Marinemax (HZO) AI Stock Analysis

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Marinemax

(NYSE:HZO)

63Neutral

MarineMax's overall score reflects a company with solid revenue growth and strategic execution, yet facing challenges in profitability and cash flow management. The technical analysis indicates potential short-term weakness, but valuation metrics suggest the stock could be undervalued. While earnings call insights show mixed prospects, the company's strategic initiatives and market positioning provide a foundation for future growth amid economic uncertainties.

Positive Factors

Earnings

HZO beat 2Q25 expectations, with the stock up nearly 10% at the open.

Financial Performance

Comps rose 11% - a positive surprise and a new quarterly record.

Guidance

Management reaffirmed FY25 guidance, expecting improved activity in the spring selling season, supported by strong early boat show activity and a focus on premium/luxury consumers.

Negative Factors

Inventory

Softer sales led to higher-than-expected inventory, which is expected to decrease throughout the year.

Market Environment

Disruptions from Hurricanes Helene and Milton compounded an already soft retail environment.

Sales Decline

Sales of $468.5M were down -11% and came in below our expectations.

Marinemax (HZO) vs. S&P 500 (SPY)

Market Cap

$455.45M

Dividend YieldN/A

Average Volume (3M)467.51K

Price to Earnings (P/E)8.6

Beta (1Y)1.91

Revenue Growth-0.24%

EPS Growth-10.33%

CountryUS

Employees4,050

SectorConsumer Cyclical

Sector Strength61

IndustrySpecialty Retail

Share Statistics

EPS (TTM)0.23

Shares Outstanding21,473,400

10 Day Avg. Volume457,021

30 Day Avg. Volume467,511

Financial Highlights & Ratios

PEG RatioN/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 Ratio0.00

Enterprise Value/Market Cap3.60

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit2.05

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$32.60

Price Target Upside51.07% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering5

Marinemax Business Overview & Revenue Model

Company DescriptionMarineMax, Inc. (HZO) is the largest recreational boat and yacht retailer in the United States. The company operates through a network of retail locations across the country and offers a wide range of products and services related to boating and yachting. Its core offerings include the sale of new and used recreational boats, yachts, and related marine products, as well as providing boat repair, maintenance, and storage services. MarineMax represents some of the premier boat brands in the industry, catering to both luxury and leisure clientele.

How the Company Makes MoneyMarineMax generates revenue primarily through the sale of new and used boats and yachts, which constitutes the majority of its income. Additional revenue streams include providing boat repair and maintenance services, offering boat storage facilities, and selling related marine products such as parts and accessories. The company also offers financing and insurance services to enhance the purchasing experience for customers. Strategic partnerships with leading boat manufacturers and financial institutions bolster its market presence and facilitate sales, while its extensive service offerings enhance customer loyalty and contribute to recurring revenue.

Marinemax Financial Statement Overview

Summary

Marinemax exhibits strong revenue potential and operational profitability, as seen in stable gross margins. However, challenges persist in net profitability and cash flow consistency, exacerbated by increased financial leverage. While the business fundamentals remain solid, future growth will rely on improving cash generation and managing financial risks effectively.

Income Statement

Positive

Marinemax has shown resilient revenue growth over the years, peaking at $2.43 billion in 2024 before a slight decline to $2.42 billion in the TTM. The Gross Profit Margin remains healthy at 32.8% TTM, indicating strong pricing power. However, the Net Profit Margin has slightly decreased to 2.35% TTM compared to earlier periods, reflecting increased expenses or operational challenges. The EBITDA Margin stands at 7.11% TTM, suggesting stable operational earnings.

Balance Sheet

Positive

The company's financial leverage has increased, with a Debt-to-Equity ratio of 0.97 in TTM, indicating substantial use of debt financing. Stockholders' Equity is robust at $993 million, but the Equity Ratio has declined to 37.16% TTM. Return on Equity stands at 5.73% TTM, showing profitability challenges compared to previous periods. Overall, the balance sheet shows moderate financial health but with increased leverage risks.

Cash Flow

Neutral

Marinemax's cash flow generation has been inconsistent, with a negative Free Cash Flow of -$50.95 million in the TTM. The Operating Cash Flow to Net Income Ratio is low at 0.21, suggesting cash flow generation issues relative to net income. The erratic cash flow trends highlight the need for improved operational cash management.

Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Breakdown
Income Statement		Total Revenue
2.43B	2.39B	2.31B	2.06B	1.51B
	Gross Profit
801.20M	835.33M	805.75M	659.43M	398.71M
	EBIT
128.23M	200.80M	265.20M	209.46M	106.72M
	EBITDA
172.71M	241.83M	284.62M	225.06M	119.49M
	Net Income Common Stockholders
38.07M	109.28M	197.99M	154.98M	74.63M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
224.33M	201.46M	228.27M	222.19M	155.49M
	Total Assets
2.61B	2.42B	1.35B	1.01B	775.32M
	Total Debt
1.23B	1.09B	279.56M	182.55M	192.06M
	Net Debt
1.01B	892.46M	51.28M	-39.64M	36.57M
	Total Liabilities
1.62B	1.50B	570.11M	412.93M	319.92M
	Stockholders Equity
975.79M	915.84M	782.67M	594.89M	455.40M
Cash Flow		Free Cash Flow
-86.08M	-287.64M	18.14M	347.76M	291.87M
	Operating Cash Flow
-25.66M	-222.24M	76.59M	373.88M	304.68M
	Investing Cash Flow
-81.35M	-576.37M	-140.45M	-161.13M	-30.11M
	Financing Cash Flow
128.51M	770.40M	73.06M	-145.74M	-158.13M

Marinemax Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price21.58

Price Trends

50DMA

21.74

Negative

100DMA

25.23

Negative

200DMA

28.47

Negative

Market Momentum

MACD

0.09

Negative

RSI

51.05

Neutral

STOCH

30.91

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HZO, the sentiment is Neutral. The current price of 21.58 is above the 20-day moving average (MA) of 20.68, below the 50-day MA of 21.74, and below the 200-day MA of 28.47, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 51.05 is Neutral, neither overbought nor oversold. The STOCH value of 30.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HZO.

Marinemax Risk Analysis

Marinemax disclosed 46 risk factors in its most recent earnings report. Marinemax 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

Marinemax Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DKS	78 Outperform	$14.92B	13.50	40.08%	2.36%	3.53%	13.86%
MNSO	75 Outperform	$5.68B	15.79	26.89%	2.95%	10.01%	4.13%
CHWY	75 Outperform	$15.79B	42.44	101.78%	―	6.40%	891.13%
ASO	66 Neutral	$2.51B	6.60	21.14%	1.17%	-3.67%	-14.66%
HZO	63 Neutral	$455.45M	8.64	5.91%	―	-0.24%	-10.33%
Sector *	61 Neutral	$6.69B	11.69	3.01%	3.94%	2.60%	-21.51%
BBY	59 Neutral	$14.12B	15.81	31.63%	5.47%	-4.43%	-24.58%

* Consumer Cyclical Sector Average

Performance Comparison

HZO

Marinemax

21.58

-5.90

-21.47%

BBY

Best Buy Co

68.85

-2.71

-3.79%

DKS

Dick's Sporting Goods

190.88

0.60

0.32%

CHWY

Chewy

39.57

23.47

145.78%

ASO

Academy Sports and Outdoors

39.22

-16.66

-29.81%

MNSO

MINISO Group Holding

19.67

-5.25

-21.07%

Marinemax Earnings Call Summary

Earnings Call Date:Apr 24, 2025

(Q2-2025)

% Change Since: 11.70%|

Next Earnings Date:Jul 24, 2025

Earnings Call Sentiment Neutral

The earnings call reflects a mix of strong financial performance and strategic achievements, such as record revenue and expansion in marinas, against the backdrop of significant challenges, including soft retail demand, declining gross margins, and economic uncertainty related to tariffs. While the company is well-positioned with a strong balance sheet and strategic initiatives, the near-term outlook is tempered by external macroeconomic factors.

Q2-2025 Updates

Positive Updates

Record March Quarter Revenue

Achieved a record revenue of more than $631 million for the March quarter, reflecting exceptional execution and leveraging digital marketing tools.

Strong Same-Store Sales Growth

Comparable store sales grew by 11%, benefiting from aggressive pricing and targeted promotional initiatives.

Adjusted EBITDA Increase

Adjusted EBITDA increased by 5% year-over-year to $30.9 million.

Expansion of Marina Portfolio

Expanded Marina portfolio with the acquisition of Shelter Bay Marine and strengthened partnership with Treasure Island Marina.

Recognition as a Great Place to Work

MarineMax was recognized as a Great Place to Work for the second consecutive year.

Negative Updates

Soft Retail Demand and Economic Uncertainty

The company faced continued soft retail demand and an uncertain economic climate affecting the boating industry.

Decline in Gross Margins

Experienced historically low new and used boat margins due to aggressive pricing strategies.

Updated Guidance Reflects Uncertainty

Lowered fiscal 2025 guidance due to macroeconomic concerns related to tariffs and potential pressure on top line and margins.

Impact of Tariffs and Consumer Uncertainty

Tariff uncertainty is affecting consumer behavior, leading to slower decision-making and potential volume issues.

Company Guidance

In the second quarter of fiscal year 2025, MarineMax reported robust financial performance despite challenging market conditions, achieving a record March quarter revenue exceeding $631 million, with same-store sales growth of 11%. The company's diversified strategy, including a focus on premium brands and digital marketing investments, contributed to this success. However, aggressive pricing led to historically low margins in new and used boats, though the impact was mitigated by high-margin businesses like marinas and superyacht services, keeping the gross margin decline to just 30 basis points year-to-date. Adjusted EBITDA increased by 5% compared to the previous year, indicating improved profitability. Despite the strong quarter, the company adjusted its fiscal 2025 guidance, anticipating adjusted net income between $1.40 and $2.40 per diluted share and adjusted EBITDA ranging from $140 million to $170 million, due to economic uncertainties and potential tariff impacts.

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.