Overall HZO gets a fundamental rating of 3 out of 10. We evaluated HZO against 122 industry peers in the Specialty Retail industry. Both the profitability and financial health of HZO have multiple concerns. HZO is not valued too expensively and it also shows a decent growth rate.

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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.
In multiple years HZO reported negative operating cash flow during the last 5 years.

1.2 Ratios

HZO's Return On Assets of -1.28% is in line compared to the rest of the industry. HZO outperforms 41.80% of its industry peers.
HZO has a Return On Equity of -3.38%. This is comparable to the rest of the industry: HZO outperforms 49.18% of its industry peers.
The Return On Invested Capital of HZO (3.34%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for HZO is significantly below the industry average of 12.24%.

		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

The Operating Margin of HZO (4.46%) is better than 63.11% of its industry peers.
In the last couple of years the Operating Margin of HZO has declined.
The Gross Margin of HZO (32.49%) is worse than 61.48% 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.
The number of shares outstanding for HZO has been reduced compared to 1 year ago.
Compared to 5 years ago, HZO has about the same amount of shares outstanding.
HZO has a worse debt/assets ratio than last year.

2.2 Solvency

HZO has an Altman-Z score of 1.80. This is a bad value and indicates that HZO is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of HZO (1.80) is comparable to the rest of the industry.
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.
HZO has a Debt to FCF ratio (92.74) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.14 is on the high side and indicates that HZO has dependencies on debt financing.
With a Debt to Equity ratio value of 1.14, HZO perfoms like the industry average, outperforming 40.98% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	1.14
Debt/FCF	92.74
Altman-Z	1.8

ROIC/WACC0.38

WACC8.79%

2.3 Liquidity

A Current Ratio of 1.20 indicates that HZO should not have too much problems paying its short term obligations.
HZO's Current ratio of 1.20 is in line compared to the rest of the industry. HZO outperforms 40.16% of its industry peers.
A Quick Ratio of 0.32 indicates that HZO may have some problems paying its short term obligations.
The Quick ratio of HZO (0.32) is worse than 68.85% of its industry peers.

		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 -77.62%.
HZO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -24.26% yearly.
Looking at the last year, HZO shows a decrease in Revenue. The Revenue has decreased by -5.01% in the last 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)-77.62%

EPS 3Y-54.22%

EPS 5Y-24.26%

EPS Q2Q%-223.53%

Revenue 1Y (TTM)-5.01%

Revenue growth 3Y0.02%

Revenue growth 5Y8.87%

Sales Q2Q%7.84%

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.
HZO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.37% yearly.

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

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 57.51, the valuation of HZO can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of HZO is on the same level as its industry peers.
When comparing the Price/Earnings ratio of HZO to the average of the S&P500 Index (28.30), we can say HZO is valued expensively.
Based on the Price/Forward Earnings ratio of 16.40, the valuation of HZO can be described as correct.
Based on the Price/Forward Earnings ratio, HZO is valued a bit cheaper than 71.31% of the companies in the same industry.
HZO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	57.51
Fwd PE	16.4

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, HZO is valued cheaply inside the industry as 90.98% of the companies are valued more expensively.
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	49.5
EV/EBITDA	4.99

4.3 Compensation for Growth

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