OneWater Marine (NasdaqGM:ONEW) - Share price, News & Analysis

ONEW fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	3/6
Past Performance	5/6
Financial Health	3/6
Dividends	0/6

ONEW Stock Overview

OneWater Marine Inc. operates as a recreational boat retailer in the United States.

Rewards

Trading at 56.1% below our estimate of its fair value

Earnings are forecast to grow 17.21% per year

Earnings grew by 140.1% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Shareholders have been diluted in the past year

OneWater Marine Competitors

MarineMax

NYSE:HZO

US$883.7m

Price History & Performance

Summary of all time highs, changes and price drops for OneWater Marine
Historical stock prices
Current Share Price	US$32.76
52 Week High	US$62.79
52 Week Low	US$29.86
Beta	3.02
1 Month Change	-3.36%
3 Month Change	-36.71%
1 Year Change	-33.13%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	116.38%

Recent News & Updates

May 16

OneWater Marine: EPS Up 38%, 4x P/E, New Share Buyback, 132% Upside

34% revenue growth, gross margin up 530bps, EPS up 38%. FY09/22 guidance increased again to $8.60-$9.00. Demand for boats remains robust. Share repurchase plan introduced in March 2022. 4.0x FY09/22 P/E, 37.8% FCF yield in FY09/21, 5% special dividend in FY09/21.

May 04

OneWater: Strongly Growing Through Disciplined Acquisitions

OneWater Marine is a rapidly growing, premium boating retailer growing through a disciplined strategy focused on smart and strategic acquisitions. Down over 44% YTD and hovering around a Fwd. P/E of 4.1, ONEW is near the bottom if management's business strategy proves effective. OneWater has recently announced a $50 MM share repurchase program, potentially removing over 9% of total shares. With only 3% of US retail sales, OneWater has plenty of room to expand in the large and growing boating industry.

Shareholder Returns

	ONEW	US Specialty Retail	US Market
7D	-7.4%	-1.5%	0.1%
1Y	-33.1%	-24.2%	-12.7%

Return vs Industry: ONEW underperformed the US Specialty Retail industry which returned -24.2% over the past year.

Return vs Market: ONEW underperformed the US Market which returned -12.7% over the past year.

Price Volatility

Is ONEW's price volatile compared to industry and market?
ONEW volatility
ONEW Average Weekly Movement	9.1%
Specialty Retail Industry Average Movement	8.7%
Market Average Movement	8.0%
10% most volatile stocks in US Market	17.0%
10% least volatile stocks in US Market	3.0%

Stable Share Price: ONEW is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: ONEW's weekly volatility (9%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2014	1,785	Philip Singleton	https://www.onewatermarine.com

OneWater Marine Inc. operates as a recreational boat retailer in the United States. The company offers new and pre-owned recreational boats and yachts, as well as related marine products, such as parts and accessories. It also provides boat repair and maintenance services.

OneWater Marine Fundamentals Summary

How do OneWater Marine's earnings and revenue compare to its market cap?
ONEW fundamental statistics
Market Cap	US$509.85m
Earnings (TTM)	US$107.11m
Revenue (TTM)	US$1.46b

4.8x

P/E Ratio

0.3x

P/S Ratio

Is ONEW overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ONEW income statement (TTM)
Revenue	US$1.46b
Cost of Revenue	US$1.00b
Gross Profit	US$459.74m
Other Expenses	US$352.63m
Earnings	US$107.11m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	7.58
Gross Margin	31.43%
Net Profit Margin	7.32%
Debt/Equity Ratio	170.1%

How did ONEW perform over the long term?

See historical performance and comparison

Valuation

Is OneWater Marine undervalued compared to its fair value and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

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: ONEW ($32.76) is trading below our estimate of fair value ($74.61)

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

Price To Earnings Ratio

PE vs Industry: ONEW is good value based on its PE Ratio (4.8x) compared to the US Specialty Retail industry average (6.2x).

PE vs Market: ONEW is good value based on its PE Ratio (4.8x) compared to the US market (15.5x).

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: ONEW is good value based on its PB Ratio (1.7x) compared to the US Specialty Retail industry average (1.8x).

Future Growth

How is OneWater Marine forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

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

17.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ONEW's forecast earnings growth (17.2% per year) is above the savings rate (1.9%).

Earnings vs Market: ONEW's earnings (17.2% per year) are forecast to grow faster than the US market (12.5% per year).

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

Revenue vs Market: ONEW's revenue (12.3% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: ONEW's revenue (12.3% 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 ONEW's Return on Equity is forecast to be high in 3 years time

Past Performance

How has OneWater Marine performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

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

61.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ONEW has high quality earnings.

Growing Profit Margin: ONEW's current net profit margins (7.3%) are higher than last year (3.6%).

Past Earnings Growth Analysis

Earnings Trend: ONEW's earnings have grown significantly by 61.1% per year over the past 5 years.

Accelerating Growth: ONEW's earnings growth over the past year (140.1%) exceeds its 5-year average (61.1% per year).

Earnings vs Industry: ONEW earnings growth over the past year (140.1%) exceeded the Specialty Retail industry 82.9%.

Return on Equity

High ROE: Whilst ONEW's Return on Equity (40.09%) is outstanding, this metric is skewed due to their high level of debt.

Financial Health

How is OneWater Marine's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

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

Financial Position Analysis

Short Term Liabilities: ONEW's short term assets ($515.8M) exceed its short term liabilities ($439.0M).

Long Term Liabilities: ONEW's short term assets ($515.8M) exceed its long term liabilities ($501.5M).

Debt to Equity History and Analysis

Debt Level: ONEW's net debt to equity ratio (146.3%) is considered high.

Reducing Debt: Insufficient data to determine if ONEW's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: ONEW's debt is not well covered by operating cash flow (14.4%).

Interest Coverage: ONEW's interest payments on its debt are well covered by EBIT (19.8x coverage).

Balance Sheet

Dividend

What is OneWater Marine 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 ONEW's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ONEW'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 ONEW's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ONEW'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 ONEW has not reported any payouts.

Discover strong dividend paying companies

Management

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

3.1yrs

Average management tenure

CEO

Philip Singleton (47 yo)

3.08yrs

Tenure

US$4,427,902

Compensation

Mr. Philip Austin Singleton Jr. is a Founder of OneWater Marine Inc. and has been its Chief Executive Officer and Director since April 2019. He is the Chief Executive Officer of One Water Marine Holdings,...

CEO Compensation Analysis

Compensation vs Market: Philip's total compensation ($USD4.43M) is above average for companies of similar size in the US market ($USD2.60M).

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

Leadership Team

Experienced Management: ONEW's management team is considered experienced (3.1 years average tenure).

Board Members

Experienced Board: ONEW's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.

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 been diluted in the past year, with total shares outstanding growing by 3.5%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/09/30