$MarineMax (HZO.US)$Over the past 5 years, revenue has conti...
$MarineMax (HZO.US)$Over the past 5 years, revenue has continued to grow at an average rate of 17%. Operating profit, apart from a 4.2% shrinkage in 2019 due to rapid growth in operating expenses, has grown for 4 years at an average rate of 42%, with the growth rate in 2022 at 26.6%. Net income, apart from an 8.5% decline in 2019, has grown for 4 years at an average rate of 53%, with the growth rate in 2022 at 27.8%. The interest expense in 2022 was only 3.3 million, with almost no interest burden.
In the first two quarters of 2023, revenue declined by 0.4%, and operating profit declined by 22.8% due to a significant increase in operating expenses, while the interest expense during the same period surged to 0.023 billion, accounting for 25% of the operating profit. The interest burden suddenly increased, causing a 44% decline in net income.
From the balance sheet, it is evident that the company has continuously increased its acquisition efforts since 2020. Goodwill and other intangible assets have grown to 0.6 billion, accounting for 71% of the 0.85 billion in net assets.
At the same time, long-term borrowings have increased to 0.41 billion, and short-term borrowings have increased to 0.53 billion, totaling more than the net assets. The leverage ratio is very high, and it has been added in a short period of time.
Over the past 5 years, the operating net amount has slightly exceeded the investment net amount, resulting in a certain amount of shareholder surplus.
Currently, the PE is 4.3, and the TTM PE has increased to 5.3. If the net income for the full year of 2023 declines by 45%, the PE will rise to around 8, which doesn't seem high. It may be worth observing for a few more quarters to assess the long-term effects of the acquisition before making a decision.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
