Taking everything into account, HZO scores 3 out of 10 in our fundamental rating. HZO was compared to 122 industry peers in the Specialty Retail industry. HZO has a bad profitability rating. Also its financial health evaluation is rather negative. HZO is not valued too expensively and it also shows a decent growth rate.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

HZO had positive earnings in the past year.
In the past year HZO had a positive cash flow from operations.
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 has a Return On Assets (-1.28%) which is in line with its industry peers.
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 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

HZO's Operating Margin of 4.46% is fine compared to the rest of the industry. HZO outperforms 63.11% of its industry peers.
HZO's Operating Margin has declined in the last couple of years.
HZO has a worse Gross Margin (32.49%) than 61.48% of its industry peers.
In the last couple of years the Gross Margin of HZO has grown nicely.

		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.
Compared to 5 years ago, HZO has about the same amount of shares outstanding.
The debt/assets ratio for HZO is higher compared to a year ago.

2.2 Solvency

HZO has an Altman-Z score of 1.83. This is not the best score and indicates that HZO is in the grey zone with still only limited risk for bankruptcy at the moment.
HZO has a Altman-Z score (1.83) which is comparable to the rest of the industry.
The Debt to FCF ratio of HZO is 92.74, which is on the high side as it means it would take HZO, 92.74 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HZO (92.74) 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	1.83

ROIC/WACC0.38

WACC8.83%

2.3 Liquidity

A Current Ratio of 1.20 indicates that HZO should not have too much problems paying its short term obligations.
HZO has a Current ratio of 1.20. This is comparable 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.
HZO has a Quick ratio of 0.32. This is in the lower half of the industry: HZO underperforms 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

The earnings per share for HZO have decreased strongly by -59.91% in the last year.
HZO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -24.26% yearly.
The Revenue has decreased by -5.01% in the past year.
The Revenue has been growing by 8.87% on average over the past years. This is quite good.

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

The Earnings Per Share is expected to grow by 50.07% on average over the next years. This is a very strong growth
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.
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

HZO is valuated quite expensively with a Price/Earnings ratio of 32.42.
60.66% of the companies in the same industry are more expensive than HZO, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.87. HZO is around the same levels.
HZO is valuated quite expensively with a Price/Forward Earnings ratio of 30.62.
HZO's Price/Forward Earnings ratio is in line with the industry average.
HZO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.96, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	32.42
Fwd PE	30.62

4.2 Price Multiples

HZO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HZO is cheaper than 87.70% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as HZO.

		Industry Rank	Sector Rank
P/FCF	50.47
EV/EBITDA	5.47

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HZO does not grow enough to justify the current Price/Earnings ratio.
HZO's earnings are expected to grow with 50.07% in the coming years. This may justify a more expensive valuation.