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MarineMax: Don't Expect Outstanding Returns From The Stock

Apr. 11, 2021 1:25 PM ETMarineMax, Inc. (HZO)4 Comments


  • Recreational boat industry enjoys short-term tailwinds.
  • Consumer sentiment is rising which might bring new opportunities for boat & yacht industry.
  • MarineMax stock looks fairly valued at $49 level.

In the sunset
Photo by Ziga Plahutar/E+ via Getty Images

Recreational Boat industry grew at a double digit rate in 2020 as COVID 19 urged people to avoid indoor activities. The trends look quite beneficial, however, we don't expect them to last long. MarineMax (

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I am an equity research analyst looking for the highest quality value and growth opportunities. I do prefer those industries which have a promising outlook and are expected to grow at an above-average rate.Associated with another SA contributor Growth Analyst.

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Comments (4)

HardytheTrader profile picture
According to ycharts $HZO FCF TTM is $451,12M. Thats 5x the FCF you used for your calculation. Therefore I'll multiply your PT by 5x to come up with $245 fair value. Yes, I expect outstanding returns from my investment and I am thinking of adding on the recent pullback.

Long HZO
DustinCrossland1 profile picture
Beta is incredibly useless for valuation. I care about the economic value the business creates, not the stock's historic price volatility...
Here is another data point. Vectorvest puts the value at $94.
They base the price on expected 3 year returns, divie, book value,
And adjust for the 10-yr bond and inflation.

My bias is much more positive. If they make most of their money
off expensive boats, from big spenders, I would see the business
as more insulated from the coming downturn, which will hit the
low end of the market harder. It may offer more roll up opportunities
as well.
@A_Nony_Mouse_99 I hope you're right, what are your thoughts on the upcoming earnings report?
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