Malibu Boats (MBUU) AI Stock Analysis

• Market Cap: $570.41M
• Dividend Yield: N/A
• Average Volume (3M): 242.69K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.70
• Revenue Growth: -39.56%
• EPS Growth: -238.09%
• Country: US
• Employees: 2,250
• Sector: Consumer Cyclical
• Sector Strength: 63
• Industry: Auto - Recreational Vehicles
• EPS (TTM): -4.35
• Shares Outstanding: 19,635,294
• 10 Day Avg. Volume: 202,523
• 30 Day Avg. Volume: 242,692
• PEG Ratio: N/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 Ratio: 0.00
• Enterprise Value/Market Cap: 1.31
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 5.07
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $38.29
• Price Target Upside: 31.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

Malibu Boats is currently facing significant financial and market challenges, reflected in declining sales, profitability, and weak technical indicators. While the company has managed to generate strong cash flow and maintain a solid balance sheet, the negative P/E ratio and lack of a dividend yield present valuation challenges. Despite some positive developments in promotional events and sales strategies, the overall outlook remains cautious.

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.

Financial Performance

1Q25 results exceed expectations with net sales of $172M surpassing both the internal estimate and the consensus estimate, driven by higher average selling prices.

Operational Strategy

Management has aligned production levels with current demand and successfully reduced inventories to historical averages, creating a more attractive setup for future demand pivots.

Negative Factors

Inventory Management

1Q25 net sales attributable to the Malibu segment decreased substantially, driven by lower wholesale shipments and dealers' desire to hold less inventory.

Market Challenges

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.

Sales Performance

MBUU reported a significant decrease in net sales driven primarily by decreased unit volumes across all segments, partially offset by a favorable model mix and inflation-driven price increases.

Malibu Boats Business Overview & Revenue Model

Company Description

Malibu Boats, Inc. engages in the design, engineering, manufacturing, marketing, and sale of a range of recreational powerboats. It operates through three segments: Malibu, Saltwater Fishing, and Cobalt. The company offers performance sport boats, and sterndrive and outboard boats under the Malibu, Axis, Pursuit, Maverick, Cobia, Pathfinder, Hewes, and Cobalt brands. Its products are used for a range of recreational boating activities, including water sports, such as water skiing, wakeboarding, and wake surfing, as well as general recreational boating and fishing. The company sells its products through independent dealers in North America, Europe, Asia, the Middle East, South America, South Africa, and Australia/New Zealand. Malibu Boats, Inc. was founded in 1982 and is headquartered in Loudon, Tennessee.

How the Company Makes Money

Malibu Boats generates revenue through the sale of its powerboats, which are offered under its various brand names. The company's primary revenue stream comes from the direct sale of boats to a network of independent dealers who then sell to the end consumers. In addition to boat sales, Malibu Boats also earns from the sale of related parts and accessories, which support its core product offerings. Another significant source of revenue is through its premium service offerings, which include warranty services and maintenance packages. Malibu Boats' strategic partnerships with dealers and suppliers play a crucial role in its business operations, ensuring a widespread distribution network and access to high-quality materials for manufacturing. The company is also influenced by factors such as consumer preferences for water sports activities, economic conditions affecting discretionary spending, and technological advancements in boat design and manufacturing.

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.

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.

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.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
829.03M	1.39B	1.21B	926.51M	653.16M
	Gross Profit
147.09M	351.30M	310.05M	236.49M	149.27M
	EBIT
-55.95M	144.78M	213.82M	149.78M	85.31M
	EBITDA
-22.95M	278.29M	240.15M	183.59M	107.27M
	Net Income Common Stockholders
-55.91M	104.51M	157.63M	109.84M	61.56M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
26.95M	78.94M	83.74M	41.48M	33.79M
	Total Assets
739.62M	925.92M	851.33M	742.78M	477.35M
	Total Debt
7.94M	2.32M	119.62M	143.28M	82.84M
	Net Debt
-19.00M	-76.61M	35.87M	101.80M	49.05M
	Total Liabilities
204.91M	310.17M	337.76M	361.63M	215.82M
	Stockholders Equity
530.01M	607.88M	503.17M	373.43M	254.58M
Cash Flow		Free Cash Flow
-20.40M	129.89M	109.78M	100.64M	52.85M
	Operating Cash Flow
55.56M	184.73M	164.85M	131.31M	94.14M
	Investing Cash Flow
-75.84M	-54.64M	-61.62M	-181.09M	-40.39M
	Financing Cash Flow
-31.70M	-134.57M	-60.38M	57.35M	-47.32M

Malibu Boats Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 29.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MBUU, the sentiment is Neutral. The current price of 29.05 is above the 20-day moving average (MA) of 27.68, below the 50-day MA of 30.10, and below the 200-day MA of 36.57, indicating a neutral trend. The MACD of -0.38 indicates Negative momentum. The RSI at 51.48 is Neutral, neither overbought nor oversold. The STOCH value of 79.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MBUU.

Malibu Boats Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MPX	72 Outperform	$291.88M	19.87	10.33%	6.67%	-32.30%	-58.15%
BC	64 Neutral	$3.04B	38.34	5.16%	3.67%	-15.42%	-77.50%
Sector *	61 Neutral	$6.55B	11.72	3.07%	4.01%	2.66%	-21.27%
PII	60 Neutral	$1.95B	48.84	3.09%	7.80%	-17.86%	-89.55%
MCFT	60 Neutral	$275.41M	―	-1.53%	―	-45.70%	-115.77%
ONEW	60 Neutral	$239.70M	―	-2.97%	―	-7.72%	81.39%
MBUU	48 Neutral	$570.41M	―	-15.71%	―	-39.56%	-238.09%

Malibu Boats Corporate Events

Malibu Boats Announces CEO Steven Menneto as President

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.