Designs and manufactures recreational performance sport boats under the MasterCraft and Aviara brands. Now — the numbers.
That much dependence is a risk in itself: if this one line weakens, the whole company feels it directly.
The company closed last year at a loss: costs ran above sales. The picture changes only if spending is reined in.
An average decline of 14% a year over the last 4 years — the most striking risk in this picture. Red columns mark years that ended in a loss.
At this burn rate the cash pile isn’t the pressing question — for now, time is on the company’s side.
The stock trades 43% below its peak. The market has trimmed its expectations for the company.
The company sells $348.9M a year; the problem isn’t sales — it’s costs running above that number.
There is $43.9M in the vault; even if every debt were paid off, $43.9M would remain.
It met or beat analyst expectations in 8 of the last 8 quarters — consistency is a promise kept.
A loss of $1.7M against $348.9M in annual sales.
Measured against its sector, the quality of the business sits below the class average. Report-card grade: 40/100.
Today’s price already includes part of tomorrow’s optimism. Report-card grade: 40/100.
On our five-subject report card, MCFT sits in the middle of the class: some subjects shine, others don’t. The grade moves as the numbers move.
The takeaway: MCFT’s sales are going backwards, and it closed last year at a loss. The road back runs through both.
Analysts’ average target sits above today’s price, yet the valuation grade (40/100) says the stock isn’t cheap.