On September 28, 2023, Coliseum Capital Management, LLC (Trades, Portfolio) made a significant addition to its portfolio by acquiring 3,113,950 shares of MasterCraft Boat Holdings Inc (MCFT, Financial) at a price of $21.68 per share. This transaction has increased the firm's total holdings in MasterCraft to 3,870,676 shares, representing 7.13% of its portfolio and 22.50% of MasterCraft's total shares.
About Coliseum Capital Management, LLC (Trades, Portfolio)
Coliseum Capital Management, LLC (Trades, Portfolio) is a prominent investment firm based in Metro Center, Stamford, CT. The firm's portfolio consists of 12 stocks, with a total equity of $1.11 billion. Its top holdings include Purple Innovation Inc (PRPL, Financial), ModivCare Inc (MODV, Financial), Gildan Activewear Inc (GIL, Financial), GMS Inc (GMS, Financial), and Sonos Inc (SONO, Financial). The firm's investment strategy primarily focuses on the Consumer Cyclical and Industrials sectors.
MasterCraft Boat Holdings Inc: An Overview
MasterCraft Boat Holdings Inc (MCFT, Financial) is a leading American company that designs, manufactures, and markets performance sport boats and outboard boats. The company operates in three brand-specific segments: Aviara, Crest, and MasterCraft. As of September 29, 2023, the company has a market capitalization of $382.76 million and its stock is trading at $22.25 per share. According to GuruFocus, the company is significantly undervalued with a GF Value of 36.88 and a Price to GF Value ratio of 0.60. The company's PE Percentage stands at 5.69, indicating a profitable operation.
Financial Analysis of MasterCraft Boat Holdings Inc
MasterCraft Boat Holdings Inc has demonstrated strong financial performance, as evidenced by its high GF Score of 91/100, indicating a high outperformance potential. The company's Financial Strength is ranked 8/10, while its Profitability Rank is 9/10, and its Growth Rank is 7/10. The company's GF Value Rank and Momentum Rank are both 8/10, indicating a strong value and momentum.
Performance Evaluation of MasterCraft Boat Holdings Inc
MasterCraft Boat Holdings Inc has a Piotroski F-Score of 7, indicating a healthy situation. The company's Altman Z score is 5.11, suggesting it is not in any kind of financial distress. The company's interest coverage ratio is 43.64, indicating its ability to cover its interest expenses. The company's ROE and ROA are 42.25 and 21.94, respectively, indicating efficient use of its resources. The company's Gross Margin Growth is 0.60, and its Operating Margin Growth is 5.30, indicating improving profitability.
Conclusion
The acquisition of a significant stake in MasterCraft Boat Holdings Inc by Coliseum Capital Management, LLC (Trades, Portfolio) is a strategic move that could potentially yield substantial returns given the company's strong financial performance and undervalued status. The transaction has increased the firm's exposure to the Consumer Cyclical sector and could potentially enhance its portfolio performance. Based on MasterCraft's current financials and market position, the company is expected to continue its strong performance in the future.
