MasterCraft Boat Holdings Inc. Common Stock (MCFT)

FairStock Score: 42/100 — MIXED

Key Financials

Strengths

• Generates $21 million in annual free cash flow (5.5% yield on market cap)
• Altman Z-Score of 4.6 confirms minimal bankruptcy risk and strong solvency

Concerns

• Trades significantly above Graham Number ($13) with negative 76% margin of safety—limited downside protection

AI Analysis

MasterCraft Boat Holdings Inc. Common Stock is a micro-cap consumer cyclical company valued at $378 million. The business generates $298 million in annual revenue with a 0.8% net margin and $21 million in free cash flow. From a quality standpoint, MasterCraft shows solid Piotroski F-Score of 6/9 and healthy Altman Z-Score of 4.6. On valuation, the stock is trading at a premium 35.4x earnings, with trades above its Graham Number with a negative 76% margin. Growth dynamics show revenue growing at 13.2% and profit growth of -8.0%. Our composite FairStock Score of 42/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $21 million in annual free cash flow (5.5% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 35x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer