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Marine Products Corp. (MPX)
NYSE:MPX
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Marine Products
(NYSE:MPX)
68Neutral
Marine Products (MPX) vs. S&P 500 (SPY)
Market Cap
$298.57M
Dividend Yield6.35%
Average Volume (3M)36.21K
Price to Earnings (P/E)17.8
Beta (1Y)0.42
Revenue Growth-38.35%
EPS Growth-59.21%
CountryUS
Employees690
SectorConsumer Cyclical
Sector Strength49
IndustryVehicles
Share Statistics
EPS (TTM)0.49
Shares Outstanding34,961,460
10 Day Avg. Volume31,143
30 Day Avg. Volume36,207
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.30
Price to Cash Flow (P/CF)16.60
P/FCF Ratio21.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$8.00Price Target Upside-6.32% Downside
Rating ConsensusHold
Number of Analyst Covering1
Marine Products Business Overview & Revenue Model
Company DescriptionMarine Products (MPX) is a leading manufacturer and distributor of premium boating and marine equipment. The company operates in the recreational marine industry, focusing on the design, production, and distribution of high-quality fiberglass powerboats and related accessories. Marine Products is renowned for its innovative designs and commitment to delivering exceptional performance and quality to boating enthusiasts worldwide.
How the Company Makes MoneyMarine Products makes money through the sale of its diverse range of powerboats and marine accessories. The company's primary revenue stream is generated from the manufacturing and sale of fiberglass powerboats, which are marketed under well-known brands. Additionally, MPX earns revenue through the sale of marine parts and accessories that complement their boat offerings. The company leverages a robust dealer network to reach customers in various regions, ensuring widespread availability and support for their products. Partnerships with key suppliers and strategic investments in research and development also contribute to maintaining competitive pricing and enhancing product appeal, driving sales and profitability.
Marine Products Financial Statement Overview
Summary
Marine Products faces challenges with declining revenue and profitability, as evidenced by shrinking net profit margins and revenue. However, the company maintains a strong balance sheet with no debt, high equity ratio, and effective cash management. While the drop in cash flows suggests headwinds, the robust equity position and zero leverage offer stability. Continued focus on improving profitability and revenue growth is essential for future financial health.Income Statement
The company has experienced a significant drop in revenue from $383.7 million in 2023 to $236.6 million in 2024, indicating a negative revenue growth rate of approximately -38.3%. Gross profit margins are robust at 100% for 2024, reflecting effective cost management. However, the net profit margin decreased from 10.9% in 2023 to 7.5% in 2024, suggesting increased pressure on profitability. EBIT and EBITDA margins are also under pressure, with EBIT margin at 8.9% and EBITDA margin at 10.1% for 2024.60
Neutral
Balance Sheet
Marine Products maintains a strong balance sheet with no total debt and substantial stockholder equity of $129 million as of 2024. The debt-to-equity ratio is effectively zero, reflecting a conservative capital structure. The equity ratio stands at 75.3%, indicating a strong equity base relative to total assets. Return on equity (ROE) has decreased to 13.8% in 2024 from 27.5% in 2023, signaling a decline in profitability relative to equity.75
Positive
Cash Flow
Operating cash flow has decreased to $29.5 million in 2024 from $56.8 million in 2023, representing a negative growth trend. Free cash flow has also seen a decline, potentially impacting future investments. Despite these declines, the company has maintained a strong free cash flow to net income ratio, indicating solid cash generation relative to profits. The operating cash flow to net income ratio remains robust, underscoring efficient cash management.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 236.56M | 383.73M | 381.00M | 298.01M | 239.82M | Gross Profit |
| 45.50M | 90.38M | 93.72M | 68.27M | 53.60M | EBIT |
| 18.27M | 49.20M | 51.80M | 36.39M | 24.36M | EBITDA |
| 20.91M | 49.58M | 53.70M | 38.21M | 26.32M | Net Income Common Stockholders |
| 17.85M | 41.70M | 40.35M | 29.03M | 19.44M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 52.38M | 71.95M | 43.17M | 14.10M | 31.57M | Total Assets |
| 171.25M | 193.80M | 163.72M | 132.84M | 119.42M | Total Debt |
| 0.00 | 297.00K | 237.00K | 71.00K | 122.00K | Net Debt |
| -52.38M | -71.66M | -42.93M | -14.03M | -31.45M | Total Liabilities |
| 42.24M | 42.21M | 39.33M | 34.32M | 34.90M | Stockholders Equity |
| 129.00M | 151.59M | 124.38M | 98.53M | 84.52M |
| Cash Flow | Free Cash Flow | |||
| 29.53M | 46.67M | 46.85M | -791.00K | 27.77M | Operating Cash Flow |
| 29.53M | 56.85M | 49.35M | 457.00K | 29.87M | Investing Cash Flow |
| -4.43M | -7.87M | -2.50M | -1.25M | -2.06M | Financing Cash Flow |
| -44.67M | -20.19M | -17.78M | -16.68M | -16.04M |
Marine Products Technical Analysis
Negative
8.54
Price Trends
8.48
Positive
8.63
Negative
8.68
Negative
Market Momentum
-0.01
Positive
49.11
Neutral
60.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MPX, the sentiment is Negative. The current price of 8.54 is below the 20-day moving average (MA) of 8.67, above the 50-day MA of 8.48, and below the 200-day MA of 8.68, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 49.11 is Neutral, neither overbought nor oversold. The STOCH value of 60.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MPX.
Marine Products Risk Analysis
Marine Products disclosed 21 risk factors in its most recent earnings report. Marine Products 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
Marine Products Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $2.88B | 17.03 | 24.01% | ― | 10.32% | 6.05% | |
68 Neutral | $298.57M | 17.81 | 11.94% | 6.35% | -38.35% | -59.21% | |
64 Neutral | $304.39M | ― | -1.53% | ― | -45.70% | -115.77% | |
60 Neutral | $12.39B | 10.47 | 1.07% | 3.58% | 1.64% | -18.33% | |
53 Neutral | $634.02M | ― | -15.71% | ― | -39.56% | -238.09% |
* Consumer Cyclical Sector Average
Performance Comparison
MPX
Marine Products
8.55
-0.06
-0.70%
MBUU
Malibu Boats
31.32
-9.12
-22.55%
MCFT
MasterCraft Boat Holdings
17.27
-3.75
-17.84%
YETI
Yeti Holdings
33.98
-3.83
-10.13%
Marine Products Earnings Call Summary
Earnings Call Date: Jan 30, 2025 | % Change Since: 4.40% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Neutral
The earnings call reflected significant challenges during 2024, including decreased sales and earnings. However, effective inventory management, strong cash flow, and strategic investments like solar panel installation indicate a cautiously optimistic outlook for future growth and stability.Highlights
Field Inventory Management Success
Field inventory ended the year 15% lower than the prior year, reflecting effective management and sell-through of older models.
Solar Panel Installation
Completed the installation of solar panels at the Georgia manufacturing facility, with expected strong electricity cost savings and environmental benefits.
Strong Operating and Free Cash Flow
Generated strong operating cash flow of $30 million and free cash flow of $25 million in 2024.
Debt-free Balance Sheet
Finished 2024 with $52 million in cash and no debt.
Dividends and Cash Returns
Paid $44 million in dividends, including a $24 million special dividend, and declared a regular quarterly dividend of $0.14 per share.
Lowlights
Decline in Full Year Sales and Earnings
Full year 2024 sales were $237 million, down 38% versus last year, with diluted EPS dropping from $1.21 to $0.50 and EBITDA declining from $52 million to $21 million.
Fourth Quarter Sales and Profit Decrease
Fourth quarter sales decreased by 33% to $47.8 million, driven by a 39% decrease in the number of boats sold. Gross profit decreased to $9.2 million.
Challenging Market Conditions
Marine industry faced a lackluster period with cautious sentiment and challenges related to channel inventory excesses.
Company Guidance
During the call, Marine Products Corporation highlighted key metrics and expectations for future performance. In 2024, the company reported sales of $237 million, a decrease of 38% from the prior year, with diluted EPS declining to $0.50 from $1.21 and EBITDA falling from $52 million to $21 million. Cash flow remained strong, with operating cash flow at $30 million and free cash flow at $25 million, supported by capital expenditures of $5 million, including investment in solar panels. The company paid $44 million in dividends, including a $24 million special dividend, and ended the year with $52 million in cash and no debt. For the fourth quarter, sales were down 33% to $47.8 million, while gross profit decreased to $9.2 million with a margin of 19.2%. SG&A expenses dropped 28% to $5.6 million. The guidance suggested a cautious optimism for 2025, with expectations of muted sales growth in the first half but potential for improvement in the latter half. The company also emphasized their strategic focus on managing channel inventory, which ended the year 15% lower than the prior year, and highlighted positive consumer sentiment post-election, which could drive future demand.Marine Products Corporate Events
Executive/Board ChangesShareholder Meetings
Marine Products Announces Retirement of Key Board Directors
Neutral
Feb 20, 2025
On February 18, 2025, Marine Products Corporation directors Gary W. Rollins and Pamela R. Rollins announced their intention to retire from the Board after long service, and will not stand for re-election at the 2025 Annual Meeting of Stockholders. Their resignations will be effective following the meeting, assuming the Board’s declassification is approved by stockholders. There was no disagreement with the company regarding its operations, policies, or practices.
Executive/Board ChangesShareholder Meetings
Marine Products Streamlines Board with Bylaw Amendments
Neutral
Jan 30, 2025
Marine Products Corporation’s Board of Directors approved amended bylaws on January 28, 2025, to declassify the board and allow for annual director elections starting in 2026. This restructuring, which includes the resignation and reappointment of board members for shorter terms, aims to streamline governance and increase accountability, pending shareholder approval at the 2025 Annual Meeting.
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.