One-glance verdict
Undervalued
$41.82 our estimate vs market $10.96
Wall Street consensus: $13.33 (-68.1% lower than our fair-value estimate)
74% below our estimate, below the bear case
Fundamentals snapshot
OneWater Marine Inc.
ONEW · NGM · Consumer Cyclical · Specialty Retail
Current price
$10.96
52-week range
$8.12 - $17.35
Market cap
$182.66M
Balance sheet
Distressed
0.96x Concerning
Net debt $803.56M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
3 Risks
1 rewards · 3 risks
- Reward Free cash flow was positive in 4/10 years.
- Risk Return on equity was -35.9% last year — the company lost money on shareholders' equity.
- Risk Net debt grew 15.0% over 3 years.
- Risk Operating margin compressed from 13.5% to 6.8% over 3 years.
What this company does
OneWater Marine Inc.
OneWater Marine is a large dealership that sells new and used recreational boats and yachts. The company makes most of its money from these boat sales but also earns a steady income from related services like repairs, maintenance, and helping customers arrange financing. This is important because the more predictable income from services can help cushion the company when sales of expensive boats slow down, which often happens in a weaker economy.
How the company got here
Founded in 2014, OneWater Marine began with the goal of buying up smaller, successful boat dealerships to create a much larger, more efficient company. This approach, known as a 'roll-up' strategy, allowed them to grow quickly by acquiring businesses that already had experienced staff and loyal customers. Instead of changing the names of the local dealerships they bought, they kept the original branding to maintain the trust and relationships those dealers had built over time. A key turning point was their decision to expand beyond just selling boats into also distributing marine parts and accessories, which they accelerated through major acquisitions like T-H Marine.
What it actually does
OneWater Marine is a large retailer of recreational boats in the United States. Think of them as a car dealership, but for the water, selling both brand-new and used boats, from smaller fishing boats to large yachts. Beyond the initial sale, they also provide a range of services that a boat owner would need throughout the life of their vessel. This includes helping to arrange financing (the loan to buy the boat) and insurance, providing repair and maintenance services, and selling parts and accessories. In some locations, they even offer boat storage and other marina services.
Dealerships
This is the company's largest and primary business, making up the vast majority of its revenue. This segment is all about the retail experience at their many dealership locations, where they sell a wide variety of new and pre-owned boats, including saltwater fishing boats, pontoons, and yachts. Besides the boats themselves, this division also generates money from what are called finance and insurance (F&I) products, where they help customers get loans and insurance policies. It also includes the money made from their service centers, which handle repairs and routine maintenance for boat owners.
Distribution
This is a smaller but important part of the company that focuses on selling marine-related products to other businesses rather than directly to boat buyers. Through brands they've acquired like T-H Marine, this segment manufactures, assembles, and distributes items like boat parts, hardware, and cleaning products. Their customers include other distributors, big-box retail stores, and online sellers. This business helps OneWater diversify, making them less dependent on the seasonal and sometimes unpredictable cycle of boat sales.
What management is betting on now
Management's current focus is on building a more resilient business that doesn't just rely on selling new boats, which can be a very up-and-down market. They are heavily invested in growing their higher-margin (more profitable per sale) and less cyclical (less affected by economic swings) businesses, like service, parts, finance, and used boats. A major part of this strategy is expanding their Distribution segment, which sells parts and accessories, to a wider market. They also continue to pursue their successful strategy of acquiring other well-run dealerships and parts businesses to fuel growth and enter new markets.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$23.16M
FY2025 Q1
$-40.05M
FY2025 Q2
$23.70M
FY2025 Q3
$88.86M
FY2025 Q4
$7.21M
FY2026 Q1
$-78.23M
FY2026 Q2
$50.18M
FY2026 Q3
$77.59M
Revenue
$530.71M
Net income
$11.67M
Diluted EPS
—
Operating cash flow
$80.36M
Free cash flow
$77.59M
Fetching…
Sources
Revenue
$442.29M
Net income
$-12.90M
Diluted EPS
—
Operating cash flow
$52.44M
Free cash flow
$50.18M
Fetching…
Sources
Revenue
$380.56M
Net income
$-7.71M
Diluted EPS
—
Operating cash flow
$-76.29M
Free cash flow
$-78.23M
Fetching…
Sources
Revenue
$460.13M
Net income
$-112.96M
Diluted EPS
—
Operating cash flow
$9.93M
Free cash flow
$7.21M
Fetching…
Sources
Revenue
$552.86M
Net income
$10.71M
Diluted EPS
—
Operating cash flow
$90.80M
Free cash flow
$88.86M
Fetching…
Sources
Revenue
$483.52M
Net income
$-368.00K
Diluted EPS
—
Operating cash flow
$28.46M
Free cash flow
$23.70M
Fetching…
Sources
Revenue
$375.81M
Net income
$-11.97M
Diluted EPS
—
Operating cash flow
$-37.44M
Free cash flow
$-40.05M
Fetching…
Sources
Revenue
$377.86M
Net income
$-9.25M
Diluted EPS
—
Operating cash flow
$27.33M
Free cash flow
$23.16M
Fetching…
Sources
Is it cheap or expensive?
Fair value $41.82 vs current price $10.96
Wall Street consensus is the average analyst price target: $13.33 (-68.1% lower than our fair-value estimate).
Our most-likely fair value is $41.82 a share — about 281.6% above today's price of $10.96, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $803.6M. Interest coverage 1.0x.
Net debt
$803.56M
Interest coverage
0.96x
OneWater Marine Inc.'s profit covers its interest bill about 1.0 times over. and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
ONEW
BASELINE
OneWater Marine Inc.
Total debt $873.89M Interest coverage 0.96x This is the baseline the peer rows are being compared against.
Total debt $1.11B Interest coverage 1.45x +51% vs ONEW Carries about 1.5x more debt cushion than ONEW.
Total debt $0.00 Interest coverage 9.61x +900% vs ONEW Carries about 10.0x more debt cushion than ONEW.
Total debt $176.75M Interest coverage 0.87x -9% vs ONEW Has roughly the same debt cushion as ONEW.
Total debt $2.29B Interest coverage 2.80x +191% vs ONEW Carries about 2.9x more debt cushion than ONEW.
What you should know
The case for and against ONEW
1 Reward
3 Risks
Rewards
-
Free cash flow was positive in 4/10 years.
Risks
-
Return on equity was -35.9% last year — the company lost money on shareholders' equity.
-
Net debt grew 15.0% over 3 years.
-
Operating margin compressed from 13.5% to 6.8% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
8.87x
P/B
0.64x
P/S
0.10x
EV/EBITDA
11.40x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
23.5%
Operating margin
6.8%
Net margin
-6.7%
ROE
-35.9%
ROA
3.1%
Health
Liquidity and balance-sheet strength
Debt / equity
3.06x
Current ratio
1.22x
Quick ratio
0.25x
Total debt
$873.89M
Total cash
$70.33M
Growth
How the business has been compounding
Revenue TTM
$1.81B
Revenue 5Y CAGR
11.1%
EPS TTM
-7.66
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$66.44M
Free CF TTM
$79.73M
FCF margin
4.4%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
2021-06-25