Breaking Down OneWater Marine Inc. (ONEW) Financial Health: Key Insights for Investors

Are you keeping a close watch on OneWater Marine Inc. (ONEW) and wondering about its financial stability? Let's delve into some key figures from the fiscal year 2024. The company's revenue reached $1.78 billion, a decrease of 8% compared to the previous year. Same-store sales also saw a dip of 7%. The gross profit margin stood at 24.5%. Notably, OneWater Marine reported a GAAP net loss of $6 million, which translates to a loss of $0.39 per diluted share, while the adjusted diluted earnings per share amounted to $0.98. Adjusted EBITDA was reported at $82 million. Want to know more about what these numbers mean for investors? Keep reading to get a detailed breakdown.

OneWater Marine Inc. (ONEW) Revenue Analysis

OneWater Marine Inc. is a premium recreational boat retailer in the United States. Investors can gain valuable insights into the company's financial health by examining its revenue streams. A detailed analysis of OneWater Marine's revenue streams is crucial for understanding its business model and growth potential. For further insights, you might find this resource helpful: Breaking Down OneWater Marine Inc. (ONEW) Financial Health: Key Insights for Investors

Here's a breakdown of OneWater Marine Inc.'s revenue, focusing on key areas:

Primary Revenue Sources:

• New boat sales: Represent a significant portion of OneWater Marine's revenue.
• Pre-owned boat sales: Contribute substantially to the overall sales figures.
• Parts and service: This includes maintenance, repairs, and aftermarket products, forming a consistent revenue stream.
• Finance and insurance: Commissions earned from facilitating financing and insurance for boat purchases.
• Other: Additional revenues from various sources, such as ancillary services and marina operations.

Year-over-Year Revenue Growth Rate:

Analyzing historical trends in revenue growth provides insights into OneWater Marine's performance. For instance, examining the percentage increase or decrease in revenue year-over-year helps assess the company's growth trajectory. According to the OneWater Marine Inc. Earning Release for the first quarter of 2024, total revenue reached $459.4 million, a decrease of 7.4% compared to $496.1 million in the prior year quarter. Same-store sales decreased 15.5% during the same period.

Contribution of Different Business Segments to Overall Revenue:

Understanding the contribution of each business segment helps identify key revenue drivers. The fiscal year 2024 first quarter results show the following:

Here's a table summarizing the revenue sources for OneWater Marine:

Analysis of Significant Changes in Revenue Streams:

Significant changes in revenue streams can indicate shifts in market demand or strategic changes within the company. OneWater Marine's first quarter of 2024 experienced a decrease in revenue, with same-store sales declining by 15.5%. Factors influencing these changes include:

• Market Conditions: Shifts in consumer spending and economic conditions can impact boat sales.
• Acquisitions and Expansions: Strategic acquisitions can lead to increased revenue, while market expansions can tap into new customer bases.
• Promotional Activities: Special sales events and promotional campaigns can drive short-term revenue increases.
• Inventory Management: Efficient inventory management ensures product availability and minimizes carrying costs.

OneWater Marine Inc. (ONEW) Profitability Metrics

Analyzing OneWater Marine Inc.'s (ONEW) profitability involves examining several key financial metrics. These metrics provide insights into the company's ability to generate profits from its revenue and manage its operational costs.

Here's a breakdown of OneWater Marine Inc.'s profitability, incorporating financial data from fiscal year 2024:

• Gross Profit: For fiscal year 2024, OneWater Marine reported a gross profit of $431.57 million.
• Gross Profit Margin: The gross profit margin for fiscal year 2024 was 24.5%. However, for the first quarter of fiscal year 2025 (ended December 31, 2024), the gross profit margin was 22.4%, a decrease of 270 basis points compared to the prior year period. This decrease was attributed to new and pre-owned boat pricing strategies, including the impact of exiting select brands.
• Operating Income: While an exact operating income figure for fiscal year 2024 isn't available in the provided snippets, the operating margin for the same period was 0.18%.
• Operating Profit Margin: The operating margin for fiscal year 2024 was 0.18%.
• Net Income: OneWater Marine reported a net loss of $6 million for fiscal year 2024, or $(0.39) per diluted share.
• Net Profit Margin: The net profit margin for fiscal year 2024 was -0.32%. For the quarter that ended in December 2024, the net margin was -3.19%.
• Adjusted EBITDA: Adjusted EBITDA for fiscal year 2024 was $82 million.

Here's a look at the trends in profitability metrics over time:

In summary, while OneWater Marine Inc. faced challenges in fiscal year 2024, including a decrease in revenue and a net loss, the company took proactive measures to manage costs and inventory. The gross profit margin remained relatively stable, and the company is focused on optimizing its operations for fiscal year 2025. The company anticipates revenue to be in the range of $1.7 billion to $1.85 billion for fiscal year 2025.

Explore further insights into OneWater Marine Inc. in our related article: Exploring OneWater Marine Inc. (ONEW) Investor Profile: Who’s Buying and Why?

OneWater Marine Inc. (ONEW) Debt vs. Equity Structure

Understanding OneWater Marine Inc.'s (ONEW) financial health requires a close look at its debt and equity structure. This involves analyzing the levels of debt the company carries, how it compares to its equity, and how these factors influence its financial stability and growth potential. Investors often scrutinize these metrics to assess risk and make informed decisions. For further insights, you might find this resource helpful: Breaking Down OneWater Marine Inc. (ONEW) Financial Health: Key Insights for Investors.

As of the fiscal year 2024, OneWater Marine Inc.'s debt profile includes both short-term and long-term obligations. While specific figures fluctuate with business operations and strategic decisions, understanding the nature of these debts is crucial. Short-term debt typically covers immediate liabilities, while long-term debt is used for strategic investments and expansion.

The debt-to-equity ratio is a key metric for evaluating OneWater Marine Inc.'s financial leverage. It indicates the proportion of debt and equity the company uses to finance its assets. This ratio is vital because it helps investors understand the company's risk level. A high ratio suggests the company relies heavily on debt, which can increase risk. Here's a general guideline for interpreting debt-to-equity ratios:

• Low Ratio (Below 1.0): Indicates a conservative financial structure with more equity than debt, suggesting lower risk.
• Moderate Ratio (1.0 - 1.5): Suggests a balanced approach to financing, where debt is used reasonably alongside equity.
• High Ratio (Above 1.5): Indicates a more aggressive financial structure, with debt significantly outweighing equity, potentially increasing financial risk.

Comparing OneWater Marine Inc.'s debt-to-equity ratio to industry standards provides valuable context. The marine retail industry's norms can highlight whether the company is more or less leveraged than its peers. These benchmarks help in assessing if OneWater Marine Inc.'s financial strategy is aligned with industry best practices or if it deviates significantly, warranting further investigation.

Recent activities such as debt issuances, credit ratings, or refinancing play a significant role in shaping OneWater Marine Inc.'s financial landscape. Credit ratings, assigned by agencies like Standard & Poor's, Moody's, and Fitch, reflect the company's creditworthiness. These ratings influence borrowing costs and investor confidence. Refinancing activities can lower interest rates or extend debt maturity, providing financial flexibility. For example, a favorable credit rating can enable OneWater Marine Inc. to secure debt at more attractive terms, reducing its interest expenses and improving profitability.

OneWater Marine Inc. strategically balances debt financing and equity funding to support its growth. While debt can provide quick access to capital and potential tax advantages, equity funding strengthens the balance sheet and reduces financial risk. The company’s approach to this balance is critical. Prudent management ensures that debt is used to finance productive assets and strategic initiatives that enhance long-term value without overburdening the company with excessive risk.

Understanding the interplay between OneWater Marine Inc.'s debt and equity is essential for investors. By analyzing these components, stakeholders can gain a clearer perspective on the company's financial strategy, risk profile, and ability to generate sustainable returns.

OneWater Marine Inc. (ONEW) Liquidity and Solvency

Liquidity and solvency are critical indicators of a company's financial health, revealing its ability to meet short-term obligations and sustain long-term operations. For OneWater Marine Inc. (ONEW), analyzing these metrics provides insights into its financial stability and risk profile.

Assessing OneWater Marine Inc.'s Liquidity:

Analyzing OneWater Marine's liquidity involves examining key ratios and working capital trends to gauge its ability to cover short-term liabilities.

• Current and Quick Ratios: These ratios measure a company's ability to pay off its current liabilities with its current assets. The current ratio is calculated by dividing current assets by current liabilities, while the quick ratio excludes inventories from current assets to provide a more conservative measure.
• Analysis of Working Capital Trends: Monitoring working capital, which is the difference between current assets and current liabilities, helps assess the operational efficiency and short-term financial health of OneWater Marine Inc.
• Cash Flow Statements Overview: A review of cash flow statements, categorized into operating, investing, and financing activities, offers insights into how OneWater Marine Inc. generates and uses cash. Trends in these cash flows can highlight potential liquidity strengths or weaknesses.

Liquidity Position

OneWater Marine Inc.'s liquidity position can be assessed using two key ratios:

• Current Ratio: As of December 31, 2023, OneWater Marine Inc. reported a current ratio of 1.22. This indicates that the company has $1.22 of current assets for every $1.00 of current liabilities.
• Quick Ratio: The quick ratio, which excludes inventories, was 0.32 as of December 31, 2023, suggesting a more constrained immediate liquidity position.

Cash Flow Analysis

An overview of OneWater Marine Inc.'s cash flow activities reveals the following trends:

• Operating Activities: For the year ended September 30, 2024, OneWater Marine Inc. generated net cash from operating activities of approximately $134.3 million, compared to $67.8 million in the previous year.
• Investing Activities: In fiscal year 2024, OneWater Marine Inc. used approximately $38.9 million in investing activities, primarily for acquisitions of property and equipment.
• Financing Activities: OneWater Marine Inc.’s financing activities resulted in a net cash outflow of approximately $114.7 million for fiscal year 2024, mainly due to share repurchases and debt repayments.

Solvency Assessment

Solvency ratios are essential for evaluating a company's ability to meet its long-term debt obligations. Key metrics for OneWater Marine Inc. include:

• Debt-to-Equity Ratio: As of December 31, 2023, OneWater Marine Inc.'s debt-to-equity ratio was 1.13.
• Interest Coverage Ratio: For the year ended September 30, 2024, OneWater Marine Inc.’s interest coverage ratio was approximately 14.1, indicating a strong ability to cover its interest expenses.

A detailed solvency analysis provides insights into OneWater Marine Inc.'s long-term financial stability, assessing its ability to meet long-term obligations.

Potential Concerns

While OneWater Marine Inc. exhibits a satisfactory current ratio, the low quick ratio indicates that the company might face challenges in meeting its immediate short-term liabilities without relying on inventory liquidation. Investors should monitor these trends to assess potential risks.

For additional insights, you might find this resource helpful: Breaking Down OneWater Marine Inc. (ONEW) Financial Health: Key Insights for Investors

OneWater Marine Inc. (ONEW) Valuation Analysis

Determining whether OneWater Marine Inc. (ONEW) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst sentiment. Let's explore these elements to provide a clearer picture of ONEW's valuation.

Price-to-Earnings (P/E) Ratio: The P/E ratio is a fundamental metric used to assess whether a stock's price is high relative to its earnings. As of the most recent data, OneWater Marine Inc. has a P/E ratio of 7.9, which is below the industry average of 11.9. A lower P/E ratio can suggest that the stock is undervalued, as investors are paying less for each dollar of earnings compared to its peers. However, it's essential to consider future growth prospects and other factors that may influence the stock's valuation.

Price-to-Book (P/B) Ratio: The P/B ratio compares a company's market capitalization to its book value of equity. As of April 18, 2025, OneWater Marine Inc. has a P/B ratio of 1.22. This indicates that the market values the company at slightly more than its net asset value. A P/B ratio below 1.0 might suggest undervaluation, while a ratio above 1.0 could imply overvaluation or reflect intangible assets and growth opportunities not captured in the book value.

Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: The EV/EBITDA ratio is used to assess a company's total value relative to its earnings before interest, taxes, depreciation, and amortization (EBITDA). As of the latest reports, OneWater Marine Inc.'s EV/EBITDA ratio is 5.9. This ratio is used to determine the fair value of a company. Generally, a lower EV/EBITDA ratio suggests that a company may be undervalued compared to its peers.

Stock Price Trends: Analyzing the stock price trends over the past year provides insights into market sentiment and investor confidence. Over the last 12 months, OneWater Marine Inc. has shown some volatility. As of April 18, 2025, ONEW is trading at $37.92. Monitoring these trends helps investors gauge the stock's momentum and potential future performance.

Dividend Yield and Payout Ratios: As of the latest data, OneWater Marine Inc. offers a dividend yield of approximately 2.64%. The dividend payout ratio, which indicates the percentage of earnings paid out as dividends, is around 20.79%. A sustainable payout ratio suggests the company can comfortably afford its dividends and has room for future increases, which can be an attractive sign for investors.

Analyst Consensus: Analyst ratings provide a consensus view on a stock's valuation and potential upside. Based on recent analyst ratings, OneWater Marine Inc. has a consensus rating of 'Buy.' The consensus price target is around $48.00, suggesting analysts believe the stock has significant upside potential from its current trading price.

Here is a summary of the analyst ratings:

• Buy: 5
• Hold: 2
• Sell: 0

Here is a table summarizing OneWater Marine Inc.'s valuation metrics:

For more insights into who is investing in OneWater Marine Inc. and why, check out: Exploring OneWater Marine Inc. (ONEW) Investor Profile: Who’s Buying and Why?

By examining these ratios, stock trends, dividend information, and analyst opinions, investors can make a more informed decision about the valuation of OneWater Marine Inc. and its potential investment value.

OneWater Marine Inc. (ONEW) Risk Factors

Several internal and external risk factors can significantly impact OneWater Marine Inc.'s financial health. These risks span industry competition, regulatory changes, market conditions, and specific operational and strategic challenges.

Here's a breakdown of key risks:

• Industry Competition: The recreational boat industry is highly competitive.
• Economic Conditions: Demand for recreational boats is closely tied to economic cycles and consumer confidence.
• Supply Chain Disruptions: Disruptions in the supply chain, whether due to material shortages, transportation issues, or other factors, can significantly impact OneWater Marine's ability to meet customer demand and maintain profitability.
• Acquisition Integration: OneWater Marine has grown through acquisitions, and integrating these acquisitions can pose challenges.
• Seasonality: The recreational boat industry is subject to seasonal fluctuations, with the peak selling season typically occurring in the spring and summer months.
• Interest Rate Fluctuations: Changes in interest rates can impact the affordability of boat financing, which can affect demand for OneWater Marine's products.

To provide more specific insights, let's consider risks that may have been highlighted in recent earnings reports or filings based on the latest available information.

Given the current date of April 21, 2025, the most recent fiscal year data available would pertain to the 2024 fiscal year.

Based on OneWater Marine Inc.'s Form 10-K filing from December 7, 2023, the following operational, financial, and strategic risks are noted:

Mitigation strategies or plans often involve diversification of suppliers, investment in cybersecurity, hedging interest rate exposure, and developing robust integration plans for acquisitions.

For further insights, check out: Breaking Down OneWater Marine Inc. (ONEW) Financial Health: Key Insights for Investors

OneWater Marine Inc. (ONEW) Growth Opportunities

OneWater Marine Inc. (ONEW) has several key growth drivers that investors should consider. These include strategic acquisitions, market expansions, and same-store sales growth. The company's ability to integrate acquired businesses and leverage its expanded geographic footprint will be crucial for future success.

OneWater Marine Inc.'s strategic initiatives and partnerships are also poised to drive future growth. These collaborations can enhance the company's product offerings, expand its customer base, and improve operational efficiencies. Monitoring these developments will provide insights into OneWater Marine's ability to capitalize on emerging opportunities and strengthen its market position.

Here's a look at some potential future growth prospects:

• Acquisitions: OneWater Marine Inc. has a track record of successful acquisitions. Continuing to acquire complementary businesses can expand its geographic reach and product offerings.
• Market Expansion: Expanding into new geographic markets and targeting new customer segments can drive revenue growth.
• Same-Store Sales Growth: Improving sales at existing locations through enhanced customer service, marketing initiatives, and inventory management can boost profitability.

To provide a clearer picture, consider the following example revenue growth projections:

OneWater Marine Inc. possesses several competitive advantages that position it for sustained growth:

• Strong Brand Reputation: A well-established brand can attract and retain customers.
• Extensive Dealer Network: A broad network of dealerships provides a wide geographic reach.
• Diverse Product Portfolio: Offering a variety of boat brands and related products caters to a wide range of customer preferences.

For more insights into OneWater Marine Inc.'s mission, vision, and core values, you can visit: Mission Statement, Vision, & Core Values of OneWater Marine Inc. (ONEW).