Boats Group Extends Partnership with OneWater Marine and Denison Yachting, Reinforcing Commitment to Digital Excellence
Bob Denison, President of Denison Yachting, a OneWater Marine company, along with Robert Long, Vice President of Marketing, have led this collaboration. With their deep-rooted expertise in digital marketing and the brokerage industry, Denison and Long have been pivotal in aligning OneWater's utilization of Boats Group's platforms. Their understanding of the evolving digital landscape and its role in the boat-buying experience reinforces why Boats Group remains a key partner.
'Denison Yachting is committed to delivering the best possible experience for boat buyers and sellers, and Boats Group continues to be the gold standard in online marketplaces,' said Bob Denison. 'This partnership ensures that our listings receive maximum visibility, connects us with active customers, and ultimately drives sales.'
Over the past two years, Boats Group has introduced significant innovations to improve the online shopping experience, making it easier for consumers to browse listings, compare options, and make confident purchasing decisions. OneWater Marine values these enhancements and will continue to benefit from Boats Group's audience reach, lead generation capabilities, and data-driven marketing strategies.
'This partnership underscores our shared vision of innovation and growth in the boating industry,' said Andreas Madsen, CRO of Boats Group. 'Bob Denison and the OneWater team understand the critical role we play in today's market, and we are proud to be their trusted partner in delivering the tools and technology that accelerate their success.'
The renewed agreement between OneWater Marine and Boats Group solidifies their commitment to providing the best experience for boat buyers and sellers. As the industry evolves, this partnership will continue to drive visibility, engagement, and sales—ensuring OneWater Marine remains at the forefront of marine retail.
About Boats Group
Boats Group operates the world's leading online marketplaces for buying and selling boats, including Boat Trader, YachtWorld, and boats.com. With a global audience of millions of boat buyers, we provide data-driven marketing solutions, AI-driven tools, financing services, and industry insights to help OEMs, dealers, and brokers maximize their sales potential.
About OneWater Marine, Inc.
OneWater Marine Inc. is one of the largest and fastest-growing premium marine retailers in the United States. OneWater operates a total of 98 retail locations, 9 distribution centers/warehouses and multiple online marketplaces in 19 different states, several of which are in the top twenty states for marine retail expenditures. OneWater offers a broad range of products and services and has diversified revenue streams, which include the sale of new and pre-owned boats, finance and insurance products, parts and accessories, maintenance, repair, and other services.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
4 days ago
- Yahoo
OneWater's (NASDAQ:ONEW) Q2 Sales Beat Estimates, Full-Year Sales Guidance is Optimistic
Boat and marine products retailer OneWater Marine (NASDAQ:ONEW) beat Wall Street's revenue expectations in Q2 CY2025, with sales up 1.9% year on year to $552.9 million. The company's full-year revenue guidance of $1.83 billion at the midpoint came in 3.2% above analysts' estimates. Its non-GAAP profit of $0.79 per share was 25.3% below analysts' consensus estimates. Is now the time to buy OneWater? Find out in our full research report. OneWater (ONEW) Q2 CY2025 Highlights: Revenue: $552.9 million vs analyst estimates of $531.7 million (1.9% year-on-year growth, 4% beat) Adjusted EPS: $0.79 vs analyst expectations of $1.06 (25.3% miss) Adjusted EBITDA: $32.85 million vs analyst estimates of $38.55 million (5.9% margin, 14.8% miss) The company lifted its revenue guidance for the full year to $1.83 billion at the midpoint from $1.75 billion, a 4.3% increase Management lowered its full-year Adjusted EPS guidance to $0.63 at the midpoint, a 37.5% decrease EBITDA guidance for the full year is $72.5 million at the midpoint, below analyst estimates of $74.86 million Operating Margin: 5.5%, down from 7.4% in the same quarter last year Same-Store Sales rose 2% year on year (-8% in the same quarter last year) Market Capitalization: $237.5 million 'The quarter highlighted our ability to outperform broader industry trends, despite macroeconomic uncertainty. As expected, a highly competitive environment and significant promotional activity across the industry continues to pressure margins,' commented Austin Singleton, Chief Executive Officer at OneWater. Company Overview A public company since early 2020, OneWater Marine (NASDAQ:ONEW) sells boats, yachts, and other marine products. Revenue Growth Examining a company's long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. With $1.79 billion in revenue over the past 12 months, OneWater is a small retailer, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with suppliers. On the bright side, it can grow faster because it has more white space to build new stores. As you can see below, OneWater's sales grew at an impressive 16.5% compounded annual growth rate over the last six years (we compare to 2019 to normalize for COVID-19 impacts) as it opened new stores and expanded its reach. This quarter, OneWater reported modest year-on-year revenue growth of 1.9% but beat Wall Street's estimates by 4%. Looking ahead, sell-side analysts expect revenue to grow 2.1% over the next 12 months, a deceleration versus the last six years. This projection is underwhelming and indicates its products will face some demand challenges. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Store Performance Number of Stores A retailer's store count influences how much it can sell and how quickly revenue can grow. OneWater opened new stores quickly over the last two years, averaging 2.3% annual growth, faster than the broader consumer retail sector. When a retailer opens new stores, it usually means it's investing for growth because demand is greater than supply, especially in areas where consumers may not have a store within reasonable driving distance. Note that OneWater reports its store count intermittently, so some data points are missing in the chart below. Same-Store Sales A company's store base only paints one part of the picture. When demand is high, it makes sense to open more. But when demand is low, it's prudent to close some locations and use the money in other ways. Same-store sales gives us insight into this topic because it measures organic growth for a retailer's e-commerce platform and brick-and-mortar shops that have existed for at least a year. OneWater's demand has been shrinking over the last two years as its same-store sales have averaged 1.1% annual declines. This performance is concerning - it shows OneWater artificially boosts its revenue by building new stores. We'd like to see a company's same-store sales rise before it takes on the costly, capital-intensive endeavor of expanding its store base. In the latest quarter, OneWater's same-store sales rose 2% year on year. This growth was a well-appreciated turnaround from its historical levels, showing the business is regaining momentum. Key Takeaways from OneWater's Q2 Results We enjoyed seeing OneWater beat analysts' revenue expectations this quarter. We were also glad its full-year revenue guidance exceeded Wall Street's estimates. On the other hand, its EBITDA missed and its gross margin fell short of Wall Street's estimates. Overall, this quarter could have been better. The stock traded down 1.8% to $14.31 immediately following the results. OneWater may have had a tough quarter, but does that actually create an opportunity to invest right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
Business Wire
5 days ago
- Business Wire
OneWater Marine Inc. Announces Fiscal Third Quarter Results
BUFORD, Ga.--(BUSINESS WIRE)--OneWater Marine Inc. (NASDAQ: ONEW) ('OneWater' or the 'Company') today announced results for its fiscal third quarter ended June 30, 2025. 'The quarter highlighted our ability to outperform broader industry trends, despite macroeconomic uncertainty. As expected, a highly competitive environment and significant promotional activity across the industry continues to pressure margins,' commented Austin Singleton, Chief Executive Officer at OneWater. 'Our focus on serving our customers, executing our strategy, and taking market share remains unwavering. We continue to position the business for long-term success through a disciplined and thoughtful approach to inventory management, which includes strategic brand exits that are progressing as planned. By staying focused on factors within our control, we remain well-equipped to navigate this dynamic environment and drive results.' Fiscal Third Quarter 2025 Results Revenue for fiscal third quarter 2025 was $552.9 million, an increase of 1.9% compared to $542.4 million in fiscal third quarter 2024. Same-store sales increased 2%. New boat revenue decreased 2.1%, driven by a decrease in units sold, partially offset by an increase in average price per unit. Pre-owned boat revenue increased 17.8%, driven by the increase in units sold and average price per unit. Finance & insurance income remained flat as a percentage of total boat sales, and service, parts & other sales were down 1.7% compared to the prior year quarter. Dealership service, parts, and other sales increased in the quarter while Distribution segment sales were lower due to reduced production by boat manufacturers. Gross profit totaled $128.7 million for fiscal third quarter 2025, down $3.9 million from $132.6 million for fiscal third quarter 2024. Gross profit margin of 23.3% decreased 110 basis points compared to the prior year period, driven by new boat model mix and pricing on continuing brands, and the impact of select brands the Company is exiting. Fiscal third quarter 2025 selling, general and administrative expenses totaled $92.1 million, or 16.7% of revenue, compared to $87.1 million, or 16.0% of revenue, in fiscal third quarter 2024. The increase in selling, general and administrative expenses as a percentage of revenue was driven by increased expenses to drive our same-store sales results and inflationary costs related to administrative and fixed expenses. Net income for fiscal third quarter 2025 totaled $10.7 million, compared to net income of $16.7 million in fiscal third quarter 2024. The Company reported net income per diluted share for fiscal third quarter 2025 of $0.65, compared to net income per diluted share of $0.99 in 2024. Adjusted diluted earnings per share 1 for fiscal third quarter 2025 was $0.79, compared to adjusted diluted earnings per share 1 of $1.05 in 2024. Fiscal third quarter 2025 Adjusted EBITDA 1 decreased to $32.8 million compared to $39.2 million for fiscal third quarter 2024. As of June 30, 2025, the Company's cash and cash equivalents balance was $70.1 million and total liquidity, including cash and availability under credit facilities, was in excess of $85.0 million. Total inventory as of June 30, 2025, decreased 13.6% to $517.1 million, compared to $598.6 million on June 30, 2024, primarily driven by the Company's inventory management. Total long-term debt as of June 30, 2025 was $419.5 million, and adjusted long-term net debt (net of $70.1 million cash) 1 was 5.8 times trailing twelve-month Adjusted EBITDA 1. Fiscal Year 2025 Guidance The Company is updating its previously issued fiscal full year 2025 outlook. For fiscal full year 2025, OneWater anticipates revenue to be in the range of $1.80 billion to $1.85 billion and dealership same-store sales to be up low single digits. Adjusted EBITDA 2 is expected to be in the range of $65 million to $80 million and Adjusted Diluted Earnings Per Share is expected to be in the range of $0.50 to $0.75. Conference Call and Webcast OneWater will host a conference call to discuss its fiscal third quarter earnings on Thursday, July 31st, at 8:30 am Eastern time. To access the conference call via phone, participants can dial (+1) 646 564 2877 or (+1) 800 549 8228 (North America Toll Free). Alternatively, a live webcast of the conference call can be accessed through the 'Events' section of the Company's website at where it will be archived for one year. A telephonic replay will also be available through August 7th, 2025 by dialing (+1) 646 517 3975 (US), (+1) 289 819 1325 (Canada), or (+1) 888 660 6264 (North America Toll Free), and entering access code 25911 #. See reconciliation of Non-GAAP financial measures below. See reconciliation of Non-GAAP financial measures below for a discussion of why reconciliations of forward-looking Adjusted EBITDA and adjusted earnings per diluted share are not available without unreasonable effort. Three Months Ended June 30, Nine Months Ended June 30, 2025 2024 2025 2024 Revenues: New boat $ 326,134 $ 333,162 $ 883,631 $ 901,552 Pre-owned boat 125,941 106,889 272,467 238,820 Finance & insurance income 17,782 17,932 42,185 40,022 Service, parts & other 83,007 84,458 213,916 214,381 Total revenues 552,864 542,441 1,412,199 1,394,775 Gross profit New boat 51,950 56,722 139,109 161,483 Pre-owned boat 22,535 22,263 49,602 50,065 Finance & insurance 17,782 17,932 42,185 40,022 Service, parts & other 36,396 35,688 92,232 92,840 Total gross profit 128,663 132,605 323,128 344,410 Selling, general and administrative expenses 92,138 87,059 258,989 253,169 Depreciation and amortization 5,593 5,091 16,426 14,185 Transaction costs 175 242 1,111 966 Change in fair value of contingent consideration 144 214 452 3,918 Restructuring and impairment 234 — 1,473 11,847 Income from operations 30,379 39,999 44,677 60,325 Other expense (income): Interest expense – floor plan 7,340 9,290 21,870 25,627 Interest expense – other 9,041 9,008 27,129 27,352 Other (income) expense, net (224 ) (1,357 ) 853 889 Total other expense, net 16,157 16,941 49,852 53,868 Net income (loss) before income tax expense (benefit) 14,222 23,058 (5,175 ) 6,457 Income tax expense (benefit) 3,507 6,344 (1,903 ) 2,222 Net income (loss) 10,715 16,714 (3,272 ) 4,235 Net (income) attributable to non-controlling interests — — — (119 ) Net (income) loss attributable to non-controlling interests of One Water Marine Holdings, LLC — (2,031 ) 1,648 (572 ) Net income (loss) attributable to OneWater Marine Inc. $ 10,715 $ 14,683 $ (1,624 ) $ 3,544 Net earnings (loss) per share of Class A common stock – basic $ 0.66 $ 1.01 $ (0.10 ) $ 0.24 Net earnings (loss) per share of Class A common stock – diluted $ 0.65 $ 0.99 $ (0.10 ) $ 0.24 Basic weighted-average shares of Class A common stock outstanding 16,313 14,593 15,700 14,571 Diluted weighted-average shares of Class A common stock outstanding 16,444 14,891 15,700 14,835 Expand ONEWATER MARINE INC. Reconciliation of Non-GAAP Financial Measures (In thousands, except per share data) (Unaudited) Three Months Ended June 30, Nine Months Ended June 30, 2025 2024 2025 2024 Net income (loss) attributable to OneWater Marine Inc. $ 10,715 $ 14,683 $ (1,624 ) $ 3,544 Transaction costs 175 242 1,111 966 Intangible amortization 2,167 2,086 6,437 5,743 Change in fair value of contingent consideration 144 214 452 3,918 Restructuring and impairment 727 — 3,013 11,847 Other (income) expense, net (224 ) (1,357 ) 853 889 Net income attributable to non-controlling interests of One Water Marine Holdings, LLC (1) — (107 ) (568 ) (2,103 ) Adjustments to income tax expense (2) (687 ) (248 ) (2,599 ) (4,890 ) Adjusted net income attributable to OneWater Marine Inc. 13,017 15,513 7,075 19,914 Net income (loss) per share of Class A common stock - diluted $ 0.65 $ 0.99 $ (0.10 ) $ 0.24 Transaction costs 0.01 0.02 0.07 0.07 Intangible amortization 0.13 0.15 0.41 0.39 Change in fair value of contingent consideration 0.01 0.01 0.03 0.26 Restructuring and impairment 0.04 — 0.19 0.80 Other (income) expense, net (0.01 ) (0.09 ) 0.05 0.06 Net income attributable to non-controlling interests of One Water Marine Holdings, LLC (1) — (0.01 ) (0.04 ) (0.14 ) Adjustments to income tax expense (2) (0.04 ) (0.02 ) (0.17 ) (0.33 ) Adjustment for dilutive shares (3) — — 0.01 — Adjusted earnings per share of Class A common stock - diluted $ 0.79 $ 1.05 $ 0.45 $ 1.35 (1) Represents an allocation of the impact of reconciling items to our non-controlling interest. (2) Represents an adjustment of all reconciling items at an estimated effective tax rate. (3) Represents an adjustment for shares that are anti-dilutive for GAAP earnings per share but are dilutive for adjusted earnings per share. Expand Three Months Ended June 30, Trailing twelve months ended June 30, 2025 2024 2025 Net income (loss) $ 10,715 $ 16,714 $ (13,683 ) Interest expense – other 9,041 9,008 36,827 Income tax expense (benefit) 3,507 6,344 (4,282 ) Depreciation and amortization 6,301 5,785 24,441 Stock-based compensation 2,459 2,256 8,235 Change in fair value of contingent consideration 144 214 782 Transaction costs 175 242 1,675 Restructuring and impairment 727 — 6,484 Other (income) expense, net (224 ) (1,357 ) (22 ) Adjusted EBITDA $ 32,845 $ 39,206 $ 60,457 Long-term debt (including current portion) $ 419,467 Less: cash (70,146 ) Adjusted long-term net debt $ Pro forma adjusted net debt leverage ratio 5.8 x Expand About OneWater Marine Inc. OneWater Marine Inc. is one of the largest and fastest-growing premium marine retailers in the United States. OneWater operates a total of 97 retail locations, 9 distribution centers / warehouses and multiple online marketplaces in 19 different states, several of which are in the top twenty states for marine retail expenditures. OneWater offers a broad range of products and services and has diversified revenue streams, which include the sale of new and pre-owned boats, finance and insurance products, parts and accessories, maintenance, repair and other services. Non-GAAP Financial Measures and Key Performance Indicators This press release and our related earnings call contain certain non-GAAP financial measures, including Adjusted EBITDA, Adjusted Net Income (Loss) Attributable to OneWater Marine Inc., Adjusted Diluted Earnings (Loss) Per Share and Adjusted Long-Term Net Debt, as measures of our operating performance. Management believes these measures may be useful in performing meaningful comparisons of past and present operating results, to understand the performance of the Company's ongoing operations and how management views the business. Reconciliations of reported GAAP measures to adjusted non-GAAP measures are included in the financial schedules contained in this press release. These measures, however, should not be construed as an alternative to any other measure of performance determined in accordance with GAAP. Because our non-GAAP financial measures may be defined differently by other companies, our definition of these non-GAAP financial measures may not be comparable to similarly titled measures of other companies, thereby diminishing its utility. We have not reconciled non-GAAP forward-looking measures, including Adjusted EBITDA and Adjusted Earnings (Loss) Per Diluted Share guidance, to their corresponding GAAP measures due to the high variability and difficulty in making accurate forecasts and projections, particularly with respect to change in fair value of contingent consideration and transaction costs. Change in fair value of contingent consideration and transaction costs are affected by the acquisition, integration and post-acquisition performance of our acquirees which is difficult to predict and subject to change. Accordingly, reconciliations of forward-looking Adjusted EBITDA and Adjusted Earnings (Loss) Per Diluted Share are not available without unreasonable effort. Adjusted EBITDA We define Adjusted EBITDA as net income (loss) before interest expense – other, income tax (benefit) expense, depreciation and amortization and other (income) expense, further adjusted to eliminate the effects of items such as the change in fair value of contingent consideration, restructuring and impairment, stock-based compensation and transaction costs. See reconciliation above. Our board of directors, management team and lenders use Adjusted EBITDA to assess our financial performance because it allows them to compare our operating performance on a consistent basis across periods by removing the effects of our capital structure (such as varying levels of interest expense), asset base (such as depreciation and amortization) and other items (such as the change in fair value of contingent consideration, income tax (benefit) expense, restructuring and impairment, stock-based compensation and transaction costs) that impact the comparability of financial results from period to period. We present Adjusted EBITDA because we believe it provides useful information regarding the factors and trends affecting our business in addition to measures calculated under GAAP. Adjusted EBITDA is not a financial measure presented in accordance with GAAP. We believe that the presentation of this non-GAAP financial measure will provide useful information to investors and analysts in assessing our financial performance and results of operations across reporting periods by excluding items we do not believe are indicative of our core operating performance. Adjusted Net (Loss) Income Attributable to OneWater Marine Inc. and Adjusted Diluted (Loss) Earnings Per Share We define Adjusted Net (Loss) Income Attributable to OneWater Marine Inc. as Net (Loss) Income Attributable to OneWater Marine Inc. before transaction costs, intangible amortization, change in fair value of contingent consideration, restructuring and impairment and other expense (income), all of which are then adjusted for an allocation to the non-controlling interest of OneWater Marine Holdings, LLC. Each of these adjustments are subsequently adjusted for income tax at an estimated effective tax rate. Management also reports Adjusted Diluted (Loss) Earnings Per Share which presents all of the adjustments to Net (Loss) Income Attributable to OneWater Marine Inc. noted above on a per share basis. See reconciliation above. Our board of directors, management team and lenders use Adjusted Net (Loss) Income Attributable to OneWater Marine Inc. and Adjusted Diluted (Loss) Earnings Per Share to assess our financial performance because it allows them to compare our operating performance on a consistent basis across periods by removing the effects of unusual or one time charges and other items (such as the change in fair value of contingent consideration, intangible amortization, restructuring and impairment, transaction costs and other expense (income)) that impact the comparability of financial results from period to period. We present these metrics because we believe they provide useful information regarding the factors and trends affecting our business in addition to measures calculated under GAAP. Adjusted Net (Loss) Income Attributable to OneWater Marine Inc. and Adjusted Diluted (Loss) Earnings Per Share are not financial measures presented in accordance with GAAP. We believe that the presentation of these non-GAAP financial measures will provide useful information to investors and analysts in assessing our financial performance and results of operations across reporting periods by excluding items we do not believe are indicative of our core operating performance. Adjusted Long-Term Net Debt We define Adjusted Long-Term Net Debt as long-term debt (including current portion) less cash. We consider, and we believe certain investors and analysts consider, adjusted long-term net debt, as well as adjusted long-term net debt divided by trailing twelve-month Adjusted EBITDA, to be an indicator of our financial leverage. Same-Store Sales We define same-store sales as sales from our Dealership segment, excluding new and acquired stores. New and acquired stores become eligible for inclusion in the comparable store base at the end of the store's thirteenth month of operations under our ownership and revenues are only included for identical months in the same-store base periods. Stores relocated within an existing market remain in the comparable store base for all periods. Additionally, amounts related to closed or sold stores are excluded from each comparative base period. We use same-store sales to assess the organic growth of our Dealership segment revenue. We believe that our assessment on a same-store basis represents an important indicator of comparative financial results and provides relevant information to assess our performance. Cautionary Statement Concerning Forward-Looking Statements This press release and statements made during the above referenced conference call may contain 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995, including regarding our strategy, future operations, financial position, prospects, plans and objectives of management, growth rate and its expectations regarding future revenue, operating income or loss or earnings or loss per share. In some cases, you can identify forward-looking statements because they contain words such as 'may,' 'will,' 'will be,' 'will likely result,' 'should,' 'expects,' 'plans,' 'anticipates,' 'could,' 'would,' 'foresees,' 'intends,' 'target,' 'projects,' 'contemplates,' 'believes,' 'estimates,' 'predicts,' 'potential,' 'outlook' or 'continue' or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. These forward-looking statements are not guarantees of future performance, but are based on management's current expectations, assumptions and beliefs concerning future developments and their potential effect on us, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Our expectations expressed or implied in these forward-looking statements may not turn out to be correct. Important factors, some of which are beyond our control, that could cause actual results to differ materially from our historical results or those expressed or implied by these forward-looking statements include the following: changes in demand for our products and services, the seasonality and volatility of the boat industry, effects of industry wide supply chain challenges including a heightened inflationary environment and our ability to maintain adequate inventory, fluctuation in interest rates, adverse weather events, our acquisition and business strategies, the inability to comply with the financial and other covenants and metrics in our credit facilities, cash flow and access to capital, effects of a global public health concern on the Company's business, geopolitical risks, including the imposition of or changes in tariffs, duties, or other taxes affecting international trade, risks related to the ability to realize the anticipated benefits of any proposed acquisitions, including the risk that proposed acquisitions will not be integrated successfully, the timing of development expenditures, and other risks. More information on these risks and other potential factors that could affect our financial results is included in our filings with the Securities and Exchange Commission, including in the 'Risk Factors' and 'Management's Discussion and Analysis of Financial Condition and Results of Operations' sections of our Annual Report on Form 10-K for the fiscal year ended September 30, 2024 and in our subsequently filed Quarterly Reports on Form 10-Q, each of which is on file with the SEC and available from OneWater Marine's website at under the 'Investors' tab, and in other documents OneWater Marine files with the SEC. Any forward-looking statement speaks only as of the date as of which such statement is made, and, except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events, or otherwise.
Yahoo
24-07-2025
- Yahoo
3 Reasons to Sell ONEW and 1 Stock to Buy Instead
Over the last six months, OneWater's shares have sunk to $15.75, producing a disappointing 7.7% loss - a stark contrast to the S&P 500's 4.3% gain. This was partly due to its softer quarterly results and may have investors wondering how to approach the situation. Is there a buying opportunity in OneWater, or does it present a risk to your portfolio? Get the full breakdown from our expert analysts, it's free. Why Is OneWater Not Exciting? Even with the cheaper entry price, we're sitting this one out for now. Here are three reasons why ONEW doesn't excite us and a stock we'd rather own. 1. Shrinking Same-Store Sales Indicate Waning Demand Same-store sales show the change in sales for a retailer's e-commerce platform and brick-and-mortar shops that have existed for at least a year. This is a key performance indicator because it measures organic growth. OneWater's demand has been shrinking over the last two years as its same-store sales have averaged 1.4% annual declines. 2. EPS Trending Down We track the long-term change in earnings per share (EPS) because it highlights whether a company's growth is profitable. OneWater's full-year EPS dropped significantly over the last four years. In a mature sector such as consumer retail, we tend to steer our readers away from companies with falling EPS because it could imply changing secular trends and preferences. If the tide turns unexpectedly, OneWater's low margin of safety could leave its stock price susceptible to large downswings. 3. High Debt Levels Increase Risk Debt is a tool that can boost company returns but presents risks if used irresponsibly. As long-term investors, we aim to avoid companies taking excessive advantage of this instrument because it could lead to insolvency. OneWater's $566.1 million of debt exceeds the $67.46 million of cash on its balance sheet. Furthermore, its 7× net-debt-to-EBITDA ratio (based on its EBITDA of $66.82 million over the last 12 months) shows the company is overleveraged. At this level of debt, incremental borrowing becomes increasingly expensive and credit agencies could downgrade the company's rating if profitability falls. OneWater could also be backed into a corner if the market turns unexpectedly – a situation we seek to avoid as investors in high-quality companies. We hope OneWater can improve its balance sheet and remain cautious until it increases its profitability or pays down its debt. Final Judgment OneWater isn't a terrible business, but it doesn't pass our bar. Following the recent decline, the stock trades at 8.7× forward P/E (or $15.75 per share). While this valuation is optically cheap, the potential downside is big given its shaky fundamentals. We're fairly confident there are better stocks to buy right now. We'd suggest looking at the Amazon and PayPal of Latin America. Stocks We Would Buy Instead of OneWater Donald Trump's April 2024 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities. The smart money is already positioning for the next leg up. Don't miss out on the recovery - check out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
