Marinemax (HZO) AI Stock Analysis

• Market Cap: $541.99M
• Dividend Yield: N/A
• Average Volume (3M): 281.61K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 1.91
• Revenue Growth: -0.24%
• EPS Growth: -10.33%
• Country: US
• Employees: 4,050
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Specialty Retail
• EPS (TTM): 0.23
• Shares Outstanding: 21,473,400
• 10 Day Avg. Volume: 263,317
• 30 Day Avg. Volume: 281,608
• PEG Ratio: 3.06
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.50
• Enterprise Value/Market Cap: 3.07
• Enterprise Value/Revenue: 0.17
• Enterprise Value/Gross Profit: 2.10
• Enterprise Value/Ebitda: 2.32
• 1Y Price Target: $32.60
• Price Target Upside: 29.16% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 71 Outperform
• Price Target: $28.00 ▲(10.94%Upside)

MarineMax's solid financial performance is driven by strong revenue and operational profitability, yet it faces challenges with profitability margins and cash flow consistency. The technical analysis indicates positive momentum, while valuation metrics suggest reasonable stock pricing. Despite strategic achievements from the earnings call, economic uncertainties and declining margins pose risks.

Positive Factors

Earnings

HZO beat 2Q25 expectations, with the stock up nearly 10% at the open.

Financial Performance

Gross profit improved mostly due to a mix and higher margin services businesses.

Guidance

Management reaffirmed FY25 guidance, expecting improved activity in the spring selling season, supported by strong early boat show activity and a focus on premium/luxury consumers.

Negative Factors

Inventory Management

Softer sales led to higher-than-expected inventory, which is expected to decrease throughout the year.

Market 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 Business Overview & Revenue Model

Company Description

MarineMax, 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 Money

MarineMax generates revenue through several key streams. The primary source of income is the sale of new and used boats and yachts, which constitute a significant portion of their overall revenue. Additionally, the company earns money by offering financing and insurance services to customers, often in partnership with financial institutions, which provides an additional layer of convenience and value. MarineMax also operates a robust service and parts segment, providing maintenance, repair, and storage services, which contributes to its revenue. Their marinas and yacht charter operations further diversify their income, capturing a broader market by offering experiences and services beyond sales. Strategic acquisitions and partnerships with boat manufacturers and financial service providers play a crucial role in expanding their product offerings and enhancing their market position.

Marinemax Financial Statement Overview

Summary

MarineMax shows strong revenue potential and operational profitability with stable gross margins. However, challenges in net profitability and cash flow consistency, coupled with increased financial leverage, pose risks. Solid business fundamentals need enhanced cash generation and financial risk management for future growth.

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.

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
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
2.42B	2.43B	2.39B	2.31B	2.06B	1.51B
	Gross Profit
794.46M	801.20M	835.33M	805.75M	659.43M	398.71M
	EBIT
150.76M	128.23M	200.80M	265.20M	209.46M	106.72M
	EBITDA
184.38M	172.71M	241.83M	284.62M	225.06M	119.49M
	Net Income Common Stockholders
56.91M	38.07M	109.28M	197.99M	154.98M	74.63M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
64.41M	224.33M	201.46M	228.27M	222.19M	155.49M
	Total Assets
873.10M	2.61B	2.42B	1.35B	1.01B	775.32M
	Total Debt
405.39M	1.23B	1.09B	279.56M	182.55M	192.06M
	Net Debt
340.98M	1.01B	892.46M	51.28M	-39.64M	36.57M
	Total Liabilities
486.03M	1.62B	1.50B	570.11M	412.93M	319.92M
	Stockholders Equity
387.08M	975.79M	915.84M	782.67M	594.89M	455.40M
Cash Flow		Free Cash Flow
-50.95M	-86.08M	-287.64M	18.14M	347.76M	291.87M
	Operating Cash Flow
11.94M	-25.66M	-222.24M	76.59M	373.88M	304.68M
	Investing Cash Flow
-57.20M	-81.35M	-576.37M	-140.45M	-161.13M	-30.11M
	Financing Cash Flow
32.49M	128.51M	770.40M	73.06M	-145.74M	-158.13M

Marinemax Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HZO, the sentiment is Positive. The current price of 25.24 is above the 20-day moving average (MA) of 22.42, above the 50-day MA of 21.28, and below the 200-day MA of 27.54, indicating a neutral trend. The MACD of 0.24 indicates Negative momentum. The RSI at 66.48 is Neutral, neither overbought nor oversold. The STOCH value of 89.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HZO.

Marinemax Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MNSO	79 Outperform	$5.52B	16.42	24.98%	3.15%	9.80%	-6.33%
DKS	77 Outperform	$14.63B	13.06	40.22%	2.47%	3.33%	15.47%
CHWY	74 Outperform	$20.01B	51.72	101.78%	―	6.40%	891.13%
ASO	72 Outperform	$2.89B	7.59	20.14%	1.04%	-3.57%	-17.43%
HZO	71 Outperform	$541.99M	10.28	5.91%	―	-0.24%	-10.33%
BBY	65 Neutral	$15.46B	17.85	30.21%	5.18%	-3.23%	-28.11%
Sector *	63 Neutral	$6.96B	11.51	2.80%	3.85%	2.70%	-24.43%