MBUU - Embedded Expectations Analysis - 2019 06 21
Malibu Boats, Inc. (MBUU:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with an 8.9x Uniform P/E, implying bearish expectations for the firm. In addition, management appears to have concerns about Pursuit's performance, channel inventory levels, and new model and product line launches.Specifically, management may be exaggerating the success of their M&A strategy, their ability to expand production capacity and drive attractive results at Pursuit, and their positioning across critical segments. Moreover, they may be concerned about their channel inventory levels, their innovation capacity, and the underwhelming synergies of acquisitions, regarding distribution dealers. Furthermore, management may be concerned about their Cobalt outboard model and 2019 Malibu product line launches, and may lack confidence in their ability to sustain growth in revenue, earnings, and market share.
Malibu Boats is a holding company. Through its subsidiary, Malibu Boats Holdings, LLC, the company is a designer, manufacturer and marketer of recreational powerboats, including performance sport boats, sterndrive and outboard boats under four brands: Malibu, Axis, Cobalt, and Pursuit. The company's product portfolio is used for a range of recreational boating activities including, among others, water sports such as water skiing, wakeboarding and wake surfing, as well as recreational boating. The company also provides various accessories and aftermarket parts. The company's boats are constructed of fiberglass, available in a range of sizes, hull designs and propulsion systems (i.e., inboard, sterndrive and outboard).
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