Outdoor Holding Company 8.75% Series A Cumulative Redeemable Perpetual Preferred Stock (POWWP)

FairStock Score: 40/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I start with the business, not the yield. Outdoor Holding runs GunBroker, a niche online marketplace for lawful firearms sales and accessories. Marketplaces can enjoy network effects and high margins, and the latest filed quarter—fiscal Q1 2027, ended 2026-06-30—showed revenue of $14.5M and net income of $3.6M, a 24.68% margin. The prior filed quarters also improved: fiscal Q3 2026, ended 2025-12-31, had revenue $13.4M and net income $2.2M; fiscal Q2 2026, ended 2025-09-30, had revenue $12.0M and net income $1.4M; fiscal Q1 2026, ended 2025-06-30, had revenue $11.9M and a net loss of $6.5M. But the annual record is weak. In FY2026, ended 2026-03-31, revenue was $51.1M and net loss was $3.5M. In FY2025, revenue was $49.4M and net loss was $130.8M. In FY2024, revenue was $53.9M and net loss was $16.6M. The Lynch category is none because the company lost money in each of the last four years. At the 2026-10-13 close, FairStock calculations show a P/E of 83.17, P/B of 11.88, ROE of 1.96%, ROCE of 2.36%, Graham Number of $3.64, and EV/EBITDA of 131.47—not Graham-style bargains for the common equity. For POWWP, the 8.75% preferred yields 9.07% at $24.12, near its 52-week range. Cumulative dividends and low leverage (D/E 0.05, Altman Z 57.96) help, but trailing free cash flow is only $9.4M and the preferred sits ahead of common. I want consistent cash earnings covering that fixed dividend before trusting the headline yield.

In plain English: The company runs GunBroker, an online marketplace for lawful firearm, ammunition, and shooting-accessory sales. It has started making small quarterly profits, but it lost money in each of the last four years and its cash generation is tiny compared with its size. At $24.12, the 8.75% preferred shares are near the top of their 52-week range and yield 9.07%; the price looks fair-to-full unless the recent profit improvement lasts and covers the dividend.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2027 10-Q (period ended 2026-06-30) · fiscal Q3 2026 10-Q (period ended 2025-12-31) · fiscal Q2 2026 10-Q (period ended 2025-09-30) · fiscal Q1 2026 10-Q (period ended 2025-06-30) · FY2026 10-K (period ended 2026-03-31) · FY2025 10-K (period ended 2025-03-31) · FY2024 10-K (period ended 2024-03-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer