What is HZO's DCF valuation?

MarineMax Inc (HZO) DCF Valuation Analysis

Executive Summary

As of April 4, 2026, MarineMax Inc has a Discounted Cash Flow (DCF) derived fair value of $36.84 per share. With the current market price at $27.17, this represents a potential upside of 35.6%.

Key Metrics Value
DCF Fair Value (5-year) $32.84
DCF Fair Value (10-year) $36.84
Potential Upside (5-year) 20.9%
Potential Upside (10-year) 35.6%
Discount Rate (WACC) 8.8% - 12.7%

Financial Performance & Projections

Revenue Trends

Revenue is projected to grow from $2309 million in 09-2025 to $3289 million by 09-2035, representing a compound annual growth rate of approximately 3.6%.

Fiscal Year Revenue (USD millions) Growth
09-2025 2309 5%
09-2026 2378 3%
09-2027 2469 4%
09-2028 2550 3%
09-2029 2601 2%
09-2030 2715 4%
09-2031 2899 7%
09-2032 2981 3%
09-2033 3108 4%
09-2034 3225 4%
09-2035 3289 2%

Profitability Projections

Net profit margin is expected to improve from -1% in 09-2025 to 4% by 09-2035, driven by operational efficiency and economies of scale.

Fiscal Year Net Profit (USD millions) Profit Margin
09-2025 (31) -1%
09-2026 (5) 0%
09-2027 20 1%
09-2028 45 2%
09-2029 71 3%
09-2030 100 4%
09-2031 107 4%
09-2032 110 4%
09-2033 114 4%
09-2034 118 4%
09-2035 121 4%

DCF Model Components

1. Capital Expenditures (CapEx)

with a 5-year average of $54 million. Projected CapEx is expected to maintain at approximately 2% of revenue.

2. Depreciation & Amortization

Depreciation is based on an average useful life of 5 years for capital assets.

Fiscal Year D&A (USD millions)
09-2026 60
09-2027 60
09-2028 59
09-2029 59
09-2030 59
09-2031 62

3. Working Capital Requirements

Net working capital is expected to increase gradually, with projected changes affecting free cash flow.

Components Average Days
Days Receivables 13
Days Inventory 199
Days Payables 14

4. Free Cash Flow Projections

Fiscal Year EBITDA Tax CapEx Change in NWC FCF
9M/2026 95 (1) 42 (13) 68
2027 162 6 58 37 61
2028 198 15 59 9 114
2029 233 23 61 (3) 152
2030 275 33 63 27 152

DCF Valuation Parameters

Key Assumptions

  • Discount Rate (WACC): WACC / Discount Rate (selected: 8.8% - 12.7%)
  • Long-Term Growth Rate: Long-term Growth Rate (selected: 2.5% - 4.5%)
  • Terminal EV/EBITDA Multiple: 9.2x (based on peer average)

Valuation Summary

Valuation Method Fair Price (USD) Potential Upside
5-Year DCF (Growth) 32.84 20.9%
10-Year DCF (Growth) 36.84 35.6%
5-Year DCF (EBITDA) 38.03 40.0%
10-Year DCF (EBITDA) 45.21 66.4%

Enterprise Value Breakdown

  • 5-Year Model: $1,645M
  • 10-Year Model: $1,733M

Investment Conclusion

Is MarineMax Inc (HZO) a buy or a sell? MarineMax Inc is definitely a buy. Based on our DCF analysis, MarineMax Inc (HZO) appears to be significantly undervalued with upside potential of 35.6%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.

Key investment drivers include:

  • Expanding profit margins (from -1% to 4%)
  • Steady revenue growth (3.6% CAGR)

Investors should consider a strong buy at the current market price of $27.17.