Last Updated: 19 Sep 2024
Executive Summary
Onewater Marine (ONEW) is a leading recreational boat retailer in the United States. Despite recent challenges in the industry, the company has maintained a strong financial position with positive EBITDA and a growing revenue base. While the company's profitability has been impacted by rising costs, it remains well-positioned for long-term growth.
Company Overview
Onewater Marine operates a network of over 70 dealerships across the United States. The company offers a wide range of new and used boats, as well as parts, accessories, and services. Onewater Marine has a strong presence in the luxury boat market, with a portfolio of high-end brands such as Sea Ray, Boston Whaler, and Grady-White.
Fundamental Analysis
Earnings: Onewater Marine has reported a net loss in the most recent quarter, primarily due to rising operating expenses. However, the company's revenue continues to grow, driven by increased demand for recreational boats.
Margins: The company's profit margin has been impacted by inflationary pressures and supply chain disruptions. However, the company's operating margin remains positive, indicating that it is able to cover its operating costs.
Balance Sheet: Onewater Marine has a strong balance sheet with ample liquidity and low debt levels. The company's book value per share is $25.26, indicating that the stock is trading at a discount to its net asset value.
Technical Analysis
Trend: ONEW's stock price has been trending sideways in recent months, with support at $20 and resistance at $35.86.
Moving Averages: The stock's 50-day moving average is $24.55, while the 200-day moving average is $26.3. These moving averages indicate a neutral trend.
Support and Resistance: The stock's key support level is $20, while the key resistance level is $35.86. A break above resistance could indicate a bullish trend, while a break below support could indicate a bearish trend.
Short Term Outlook
In the short term, ONEW's stock price is expected to remain range-bound between $20 and $35.86. The company's earnings report for the next quarter will be a key catalyst for the stock price. If the company reports strong earnings, the stock could break above resistance and rally higher. However, if the company reports weak earnings, the stock could fall below support and test lower levels.
Long Term Outlook
In the long term, ONEW's stock has the potential for growth. The company is well-positioned in the recreational boat market, which is expected to continue to grow in the coming years. Additionally, the company's strong balance sheet and low debt levels provide it with the financial flexibility to invest in growth initiatives.
Analyst Recommendations
Analysts have a mixed view on ONEW's stock. Three analysts have a "Strong Buy" rating, two have a "Buy" rating, and three have a "Hold" rating. The average analyst target price is $29.33, which implies a potential upside of 21.5% from the current price of $24.12.
