2024-04-04 23:03:37 ET
Summary
- ONEW’s revenue has grown impressively at a CAGR of +36%, accelerated by an aggressive M&A strategy.
- The company has developed a compelling competitive position, underpinned by strong geographical reach and relationships with manufacturers.
- We expect value to be extracted through further M&A as well as optimizing its existing operations. Even if industry growth slows, ONEW could deliver ~10% on the top-line.
- ONEW is competitive relative to its peers, despite trading at a discount of ~100%. We see considerable value in this region.
- ONEW is trading at a FCF yield of ~13%, much of which will be utilized for accretive M&A, as Management targets an acquisition multiple of 4x EBITDA while trading at ~9x currently.
Company description and thesis
OneWater Marine ( ONEW ) is a prominent player in the marine industry, specializing in the sale of boats, yacht brokerage, and related services. The company is renowned for its extensive product portfolio.
ONEW is positioned as an attractive consolidator that has shown an ability to identify attractive targets and integrate them successfully. Underpinning this is a quality business model and a growing presence in the US market. While the industry is not expected to grow significantly, this hybrid growth approach should allow for attractive shareholder returns so long as Management maintains its high standards....
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OneWater Marine: Solid Business With M&A Strategy Priced Attractively