Marine ProductsNYSE: MPX

MPX's revenue declines in Q4 and Q1 have been deeper than previously anticipated as industry challenges persist. Excess dealership inventories and weak consumer confidence continue to ravage demand, but an eventual industry recovery should happen with interest rates playing a key role. Despite the challenges, MPX has maintained high margins and has a strong balance sheet leaving potential for M&A or excess capital distribution.

Marine Products is a Georgia-based manufacturer of smaller fishing and seaside excursion boats, with a leading market position. The company has enjoyed strong returns and margins since 2021, with zero debt and plenty of cash on hand currently. A record-low valuation and conservative financial position have created an attractive investment opportunity in MPX.

Marine Products Corporation (MPX) Q4 2023 Earnings Call Transcript

Marine Products has achieved impressive growth, with revenue growing +10% and EBITDA +20% during the last decade. The company has benefited from a market-leading brand, as well as strong technological development to ensure a highly competitive suite of boats. These factors are underpinned by an extensive dealership. We believe its growth trajectory is sustainable in the medium term, owing to international growth opportunities, economic improvement, and increased interest in recreational boating.

Marine Products Corporation (NYSE:MPX ) Q3 2023 Earnings Conference Call October 25, 2023 8:00 AM ET Company Participants Mike Schmit - Chief Financial Officer Ben Palmer - President & Chief Executive Officer Jim Landers - Vice President of Corporate Services Conference Call Participants Brandon Rolle - D.A. Davidson Operator Good morning and thank you for joining us for Marine Products Corporation's Third Quarter 2023 Financial Earnings Conference Call.

Shares of Winnebago Industries Inc. WGO, +0.58% were indicated down nearly 2% in premarket trading Wednesday, after the recreational vehicle maker beat fiscal fourth-quarter profit expectations but missed on revenue and expects continued pressure on the retail market. Net income for the quarter to Aug. 26 fell to $43.8 million, or $1.28 a share, from $82.6 million, or $2.61 a share, in the year-ago period.

Marine Products is a strong candidate for a long-term position due to its strong financial metrics and moderate revenue growth. The company's revenue growth is expected to be maintained as backorders from pandemic-related supply chain constraints are filled. Risks include potential sales dips, adverse weather conditions, and potential negative impact on margins from new boat models.

Marine Products Corporation shares may rise further due to strong trading trends, robust margins, and favorable demand for boats. The company's customers, who mostly belong to the middle class and above, are less sensitive to price increases and higher interest rates. Normalization in supply chains and a potential slowdown in inflation in the second half of 2023 may support the company's growth.

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