), a Zacks #1 Rank (Strong Buy) recreational boat and yacht
retailer, has outperformed the Zacks Consensus Estimate over the
last four quarters by an average surprise of 78.2%. The company
boasts a solid year-to-date return of 14.9%, impressive
fourth-quarter fiscal 2012 results and advancing estimates for
Loss Narrowed during Q4
On November 1, Marinemax delivered a fiscal fourth quarter loss of
7 cents per share, which was narrower than the Zacks Consensus
Estimate for a loss of 13 cents. It also showed a significant
improvement from a steeper loss of 23 cents in the year-ago
quarter, thanks to effective cost management and streamlined
Revenue for the quarter came in at $137.3 million, topping the
Zacks Consensus Estimate of $126 million and rising 15%
year-over-year. Comparable-store sales climbed approximately 18%,
compared with a 2% decline in the year-ago quarter.
Gross profit grew 10% to $33 million from the prior-year quarter,
whereas operating loss improved to $649,000 from a loss of $4.8
Earnings Momentum Climbing
The Zacks Consensus Estimate for fiscal 2013 rose 20% in the last
30 days to 24 cents per share, as all 4 estimates were revised
higher. The current estimate reflects a staggering 385%
Marinemax currently trades at a forward P/E of 31.88x, reflecting
an 80.8% premium to the peer group average of 17.63x. Also, on a
price-to-book basis, shares trade at 0.91x, a considerable discount
to the peer group average of 1.44x. Again its price-to-sales ratio
of 0.35 is at a discount to the peer group average of 0.47. The
company's strong fundamentals are also justified and well supported
by its long-term estimated EPS growth rate of 15%. A compelling
valuation is making the stock look attractive.
A look at the price and consensus chart reveals that the stock
price remains below fiscal 2013 and 2014 earnings estimates,
suggesting that the stock is still undervalued. Currently, the
stock price is in the range of $6.00-$8.00, and has generated a
healthy year-to-date return of 14.9%, significantly higher than the
S&P 500's return of 8.1%.
Founded in 1998 and based in Clearwater, Florida, MarineMax is the
leading recreational boat and yacht retailer. The company deals in
new and used recreational boats and related marine accessories, and
remains focused on premium brands such as Sea Ray, Boston Whaler,
Meridian, Cabo, Hatteras, Azimut Yachts, Grady-White, Bayliner,
Harris FloteBote, Zeelander, Nautique and Malibu. The company also
offers yacht brokerage and charter services.
As of November 1, the company operated 53 retail locations in
Alabama, Arizona, California, Connecticut, Florida, Georgia,
Maryland, Massachusetts, Minnesota, Missouri, New Jersey, New York,
North Carolina, Ohio, Oklahoma, Rhode Island, Tennessee, and Texas
and operated MarineMax Vacations in Tortola, British Virgin
Islands. MarineMax, which primarily competes with Coast
Distribution System Inc. (
) and West Marine Inc. (
), currently has a market cap of $177.1 million.
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