NasdaqGM:MCFT

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Undervalued with reasonable growth potential.

Share Price & News

How has MasterCraft Boat Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-3.4%

MCFT

2.5%

US Leisure

1.3%

US Market


1 Year Return

-60.6%

MCFT

-5.6%

US Leisure

5.9%

US Market

Return vs Industry: MCFT underperformed the US Leisure industry which returned -5.6% over the past year.

Return vs Market: MCFT underperformed the US Market which returned 5.9% over the past year.


Shareholder returns

MCFTIndustryMarket
7 Day-3.4%2.5%1.3%
30 Day-3.1%0.3%-1.9%
90 Day-28.8%3.4%-1.8%
1 Year-60.6%-60.6%-3.9%-5.6%8.3%5.9%
3 Year23.5%23.5%-0.8%-5.9%45.6%36.2%
5 Yearn/a17.3%4.4%66.1%47.9%

Price Volatility Vs. Market

How volatile is MasterCraft Boat Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: MCFT ($14.06) is trading below our estimate of fair value ($37.16)

Significantly Undervalued: 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 (12.3x) compared to the Leisure industry average (16.9x).

PE vs Market: MCFT is good value based on its PE Ratio (12.3x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: MCFT is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: MCFT is overvalued based on its PB Ratio (3.6x) compared to the US Leisure industry average (2.5x).


Next Steps

Future Growth

How is MasterCraft Boat Holdings forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

37.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MCFT's forecast earnings growth (37.1% per year) is above the savings rate (2.7%).

Earnings vs Market: MCFT's earnings (37.1% per year) are forecast to grow faster than the US market (14.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MCFT's revenue (1.2% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: MCFT's revenue (1.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: MCFT's Return on Equity is forecast to be high in 3 years time (38%)


Next Steps

Past Performance

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

25.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MCFT's earnings have grown significantly by 25% per year over the past 5 years.

Accelerating Growth: MCFT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MCFT had negative earnings growth (-46.1%) over the past year, making it difficult to compare to the Leisure industry average (17.2%).


Return on Equity

High ROE: Whilst MCFT's Return on Equity (29.53%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: MCFT has a higher Return on Assets than the Leisure industry average last year.


Return on Capital Employed

ROCE Improving: MCFT's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is MasterCraft Boat Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: MCFT's short term assets ($54.4M) do not cover its short term liabilities ($68.5M)

Long Term Liabilities: MCFT's short term assets (54.4M) do not cover its long term liabilities (107.9M)


Debt to Equity History and Analysis

Debt Level: MCFT's debt to equity ratio (157.3%) is considered high

Reducing Debt: MCFT had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: MCFT's debt is well covered by operating cash flow (49.1%).

Interest Coverage: MCFT's interest payments on its debt are well covered by EBIT (10.2x coverage).


Balance Sheet

Inventory Level: MCFT has a high level of physical assets or inventory.

Debt Coverage by Assets: MCFT's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MCFT's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of MasterCraft Boat Holdings's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Terry McNew (57yo)

7.2yrs

Tenure

US$1,807,530

Compensation

Mr. Terry D. McNew has been the Chief Executive Officer and President of MCBC Holdings, Inc. since August 2012 and serves as its Director. Mr. McNew has been the Chief Executive Officer and President of Ma ...


CEO Compensation Analysis

Compensation vs. Market: Terry's total compensation ($USD1.81M) is about average for companies of similar size in the US market ($USD1.18M).

Compensation vs Earnings: Terry's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

1.3yrs

Average Tenure

Experienced Management: MCFT's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

3.8yrs

Average Tenure

57yo

Average Age

Experienced Board: MCFT's board of directors are considered experienced (3.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$104,20010 Jun 19
Frederick Brightbill
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares5,000
Max PriceUS$20.84
BuyUS$100,69105 Jun 19
Patrick May
EntityIndividual
Shares4,185
Max PriceUS$24.06
BuyUS$99,75615 Nov 18
Terry McNew
EntityIndividual
Role
Chief Executive Officer
President
Shares3,545
Max PriceUS$28.14

Ownership Breakdown


Management Team

  • Jay Povlin

    President of NauticStar

    • Tenure: 0.6yrs
    • Compensation: US$1.02m
  • Tim Oxley (60yo)

    VP, CFO

    • Tenure: 7.2yrs
    • Compensation: US$655.46k
  • Terry McNew (57yo)

    President

    • Tenure: 7.2yrs
    • Compensation: US$1.81m
  • Charlene Hampton

    Vice President of Human Resources

    • Tenure: 0yrs
  • Dave Ekern

    Vice President of Operations

    • Tenure: 0.6yrs
  • Mike Schmidt

    Chief Information Officer

    • Tenure: 1.3yrs
  • George Steinbarger

    Vice President of Business Development

    • Tenure: 0yrs

Board Members

  • Donald Campion (70yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$142.89k
  • T. J. Chung (56yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$115.00k
  • Peter Leemputte (62yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$135.93k
  • Rock Lambert (56yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$115.70k
  • Terry McNew (57yo)

    President

    • Tenure: 7.2yrs
    • Compensation: US$1.81m
  • Jaclyn Baumgarten

    Independent Director

    • Tenure: 1yrs
    • Compensation: US$77.80k
  • W. Battle (56yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$118.72k
  • Frederick Brightbill (66yo)

    Independent Chairman of the Board

    • Tenure: 4.3yrs
    • Compensation: US$170.49k

Company Information

MasterCraft Boat Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MasterCraft Boat Holdings, Inc.
  • Ticker: MCFT
  • Exchange: NasdaqGM
  • Founded: 1968
  • Industry: Leisure Products
  • Sector: Consumer Durables
  • Market Cap: US$264.124m
  • Shares outstanding: 18.79m
  • Website: https://www.mastercraft.com

Number of Employees


Location

  • MasterCraft Boat Holdings, Inc.
  • 100 Cherokee Cove Drive
  • Vonore
  • Tennessee
  • 37885
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MCFTNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDJul 2015
1SGDB (Deutsche Boerse AG)YesCommon StockDEEURJul 2015

Biography

MasterCraft Boat Holdings, Inc., through its subsidiaries, designs, manufactures, and markets recreational powerboats. It operates through three segments: MasterCraft, NauticStar, and Crest. The MasterCraf ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 00:32
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.