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OneWater Marine (ONEW)
NASDAQ:ONEW
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OneWater Marine
(NASDAQ:ONEW)
Rating:57Neutral
Price Target:
$15.50
▲(2.11%Upside)
Positive Factors
Market Confidence
The election result and stock market rally are seen as friendly to boater confidence, suggesting more upside than downside to initial results.
Operating Costs
The inventory overhang that dented margin should fade as F2025 unfolds, while lower operating costs and floorplan interest expense benefit the bottom line.
Sales Performance
During Q1 ONEW generated positive comps with unit volumes up 10% and same-store sales up 4%.
Negative Factors
Industry Challenges
Lack of clear visibility on a recovery and the risk for an industry-driven guidance reset given flat expectations.
Margin Pressure
Margins deteriorated with higher promotional activity.
Natural Disasters
Major hurricanes made the tough retail environment worse, with same-store sales falling 7%.
OneWater Marine (ONEW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$239.80M
Dividend YieldN/A
Average Volume (3M)163.69K
Price to Earnings (P/E)―
Beta (1Y)1.80
Revenue Growth-6.22%
EPS Growth91.93%
CountryUS
Employees2,203
SectorConsumer Cyclical
Sector Strength63
IndustryAuto - Recreational Vehicles
Share Statistics
EPS (TTM)0.13
Shares Outstanding16,313,114
10 Day Avg. Volume87,038
30 Day Avg. Volume163,694
Financial Highlights & Ratios
PEG Ratio-0.98
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio2.46
Enterprise Value/Market Cap5.23
Enterprise Value/Revenue0.17
Enterprise Value/Gross Profit3.00
Enterprise Value/Ebitda4.64
Forecast
1Y Price Target
$16.50Price Target Upside8.70% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
OneWater Marine Business Overview & Revenue Model
Company DescriptionOneWater Marine Inc. (ONEW) is a leading retailer of recreational boats in the United States. The company operates through a network of dealerships and offers a wide range of products including new and pre-owned boats, related marine products, and services. OneWater Marine focuses on providing an exceptional customer experience by offering financing, insurance, and maintenance services to complement their boat sales. Their operations are primarily concentrated in the Southeastern, Gulf Coast, Mid-Atlantic, and Midwest regions.
How the Company Makes MoneyOneWater Marine generates revenue through several key streams. The primary source is the sale of new and pre-owned recreational boats, which includes various types such as yachts, sports boats, and fishing boats. In addition to boat sales, OneWater Marine earns income from the sale of marine parts and accessories, as well as providing repair and maintenance services. The company also offers financing and insurance products, which contribute to its earnings. OneWater Marine leverages strategic partnerships with leading boat manufacturers to ensure a diverse and attractive inventory for customers, enhancing its competitive position in the market.
OneWater Marine Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q2-2025)
| % Change Since: 1.13%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a challenging quarter with some positive aspects such as market share gains and successful inventory reduction. However, the decline in new boat sales, challenged margins, and increased expenses reflect significant challenges. Despite improvements in some areas, overall guidance was revised downward reflecting ongoing uncertainties.Q2-2025 Updates
Positive Updates
Market Share Gain Despite Industry Decline
OneWater Marine's same-store sales declined by 2%, outperforming an industry decline of over 10%, indicating a gain in market share.
Successful Inventory Reduction
Inventory was reduced by 12% year-over-year and 5% sequentially, outpacing the industry and strengthening long-term position.
Strong Pre-Owned Boat Sales
Pre-owned boat sales increased by 14% to $90 million, supported by an increase in trade-ins and trade-ups.
Improved Financial Performance
Net loss for the fiscal second quarter totaled $375,000, a significant improvement from a net loss of $5 million in the prior year.
Negative Updates
Decline in New Boat Sales
New boat sales were down 5% to $310 million in the second quarter, contributing to a 1% decrease in total revenue.
Challenged Gross Margins
Gross profit declined to $110 million from $120 million in the previous year, due to lower margins on exiting brands and pricing environment challenges.
Increased Selling, General and Administrative Expenses
SG&A expenses increased by 1% to $88 million, with SG&A as a percentage of sales rising by 50 basis points due to inflationary pressures and costs associated with boat shows.
Updated Downward Guidance
Fiscal 2025 guidance was updated with expectations of total sales to be between $1.7 billion and $1.8 billion, and adjusted EBITDA to be between $65 million and $95 million, reflecting tariff impacts and increased costs.
Company Guidance
During the fiscal second quarter 2025 earnings call for OneWater Marine Inc., the company provided updated guidance amid challenging macroeconomic conditions. They anticipate total sales for 2025 to be in the range of $1.7 billion to $1.8 billion, with same-store sales expected to be flat to down in the low single digits, against an industry backdrop that could decline by 10% to 15%. Adjusted EBITDA is forecasted to be between $65 million and $95 million, and adjusted earnings per diluted share are projected to range from $0.75 to $1.25. Despite a 1% revenue decrease to $484 million compared to the previous year, pre-owned boat sales increased by 14% to $90 million, while new boat sales dropped by 5% to $310 million. Additionally, the company reduced inventory by 12% year-over-year and 5% sequentially, thanks to strategic planning and brand rationalization efforts. Gross profit fell from $120 million in 2024 to $110 million in 2025, with selling, general, and administrative expenses rising by 1% to $88 million. The company ended the quarter with liquidity exceeding $74 million and a total inventory of $602 million. Despite a net loss of $375,000 for the quarter, OneWater Marine remains focused on reducing leverage and aligning its cost structure with retail activity.OneWater Marine Financial Statement Overview
Summary
OneWater Marine faces financial challenges with declining revenue and profitability pressures, as reflected in its negative net income. The company's balance sheet reveals high leverage, but it compensates with robust cash flow generation, supporting operational resilience.Income Statement
OneWater Marine demonstrates a mixed performance in its income statement. The company shows a declining revenue trend, with a drop in total revenue from the previous year. Gross profit margin remains relatively strong at approximately 23.5%, indicating good control over production costs. However, the net profit margin is negative, reflecting net losses, which is a significant concern. The EBIT and EBITDA margins are positive but have decreased compared to prior periods, signaling reduced operating efficiency.65
Positive
Balance Sheet
The balance sheet reflects high leverage, with a debt-to-equity ratio of 2.82, indicating significant reliance on debt financing. The equity ratio stands at 23.2%, which is relatively low, suggesting a weaker capital structure. Return on equity is negative due to net losses, highlighting challenges in generating returns for shareholders. Despite these concerns, the company maintains a stable level of total assets.58
Neutral
Cash Flow
Cash flow analysis shows improvement in free cash flow, with a notable increase to $100.8 million in the TTM period. Operating cash flow to net income ratio is favorable, suggesting strong cash flow generation relative to earnings. However, the free cash flow to net income ratio is impacted by negative net income, highlighting profitability challenges. Overall, the cash flow position indicates resilience amidst financial pressures.72
Positive
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.78B | 1.77B | 1.94B | 1.74B | 1.23B | 1.02B | Gross Profit |
| 417.72M | 435.06M | 535.13M | 553.65M | 357.45M | 235.52M | EBIT |
| 58.79M | 64.82M | 18.07M | 217.83M | 148.88M | 78.47M | EBITDA |
| 85.20M | 86.99M | 43.90M | 229.98M | 158.41M | 91.95M | Net Income Common Stockholders |
| -6.91M | -5.71M | -38.59M | 130.94M | 116.41M | 48.51M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 44.57M | 16.85M | 84.65M | 42.07M | 62.61M | 66.09M | Total Assets |
| 1.69B | 1.59B | 1.69B | 1.50B | 720.61M | 458.07M | Total Debt |
| 1.14B | 1.01B | 1.08B | 837.38M | 318.78M | 213.43M | Net Debt |
| 1.09B | 991.05M | 1.00B | 795.31M | 256.17M | 147.34M | Total Liabilities |
| 1.31B | 1.20B | 1.28B | 1.05B | 465.78M | 284.78M | Stockholders Equity |
| 352.99M | 360.81M | 358.61M | 385.32M | 225.93M | 122.85M |
| Cash Flow | Free Cash Flow | ||||
| 100.80M | 8.92M | -153.83M | -8.20M | 149.53M | 206.17M | Operating Cash Flow |
| 112.19M | 34.84M | -129.76M | 7.45M | 159.42M | 212.48M | Investing Cash Flow |
| -23.08M | 13.32M | -51.60M | -476.84M | -117.13M | -4.67M | Financing Cash Flow |
| -71.73M | -114.11M | 213.72M | 456.40M | -36.50M | -151.14M |
OneWater Marine Technical Analysis
Positive
15.18
Price Trends
14.34
Positive
15.81
Negative
18.67
Negative
Market Momentum
0.13
Negative
55.05
Neutral
75.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ONEW, the sentiment is Positive. The current price of 15.18 is above the 20-day moving average (MA) of 14.77, above the 50-day MA of 14.34, and below the 200-day MA of 18.67, indicating a neutral trend. The MACD of 0.13 indicates Negative momentum. The RSI at 55.05 is Neutral, neither overbought nor oversold. The STOCH value of 75.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ONEW.
OneWater Marine Risk Analysis
OneWater Marine disclosed 63 risk factors in its most recent earnings report. OneWater Marine 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
OneWater Marine 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 | $284.54M | 19.37 | 10.33% | 6.81% | -32.30% | -58.15% | |
66 Neutral | $289.76M | ― | -1.50% | ― | -41.66% | -123.04% | |
62 Neutral | $6.88B | 11.32 | 2.95% | 3.87% | 2.70% | -24.57% | |
58 Neutral | $598.37M | ― | -1.68% | ― | -27.18% | 84.33% | |
57 Neutral | $239.80M | ― | -1.88% | ― | -6.22% | 91.93% | |
44 Neutral | $8.29M | ― | -80.86% | ― | -55.43% | 55.17% | |
44 Neutral | $5.15M | ― | -54.97% | ― | -57.48% | -27.43% |
* Consumer Cyclical Sector Average
Performance Comparison
ONEW
OneWater Marine
15.18
-14.16
-48.26%
MPX
Marine Products
8.22
-1.52
-15.61%
MBUU
Malibu Boats
31.48
-5.22
-14.22%
MCFT
MasterCraft Boat Holdings
17.84
-2.89
-13.94%
VMAR
Vision Marine Technologies
7.44
-870.06
-99.15%
VEEE
Twin Vee PowerCats
2.46
-5.28
-68.22%
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.