One-glance verdict
Undervalued
$48.43 our estimate vs market $9.37
Wall Street consensus: $13.00 (-73.2% lower than our fair-value estimate)
81% below our estimate, below the bear case
Fundamentals snapshot
OneWater Marine Inc.
ONEW · NGM · Consumer Cyclical · Specialty Retail
Current price
$9.37
52-week range
$8.12 - $17.35
Market cap
$156.16M
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 Inc. sells new and used boats and yachts, along with parts and accessories, primarily in the United States. Their main income comes from selling these boats and related services like financing and maintenance, which means when boat sales are strong, the company usually does well. This business model is heavily influenced by how much people want to buy recreational boats, which can change with the economy.
How the company got here
OneWater Marine was founded in 2014 and has grown into one of the largest recreational boat retailers in the United States. The company's growth has been fueled by an aggressive strategy of acquiring successful dealerships and marine parts businesses. This approach has allowed OneWater to expand its reach across diverse geographical markets while maintaining the unique identity and customer relationships of the acquired businesses. The company has a history of delivering profitable growth through both these acquisitions and by improving its existing operations. OneWater's leadership has recently formalized roles to better align with its strategic direction and operational execution.
What it actually does
OneWater Marine is a retailer focused on the recreational boating lifestyle. They sell new and used boats, along with a wide array of related products and services. Think of them as a one-stop shop for boat owners. This includes everything from the boats themselves to the parts and accessories needed to maintain them, as well as services like repairs, maintenance, and storage. They also help customers with financing and insurance to make the purchase process smoother.
Dealership
This is the core of OneWater Marine's business, where they directly sell boats to customers. It includes both new and pre-owned recreational boats and yachts. Beyond just selling the vessels, this segment also generates revenue from selling marine parts and accessories, offering essential repair and maintenance services, and providing storage solutions like marina slips. Additionally, they facilitate financing and insurance for boat purchases through third-party providers, acting as a crucial intermediary for customers looking to finance their boat dreams.
Distribution
This segment of OneWater Marine focuses on the manufacturing, assembly, and distribution of marine-related products. Instead of selling directly to individual boat owners, this part of the business supplies products to other businesses. These customers include other distributors, large retail chains, and online sellers. They manage a network of warehouses and distribution centers to get these marine parts and accessories to their business clients.
What management is betting on now
OneWater Marine's current strategy is focused on building a more resilient business model. They aim to achieve this by combining their premium boat retail operations with revenue streams that are less affected by economic ups and downs, such as services, parts, finance, insurance, and used boat sales. Management is also emphasizing operational efficiency and financial discipline to ensure the company can perform well through different economic cycles. A key priority is strengthening the company's financial foundation while also growing the service side of the business and developing a unified digital platform to enhance customer experience and market leadership.
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 $48.43 vs current price $9.37
Wall Street consensus is the average analyst price target: $13.00 (-73.2% lower than our fair-value estimate).
Our most-likely fair value is $48.43 a share — about 416.9% above today's price of $9.37, 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 41.56x +4,227% vs ONEW Carries about 43.3x 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
8.31x
P/B
0.54x
P/S
0.09x
EV/EBITDA
11.09x
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
0.0%
Payout ratio
0.0%
Last ex-div date
2021-06-25