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Mastercraft Boat Holdings (MCFT)
:MCFT
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MasterCraft Boat Holdings
(NASDAQ:MCFT)
Rating:71Outperform
Price Target:
$21.50
▲(7.13%Upside)
Positive Factors
Inventory Management
Management noted positive retail trends and significant progress against inventory reduction priorities.
Retail Growth
Unexpected retail growth boosts outlook, driving shares 27% higher.
Negative Factors
Financial Guidance
The destocking process is well underway, positioning the company well if retail continues to perform.
MasterCraft Boat Holdings (MCFT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$333.26M
Dividend YieldN/A
Average Volume (3M)102.34K
Price to Earnings (P/E)―
Beta (1Y)1.02
Revenue Growth-41.66%
EPS Growth-123.04%
CountryUS
Employees920
SectorConsumer Cyclical
Sector Strength71
IndustryAuto - Recreational Vehicles
Share Statistics
EPS (TTM)0.30
Shares Outstanding16,605,130
10 Day Avg. Volume104,810
30 Day Avg. Volume102,344
Financial Highlights & Ratios
PEG Ratio-18.73
Price to Book (P/B)1.73
Price to Sales (P/S)0.00
P/FCF Ratio-185.56
Enterprise Value/Market Cap0.86
Enterprise Value/Revenue0.23
Enterprise Value/Gross Profit6.24
Enterprise Value/Ebitda5.86
Forecast
1Y Price Target
$18.33Price Target Upside-8.67% Downside
Rating ConsensusHold
Number of Analyst Covering4
MasterCraft Boat Holdings Business Overview & Revenue Model
Company DescriptionMasterCraft Boat Holdings, Inc., through its subsidiaries, designs, manufactures, and markets recreational powerboats. It operates through three segments: MasterCraft, NauticStar, and Crest. The MasterCraft segment produces recreational performance sport boats and luxury day boats under the MasterCraft and Aviara brands, which are used for water skiing, wakeboarding, and wake surfing, as well as general recreational boating. The NauticStar segment offers boats that are primarily used for saltwater fishing and general recreational boating. The Crest segment produces pontoon boats for use in general recreational boating. The company also offers ski/wake, outboard, and sterndrive boats, as well as various accessories, including trailers and aftermarket parts. It sells its boats under the MasterCraft, NauticStar, Crest, and Aviara brands through a network of independent dealers in North America and internationally. The company was formerly known as MCBC Holdings, Inc. and changed its name to MasterCraft Boat Holdings, Inc. in November 2018. MasterCraft Boat Holdings, Inc. was founded in 1968 and is based in Vonore, Tennessee.
How the Company Makes MoneyMasterCraft Boat Holdings generates revenue primarily through the sale of its recreational powerboats. The company operates through a network of independent dealers who distribute its products across the United States and internationally. Key revenue streams include the sale of new boats, parts, and accessories. Additionally, MasterCraft offers financing and insurance services to customers, enhancing its revenue potential. Strategic partnerships with marine retailers and strong brand recognition contribute significantly to its earnings, along with a focus on innovation and customer satisfaction driving repeat business and enhancing market share.
MasterCraft Boat Holdings Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q3-2025)
| % Change Since: 27.19%|
Next Earnings Date:Aug 28, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted a mix of positive achievements such as improved profitability and strong dealer inventory management, alongside challenges like declining net sales, reduced gross margins, and ongoing tariff uncertainties. While the company maintains a strong balance sheet and has been recognized with industry awards, there are notable pressures from macroeconomic factors and specific segment challenges.Q3-2025 Updates
Positive Updates
Improved Profitability
Sequential profitability improved due to higher volumes, operating efficiencies, and a favorable mix over fiscal Q2, driven by the ramp in production of the premium XStar model.
Dealer Inventory Management
Dealer inventories across brands decreased by 30% over the last year, and by more than 45% compared to fiscal 2019, highlighting effective production planning and dealer support programs.
Recognition and Awards
The XStar model was awarded the NMMA Innovation Award in the Towboat Category, and both MasterCraft and CREST received NMMA Customer Satisfaction Index Awards for 2024.
Strong Balance Sheet
MasterCraft ended the quarter with $167 million in total liquidity, including $67 million in cash and short-term investments, and no debt.
Successful Share Repurchase Program
Repurchased over 115,000 shares in Q4 to date, with plans to accelerate the pace of repurchases.
Negative Updates
Net Sales Decline
Net sales for the quarter were $76 million, a decrease of $8 million or 10% from the prior year period, primarily due to lower unit sales volume.
Reduced Gross Margin
Gross margin was 20.8%, down from 23.3% in the prior year period, due to lower cost absorption from production decreases.
Adjusted Net Income and EBITDA Decline
Adjusted net income was $5 million, down from $8.5 million in the prior year, and adjusted EBITDA was $7.5 million, down from $11.7 million.
Tariff Uncertainty
Persistent macroeconomic headwinds and tariff uncertainty continue to pressure the marine sector, potentially impacting costs in fiscal 2025.
Dealer Inventory Challenges in Pontoon Segment
Dealer inventories in the pontoon market remain challenged, leading to a promotional and competitive environment, with a 40% year-over-year unit reduction.
Company Guidance
During the MasterCraft Boat Holdings, Inc. fiscal Q3 2025 earnings call, the company provided guidance reflecting the evolving macroeconomic conditions and challenging demand environment. They revised their full-year guidance, projecting consolidated net sales of approximately $275 million, adjusted EBITDA of around $20 million, and adjusted earnings per share of $0.71. Despite persistent macroeconomic headwinds and tariff uncertainties, the company exceeded expectations in the third quarter through higher volumes, operating efficiencies, and a favorable product mix, notably with the ramp-up of their premium XStar model. They reported net sales of $76 million for the quarter, a 10% decline from the prior year, with a gross margin of 20.8% and operating expenses of $11.7 million. Adjusted net income was $5 million or $0.30 per diluted share, with an adjusted EBITDA of $7.5 million. MasterCraft emphasized their strong financial position with $167 million in liquidity, including $67 million in cash and short-term investments, and highlighted their ongoing commitment to inventory management, expecting to reduce dealer inventories by 600 to 1,000 units by the end of the fiscal year.MasterCraft Boat Holdings Financial Statement Overview
Summary
MasterCraft Boat Holdings shows a mixed financial picture with a strong balance sheet characterized by zero debt and growing stockholders' equity. However, declining revenue, profitability margins, and recent negative free cash flow pose challenges. The company needs to address operational inefficiencies to enhance financial health.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 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 366.59M | 662.05M | 707.86M | 525.81M | 363.07M |
| Gross Profit | 67.10M | 169.71M | 162.36M | 129.97M | 75.36M |
| EBITDA | 24.60M | 127.48M | 125.93M | 86.85M | -16.04M |
| Net Income | 7.80M | 68.94M | 58.21M | 56.17M | -24.05M |
Balance Sheet | |||||
| Total Assets | 317.98M | 353.98M | 297.05M | 276.46M | 207.92M |
| Cash, Cash Equivalents and Short-Term Investments | 86.24M | 111.38M | 34.20M | 39.25M | 16.32M |
| Total Debt | 49.26M | 56.38M | 56.75M | 93.14M | 108.60M |
| Total Liabilities | 134.10M | 161.89M | 153.40M | 168.67M | 159.05M |
| Stockholders Equity | 183.68M | 191.97M | 143.65M | 107.79M | 48.87M |
Cash Flow | |||||
| Free Cash Flow | -3.86M | 103.87M | 57.49M | 40.68M | 15.96M |
| Operating Cash Flow | 12.50M | 134.20M | 73.31M | 68.54M | 30.20M |
| Investing Cash Flow | -1.78M | -121.43M | -15.82M | -27.83M | -14.22M |
| Financing Cash Flow | -23.14M | -27.15M | -62.54M | -17.77M | -5.49M |
MasterCraft Boat Holdings Technical Analysis
Positive
20.07
Price Trends
18.52
Positive
17.65
Positive
18.29
Positive
Market Momentum
0.50
Negative
55.20
Neutral
73.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MCFT, the sentiment is Positive. The current price of 20.07 is above the 20-day moving average (MA) of 19.74, above the 50-day MA of 18.52, and above the 200-day MA of 18.29, indicating a bullish trend. The MACD of 0.50 indicates Negative momentum. The RSI at 55.20 is Neutral, neither overbought nor oversold. The STOCH value of 73.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $315.30M | 22.51 | 10.54% | 6.26% | -32.30% | -58.15% | |
71 Outperform | $333.26M | ― | -1.50% | ― | -41.66% | -123.04% | |
59 Neutral | $676.86M | ― | -1.68% | ― | -27.18% | 84.33% | |
57 Neutral | HK$26.40B | 4.14 | -2.03% | 5.51% | -0.23% | -68.02% | |
57 Neutral | $245.68M | ― | -1.88% | ― | -6.22% | 91.93% | |
49 Neutral | $5.21M | ― | -54.97% | ― | -57.48% | -27.43% | |
44 Neutral | $7.65M | ― | -152.23% | ― | -55.43% | 55.17% |
* Consumer Cyclical Sector Average
Performance Comparison
MCFT
MasterCraft Boat Holdings
20.41
-0.76
-3.59%
MPX
Marine Products
8.95
-0.83
-8.49%
MBUU
Malibu Boats
35.22
-3.35
-8.69%
ONEW
OneWater Marine
15.37
-15.09
-49.54%
VMAR
Vision Marine Technologies
6.61
-574.57
-98.86%
VEEE
Twin Vee PowerCats
2.33
-3.59
-60.64%
MasterCraft Boat Holdings Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
MasterCraft Appoints New CFO Amid Strategic Transition
Neutral
Apr 7, 2025
On April 7, 2025, MasterCraft Boat Holdings announced the retirement of its Chief Financial Officer, Timothy M. Oxley, effective December 31, 2025, and the appointment of Scott Kent as his successor, effective July 1, 2025. Mr. Oxley will serve as a special advisor during the transition period to ensure a smooth handover of responsibilities. Scott Kent, who has extensive experience in the marine industry and has been with MasterCraft since 2018, is expected to bring strong leadership and financial acumen to the role. The transition is part of the company’s strategic succession planning and aims to maintain its growth trajectory and value creation for shareholders.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.