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Malibu Boats (MBUU)
NASDAQ:MBUU
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Malibu Boats
(NASDAQ:MBUU)
Rating:56Neutral
Price Target:
$31.00
▲( 4.84% Upside)
Positive Factors
Capital Flexibility
The company has capital flexibility with reduced capital expenditures and plans for buybacks and potential mergers and acquisitions in a fragmented market.
Event Performance
Encouraged by its annual Ski/Wake (Malibu/Axis) sales event, with higher retail sell-through and participation, as well as reduced promotional activity, relative to last year.
Financial Strategy
Malibu Boats, Inc. has a net cash balance sheet and a highly variable cost structure, which should help it preserve margins relative to peers in a downcycle.
Negative Factors
Equity Performance
The stock is down 30% year-to-date, indicating a significant decline in equity performance.
Guidance and Outlook
FY25 guidance was cut from flat-to-low-single-digit growth to flat-to-low-single-digit decline for the year, reflecting a conservative outlook due to challenges in the ski/wake category.
Segment Performance
Malibu Boats, Inc. highlighted weakness in its saltwater segment with declines in both units and average selling prices, heavily reliant on Florida, affected by a difficult hurricane season.
Malibu Boats (MBUU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$567.47M
Dividend YieldN/A
Average Volume (3M)195.88K
Price to Earnings (P/E)―
Beta (1Y)0.83
Revenue Growth-27.18%
EPS Growth84.33%
CountryUS
Employees2,250
SectorConsumer Cyclical
Sector Strength74
IndustryAuto - Recreational Vehicles
Share Statistics
EPS (TTM)0.72
Shares Outstanding19,190,828
10 Day Avg. Volume150,380
30 Day Avg. Volume195,881
Financial Highlights & Ratios
PEG Ratio0.74
Price to Book (P/B)1.16
Price to Sales (P/S)0.00
P/FCF Ratio27.05
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$34.60Price Target Upside17.01% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Malibu Boats Business Overview & Revenue Model
Company DescriptionMalibu Boats, Inc. (MBUU) is a leading designer and manufacturer of recreational powerboats, primarily serving the high-performance sports boat market. The company operates in the marine products industry and is known for its innovative and high-quality boats that cater to water sports enthusiasts. Malibu Boats offers a range of products under its distinct brands, including Malibu, Axis Wake Research, Cobalt, and Pursuit, each targeting different segments of the boating market, from performance sport boats to luxury day boats and cruisers.
How the Company Makes MoneyMalibu Boats makes money primarily through the design, manufacturing, and sale of a diverse range of powerboats. The company's revenue model is centered around selling these boats to a network of independent dealers, who then sell the boats to end consumers. Key revenue streams include the sale of new boats across its various brands, as well as parts and accessories that complement their boating products. Additionally, Malibu Boats benefits from strategic acquisitions and partnerships that enhance its product offerings and market reach. The company's earnings are influenced by factors such as consumer demand in the recreational boating industry, economic conditions, and discretionary spending trends, which can impact boat sales and overall financial performance.
Malibu Boats Financial Statement Overview
Summary
Malibu Boats is facing substantial financial challenges, with declining profitability and cash flow metrics that suggest operational inefficiencies. The balance sheet remains relatively stable with low leverage, but declining asset and equity figures present potential future risks. Immediate strategic actions may be required to improve financial health and operational efficiency.Income Statement
Malibu Boats has experienced a significant decline in both revenue and profitability in the TTM period. Gross Profit Margin and Net Profit Margin have turned negative due to operational challenges, as evidenced by negative EBIT and EBITDA margins. This reflects a concerning trend in operational efficiency and overall financial health compared to previous fiscal years.45
Neutral
Balance Sheet
The company's balance sheet shows a moderate level of stability. The Debt-to-Equity ratio remains low, indicating manageable leverage. However, there has been a decline in Stockholders' Equity and Total Assets, which could pose future risks if not addressed. Return on Equity has turned negative, reflecting recent profitability challenges.60
Neutral
Cash Flow
Despite negative net income, Malibu Boats maintains a positive operating cash flow, suggesting effective cash management in operations. However, Free Cash Flow has decreased significantly compared to previous years, and the Free Cash Flow to Net Income ratio is unfavorable, highlighting cash flow challenges.55
Neutral
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 733.99M | 829.03M | 1.39B | 1.21B | 926.51M | 653.16M | Gross Profit |
| 115.07M | 147.09M | 351.30M | 310.05M | 236.49M | 149.27M | EBIT |
| -4.59M | -55.95M | 144.78M | 213.82M | 149.78M | 85.31M | EBITDA |
| -66.18M | -22.95M | 278.29M | 240.15M | 183.59M | 107.27M | Net Income Common Stockholders |
| -88.74M | -55.91M | 104.51M | 157.63M | 109.84M | 61.56M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 35.12M | 26.95M | 78.94M | 83.74M | 41.48M | 33.79M | Total Assets |
| 738.68M | 739.62M | 925.92M | 851.33M | 742.78M | 477.35M | Total Debt |
| 25.34M | 7.94M | 2.32M | 119.62M | 143.28M | 82.84M | Net Debt |
| -9.77M | -19.00M | -76.61M | 35.87M | 101.80M | 49.05M | Total Liabilities |
| 224.27M | 204.91M | 310.17M | 337.76M | 361.63M | 215.82M | Stockholders Equity |
| 509.76M | 530.01M | 607.88M | 503.17M | 373.43M | 254.58M |
| Cash Flow | Free Cash Flow | ||||
| 21.72M | -20.40M | 129.89M | 109.78M | 100.64M | 52.85M | Operating Cash Flow |
| 59.85M | 55.56M | 184.73M | 164.85M | 131.31M | 94.14M | Investing Cash Flow |
| -37.68M | -75.84M | -54.64M | -61.62M | -181.09M | -40.39M | Financing Cash Flow |
| -42.56M | -31.70M | -134.57M | -60.38M | 57.35M | -47.32M |
Malibu Boats Technical Analysis
Negative
29.57
Price Trends
29.47
Positive
32.52
Negative
36.07
Negative
Market Momentum
0.41
Positive
46.01
Neutral
13.30
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MBUU, the sentiment is Negative. The current price of 29.57 is below the 20-day moving average (MA) of 30.44, above the 50-day MA of 29.47, and below the 200-day MA of 36.07, indicating a neutral trend. The MACD of 0.41 indicates Positive momentum. The RSI at 46.01 is Neutral, neither overbought nor oversold. The STOCH value of 13.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MBUU.
Malibu Boats Risk Analysis
Malibu Boats disclosed 46 risk factors in its most recent earnings report. Malibu Boats 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
Malibu Boats Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $292.23M | 19.90 | 10.33% | 6.70% | -32.30% | -58.15% | |
65 Neutral | $279.96M | ― | -1.50% | ― | -41.66% | -123.04% | |
63 Neutral | $3.27B | 41.02 | 5.16% | 3.40% | -15.42% | -77.50% | |
63 Neutral | $2.14B | 53.50 | 3.09% | 6.97% | -17.86% | -89.55% | |
62 Neutral | $6.84B | 11.22 | 2.83% | 3.95% | 2.65% | -21.93% | |
58 Neutral | $225.45M | ― | -1.88% | ― | -6.22% | 91.93% | |
56 Neutral | $567.47M | ― | -1.68% | ― | -27.18% | 84.33% |
* Consumer Cyclical Sector Average
Performance Comparison
MBUU
Malibu Boats
29.57
-6.77
-18.63%
BC
Brunswick
49.76
-26.29
-34.57%
MPX
Marine Products
8.36
-1.22
-12.73%
PII
Polaris
38.03
-40.69
-51.69%
MCFT
MasterCraft Boat Holdings
16.86
-4.38
-20.62%
ONEW
OneWater Marine
13.82
-12.04
-46.56%
Malibu Boats Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q3-2025)
| % Change Since: -0.64%|
Next Earnings Date:Aug 28, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed sentiment with strong financial performance, market share gains, and successful new product launches. However, it was balanced by challenges in the retail environment, revised full-year guidance, tariff concerns, and mixed boat show performance.Q3-2025 Updates
Positive Updates
Strong Financial Performance
Net sales increased 12.4% to $228.7 million, and unit volume increased 12.8% to 1,431 units. Gross profit increased 13.4% to $45.7 million, and gross margin as a percentage of sales increased 20 basis points to 20.0%.
Market Share Gains in Cobalt Models
The company gained 380 basis points of market share in Cobalt models produced at the Roan facility.
Recognition for Pursuit Brand
Pursuit brand received the Marine Industry Customer Satisfaction Award from NMMA.
Cash Flow and Financial Position
Generated over $15 million in cash from operations, finished Q3 with over $39 million of cash on hand, and over $300 million of untapped liquidity on the credit facility.
New Product Success
Nearly 40% of Malibu boat show unit sales were driven by two premium models introduced this year, the M230 and the 25 LSV.
Negative Updates
Challenging Retail Environment
The retail environment remains challenging with elevated interest rates and ongoing macro uncertainty weighing on consumer sentiment and discretionary spending.
Revised Full Year Guidance
Full year net sales expected to be down 3% to 5%, and full year adjusted EBITDA margins expected between 9% and 10%. This reflects lower expected shipments and a recalibration of expectations due to macroeconomic uncertainties.
Tariff Concerns
Tariffs have reemerged as a prominent topic, with concerns about potential impacts on future cost structures.
Mixed Boat Show Performance
Overall boat show performance was mixed, with pockets of strength but not the robust demand expected.
Company Guidance
During the Malibu Boats conference call discussing the third quarter of fiscal year 2025, management provided updated guidance reflecting a cautious approach to market conditions. The company achieved a 12.4% increase in net sales to $228.7 million and a 12.8% rise in unit volume to 1,431 units, driven by increased sales in the Malibu segment and favorable model and pricing mixes. Despite challenges, adjusted EBITDA reached $28.3 million with a margin of 12.4%. However, due to anticipated double-digit declines in retail markets and a focus on maintaining healthy dealer inventories, Malibu Boats revised its full-year expectations to a net sales decline of 3% to 5% and adjusted EBITDA margins between 9% and 10%. The company emphasized its robust balance sheet, with $39 million in cash and $300 million in untapped liquidity, as well as its strategic capital allocation priorities, including a moderated pace of share repurchases.Malibu Boats Corporate Events
Executive/Board Changes
Malibu Boats Announces CEO Steven Menneto as President
Neutral
Feb 12, 2025
Malibu Boats, Inc. announced that Steven D. Menneto, currently the CEO and director, will be taking on the additional role of President following Ritchie L. Anderson’s departure, effective February 7, 2025. This leadership change may impact the company’s strategic direction and operations as Mr. Menneto assumes a more significant role in guiding the company’s future.
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.