MarineMax, Inc. Acquires High-Margin Businesses to Counter Cyclicality
September 26, 2022
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MARINEMAX($NYSE:HZO): MarineMax, Inc. is a recreational boat & yacht retailer and superyacht services company. MarineMax has acquired three businesses in the past year: a luxury yacht dealership, a marine electronics company, and a boat rental company. These acquisitions have helped MarineMax to diversify its revenue streams and become less reliant on the volatile boat sales market.
Market Price
The news sent MARINEMAX stock down by 2.2% from its prior closing price of $30.4. The move is a smart one for MarineMax, as it will help to insulate the company from the ups and downs of the marine industry. The two businesses that MarineMax has acquired are both highly profitable and should help to boost the company’s bottom line. Investors seem to be taking a wait-and-see approach to the news, as the stock is down slightly from its opening price of $30.3.
However, the long-term prospects for MarineMax look good, and the company is well-positioned to weather any storms that may come its way.
VI Analysis
A company’s fundamentals are a reflection of its long term potential. The VI app makes it easy to analyze a company’s fundamentals. The VI Star Chart shows that MARINEMAX is strong in asset, growth, profitability, and weak in dividend. MARINEMAX has a high health score of 7/10 with regard to its cashflows and debt, is capable to sustain future operations in times of crisis.
MARINEMAX is classified as ‘gorilla’, a type of company that achieved stable and high revenue or earning growth due to its strong competitive advantage. High growth companies are deemed more risky as they attempt to grow faster.
Summary
Investing in MarineMax is a wise decision based on the company’s recent acquisitions of high-margin businesses. These acquisitions will help to counter the cyclicality of the marine industry, providing stability for investors. The till now news sentiment surrounding MarineMax is mostly positive, indicating that the company is on the right track.
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