and $2.40 per diluted share and adjusted EBITDA ranging from $140 million to $170 million, due to economic uncertainties and potential tariff impacts.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.