MarineMax Inc. Stock Upgraded (HZO)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

NEW YORK ( TheStreet) -- MarineMax (NYSE: HZO) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins.

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Highlights from the ratings report include:
  • MARINEMAX INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, MARINEMAX INC turned its bottom line around by earning $0.04 versus -$0.51 in the prior year. This year, the market expects an improvement in earnings ($0.37 versus $0.04).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Specialty Retail industry. The net income increased by 195.6% when compared to the same quarter one year prior, rising from $4.61 million to $13.64 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 19.9%. Since the same quarter one year prior, revenues rose by 16.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 180.00% and other important driving factors, this stock has surged by 53.06% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. In comparison to the other companies in the Specialty Retail industry and the overall market, MARINEMAX INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.

MarineMax, Inc. operates as a recreational boat dealer in the United States. It sells new and used recreational boats, which include pleasure boats, such as sport boats, sport cruisers, sport yachts, and yachts; fishing boats; convertible yachts; motor yachts; and ski boats. MarineMax has a market cap of $309 million and is part of the services sector and specialty retail industry. Shares are up 42.5% year to date as of the close of trading on Thursday.

You can view the full MarineMax Ratings Report or get investment ideas from our investment research center.

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