Marine Products Corporation manufactures fiberglass motorized boats distributed and marketed through its independent dealer network. MPC is a leading designer and manufacturer of fiberglass boats under two brand names: Chaparral and Robalo. Chaparral builds sterndrive, outboard and jet drive pleasure boats, including H2O Sport and Fish & Ski Boats, SSi and SSX Sportboats, Sunesta WT Sportdecks, Signature Cruisers, SunCoast Sportdeck, Vortex Jet Boats, and SunCoast outboards. Robalo builds outboard sport fishing boats which include center console, dual console, walkaround cabin and bay boat models. The Company sells its products to a network of 147 domestic and 85 international independent authorized dealers. Marine Products' mission is to enhance its customers' boating experience by providing them with high quality, innovative powerboats.
(Summary) (Company) (Chart)
25 September 2016
1yr Target $10.00
Payout Ratio 57.14%
1yr Cap Gain 11.60%
1yr Tot Return 14.27%
EPS (ttm) $0.42
EPS next yr $0.63
Forward P/E 14.22
EPS next 5yr 10.00%
1yr Price Support $6.30
Market Cap $343.71 Bil
Revenues $255.70 Bil
Earnings $15.40 Mil
Profit Margin 6.02%
Quick Ratio 1.10
Current Ratio 3.00
1yr RevGR 21.05%
3yr RevGR 11.48%
5yr RevGR 15.43%
1yr EarnGR 62.50%
3yr EarnGR 26.78%
5yr EarnGR 28.80%
1yr DivGR 29.41%
3yr DivGR 29.71%
5yr DivGR ---
MPC is a leading designer and manufacturer of fiberglass boats under two brand names: Chaparral and Robalo. Chaparral builds sterndrive, outboard and jet drive pleasure boats, including H2O Sport and Fish & Ski Boats, SSi and SSX Sportboats, Sunesta WT Sportdecks, Signature Cruisers, SunCoast Sportdeck, Vortex Jet Boats, and SunCoast outboards. Robalo builds outboard sport fishing boats which include center console, dual console, walkaround cabin and bay boat models.
The Company sells its products to a network of 147domestic and 85 international independent authorized dealers. Marine Products' mission is to enhance its customers' boating experience by providing them with high quality, innovative powerboats. The Company intends to remain a leading manufacturer of recreational powerboats for sale to a broad range of consumers worldwide.
Chaparral manufactures 35 models in seven different product lines - H2O Sport and Fish & Ski Boats, SSi and SSX Sportboats, Sunesta Sportdecks, SIgnature Cruisers, Vortex Jet Boats, and SunCoast outboards. The Company enjoys a strong industry reputation for innovation and quality.
Chaparral models have been named "Boat of the Year" many times and received over 48 recognitions for product excellence to include 12 Boat of the Year trophies. Additionally, Chaparral has received 36 awards for product excellence, and the year it was introduced the 327SSX earned the NMMA Innovation award. At the present time, Chaparral's market share is approximately 13.9 percent.
A fiberglass fabricating company in Fort Lauderdale, Florida produced the first Chaparral boat in 1965. In 1976, Chaparral moved its operations to Nashville, Georgia. Not only did these facilities allow the fast-growing Company to expand its operations, but also the location offered an experienced labor force and better access to major interstate highways.
In 1986, RPC Energy Services acquired Chaparral. With a larger corporate entity now helping to support the Company, Chaparral management was able to devote its full attention to expanding its line of sterndrive powerboats. Today, Chaparral is a subsidiary of Marine Products Corporation, publicly traded on the New York Stock Exchange under the symbol MPX and has a significant dealer network in the nation's top recreational boating states. It serves all major boating markets through its extensive dealer network, composed of approximately 147 independent dealers, as well as 85 dealers outside the United States. The Company's sales operations include an independent field sales force that is responsible for dealer relationships. This sales force is coordinated by Chaparral's national sales office.
A premium quality line of outboard powered bay boat, center console, dual console and walkaround cabin style sport fishing boats.
Marine Products purchased Robalo, a leading sport fishing boat brand, in June 2001 as a demonstration of its commitment to expand its portfolio of quality marine craft. Robalo Marine was founded in 1969, and its first boat was a 19’ center console salt-water fishing boat, among the first of this type of boat to have an “unsinkable” hull.
Today, Robalo manufacturing is located in Valdosta, Georgia. Valdosta is just a 30-minute drive from the Chaparral world headquarters, so Robalo benefits from a close proximity to the operating management of Marine Products while developing its own brand identity and integrating into Marine Products.
Robalo produced and sold its first two models as part of Marine Products during the fourth quarter of 2001. The Robalo sales force is selectively cultivating a dealer network, and has approximately 47 dealers. Robalo is currently offering 15 different models from 18 to 30 feet.
Marine Products Corp is a small company with few followers so this isn't something that's going to dominate my portfolio. On the other hand, it should be a great addition if bought at the right price. Today this company may seem like just a little on the expensive side but with its fundamentals rising as fast as it seems, today's price could seem cheap in a very short time.
Like I said in the opening paragraph, autumn may not be the best time to buy boat stocks because most sales occur in the spring, so there's no hurry to pick up shares in this company. But since the markets always look forward, it won't be too many months before everyone will start looking at companies like Marine Products.
My biggest concerns are the P/E ratio over 20, the PEG over 2 and the fact that estimates are based on only one analyst. These ratios are higher than I normally like to see when I invest in a company. On the other hand, what I like to see is no debt and great liability coverage, which are exceptional for this company. Finally a relatively high beta gives me hope that I can buy this company on a decent pullback if that occurs as buyers start to get interested in winter sports.
I intend to put in bids near $8.50 per share and see if I can catch this stock on any pullback. I realize there's a tender offer for up to 3.2 million shares at $9 per share so I'm not sure if the stock will fall to $8.50 per share before 1 Nov when the tender offer expires. So, if I don't get a hit at that price in the next few weeks I'll raise that bid up closer to $9 per share which is what management thinks it's worth. I think this company may have a very nice future.