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MasterCraft Boat Holdings Inc (MCFT)
NASDAQ:MCFT
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MasterCraft Boat Holdings
(NASDAQ:MCFT)
64Neutral
Positive Factors
Earnings Guidance
Management raised adjusted EPS guidance and increased the low end of revenue and EBITDA ranges.
Retail Performance
Unexpected retail growth boosts outlook, driving shares 27% higher.
Negative Factors
Inventory Management
The destocking process is well underway, positioning the company well if retail continues to perform.
MasterCraft Boat Holdings (MCFT) vs. S&P 500 (SPY)
Market Cap
$289.32M
Dividend YieldN/A
Average Volume (3M)80.97K
Price to Earnings (P/E)―
Beta (1Y)1.09
Revenue Growth-45.70%
EPS Growth-115.77%
CountryUS
Employees920
SectorConsumer Cyclical
Sector Strength50
IndustryVehicles
Share Statistics
EPS (TTM)-0.52
Shares Outstanding16,752,512
10 Day Avg. Volume86,959
30 Day Avg. Volume80,973
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.99
Price to Cash Flow (P/CF)11.20
P/FCF Ratio17.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$21.00Price Target Upside20.83% Upside
Rating ConsensusHold
Number of Analyst Covering4
MasterCraft Boat Holdings Business Overview & Revenue Model
Company DescriptionMastercraft Boat Holdings, Inc. engages in the design, manufacture, and sale of boats. It operates through the MasterCraft, NauticStar, Crest segment. The MasterCraft segment offers recreational performance boats used for water skiing, wakeboarding, and wake surfing activities. The NauticStar segment includes recreational boats primarily used for salt water fishing, and general recreational boating. The Crest segment produces pontoon boats and are primarily used for general recreational boating. The company was founded in 1968 and is headquartered in Vonore, TN.
How the Company Makes MoneyMasterCraft Boat Holdings generates revenue primarily through the sale of its premium powerboats. The company designs and manufactures various types of boats tailored to specific market segments, including performance boats for water skiing and wakeboarding, as well as luxury pontoons for leisurely activities. Revenue streams include direct boat sales to dealerships and end consumers, as well as aftermarket parts and accessories. Additionally, the company benefits from strategic partnerships with dealerships and distributors, which help expand its market presence and enhance brand recognition. MasterCraft also invests in research and development to innovate and improve its product offerings, ensuring continued demand and customer loyalty.
MasterCraft Boat Holdings Financial Statement Overview
Summary
MasterCraft Boat Holdings has a strong balance sheet with zero debt, but faces challenges with declining revenue and profitability margins. Cash flow analysis shows variability, with recent struggles in free cash flow generation.Income Statement
MasterCraft Boat Holdings has shown volatility in its revenue growth and profitability. While the company experienced a decrease in total revenue and net income in the TTM, it previously demonstrated positive revenue growth. The gross profit margin remains relatively stable, but the recent negative net income impacts overall profitability. Margins such as EBIT and EBITDA have been declining, indicating pressure on operational efficiency.65
Positive
Balance Sheet
The company's balance sheet is relatively strong with zero debt in the latest period, resulting in a favorable debt-to-equity ratio. Stockholders' equity has shown growth, reflecting a strong equity position. However, the equity ratio has slightly declined over time. Overall, the balance sheet shows stability with a focus on maintaining low leverage.75
Positive
Cash Flow
MasterCraft's cash flow statement indicates fluctuations in free cash flow, with recent negative figures in the TTM. Despite this, the operating cash flow to net income ratio remains positive, suggesting that the company is generating cash from operations. The free cash flow to net income ratio is a concern, but prior periods demonstrated positive free cash flow growth.70
Positive
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 291.62M | 366.59M | 662.05M | 707.86M | 525.81M | 363.07M |
| Gross Profit | |||||
| 48.32M | 67.10M | 169.71M | 162.36M | 129.97M | 75.36M |
| EBIT | |||||
| 3.11M | 7.63M | 116.92M | 77.86M | 75.95M | 29.87M |
| EBITDA | |||||
| 8.32M | 24.60M | 127.48M | 125.93M | 86.85M | -16.04M |
| Net Income Common Stockholders | |||||
| -6.71M | 7.80M | 68.94M | 58.21M | 56.17M | -24.05M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 34.31M | 86.24M | 111.38M | 34.20M | 39.25M | 16.32M |
| Total Assets | |||||
| 250.12M | 317.98M | 353.98M | 297.05M | 276.46M | 207.92M |
| Total Debt | |||||
| 0.00 | 49.26M | 56.38M | 56.75M | 93.14M | 108.60M |
| Net Debt | |||||
| -34.31M | 41.87M | 36.56M | 22.54M | 53.89M | 92.28M |
| Total Liabilities | |||||
| 71.61M | 134.10M | 161.89M | 153.40M | 168.67M | 159.05M |
| Stockholders Equity | |||||
| 178.51M | 183.68M | 191.97M | 143.65M | 107.79M | 48.87M |
| Cash Flow | Free Cash Flow | ||||
| -5.60M | -3.86M | 103.87M | 57.49M | 40.68M | 15.96M |
| Operating Cash Flow | |||||
| 7.24M | 12.50M | 134.20M | 73.31M | 68.54M | 30.20M |
| Investing Cash Flow | |||||
| 58.65M | -1.78M | -121.43M | -15.82M | -27.83M | -14.22M |
| Financing Cash Flow | |||||
| -63.23M | -23.14M | -27.15M | -62.54M | -17.77M | -5.49M |
MasterCraft Boat Holdings Technical Analysis
Negative
17.38
Price Trends
18.39
Negative
18.95
Negative
19.04
Negative
Market Momentum
-0.33
Positive
43.06
Neutral
54.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MCFT, the sentiment is Negative. The current price of 17.38 is below the 20-day moving average (MA) of 18.02, below the 50-day MA of 18.39, and below the 200-day MA of 19.04, indicating a bearish trend. The MACD of -0.33 indicates Positive momentum. The RSI at 43.06 is Neutral, neither overbought nor oversold. The STOCH value of 54.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MCFT.
MasterCraft Boat Holdings Risk Analysis
MasterCraft Boat Holdings disclosed 38 risk factors in its most recent earnings report. MasterCraft Boat Holdings 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
MasterCraft Boat Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $535.67M | 9.87 | 5.75% | ― | -1.73% | -40.39% | |
68 Neutral | $298.92M | 17.27 | 11.94% | 6.55% | -38.35% | -59.21% | |
65 Neutral | $3.78B | 29.76 | 7.50% | 2.94% | -18.19% | -68.10% | |
64 Neutral | $289.32M | ― | -1.53% | ― | -45.70% | -115.77% | |
59 Neutral | $12.41B | 10.34 | 1.32% | 3.61% | 1.65% | -18.04% | |
53 Neutral | $2.49B | 22.78 | 8.18% | 5.94% | -19.69% | -77.72% | |
53 Neutral | $614.98M | ― | -15.71% | ― | -39.56% | -238.09% |
* Consumer Cyclical Sector Average
Performance Comparison
MCFT
MasterCraft Boat Holdings
17.17
-3.67
-17.61%
BC
Brunswick
56.22
-26.96
-32.41%
MPX
Marine Products
8.44
-0.13
-1.52%
HZO
Marinemax
22.76
-6.92
-23.32%
PII
Polaris
42.23
-44.82
-51.49%
MBUU
Malibu Boats
30.70
-7.54
-19.72%
MasterCraft Boat Holdings Earnings Call Summary
Earnings Call Date: Feb 6, 2025 | % Change Since: -4.77% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While MasterCraft showed strong inventory management, positive reception of new products, and robust financial positioning, these were counterbalanced by significant declines in sales, margins, and net income, as well as ongoing challenges in the pontoon segment.Highlights
Successful Inventory Management
MasterCraft reduced dealer inventories by over 30% year-over-year, indicating effective inventory management amidst a challenging retail environment.
Positive Reception of MasterCraft XStar Lineup
The new MasterCraft XStar lineup received overwhelmingly positive consumer reactions, generating significant demand and interest across the product portfolio.
Strong Balance Sheet and Cash Flow
The company ended the quarter with nearly $63 million in cash and no debt, generating $11 million of free cash flow during the quarter.
Sale of Merritt Island Facility
Successfully closed the sale of the Merritt Island facility, resulting in net cash proceeds of over $26 million, enhancing financial flexibility.
Lowlights
Significant Decrease in Net Sales
Net sales for the quarter were $63.4 million, a decrease of $26.4 million or 29% from the prior year, due to planned lower volume and unfavorable model mix.
Decline in Gross Margin and Adjusted EBITDA
Gross margin decreased to 17.2% from 23.3% in the prior year. Adjusted EBITDA was $3.5 million, down from $12.9 million, with a margin decrease from 14.4% to 5.6%.
Pontoon Segment Challenges
The pontoon industry faced softening retail due to higher interest rates and macroeconomic pressures, leading to elevated aged inventory levels.
Decrease in Adjusted Net Income
Adjusted net income for the quarter was $1.7 million, a significant drop from $9.5 million in the prior year period.
Company Guidance
During the Q2 2025 earnings call, MasterCraft Boat Holdings, Inc. provided guidance reflecting a cautious yet optimistic outlook for the fiscal year. The company narrowed its full-year guidance, projecting consolidated net sales between $275 million and $295 million, adjusted EBITDA ranging from $19 million to $24 million, and adjusted earnings per share between $0.64 and $0.86. For Q3 2025, the expectations are for consolidated net sales of approximately $75 million, adjusted EBITDA of around $5 million, and adjusted earnings per share of $0.17. MasterCraft highlighted a reduction in dealer inventories by over 30% year-over-year and emphasized the promising launch of the MasterCraft XStar product line, which is expected to drive significant earnings and free cash flow, particularly in the fourth quarter, with its premium pricing. Despite mixed economic conditions and geopolitical uncertainties, the company remains optimistic, supported by its strong balance sheet and free cash flow generation, positioning itself for long-term growth.MasterCraft Boat Holdings Corporate Events
Executive/Board Changes
MasterCraft Boat Holdings Appoints New Pontoon Segment President
Neutral
Feb 24, 2025
On February 24, 2025, MasterCraft Boat Holdings announced the departure of George Steinbarger, President of the Pontoon segment, and the appointment of Mike O’Connell to the role. O’Connell, a seasoned industry veteran, is expected to leverage his extensive experience to navigate the challenging retail environment and position the Crest and Balise brands for success in the upcoming summer selling season.
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.