Malibu Boats, Inc. - Revision history

>Johnny at 18:36, 24 August 2023

2023-08-24T18:36:05Z

>Johnny at 16:13, 24 August 2023

2023-08-24T16:13:11Z

>Johnny at 19:29, 23 August 2023

2023-08-23T19:29:50Z

← Older revision		Revision as of 20:29, 23 August 2023
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	== '''Investment Thesis''' ==		== '''Investment Thesis''' ==
	My investment thesis is long on the stock given its significant Return on Invested Capital (ROIC), technology leadership, and increasing expansion in the international markets. I expect upside on several aspects of the business as well as financials which are currently underappreciated by the investor community. The company is reinvesting capital into its business at a very high rate as seen by its latest capital expenditures and accumulated retained earnings. This could help expand its strategic acquisition strategy as well as product offering. My price target, under the base case, is $60.26 with more potential upside given by the comparable company analysis which showed that the company is undervalued by investors relative to its peers. Key assumptions used in formulating the price target were:		Our investment thesis is long on the stock given its significant Return on Invested Capital (ROIC), technology leadership, and increasing expansion in the international markets. We expect upside on several aspects of the business as well as financials which are currently underappreciated by the investor community. The company is reinvesting capital into its business at a very high rate as seen by its latest capital expenditures and accumulated retained earnings. This could help expand its strategic acquisition strategy as well as product offering. Our price target, under the base case, is $60.26 with more potential upside given by the comparable company analysis which showed that the company is undervalued by investors relative to its peers. Key assumptions used in formulating the price target were:

	* Decreasing revenue growth rates for 2024 mainly due to the credit tightening I am currently noticing in the US economy. The company operated in a highly cyclical sector which makes its financial results correlated with the general economic consensus.		* Decreasing revenue growth rates for 2024 mainly due to the credit tightening I am currently noticing in the US economy. The company operated in a highly cyclical sector which makes its financial results correlated with the general economic consensus.
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	== '''Upcoming catalysts''' ==		== '''Upcoming catalysts''' ==
	The firm is expected to release its earnings on the 29<sup>th</sup> of August. For their last quarter, Malibu Boats (MBUU) reported earnings of $2.59 per share, beating the street consensus estimate of $2.34 per share. This reflected a positive earnings surprise of 10.68%. For the upcoming quarter, I expect reported earnings of $2.4 per share, while the street consensus estimate sits around $2.32 per share.		The firm is expected to release its earnings on the 29<sup>th</sup> of August. For their last quarter, Malibu Boats (MBUU) reported earnings of $2.59 per share, beating the street consensus estimate of $2.34 per share. This reflected a positive earnings surprise of 10.68%. For the upcoming quarter, we expect reported earnings of $2.4 per share, while the street consensus estimate sits around $2.32 per share.

	== '''DCF Valuation''' ==		== '''DCF Valuation''' ==
	My $60.26 price target represents my DCF valuation on Malibu Boats over the next 2 years. A discount rate of 9.76% (2.36% quarterly) and an exit multiple of 12.17x EV/EBITDA were used. Key assumptions used in formulating the three different cases can be seen below:		Our $60.26 price target represents our DCF valuation on Malibu Boats over the next 2 years. A discount rate of 9.76% (2.36% quarterly) and an exit multiple of 12.17x EV/EBITDA were used. Key assumptions used in formulating the three different cases can be seen below:

	{\| class="wikitable"		{\| class="wikitable"
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	== '''Company description''' ==		== '''Company description''' ==
	Malibu Boats designs, engineers, manufactures, markets, and sells a range of recreational boats. It operates through three business segments: Malibu, Saltwater Fishing, and Cobalt. The Malibu segment is responsible for the manufacturing, distribution, marketing, and sale of Malibu and Axis sports boat brands. The Saltwater Fishing segment is responsible for the manufacturing, distribution, marketing, and sale of Pursuit, Maverick, Cobia, Pathfinder and Hewes brands. Finally, Cobalt segment is responsible for the manufacturing, distribution, marketing, and sale of the Cobalt brand. The revenue contribution of each segment can be seen in the following diagram:		Malibu Boats designs, engineers, manufactures, markets, and sells a range of recreational boats. It operates through three business segments: Malibu, Saltwater Fishing, and Cobalt. The Malibu segment is responsible for the manufacturing, distribution, marketing, and sale of Malibu and Axis sports boat brands. The Saltwater Fishing segment is responsible for the manufacturing, distribution, marketing, and sale of Pursuit, Maverick, Cobia, Pathfinder and Hewes brands. Finally, Cobalt segment is responsible for the manufacturing, distribution, marketing, and sale of the Cobalt brand. The revenue contribution of each segment can be seen in the following diagram:
	[[File:Revenue breakdown.png\|thumb\|~~589x589px~~\|Chart 1]]		[[File:Revenue breakdown.png\|thumb\|362x362px\|Chart 1\|left]]








	== '''Industry dynamics''' ==		== '''Industry dynamics''' ==
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	== '''Competition''' ==		== '''Competition''' ==
	The firm’s main competitors include both established companies such as Brunswick Corporation, Polaris Inc., as well as mid-market companies, such as MasterCraft Boat Holdings and Marine Products Corporation, that are looking for ways to innovate and gain market share. Malibu Boats competes directly with Marine Products in the fiberglass outdoor boat market while it competes with MasterCraft in the wake/ski boat market and the saltwater fishing boat market. Brunswick and Polaris have dedicated boat segments that manufacture and distribute a wide variety of brands.		The firm’s main competitors include both established companies such as Brunswick Corporation, Polaris Inc., as well as mid-market companies, such as MasterCraft Boat Holdings and Marine Products Corporation, that are looking for ways to innovate and gain market share. Malibu Boats competes directly with Marine Products in the fiberglass outdoor boat market while it competes with MasterCraft in the wake/ski boat market and the saltwater fishing boat market. Brunswick and Polaris have dedicated boat segments that manufacture and distribute a wide variety of brands.
	[[File:Comparables table.jpg\|thumb\|992x992px\|Comparables table]]		[[File:Comparables table.jpg\|thumb\|992x992px\|Comparables table\|left]]


	Despite the company’s high return on invested capital (ROIC) compared to its peers, it is evident that the investors have significantly undervalued the company. Its P/E ratio is lower than that of its peers. By conducting comparable company analysis, it is noticeable that investors have significantly underappreciated the company’s prospects. In the context of the comparable company analysis, three different ratios were used: EV/Sales, EV/EBITDA and P/E. Firstly, sales of 2022 were multiplied by the median EV/Sales ratio of the firm’s competitors. The implied enterprise value was $1,460 million. Next, net debt was subtracted, and I arrived at a $1,475 million market capitalization. This figure divided by shares outstanding resulted in a fair value of $71.52, which shows that the company is undervalued by 18% relative to its peers. A similar process was followed using EV/EBITDA and P/E and I arrived at a fair value of $96.71 and $91.65, respectively. These results may mean that investors may not be fully recognizing the company’s earnings potential or growth prospects relative to its peers, leading to a lower current valuation.		Despite the company’s high return on invested capital (ROIC) compared to its peers, it is evident that the investors have significantly undervalued the company. Its P/E ratio is lower than that of its peers. By conducting comparable company analysis, it is noticeable that investors have significantly underappreciated the company’s prospects. In the context of the comparable company analysis, three different ratios were used: EV/Sales, EV/EBITDA and P/E. Firstly, sales of 2022 were multiplied by the median EV/Sales ratio of the firm’s competitors. The implied enterprise value was $1,460 million. Next, net debt was subtracted, and we arrived at a $1,475 million market capitalization. This figure divided by shares outstanding resulted in a fair value of $71.52, which shows that the company is undervalued by 18% relative to its peers. A similar process was followed using EV/EBITDA and P/E and we arrived at a fair value of $96.71 and $91.65, respectively. These results may mean that investors may not be fully recognizing the company’s earnings potential or growth prospects relative to its peers, leading to a lower current valuation.
	----[1] <nowiki>https://finance.yahoo.com/news/recreational-boat-market-worth-25-080000401.html</nowiki>		----[1] <nowiki>https://finance.yahoo.com/news/recreational-boat-market-worth-25-080000401.html</nowiki>
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>Johnny at 19:15, 23 August 2023

2023-08-23T19:15:33Z

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-== Summary ==
+== '''Investment Thesis''' ==
-Malibu Boats, Inc. engages in the design, engineering, manufacturing, marketing, and sale of a range of recreational powerboats. It operates through three segments: Malibu, Saltwater Fishing, and Cobalt. The company offers performance sport boats, and sterndrive and outboard boats under the Malibu, Axis, Pursuit, Maverick, Cobia, Pathfinder, Hewes, and Cobalt brands. Its products are used for a range of recreational boating activities, including water sports, such as water skiing, wakeboarding, and wake surfing, as well as general recreational boating and fishing. The company sells its products through independent dealers in North America, Europe, Asia, the Middle East, South America, South Africa, and Australia/New Zealand. Malibu Boats, Inc. was founded in 1982 and is headquartered in Loudon, Tennessee.
+* Decreasing revenue growth rates for 2024 mainly due to the credit tightening I am currently noticing in the US economy. The company operated in a highly cyclical sector which makes its financial results correlated with the general economic consensus.
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103.126.60.198 at 09:39, 14 August 2022

2022-08-14T09:39:11Z

← Older revision		Revision as of 10:39, 14 August 2022
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	Malibu Boats, Inc. engages in the design, engineering, manufacturing, marketing, and sale of a range of recreational powerboats. It operates through three segments: Malibu, Saltwater Fishing, and Cobalt. The company offers performance sport boats, and sterndrive and outboard boats under the Malibu, Axis, Pursuit, Maverick, Cobia, Pathfinder, Hewes, and Cobalt brands. Its products are used for a range of recreational boating activities, including water sports, such as water skiing, wakeboarding, and wake surfing, as well as general recreational boating and fishing. The company sells its products through independent dealers in North America, Europe, Asia, the Middle East, South America, South Africa, and Australia/New Zealand. Malibu Boats, Inc. was founded in 1982 and is headquartered in Loudon, Tennessee.		Malibu Boats, Inc. engages in the design, engineering, manufacturing, marketing, and sale of a range of recreational powerboats. It operates through three segments: Malibu, Saltwater Fishing, and Cobalt. The company offers performance sport boats, and sterndrive and outboard boats under the Malibu, Axis, Pursuit, Maverick, Cobia, Pathfinder, Hewes, and Cobalt brands. Its products are used for a range of recreational boating activities, including water sports, such as water skiing, wakeboarding, and wake surfing, as well as general recreational boating and fishing. The company sells its products through independent dealers in North America, Europe, Asia, the Middle East, South America, South Africa, and Australia/New Zealand. Malibu Boats, Inc. was founded in 1982 and is headquartered in Loudon, Tennessee.

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109.180.50.163 at 10:25, 13 August 2022

2022-08-13T10:25:57Z

← Older revision		Revision as of 11:25, 13 August 2022
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			== Summary ==

	Malibu Boats, Inc. engages in the design, engineering, manufacturing, marketing, and sale of a range of recreational powerboats. It operates through three segments: Malibu, Saltwater Fishing, and Cobalt. The company offers performance sport boats, and sterndrive and outboard boats under the Malibu, Axis, Pursuit, Maverick, Cobia, Pathfinder, Hewes, and Cobalt brands. Its products are used for a range of recreational boating activities, including water sports, such as water skiing, wakeboarding, and wake surfing, as well as general recreational boating and fishing. The company sells its products through independent dealers in North America, Europe, Asia, the Middle East, South America, South Africa, and Australia/New Zealand. Malibu Boats, Inc. was founded in 1982 and is headquartered in Loudon, Tennessee.		Malibu Boats, Inc. engages in the design, engineering, manufacturing, marketing, and sale of a range of recreational powerboats. It operates through three segments: Malibu, Saltwater Fishing, and Cobalt. The company offers performance sport boats, and sterndrive and outboard boats under the Malibu, Axis, Pursuit, Maverick, Cobia, Pathfinder, Hewes, and Cobalt brands. Its products are used for a range of recreational boating activities, including water sports, such as water skiing, wakeboarding, and wake surfing, as well as general recreational boating and fishing. The company sells its products through independent dealers in North America, Europe, Asia, the Middle East, South America, South Africa, and Australia/New Zealand. Malibu Boats, Inc. was founded in 1982 and is headquartered in Loudon, Tennessee.

>Paris: Created page with "Malibu Boats, Inc. engages in the design, engineering, manufacturing, marketing, and sale of a range of recreational powerboats. It operates through three segments: Malibu, Saltwater Fishing, and Cobalt. The company offers performance sport boats, and sterndrive and outboard boats under the Malibu, Axis, Pursuit, Maverick, Cobia, Pathfinder, Hewes, and Cobalt brands. Its products are used for a range of recreational boating activities, including water sports, such as wat..."

2022-08-04T23:04:49Z

Created page with "Malibu Boats, Inc. engages in the design, engineering, manufacturing, marketing, and sale of a range of recreational powerboats. It operates through three segments: Malibu, Saltwater Fishing, and Cobalt. The company offers performance sport boats, and sterndrive and outboard boats under the Malibu, Axis, Pursuit, Maverick, Cobia, Pathfinder, Hewes, and Cobalt brands. Its products are used for a range of recreational boating activities, including water sports, such as wat..."

New page

Malibu Boats, Inc. engages in the design, engineering, manufacturing, marketing, and sale of a range of recreational powerboats. It operates through three segments: Malibu, Saltwater Fishing, and Cobalt. The company offers performance sport boats, and sterndrive and outboard boats under the Malibu, Axis, Pursuit, Maverick, Cobia, Pathfinder, Hewes, and Cobalt brands. Its products are used for a range of recreational boating activities, including water sports, such as water skiing, wakeboarding, and wake surfing, as well as general recreational boating and fishing. The company sells its products through independent dealers in North America, Europe, Asia, the Middle East, South America, South Africa, and Australia/New Zealand. Malibu Boats, Inc. was founded in 1982 and is headquartered in Loudon, Tennessee.