Marinemax Inc. (HZO), 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 fiscal 2013.
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 operations.
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 million.
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% year-over-year increase.
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. (CRV) and West Marine Inc. (WMAR), currently has a market cap of $177.1 million.
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