OneWater Marine (ONEW) AI Stock Analysis

• Market Cap: $249.59M
• Dividend Yield: N/A
• Average Volume (3M): 139.31K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.79
• Revenue Growth: -6.22%
• EPS Growth: 91.93%
• Country: US
• Employees: 2,203
• Sector: Consumer Cyclical
• Sector Strength: 68
• Industry: Auto - Recreational Vehicles
• EPS (TTM): 0.13
• Shares Outstanding: 16,313,114
• 10 Day Avg. Volume: 148,043
• 30 Day Avg. Volume: 139,313
• PEG Ratio: -0.93
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.34
• Enterprise Value/Market Cap: 4.96
• Enterprise Value/Revenue: 0.17
• Enterprise Value/Gross Profit: 2.96
• Enterprise Value/Ebitda: 4.57
• 1Y Price Target: $16.50
• Price Target Upside: 7.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 57 Neutral
• Price Target: $14.50 ▼(-5.23%Downside)

The overall stock score is primarily impacted by financial challenges, including declining revenue and high leverage. While strong cash flow generation provides some stability, weak technical indicators and a negative valuation score further contribute to a cautious outlook.

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 Business Overview & Revenue Model

Company Description

OneWater Marine (ONEW) is a premier marine retailer in the United States, specializing in the sale of recreational boats and yachts. The company operates through a network of dealerships that offer a wide range of products and services tailored to boating enthusiasts. In addition to new and pre-owned boat sales, OneWater Marine provides related services, including repair and maintenance, boat financing, insurance, and marine parts and accessories.

How the Company Makes Money

OneWater Marine generates revenue primarily through the sale of new and pre-owned recreational boats and yachts. The company capitalizes on its extensive dealership network to reach a broad customer base. Key revenue streams include boat sales, which account for the majority of the company's income, followed by high-margin services such as repair and maintenance, financing, insurance, and sales of marine parts and accessories. The company benefits from strategic partnerships with leading boat manufacturers, enabling it to offer a diverse range of products. Additionally, OneWater Marine enhances its earnings through after-sales services and customer loyalty programs that encourage repeat business.

OneWater Marine Financial Statement Overview

Summary

OneWater Marine shows mixed financial performance with declining revenue and negative net profit margin, indicating profitability challenges. Despite a high debt-to-equity ratio, the company maintains strong cash flow generation, supporting 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.

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.

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.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	1.77B	1.94B	1.74B	1.23B	1.02B
Gross Profit	435.06M	535.13M	553.65M	357.45M	235.52M
EBITDA	86.99M	43.90M	229.98M	158.41M	91.95M
Net Income	-5.71M	-38.59M	130.94M	116.41M	48.51M
Balance Sheet
Total Assets	1.59B	1.69B	1.50B	720.61M	458.07M
Cash, Cash Equivalents and Short-Term Investments	16.85M	84.65M	42.07M	62.61M	66.09M
Total Debt	1.01B	1.08B	837.38M	318.78M	213.43M
Total Liabilities	1.20B	1.28B	1.05B	465.78M	284.78M
Stockholders Equity	360.81M	358.61M	385.32M	225.93M	122.85M
Cash Flow
Free Cash Flow	8.92M	-153.83M	-8.20M	149.53M	206.17M
Operating Cash Flow	34.84M	-129.76M	7.45M	159.42M	212.48M
Investing Cash Flow	13.32M	-51.60M	-476.84M	-117.13M	-4.67M
Financing Cash Flow	-114.11M	213.72M	456.40M	-36.50M	-151.14M

OneWater Marine Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 15.30
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ONEW, the sentiment is Neutral. The current price of 15.3 is above the 20-day moving average (MA) of 14.25, above the 50-day MA of 14.35, and below the 200-day MA of 17.63, indicating a neutral trend. The MACD of 0.20 indicates Negative momentum. The RSI at 51.09 is Neutral, neither overbought nor oversold. The STOCH value of 70.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ONEW.

OneWater Marine Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MPX	72 Outperform	$317.05M	21.58	10.33%	6.17%	-32.30%	-58.15%
MCFT	71 Outperform	$335.92M	―	-1.50%	―	-41.66%	-123.04%
Sector *	66 Neutral	€8.35B	15.63	8.46%	3.23%	4.05%	-25.38%
MBUU	59 Neutral	$658.25M	―	-1.68%	―	-27.18%	84.33%
ONEW	57 Neutral	$249.59M	―	-1.88%	―	-6.22%	91.93%
VEEE	46 Neutral	$5.26M	―	-54.97%	―	-57.48%	-27.43%
VMAR	44 Neutral	$6.84M	―	-152.23%	―	-55.43%	55.17%