Marinemax Inc (NYSE: HZO)

Sector: Consumer Cyclical Industry: Specialty Retail CIK: 0001057060
Market Cap 632.35 Mn
P/B 0.68
P/E -10.97
P/S 0.27
ROIC (Qtr) 0.00
Div Yield % 0.00
Rev 1y % (Qtr) 7.84
Total Debt (Qtr) 1.22 Bn
Debt/Equity (Qtr) 1.31
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About

MarineMax Inc., also known by its stock symbol HZO, operates in the recreational boating industry, holding the title as the world's largest retailer of recreational boats and yachts. With a presence in over 130 locations worldwide, the company's main business activities revolve around the sale of new and used recreational boats, yachts, and marine products, as well as providing a variety of services related to boating. MarineMax's extensive product line includes offerings from renowned manufacturers such as Brunswick, Azimut, and Princess. The...

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Investment thesis

Bull case

  • Operating cash flow of 235.76M provides exceptional 369.53x coverage of minority interest expenses 638000, showing strong core operations.
  • Operating cash flow of 235.76M provides strong 14.27x coverage of stock compensation 16.52M, indicating sustainable incentive practices.
  • Robust free cash flow of 200.84M exceeds capital expenditure of 34.93M by 5.75x, indicating strong organic growth funding capability.
  • Retained earnings of 738.46M provide full 1.55x coverage of long-term debt 475.31M, indicating strong internal capital position.
  • Robust tangible asset base of 1.87B provides 10.19x coverage of working capital 183.16M, indicating strong operational backing.

Bear case

  • Operating cash flow of 235.76M barely covers its investment activities of (46.60M), with a coverage ratio of -5.06, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • With cash reserves of 164.60M against inventory of 867.90M, the 0.19 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Cash reserves of 164.60M provide limited coverage of acquisition spending of (10.48M), which is -15.70x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 235.76M provides minimal -20.83x coverage of tax expenses of (11.32M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of (673000) show weak coverage of depreciation charges of 50.30M, with a -0.01 ratio indicating high capital intensity and potential reinvestment needs.

Segments Breakdown of Revenue (2025)

Geographical Breakdown of Revenue (2025)

Peer comparison

Companies in the Specialty Retail
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ULTA Ulta Beauty, Inc. 32.20 Bn 27.06 2.69 2.57 Bn
2 WSM Williams Sonoma Inc 29.62 Bn 25.19 3.40 1.47 Bn
3 TSCO Tractor Supply Co /De/ 28.42 Bn 25.23 1.93 5.72 Bn
4 DKS Dick'S Sporting Goods, Inc. 24.98 Bn 88.10 4.64 7.70 Bn
5 CASY Caseys General Stores Inc 24.65 Bn 59.49 1.65 2.92 Bn
6 BBY Best Buy Co Inc 17.85 Bn 11.66 0.41 4.09 Bn
7 MUSA Murphy USA Inc. 15.91 Bn 61.33 1.35 2.75 Bn
8 FIVE Five Below, Inc 11.68 Bn 37.94 2.64 2.01 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.70 2.23
EV to Cash from Ops. EV/CFO 7.24 14.70
EV to Debt EV to Debt 1.39 79.39
EV to EBIT EV/EBIT -2,537.83 -40.16
EV to EBITDA EV/EBITDA 33.98 11.51
EV to Free Cash Flow [EV/FCF] EV/FCF 8.50 -286.14
EV to Market Cap EV to Market Cap 2.70 6.33
EV to Revenue EV/Rev 0.73 2.39
Price to Book Value [P/B] P/B 0.68 32.78
Price to Earnings [P/E] P/E -10.97 -36.32
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -4.05
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 14.19
Dividend per Basic Share Div per Share (Qtr) 0.00 0.71
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 18.58
Interest Coverage Int. cover (Qtr) -0.01 4.43
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 41.08 13.87
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 13.51 33.75
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.00
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -100.51 -272.99
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -74.00 588.45
EBIT Growth (1y) % EBIT 1y % (Qtr) -100.46 29.27
EBT Growth (1y) % EBT 1y % (Qtr) -194.30 -92.23
EPS Growth (1y) % EPS 1y % (Qtr) -208.50 -121.86
FCF Growth (1y) % FCF 1y % (Qtr) 241.50 71.80
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -6.83 2.50
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.97 1.24
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.04
Cash Ratio Cash Ratio (Qtr) 0.17 0.74
Current Ratio Curr Ratio (Qtr) 1.19 3.56
Debt to Equity Ratio Debt/Equity (Qtr) 1.31 25.92
Interest Cover Ratio Int Coverage (Qtr) -0.01 4.43
Times Interest Earned Times Interest Earned (Qtr) -0.01 4.43
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 2.10 -42.64
EBIT Margin % EBIT Margin % (Qtr) -0.03 -131.12
EBT Margin % EBT Margin % (Qtr) -2.94 -64.70
Gross Margin % Gross Margin % (Qtr) 31.60 30.93
Net Profit Margin % Net Margin % (Qtr) -2.50 -65.71