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after latest eps report and raised guidance trading at 3 p/e now with good roll up strategy....
Nice write up. Shares B converting to shares A was a revelation to me. Thank you for researching that.

Didn't they just file for permission to issue 10 Million additional shares? That would immediately double the float if all those shares are released on the market at the same time...I believe that's the main reason the stock tanked.
Engineer Investor profile picture
@rec2 I'm not seeing anything for an additional 10 MM shares. That would certainly be a massive offering. Lately I just see the 253k shares as part of the Denison deal.

Edit: I see the initial announcement for the Denison deal saying they expect to issue $10 million in shares. Perhaps that is what you saw?
@Engineer Investor yes, that's exactly what I saw. I must have fumbled the difference between 10 million shares and 10 million IN shares- and that's a big difference! 253k additional shares is not a big dilution.

Thank you for clarifying this for me - really appreciate it!!!
"OneWater has recently announced a $50 MM share repurchase program, potentially removing over 9% of total shares." - total waste of capital
Engineer Investor profile picture
@firsTraveler I had a similar feeling when they did the special dividend, especially since it came close after the September 2020 offering.
Russell A profile picture
They are paying 4x EBITDA on acquisitions and after their value-add process, that lowers to 2X EBITDA. And buybacks are at a 25% earnings yield? I like the potential here.
Engineer Investor profile picture
@Russell Ashcraft I believe that is for acquired retail locations/dealer groups, but it may not apply to the bigger parts and services acquisitions, like T-H Marine ($19-20MM EBITDA and $180 MM purchase price).

I'm also interested to see where Denison Yachting fits as a superyacht dealer and charter company. It was mentioned the had >$80 MM in revenue in 2021, but I did not find specifics on the purchase. Wondering how many superyachts, if any, they hold in inventory (www.denisonyachtsales.com/...)

I'm not super bullish on retail boating (even coming from a boat owner), but I really like the business strategy for ONEW. I believe most of the risk lies with how they manage a larger and larger store base, maintain themselves as a "buyer of choice" as their location base expands, and then all the external risks we're witnessing (interest rate, economy). Still, looks like it has potential like you said.
@Engineer Investor The biggest risk is they overpay for acquisitions. So far they've been disciplined but if they start trying to outgrow HZO too fast- the discipline will go out the window. Let's not forget- the bigger the company, the more money executives make. Denison acquisition is a big question mark.
Engineer Investor profile picture
@rec2 I don't disagree with that.

The Denison acquisition seemed strange, but makes me wonder if they are wanting to chase superyacht services, something HZO does.
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