Malibu Boats, Inc.

MBUU

Ship & Boat Building & Repairing

Mkt Cap

$930.7M

PE

10.35

Debt

$65M

Cash

$45.46M

EV

$950.3M

FCF

$22.63M

Market Cap

$930.7M

P/E Ratio

10.35

Debt

$65M

Cash

$45.46M

EV

$950.3M

FCF

$22.63M

Malibu Boats, Inc. designs, engineers, manufactures, markets, and sells a range of recreational powerboats. It operates through three segments: Malibu, Saltwater Fishing, and Cobalt. The company provides 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.

Sector

10-Q
9/30/23
10-K
6/30/23
10-Q
3/31/23
10-Q
12/31/22
10-Q
9/30/22
10-K
6/30/22
10-Q
3/31/22
10-Q
12/31/21
10-Q
9/30/21
10-K
6/30/21
10-Q
3/31/21
10-Q
12/31/20
10-Q
9/30/20
10-K
6/30/20
10-Q
3/31/20
10-Q
12/31/19
10-Q
9/30/19
10-K
6/30/19
10-Q
3/31/19
10-Q
12/31/18
10-Q
9/30/18
10-K
6/30/18
10-Q
3/31/18
10-Q
12/31/17

DCF

Discounted Cash Flow Valuation of Malibu Boats, Inc.

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$22.63M	$27.98M	$34.01M	$40.64M	$47.73M	$55.05M	$62.37M	$69.36M	$75.7M	$81.05M	$85.11M	$851.1M
DCF		$24.33M	$25.72M	$26.72M	$27.29M	$27.37M	$26.96M	$26.08M	$24.75M	$23.04M	$21.04M	$210.4M
Value	$463.7M

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 36%

Earnings Stability 91%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	06-2015	06-2016	06-2017	06-2018	06-2019	06-2020	06-2021	06-2022	06-2023	TTM
Net Margin	6.4%	7.1%	10%	5.6%	9.7%	9.4%	12%	13%	7.5%	6.7%
ROA	17%	16%	22%	24%	22%	18%	20%	25%	16%	14%
ROE	-130%	99%	54%	20%	31%	24%	29%	31%	17%	14%

What is the average Net Margin?

The average Net Margin over the past 5 years is +9.5%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.64%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +20.83%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -0.9%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +25.2%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -0.31%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate reliability of earnings, and consideration about the future are more dependable.

Years	06-2015	06-2016	06-2017	06-2018	06-2019	06-2020	06-2021	06-2022	06-2023	TTM
Debt FCF	-	2.72	2.07	2.29	1.79	1.57	1.47	1.10	0.00	2.87
Debt Equity	-7.54	4.39	1.05	0.79	0.54	0.32	0.39	0.24	0.00	0.10
MIN
Graham Stability	-	-	-	100%	100%	100%	100%	100%	95%	95%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 2.87.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -0.39.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.95.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	06-2016	06-2018	06-2020	06-2022	Trend
Revenue	28%	23%	29%	14%	-0.26%
Net Income	29%	31%	19%	-34%	-4.4%
Stockholders Equity	65%	35%	33%	20%	-28%
FCF	24%	22%	35%	18%	-23%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +22.81%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -0.26%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +30.5%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -4.39%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +34.5%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -27.52%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +22.03%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -23.38%.