Malibu Boats, Inc. (NASDAQ: MBUU)

Sector: Consumer Cyclical Industry: Recreational Vehicles CIK: 0001590976
Market Cap 621.76 Mn
P/B 1.26
P/E 43.18
P/S 0.76
ROIC (Qtr) 2.47
Div Yield % 0.00
Rev 1y % (Qtr) -5.82
Total Debt (Qtr) 20.00 Mn
Debt/Equity (Qtr) 0.04
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About

Malibu Boats, Inc., a prominent name in the recreational powerboat industry, operates under the ticker symbol MBUU. The company's primary business activities encompass the design, manufacturing, and marketing of a diverse range of recreational powerboats, catering to various recreational boating activities. These activities are carried out across eight brands, namely Malibu, Axis, Pursuit, Maverick, Cobia, Pathfinder, Hewes, and Cobalt, spanning numerous countries and regions globally. Malibu Boats' revenue generation is primarily driven by the...

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Investment thesis

Bull case

  • Strong operating cash flow of 55.68M provides robust 2.78x coverage of total debt 20M, indicating excellent debt servicing capability and financial flexibility.
  • Operating cash flow of 55.68M provides exceptional 161.40x coverage of minority interest expenses 345000, showing strong core operations.
  • Strong tangible asset base of 499.06M provides 24.95x coverage of total debt 20M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 55.68M provides exceptional 33.77x coverage of interest expenses 1.65M, showing strong debt service capability.
  • Robust free cash flow of 33.60M exceeds capital expenditure of 22.08M by 1.52x, indicating strong organic growth funding capability.

Bear case

  • Operating cash flow of 55.68M barely covers its investment activities of (22.08M), with a coverage ratio of -2.52, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • With cash reserves of 28.21M against inventory of 146.85M, the 0.19 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Operating earnings of 20.75M show weak coverage of depreciation charges of 39.65M, with a 0.52 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 39.65M relative to operating cash flow of 55.68M, which is 0.71x suggests significant maintenance capital requirements affecting free cash flow.
  • Free cash flow of 33.60M represents just -11.20x of debt issuance (3M), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Segments Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Recreational Vehicles
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 THO Thor Industries Inc 6.02 Bn 23.47 1.31 0.98 Bn
2 BC Brunswick Corp 5.79 Bn -42.13 1.08 2.25 Bn
3 HOG Harley-Davidson, Inc. 4.54 Bn 6.22 0.77 5.21 Bn
4 LCII Lci Industries 3.86 Bn 29.02 1.80 1.20 Bn
5 PII Polaris Inc. 3.76 Bn -8.07 0.53 1.54 Bn
6 WGO Winnebago Industries Inc 1.38 Bn 106.02 0.46 0.58 Bn
7 MBUU Malibu Boats, Inc. 0.62 Bn 43.18 0.76 0.02 Bn
8 MCFT MasterCraft Boat Holdings, Inc. 0.38 Bn 24.66 1.30 0.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.84 0.70
EV to Cash from Ops. EV/CFO 10.79 6.55
EV to Debt EV to Debt 30.03 3.14
EV to EBIT EV/EBIT 28.94 -18.45
EV to EBITDA EV/EBITDA 10.09 10.49
EV to Free Cash Flow [EV/FCF] EV/FCF 17.88 12.72
EV to Market Cap EV to Market Cap 0.97 -21.47
EV to Revenue EV/Rev 0.73 0.65
Price to Book Value [P/B] P/B 1.26 1.89
Price to Earnings [P/E] P/E 43.18 18.23
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 0.48
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 17.83
Dividend per Basic Share Div per Share (Qtr) 0.00 0.91
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 20.02
Interest Coverage Int. cover (Qtr) 12.59 11.87
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 41.39 55.44
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -19.67 -6.35
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -1.69
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 117.85 21.79
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 189.90 2.46
EBIT Growth (1y) % EBIT 1y % (Qtr) 120.68 80.41
EBT Growth (1y) % EBT 1y % (Qtr) 118.80 119.88
EPS Growth (1y) % EPS 1y % (Qtr) 116.74 23.97
FCF Growth (1y) % FCF 1y % (Qtr) 51.50 548.19
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 11.03 93.02
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.14 0.93
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.15
Cash Ratio Cash Ratio (Qtr) 0.20 0.54
Current Ratio Curr Ratio (Qtr) 1.56 2.54
Debt to Equity Ratio Debt/Equity (Qtr) 0.04 1.02
Interest Cover Ratio Int Coverage (Qtr) 12.59 11.87
Times Interest Earned Times Interest Earned (Qtr) 12.59 11.87
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 7.40 -5.77
EBIT Margin % EBIT Margin % (Qtr) 2.53 -12.97
EBT Margin % EBT Margin % (Qtr) 2.33 -10.90
Gross Margin % Gross Margin % (Qtr) 16.10 21.59
Net Profit Margin % Net Margin % (Qtr) 1.80 -11.85