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MasterCraft Boat Holdings Inc (MCFT)
NASDAQ:MCFT
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MasterCraft Boat Holdings (MCFT) AI Stock Analysis

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MCFT

MasterCraft Boat Holdings

(NASDAQ:MCFT)

Rating:71Outperform
Price Target:
$21.50
▼(-6.85% Downside)
MasterCraft Boat Holdings' overall score reflects a strong technical outlook and a robust balance sheet but is tempered by valuation concerns and financial performance challenges. Improvements in profitability and operational efficiencies, coupled with effective inventory management, are positive, but the company must navigate macroeconomic headwinds and tariff uncertainties.
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)

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:Aug 27, 2025
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong Q4 performance, debt elimination, and strategic product innovations. However, it also noted a decline in full-year net sales, decreased net income, and expected retail challenges in fiscal 2026. The balance of positive strategic moves against a backdrop of financial challenges and uncertain market conditions suggests a mixed outlook.
Q4-2025 Updates
Positive Updates
Strong Fourth Quarter Performance
Q4 net sales increased by $25 million or 46% year-over-year, and adjusted EBITDA rose nearly $8 million, driven by robust demand and disciplined cost control.
Debt-Free Balance Sheet
MasterCraft fully repaid all outstanding debt, resulting in a net cash and investments increase by more than $42 million to $79 million, leaving the company debt-free.
Significant Dealer Inventory Reduction
Over 900 units were removed from dealer inventories, marking the largest Q3 to Q4 field inventory reduction in the company's history, excluding the pandemic.
Product Innovation and Launches
Launch of the flagship XStar product and plans for an all-new redesigned MasterCraft X Family, along with new features such as advanced stern thruster and keyless ignition.
Negative Updates
Full Year Net Sales Decline
Full year fiscal '25 net sales decreased by $38 million or 12% from the prior year due to a planned reduction in unit sales volume.
Decreased Adjusted Net Income
Adjusted net income for the year was $15.1 million or $0.92 per diluted share, compared to $28.9 million or $1.69 per share in the prior year.
Lower Retail Unit Performance
Consumer sentiment remained cautious, leading to retail unit performance ending within the lower end of the projected range.
Expectations for Retail Decline in Fiscal 2026
Retail units in the market are expected to decline 5% to 10% in fiscal 2026, with potential modest destocking.
Company Guidance
During the fiscal fourth quarter and full year 2025 earnings call for MasterCraft Boat Holdings, Inc., several key metrics and guidance insights were shared. The company reported a 46% year-over-year increase in Q4 net sales, reaching $79.5 million, with adjusted EBITDA rising by $8 million to $9.5 million. For the full fiscal year 2025, net sales were $284.2 million, a 12% decrease from the prior year, with an adjusted net income of $15.1 million or $0.92 per diluted share. Despite a challenging year, the company generated $29 million in free cash flow and reduced dealer inventories by over 900 units, strengthening dealer health. Looking ahead to fiscal 2026, MasterCraft anticipates retail unit sales to decline by 5% to 10%, yet expects net sales to increase to between $295 million and $310 million, with adjusted EBITDA projected between $29 million and $34 million. Capital expenditures are estimated at approximately $9 million for the year, and the company intends to exceed last year's share repurchase levels, underscoring its commitment to shareholder returns.

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
65
Positive
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.
Balance Sheet
75
Positive
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.
Cash Flow
70
Positive
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue271.87M284.20M366.59M662.05M641.61M525.81M
Gross Profit46.19M56.87M67.10M169.71M168.19M129.97M
EBITDA7.52M11.23M24.60M127.48M125.93M86.85M
Net Income-6.72M7.04M7.80M68.94M58.21M56.17M
Balance Sheet
Total Assets261.89M259.95M317.98M353.98M297.05M276.46M
Cash, Cash Equivalents and Short-Term Investments66.52M28.93M86.24M111.38M34.20M39.25M
Total Debt0.000.0049.26M53.68M56.75M93.14M
Total Liabilities79.62M76.36M134.10M161.89M153.40M168.67M
Stockholders Equity182.07M183.59M183.68M191.97M143.65M107.79M
Cash Flow
Free Cash Flow-1.71M29.02M-3.86M103.87M57.49M40.68M
Operating Cash Flow5.33M38.22M12.50M134.20M73.31M68.54M
Investing Cash Flow62.01M46.04M-1.78M-121.43M-15.82M-27.83M
Financing Cash Flow-61.34M-60.10M-23.14M-27.15M-62.54M-17.77M

MasterCraft Boat Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price23.08
Price Trends
50DMA
20.18
Positive
100DMA
18.66
Positive
200DMA
18.64
Positive
Market Momentum
MACD
0.71
Negative
RSI
65.01
Neutral
STOCH
67.73
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 23.08 is above the 20-day moving average (MA) of 20.90, above the 50-day MA of 20.18, and above the 200-day MA of 18.64, indicating a bullish trend. The MACD of 0.71 indicates Negative momentum. The RSI at 65.01 is Neutral, neither overbought nor oversold. The STOCH value of 67.73 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$323.36M22.2710.54%6.06%-21.97%-46.09%
71
Outperform
$368.69M73.705.84%-22.47%-29.30%
64
Neutral
$638.93M43.292.85%-2.59%
62
Neutral
$267.00M-2.85%-3.02%87.87%
61
Neutral
$17.97B12.87-5.30%2.97%1.26%-14.45%
54
Neutral
$4.34M-50.61%-49.65%17.30%
44
Neutral
$4.36M-152.23%-66.16%78.81%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MCFT
MasterCraft Boat Holdings
23.08
5.51
31.36%
MPX
Marine Products
9.09
0.48
5.57%
MBUU
Malibu Boats
33.66
-2.54
-7.02%
ONEW
OneWater Marine
16.82
-5.18
-23.55%
VMAR
Vision Marine Technologies
1.35
-148.05
-99.10%
VEEE
Twin Vee PowerCats
2.84
-0.96
-25.26%

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.Date of analysis: Jul 02, 2025