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1. Company Snapshot

1.a. Company Description

Marine Products Corporation designs, manufactures, and sells recreational fiberglass powerboats for the sportboat, sport fishing, and jet boat markets worldwide.The company offers Chaparral sterndrive pleasure boats, including SSi Sport Boats, SSX Sport Boats, and the Surf Series; Chaparral outboard pleasure boats, which include OSX Luxury Sportboats, and SSi and SSX outboard models; and Robalo outboard sport fishing boats.It also provides center and dual consoles, and Cayman Bay Boats under the Robalo brand name.


The company sells its products to a network of 206 domestic and 92 international independent authorized dealers.Marine Products Corporation was founded in 1965 and is based in Atlanta, Georgia.

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1.b. Last Insights on MPX

Marine Products Corporation's recent performance was negatively impacted by declining sales and profits, driven by a struggling boating industry. Lower demand, high-interest rates, and post-pandemic inventory issues have resulted in reduced revenue and profitability. Additionally, tariffs pose a risk to the company's operations, further exacerbating the challenges. Despite a strong balance sheet and no debt, the company's financials have been affected by these external factors.

1.c. Company Highlights

2. Caution Amidst Industry Inventory Adjustment

The company's second-quarter financial performance was marked by a 3% decline in sales to $67.7 million, primarily due to a 13% decrease in the number of boats sold, which was partially offset by a 10% net increase in price and mix. Despite the revenue decline, the gross profit margin percentage improved to 19.1% due to better cost structure alignment and price mix benefits. The company's diluted EPS was $0.12, in line with estimates, and EBITDA was $5.6 million, down from $6.5 million in the prior year.

Publication Date: Jul -27

📋 Highlights
  • Revenue Decline: Second-quarter sales decreased 3% to $67.7 million.
  • Gross Profit Margin: Gross profit margin improved to 19.1% due to better cost structure.
  • SG&A Expenses: SG&A expenses rose 9% year-over-year to $8.1 million.
  • Earnings Per Share: Diluted EPS dropped to $0.12 from $0.14 in the prior year.
  • Cash Position: The company held $50 million in cash with no debt at quarter-end.

Operational Performance

Ben Palmer, President and CEO, noted that the industry is working through excess inventory, and the company expects potential sales growth in the second half of 2025. The company is also excited about its 2026 model year rollout, having made several portfolio-wide changes and added new products. SG&A expenses were $8.1 million, up 9% compared to the prior year, which slightly pressured the company's profitability.

Cash Flow and Balance Sheet

Year-to-date, operating cash flow was $9.2 million, and free cash flow was $8.6 million, indicating a healthy cash generation capability. The company finished the quarter with $50 million in cash and no debt, providing a solid foundation for future growth or returning value to shareholders. The company has paid $9.8 million in dividends year-to-date, and with a dividend yield of 6.26%, income investors may find the stock attractive.

Valuation and Outlook

With a P/E Ratio of 22.3 and an EV/EBITDA of 14.61, the stock appears to be fairly valued, considering the current earnings and cash flow generation. Analysts estimate next year's revenue growth at 13.0%, which could potentially drive the stock's performance. The company's ROIC of 9.55% and ROE of 10.98% indicate a decent return on capital and equity, respectively. The negative Net Debt / EBITDA ratio of -2.79 highlights the company's net cash position, which is a positive aspect.

3. NewsRoom

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Marine Products (NYSE:MPX) and Peloton Interactive (NASDAQ:PTON) Head-To-Head Comparison

Nov -18

Source: defenseworld.net

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Marine Products Corporation (MPX) Q3 2025 Earnings Call Prepared Remarks Transcript

Oct -30

Source: seekingalpha.com

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Marine Products Corporation Reports Third Quarter 2025 Financial Results And Declares Regular Quarterly Dividend

Oct -30

Source: prnewswire.com

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Marine Products Corporation Announces Date for Third Quarter 2025 Financial Results and Conference Call

Oct -07

Source: prnewswire.com

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Marine Products Q2 Sales Down 3 Percent

Jul -24

Source: fool.com

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Marine Products Corporation (MPX) Q2 2025 Earnings Call Transcript

Jul -24

Source: seekingalpha.com

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Marine Products Corporation Reports Second Quarter 2025 Financial Results And Declares Regular Quarterly Dividend

Jul -24

Source: prnewswire.com

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Gary Kolstad Appointed to the Marine Products Corporation Board of Directors

Jul -14

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.83%)

6. Segments

Boats and Accessories

Expected Growth: 4.83%

The 4.83% growth in Boats and Accessories from Marine Products Corporation is driven by increasing recreational water activities, rising disposable incomes, and a growing demand for luxury boats. Additionally, the company's focus on innovative products, strategic partnerships, and expanding distribution channels have contributed to the segment's growth.

Parts

Expected Growth: 4.83%

Strong demand for recreational boats and marine accessories, driven by increasing consumer spending and rising disposable income, contributes to the 4.83% growth of Parts from Marine Products Corporation. Additionally, the company's focus on innovation, product diversification, and strategic acquisitions also support this growth.

7. Detailed Products

Fiberglass Boats

Manufacturing of fiberglass boats for recreational and commercial use

Aluminum Boats

Design and manufacturing of aluminum boats for fishing, cruising, and water sports

Pontoon Boats

Manufacturing of pontoon boats for recreational use

Fishing Boats

Design and manufacturing of fishing boats for freshwater and saltwater fishing

Yachts

Custom design and manufacturing of luxury yachts for recreational use

Marine Engines

Design and manufacturing of marine engines for recreational and commercial use

Marine Parts and Accessories

Manufacturing of marine parts and accessories for boats and yachts

8. Marine Products Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Marine Products Corporation is moderate due to the availability of alternative products in the market.

Bargaining Power Of Customers

The bargaining power of customers is high due to the presence of large retailers and wholesalers who can negotiate prices and terms.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the availability of multiple suppliers and the company's ability to negotiate prices.

Threat Of New Entrants

The threat of new entrants is moderate due to the presence of barriers to entry, such as high capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established players in the market, leading to intense competition.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight -0.29%
Debt Cost 10.19%
Equity Weight 100.29%
Equity Cost 10.19%
WACC 10.19%
Leverage -0.29%

11. Quality Control: Marine Products Corporation passed 9 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Buckle

A-Score: 6.8/10

Value: 4.5

Growth: 3.9

Quality: 7.5

Yield: 10.0

Momentum: 8.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Karat Packaging

A-Score: 6.6/10

Value: 6.1

Growth: 7.9

Quality: 7.4

Yield: 9.0

Momentum: 3.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Weyco

A-Score: 6.5/10

Value: 7.4

Growth: 5.9

Quality: 7.1

Yield: 9.0

Momentum: 3.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Ethan Allen

A-Score: 6.2/10

Value: 6.1

Growth: 3.8

Quality: 6.4

Yield: 10.0

Momentum: 4.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Marine Products

A-Score: 5.5/10

Value: 4.2

Growth: 4.4

Quality: 5.6

Yield: 10.0

Momentum: 3.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Winnebago

A-Score: 3.8/10

Value: 6.9

Growth: 0.8

Quality: 5.9

Yield: 5.0

Momentum: 1.0

Volatility: 3.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

8.71$

Current Price

8.71$

Potential

-0.00%

Expected Cash-Flows