MPX - Marine Products: Cheap Resilient Cash Flows During Industry Turbulence (Rating Upgrade)
2024-06-07 09:27:56 ET
Summary
- MPX's revenue declines in Q4 and Q1 have been deeper than previously anticipated as industry challenges persist.
- Excess dealership inventories and weak consumer confidence continue to ravage demand, but an eventual industry recovery should happen with interest rates playing a key role.
- Despite the challenges, MPX has maintained high margins and has a strong balance sheet leaving potential for M&A or excess capital distribution.
- The valuation now represents an attractive opportunity.
Marine Products ( MPX ), the fiberglass powerboat manufacturer selling under brands such as Chaparral, Robalo, and SSX, has faced significant financial turbulence in the two quarters reported after my previous article on the stock....
Marine Products: Cheap, Resilient Cash Flows During Industry Turbulence (Rating Upgrade)