StockStory Flags OneWater’s Debt and Earnings Risks

StockStory said it was cautious on OneWater, citing falling earnings per share, debt and weaker same-store sales. The publisher’s analysis noted that the stock had lost 2.1% since April, while the S&P 500 gained 16.6%.

As of 15:14 UTC on Oct. 1, OneWater shares traded at $9.31, down 2.31% since the previous close. StockStory’s article cited a price of $9.53 when it was published.

The publisher said OneWater’s same-store sales grew by an average of 1.2% a year, below most retailers. It also reported that earnings per share declined by 60.4% annually over the past three years.

StockStory pointed to $468.3 million in debt and $68.71 million in cash. It said the company’s net debt was five times its EBITDA of $75.21 million over the past 12 months, a level the publisher described as overleveraged.

The analysis said the debt could make additional borrowing more expensive and warned that a drop in profitability could lead credit agencies to downgrade the company’s rating. StockStory also noted that OneWater traded at 9.1 times forward earnings per share.