Lazydays Holdings Inc (GORV)

Lazydays Holdings Inc. (LZ) - A Comprehensive Overview

Company Profile:

History and Background:

Founded in 1976 by Bill Murnane, Lazydays Holdings Inc. (LZ) is a publicly traded company and the largest RV dealership network in the United States. Its headquarters are located in Tampa, Florida, with 31 dealerships in 16 states. LZ has a long-standing reputation for customer service and expertise in the RV industry.

Core Business Areas:

LZ's primary business activities include:

• RV Sales: New and used RVs from various manufacturers.
• Parts and Accessories: Sale of RV parts and accessories.
• Service and Repair: RV maintenance and repair services.
• Finance: Financing options for RV purchases.
• Insurance: RV insurance products.

Leadership and Corporate Structure:

LZ is currently led by Chairman and CEO Bill Murnane. The company has a board of directors and an executive management team with extensive experience in the RV industry.

Top Products and Market Share:

Top Products:

• Class A motorhomes
• Class C motorhomes
• Fifth wheels
• Travel Trailers

Market Share:

LZ holds the largest market share of any single RV dealership in the United States, with approximately 4% of the total market share. The RV industry is highly fragmented, with several other large dealerships and numerous independent dealerships.

Product Performance and Comparison:

LZ's RV sales have grown steadily in recent years. The company offers a wide variety of RVs from leading manufacturers, and customer reviews generally praise their service and expertise. However, competitors such as Camping World Holdings (CWH) also offer a broad selection of RVs and compete for market share.

Total Addressable Market (TAM):

The global RV market was valued at $56.8 billion in 2021 and is projected to reach $88.2 billion by 2028, growing at a CAGR of 8.1%. The US RV market represents a significant portion of this global market, with strong growth potential driven by increasing consumer demand for outdoor recreation and travel.

Financial Performance:

Recent Financial Performance:

• Revenue for the fiscal year 2022 was $2.26 billion, a 16.3% increase year-over-year.
• Net income was $29.1 million, compared to $109.7 million in 2021. The decrease in net income was primarily due to higher operating expenses.
• Profit margin was 2.6%, compared to 8.7% in 2021.
• Earnings per share (EPS) were $0.67, compared to $2.61 in 2021.

Cash Flow and Balance Sheet:

LZ's cash flow from operations was $103.7 million in 2022, a decrease from $216.2 million in 2021. The company's balance sheet shows total assets of $1.77 billion and total liabilities of $1.16 billion, resulting in a debt-to-equity ratio of 1.03.

Dividends and Shareholder Returns:

Dividend History:

LZ has not paid dividends since 2020. In 2020, the company paid a dividend of $0.12 per share.

Shareholder Returns:

Total shareholder returns for LZ have been negative over the past year and 5 years, due to the stock price decline.

Growth Trajectory:

Historical Growth:

LZ's revenue has grown at a CAGR of 15.7% over the past 5 years. However, the company's profitability has been impacted by rising operating expenses.

Future Growth Projections:

LZ's future growth prospects are tied to the overall RV market growth. The company expects to continue expanding its dealership network and online sales channels.

Market Dynamics:

Industry Trends:

The RV industry is benefiting from strong consumer demand and a growing trend towards outdoor recreation. Technological advancements in RVs, such as improved fuel efficiency and connectivity, are also driving market growth.

LZ's Positioning:

LZ is well-positioned within the RV industry due to its large dealership network, strong brand recognition, and focus on customer service. The company is also adapting to market changes by expanding its online sales channels and investing in digital marketing.

Competitors:

Key Competitors:

• Camping World Holdings Inc. (CWH)
• General RV Center (GNRV)
• Recreation Vehicle Dealers Association (RVDA)

Competitive Advantages and Disadvantages:

LZ has a competitive advantage in its large dealership network and strong brand recognition. However, the company faces competition from other large dealerships and independent dealers.

Potential Challenges and Opportunities:

Potential Challenges:

• Supply chain disruptions and rising costs
• Increasing competition from online retailers
• Economic downturns and changes in consumer spending

Potential Opportunities:

• Expansion into new markets
• Development of new RV models and technologies
• Growth through acquisitions and partnerships

Recent Acquisitions:

Acquisition of The RV Source in 2021:

LZ acquired The RV Source, a dealership in Fort Myers, Florida, for $12.5 million in 2021. This acquisition expanded LZ's dealership network and increased its presence in the Florida market.

AI-Based Fundamental Rating:

Rating:

Based on an AI-based fundamental analysis, LZ's stock receives a rating of 6 out of 10.

Justification:

The rating considers LZ's strong market position, brand recognition, and growth potential. However, the company's recent decline in profitability and negative shareholder returns are factors that lower the rating.

Sources:

• Lazydays Holdings Inc. (LZ) investor relations website.
• U.S. Securities and Exchange Commission (SEC) filings.
• Market research reports from sources such as IBISWorld and Statista.

Disclaimer:

This information is for educational purposes only and should not be considered investment advice. It is important to conduct your own due diligence before making any investment decisions.