NEW YORK ( TheStreet) -- MarineMax (NYSE: HZO) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including poor profit margins and generally poor debt management. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 1.1%. Since the same quarter one year prior, revenues rose by 24.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- MARINEMAX INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MARINEMAX INC swung to a loss, reporting -$0.51 versus $0.10 in the prior year. This year, the market expects an improvement in earnings (-$0.33 versus -$0.51).
- HZO's debt-to-equity ratio of 0.61 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.32 is very low and demonstrates very weak liquidity.
- The gross profit margin for MARINEMAX INC is rather low; currently it is at 23.90%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.60% trails that of the industry average.
-- Written by a member of TheStreet RatingsStaff