MasterCraft Boat Holdings (NasdaqGM:MCFT) - Share price, News & Analysis

MCFT fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	2/6
Past Performance	6/6
Financial Health	6/6
Dividends	0/6

MCFT Stock Overview

MasterCraft Boat Holdings, Inc., through its subsidiaries, designs, manufactures, and markets recreational powerboats.

Rewards

Trading at 70.2% below our estimate of its fair value

Earnings are forecast to grow 18.01% per year

Earnings grew by 74.7% over the past year

Risk Analysis

No risks detected for MCFT from our risk checks.

MasterCraft Boat Holdings Competitors

Brunswick

NYSE:BC

US$6.0b

Malibu Boats

NasdaqGM:MBUU

US$1.3b

Marine Products

NYSE:MPX

US$389.2m

Vision Marine Technologies

NasdaqCM:VMAR

US$33.6m

Price History & Performance

Summary of all time highs, changes and price drops for MasterCraft Boat Holdings
Historical stock prices
Current Share Price	US$23.60
52 Week High	US$33.63
52 Week Low	US$22.08
Beta	1.88
1 Month Change	1.33%
3 Month Change	-16.84%
1 Year Change	-27.36%
3 Year Change	-0.34%
5 Year Change	24.21%
Change since IPO	48.24%

Recent News & Updates

Apr 24

MasterCraft Boat: A Smooth-Sailing Journey To Rebound And Sustainability

MasterCraft Boat Holdings, Inc. continues to show a fruitful fiscal year, given its robust core operations. The inflationary pressures, particularly oil and gas, may still affect its performance. The pent-up demand for outdoor activities in the Spring and Summer may help sustain its rebound. The stock price has been in a continued downtrend with potential undervaluation.

Apr 06

MasterCraft Boat: A Breakdown In Shares With Rougher Seas Ahead

MasterCraft is coming off a record 2021 amid strong consumer demand for recreational boats. The company expects positive trends to continue but sees supply chain disruptions as pressuring margins in the near term. We see risks tilted to the downside considering inflationary trends including high gas prices add to uncertainty over the sales outlook.

Shareholder Returns

	MCFT	US Leisure	US Market
7D	-1.5%	2.9%	0.7%
1Y	-27.4%	-40.1%	-10.8%

Return vs Industry: MCFT exceeded the US Leisure industry which returned -40.1% over the past year.

Return vs Market: MCFT underperformed the US Market which returned -10.4% over the past year.

Price Volatility

Is MCFT's price volatile compared to industry and market?
MCFT volatility
MCFT Average Weekly Movement	6.6%
Leisure Industry Average Movement	7.6%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: MCFT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: MCFT's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1968	1,500	Fred Brightbill	https://www.mastercraft.com

MasterCraft Boat Holdings, Inc., through its subsidiaries, designs, manufactures, and markets recreational powerboats. It operates through three segments: MasterCraft, NauticStar, and Crest. The MasterCraft segment produces recreational performance sport boats and luxury day boats under the MasterCraft and Aviara brands, which are used for water skiing, wakeboarding, and wake surfing, as well as general recreational boating.

MasterCraft Boat Holdings Fundamentals Summary

How do MasterCraft Boat Holdings's earnings and revenue compare to its market cap?
MCFT fundamental statistics
Market Cap	US$425.84m
Earnings (TTM)	US$63.26m
Revenue (TTM)	US$645.74m

6.7x

P/E Ratio

0.7x

P/S Ratio

Is MCFT overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MCFT income statement (TTM)
Revenue	US$645.74m
Cost of Revenue	US$499.00m
Gross Profit	US$146.74m
Other Expenses	US$83.49m
Earnings	US$63.26m

Last Reported Earnings

Apr 03, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	3.51
Gross Margin	22.72%
Net Profit Margin	9.80%
Debt/Equity Ratio	47.9%

How did MCFT perform over the long term?

See historical performance and comparison

Valuation

Is MasterCraft Boat Holdings undervalued compared to its fair value and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: MCFT ($23.6) is trading below our estimate of fair value ($79.08)

Significantly Below Fair Value: MCFT is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: MCFT is good value based on its PE Ratio (6.7x) compared to the US Leisure industry average (10.6x).

PE vs Market: MCFT is good value based on its PE Ratio (6.7x) compared to the US market (15.5x).

Price to Earnings Growth Ratio

PEG Ratio: MCFT is good value based on its PEG Ratio (0.4x)

Price to Book Ratio

PB vs Industry: MCFT is overvalued based on its PB Ratio (3.1x) compared to the US Leisure industry average (2.9x).

Future Growth

How is MasterCraft Boat Holdings forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

18.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: MCFT's forecast earnings growth (18% per year) is above the savings rate (1.9%).

Earnings vs Market: MCFT's earnings (18% per year) are forecast to grow faster than the US market (12.6% per year).

High Growth Earnings: MCFT's earnings are forecast to grow, but not significantly.

Revenue vs Market: MCFT's revenue (7.9% per year) is forecast to grow slower than the US market (8% per year).

High Growth Revenue: MCFT's revenue (7.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if MCFT's Return on Equity is forecast to be high in 3 years time

Past Performance

How has MasterCraft Boat Holdings performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

7.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MCFT has high quality earnings.

Growing Profit Margin: MCFT's current net profit margins (9.8%) are higher than last year (8.6%).

Past Earnings Growth Analysis

Earnings Trend: MCFT's earnings have grown by 7.1% per year over the past 5 years.

Accelerating Growth: MCFT's earnings growth over the past year (74.7%) exceeds its 5-year average (7.1% per year).

Earnings vs Industry: MCFT earnings growth over the past year (74.7%) exceeded the Leisure industry 30.9%.

Return on Equity

High ROE: MCFT's Return on Equity (46.6%) is considered outstanding.

Financial Health

How is MasterCraft Boat Holdings's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: MCFT's short term assets ($126.5M) exceed its short term liabilities ($89.0M).

Long Term Liabilities: MCFT's short term assets ($126.5M) exceed its long term liabilities ($67.5M).

Debt to Equity History and Analysis

Debt Level: MCFT's net debt to equity ratio (37.8%) is considered satisfactory.

Reducing Debt: MCFT's debt to equity ratio has reduced from 838% to 47.9% over the past 5 years.

Debt Coverage: MCFT's debt is well covered by operating cash flow (76.1%).

Interest Coverage: MCFT's interest payments on its debt are well covered by EBIT (48.3x coverage).

Balance Sheet

Dividend

What is MasterCraft Boat Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate MCFT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MCFT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MCFT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MCFT's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as MCFT has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Consumer Durables industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average management tenure

CEO

Fred Brightbill (68 yo)

2.58yrs

Tenure

US$3,208,666

Compensation

Mr. Frederick A. Brightbill, also known as Fred, serves as the Chairman of the Board at MasterCraft Boat Company, LLC and serves as its Chief Executive Officer since December 3, 2019 and served as its Inte...

CEO Compensation Analysis

Compensation vs Market: Fred's total compensation ($USD3.21M) is about average for companies of similar size in the US market ($USD2.65M).

Compensation vs Earnings: Fred's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: MCFT's management team is considered experienced (2.6 years average tenure).

Board Members

Experienced Board: MCFT's board of directors are considered experienced (5.5 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/16 00:00
End of Day Share Price	2022/05/16 00:00
Earnings	2022/04/03
Annual Earnings	2021/06/30