Vision Marine Technologies Inc. (NASDAQ: VMAR)

Sector: Consumer Cyclical Industry: Recreational Vehicles CIK: 0001813783
Market Cap 96,644.73
P/B 0.03
P/E -0.01
P/S 0.00
ROIC (Qtr) -81.26
Div Yield % 0.00
Rev 1y % (Qtr) 15,035.75
Total Debt (Qtr) 24.48 Mn
Debt/Equity (Qtr) 8.11
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About

Vision Marine Technologies Inc., also known as VMAR, operates in the electric boat industry, focusing on the design, development, and manufacturing of electric outboard powertrain systems and power boats. The company was established in 2

Investment thesis

Bull case

  • Operating cash flow of (968895.04) fully covers other non-current liabilities (473851.77) by 2.04x, showing strong long-term stability.
  • Tangible assets of 41.99M provide exceptional 10.03x coverage of deferred revenue 4.19M, showing strong service capability backing.
  • Robust tangible asset base of 41.99M provides 12.59x coverage of working capital 3.34M, indicating strong operational backing.
  • Tangible assets of 41.99M provide robust 9.29x coverage of other current liabilities 4.52M, indicating strong asset backing.
  • Cash reserves of 1.63M provide comfortable 845.12x coverage of tax obligations 1929.79, showing strong fiscal management.

Bear case

  • Operating cash flow of (968895.04) barely covers its investment activities of 3.77M, with a coverage ratio of -0.26, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • With cash reserves of 1.63M against inventory of 22.25M, the 0.07 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Operating cash flow of (968895.04) provides insufficient coverage of deferred revenue obligations of 4.19M, which is -0.23x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (968895.04) shows concerning coverage of stock compensation expenses of 358112.77, with a -2.71 ratio indicating potential earnings quality issues.
  • Free cash flow of 1.47M provides weak coverage of capital expenditures of (2.44M), with a -0.60 ratio suggesting additional external financing needs for growth initiatives.

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 0.37 0.70
EV to Cash from Ops. EV/CFO -16.01 6.55
EV to Debt EV to Debt 0.63 3.14
EV to EBIT EV/EBIT -0.84 -18.45
EV to EBITDA EV/EBITDA -0.89 10.49
EV to Free Cash Flow [EV/FCF] EV/FCF 10.54 12.72
EV to Market Cap EV to Market Cap 160.47 -21.47
EV to Revenue EV/Rev 0.74 0.65
Price to Book Value [P/B] P/B 0.03 1.89
Price to Earnings [P/E] P/E -0.01 18.23
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 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) 16.70 11.87
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 915.68 55.44
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 135.26 -6.35
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -1.69
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -84.96 21.79
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -80.19 2.46
EBIT Growth (1y) % EBIT 1y % (Qtr) -83.58 80.41
EBT Growth (1y) % EBT 1y % (Qtr) -90.07 119.88
EPS Growth (1y) % EPS 1y % (Qtr) 98.66 23.97
FCF Growth (1y) % FCF 1y % (Qtr) 123.34 548.19
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 1,311.17 93.02
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.35 0.93
Cash Payout Ratio Cash Payout Ratio 0.00 0.15
Cash Ratio Cash Ratio (Qtr) 0.06 0.54
Current Ratio Curr Ratio (Qtr) 1.11 2.54
Debt to Equity Ratio Debt/Equity (Qtr) 8.11 1.02
Interest Cover Ratio Int Coverage (Qtr) 16.70 11.87
Times Interest Earned Times Interest Earned (Qtr) 16.70 11.87
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -83.50 -5.77
EBIT Margin % EBIT Margin % (Qtr) -124.51 -12.97
EBT Margin % EBT Margin % (Qtr) -83.02 -10.90
Gross Margin % Gross Margin % (Qtr) 30.70 21.59
Net Profit Margin % Net Margin % (Qtr) -82.90 -11.85