Malibu Boats, Inc.

MBUU Details

Malibu Boats, Inc. (NASDAQ: MBUU) is a prominent designer, producer, and marketer of recreational powerboats such as performance sport boats, sterndrive boats, and outboard boats. Its premium brand portfolio is utilized for various recreational boating activities, including water sports, general recreational boating, and fishing. Through its Malibu and Axis Wake Research boat brands, MBUU is the market leader in the performance sport boat category in the United States.

Latest News:

• Stock Repurchase Program: MBUU launched a stock repurchase program on November 03, 2021, allowing for the purchase of up to USD 70,000 in Class A common stock and LLC Units between November 08, 2021, and November 08, 2022. The repurchase program will be funded with cash on hand by the firm.
• Launched new product: The firm introduced a new Axis T250, the first 25-foot boat made under the cutting-edge Axis brand, on September 09, 2021. The all-new T250 is not only Axis' largest boat to date, but it also had to meet the high expectations that Axis owners have grown to anticipate.

Q1FY22 Results:

• Boost in Revenue: The company reported an increase of 40.07% in net sales to USD 253.50 million in Q1FY22 (ended September 30, 2021) compared to USD 180.98 million in Q1FY21, due to favorable model mix in its Malibu and Cobalt segments, increase in prices, and enhance unit volumes primarily due to the acquisition of Maverick Boat Group on December 31, 2020.
• Improvement in Net Income: MBUU recorded an increase in net income to USD 27.93 million in Q1FY22 vs. USD 22.04 million in Q1FY21.
• Progress in Volumes: The company reported an increase in volumes to 2,024 units in Q1FY22 from 1,635 units in Q1FY21.

Key Risks:

• Dealer Concentration Risk: For FY21, FY20, and FY19, MBUU's top ten dealers contributed 38.7%, 38.5%, and 39.6% of net sales, respectively. If the company becomes unduly reliant on a few dealers for revenue, its financial and operational health may be jeopardized in the future.

Outlook:

• FY22 Estimates: As of November 4, 2021, the firm anticipates revenue growth in the low to mid 20% range year over year in FY22, with adjusted EBITDA margins of around 19.5%.

Valuation Methodology: EV/EBITDA Value Multiple Based Relative Valuation

(Analysis by Kalkine Group)

* % Premium/(Discount) is based on our assessment of the company's FY1 trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.

MBUU Daily Technical Chart (Source: REFINITIV)

Stock Recommendation:

MBUU's share price has surged 23.75% in the past twelve months and is currently trading close to the mid-band of its 52-week range of USD 56.16 to USD 93.00. The stock is currently trading between its 50 and 200 DMA levels, and its RSI Index is 48.39. We have valued the stock using the EV/EBITDA-based relative valuation methodology and arrived at a target price of USD 89.21.

Considering the uptick in the stock price, increase in topline and bottomline performance, dominant market position, and associated risk, we recommend a "Hold" rating on the stock at the current price of USD 71.59, down 5.00% as of November 26, 2021, 12:26 PM ET.

* The reference data in this report has been partly sourced from REFINITIV.

* All forecasted figures and industry information have been taken from REFINITIV. 

Meridian Bioscience, Inc.

VIVO Details

Meridian Bioscience, Inc. (NASDAQ: VIVO) is an integrated life sciences company focused on the development, manufacture, sale and distribution of diagnostic testing systems and kits, primarily for gastrointestinal and respiratory infectious diseases, elevated blood lead levels, and bulk antigens, antibodies, and bioresearch reagents used by other diagnostic manufacturers and researchers. Its operating segments are Diagnostic and Life Sciences. As of November 26, 2021, the company's market capitalization stood at USD 852.98 million.

Latest News:

• Launch of Novel Air-Dryable Mixes:  On November 17, 2021, VIVO unveiled Air-Dryable LAMP Mix and Air-Dryable RT-LAMP 1-Step Mix. These molecular master mixes are explicitly designed for rapid isothermal amplification of nucleic acid sequences, assisting in creating ambient temperature-stable point-of-care diagnostics and speeding up diagnosis.
• Approval for Revogene Assay: On November 10, 2021, VIVO received Emergency Use Authorization (EUA) from US Food and Drug Administration (FDA) for Revogene Assay, a molecular diagnostic test for detecting the SARS-CoV-2 virus, the COVID-19 causative agent. Thus, enabling laboratories and healthcare systems to increase their Covid-19 testing capacity and rapidly provide appropriate care and guide infection control measures for patients. VIVO expects to commence the deliveries in Q1FY22.

FY21 Results:

• Growth in Sales: The company increased 25.32% in net revenues to USD 317.90 million in FY21 (ended September 30, 2021) compared to USD 253.67 million in FY20, attributable to a 43.46% increase in Life Science revenues.
• Increase in Bottomline: VIVO witnessed an increase in net earnings to USD 71.41 million in FY21 vs. USD 46.19 million in FY20.
• Strong Balance Sheet: As of September 30, 2021, the company had cash & cash equivalents of USD 49.77 million and total debt of USD 60.0 million.

Key Risks:

• Customer Concentration Risk: VIVO's ten most significant clients in the Life Science segment accounted for 44% of Life Science segment revenues and 27% of consolidated revenues in FY21. Therefore, the loss of any of its key customers could hurt its financials.
• Product Concentration Risk: COVID-19-related products represented 59% of Life Science segment sales, and 35% of consolidated revenues, in FY21. As a result, any changes in the Covid-19 environment due to increased global immunization may harm the company's financial situation.

Outlook:

• Revenue Estimate: As of November 12, 2021, VIVO expects its FY22 revenues to be in the range of USD 285-300 million.
• Segment Estimate: It also forecasts its diagnostic business to produce between USD 145 - 150 million, while the Life Science segment will contribute between USD 140 - 150 million.
• Operating Margin and EPS Estimate: VIVO anticipates a 21%-22% adjusted operating margin in FY22, with Adjusted Net EPS on a Diluted Basis in the range of USD 0.98-1.08, assuming 44.5 million outstanding shares.
  

Valuation Methodology: EV/Sales Multiple Based Relative Valuation

(Analysis by Kalkine Group)

* % Premium/(Discount) is based on our assessment of the company's FY1 trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.

VIVO Daily Technical Chart (Source: REFINITIV)

Stock Recommendation:

VIVO's stock price has surged by 10.54% in the past month and is currently leaning towards the lower band of the 52-week range of USD 17.00 to USD 30.65. The stock is currently trading between its 50 and 200 DMA levels, and its RSI Index is at 55.64. We have valued the stock using the EV/Sales-based relative valuation methodology and arrived at a target price of USD 21.89.

Considering the company's conservative capital structure, strong margins, innovative product launches, and associated risks, we recommend a "Hold" rating on the stock at the closing price of USD 20.35, up 3.46% as of November 26, 2021.

* The reference data in this report has been partly sourced from REFINITIV.

* All forecasted figures and industry information have been taken from REFINITIV.