Commentary

Company of the Week – Marine Products Corp.

Marine Products Corp (MPX) is a manufacturer of powerboats.  The company was founded in 1965 under the name Chaparral Boats.  In 1986 the company was purchased by RPC Energy Services, from which it was spun-off in 2001.  Marine Products Corp immediately purchased Robalo early in 2001, and continues to operate with subsidiaries called Chaparral and Robalo.  The management is dedicated to “improvements in manufacturing efficiency, customer service, and refinement of product offerings” and has grown the company’s market share from 5.53% in 1999 to 8.7% in 2003 according to their website, http://www.marineproductscorp.com. 

A few tidbits from the company’s financial statements:

  • Total Revenue has more than doubled since 2001.
  • Net Income has nearly tripled since 2001.
  • Company has no long-term debt.
  • 5-year average growth rate in Net Income is 13.44%.
  • Current Ratio is 4.15
  • Has paid a dividend since it was spun-off in 2001.

Basic Stock information:

  • Price:  $8.49
  • PE Ratio:  13.34
  • Price-Book Ratio:  3.5
  • Market Cap:  321.47 Million
  • Dividend Yield:  2.37%

We believe this stock may be a suitable investment for enterprising intelligent investors seeking to follow a value investing strategy.  The stock appears to be undervalued, and we believe it has the potential to reach $11.58/share within the next few years. 

Neither of us holds stock in Marine Products Corp (MPX).  Also, please read our disclaimer. 

Back To Top