Overall HZO gets a fundamental rating of 3 out of 10. We evaluated HZO against 121 industry peers in the Specialty Retail industry. Both the profitability and financial health of HZO have multiple concerns. HZO is quite expensive at the moment. It does show a decent growth rate.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year HZO was profitable.
HZO had a positive operating cash flow in the past year.
Of the past 5 years HZO 4 years were profitable.
The reported operating cash flow has been mixed in the past 5 years: HZO reported negative operating cash flow in multiple years.

1.2 Ratios

HZO has a Return On Assets (-1.28%) which is comparable to the rest of the industry.
HZO has a Return On Equity (-3.38%) which is in line with its industry peers.
HZO has a Return On Invested Capital (3.34%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for HZO is significantly below the industry average of 12.37%.

		Industry Rank	Sector Rank
ROA	-1.28%
ROE	-3.38%
ROIC	3.34%

ROA(3y)1.56%

ROA(5y)6.94%

ROE(3y)4.15%

ROE(5y)12.76%

ROIC(3y)4.73%

ROIC(5y)10.19%

1.3 Margins

With a decent Operating Margin value of 4.46%, HZO is doing good in the industry, outperforming 62.81% of the companies in the same industry.
HZO's Operating Margin has declined in the last couple of years.
The Gross Margin of HZO (32.49%) is worse than 61.16% of its industry peers.
HZO's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	4.46%
PM (TTM)	N/A
GM	32.49%

OM growth 3Y-27.03%

OM growth 5Y-9.07%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y-2.37%

GM growth 5Y4.23%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HZO is destroying value.
HZO has less shares outstanding than it did 1 year ago.
The number of shares outstanding for HZO remains at a similar level compared to 5 years ago.
Compared to 1 year ago, HZO has a worse debt to assets ratio.

2.2 Solvency

An Altman-Z score of 1.84 indicates that HZO is not a great score, but indicates only limited risk for bankruptcy at the moment.
HZO has a Altman-Z score (1.84) which is in line with its industry peers.
HZO has a debt to FCF ratio of 92.74. This is a negative value and a sign of low solvency as HZO would need 92.74 years to pay back of all of its debts.
With a Debt to FCF ratio value of 92.74, HZO perfoms like the industry average, outperforming 40.50% of the companies in the same industry.
HZO has a Debt/Equity ratio of 1.14. This is a high value indicating a heavy dependency on external financing.
HZO has a Debt to Equity ratio of 1.14. This is comparable to the rest of the industry: HZO outperforms 41.32% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	1.14
Debt/FCF	92.74
Altman-Z	1.84

ROIC/WACC0.38

WACC8.89%

2.3 Liquidity

A Current Ratio of 1.20 indicates that HZO should not have too much problems paying its short term obligations.
With a Current ratio value of 1.20, HZO perfoms like the industry average, outperforming 40.50% of the companies in the same industry.
A Quick Ratio of 0.32 indicates that HZO may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.32, HZO is doing worse than 68.59% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.2
Quick Ratio	0.32

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

HZO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -59.91%.
Measured over the past years, HZO shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -24.26% on average per year.
The Revenue has decreased by -5.01% in the past year.
Measured over the past years, HZO shows a quite strong growth in Revenue. The Revenue has been growing by 8.87% on average per year.

EPS 1Y (TTM)-59.91%

EPS 3Y-54.22%

EPS 5Y-24.26%

EPS Q2Q%-116.67%

Revenue 1Y (TTM)-5.01%

Revenue growth 3Y0.02%

Revenue growth 5Y8.87%

Sales Q2Q%-1.95%

3.2 Future

HZO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 50.07% yearly.
Based on estimates for the next years, HZO will show a small growth in Revenue. The Revenue will grow by 3.37% on average per year.

EPS Next Y5.9%

EPS Next 2Y39.26%

EPS Next 3Y50.07%

EPS Next 5YN/A

Revenue Next Year1.95%

Revenue Next 2Y2.98%

Revenue Next 3Y3.37%

Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 33.14, HZO can be considered very expensive at the moment.
61.16% of the companies in the same industry are more expensive than HZO, based on the Price/Earnings ratio.
HZO is valuated rather expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 31.29 indicates a quite expensive valuation of HZO.
HZO's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, HZO is valued a bit more expensive.

		Industry Rank	Sector Rank
PE	33.14
Fwd PE	31.29

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, HZO is valued cheaper than 86.78% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HZO is on the same level as its industry peers.

		Industry Rank	Sector Rank
P/FCF	51.59
EV/EBITDA	5.56

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as HZO's earnings are expected to grow with 50.07% in the coming years.