Acushnet Holdings (GOLF) AI Stock Analysis

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Acushnet Holdings

(NYSE:GOLF)

70Outperform

Acushnet Holdings demonstrates strong financial performance and positive earnings call sentiment, supported by consistent revenue growth and strategic investments. However, increased leverage and macroeconomic challenges in key markets introduce some risks. Technical indicators show neutral momentum, and the valuation is fair with a moderate dividend yield. Overall, the company is on a stable path with room for improvement in specific areas.

Positive Factors

Market Performance

GOLF shares have delivered an annualized return of 20%, outperforming the S&P 500's 15% return over the same period.

Negative Factors

Earnings Growth

While GOLF's EBITDA CAGR grew approximately 12% from 2019 to 2023, it is expected to slow to around 7% between 2023 and 2025.

Online Engagement

GOLF's web traffic dropped 21.3% YoY in August, indicating a clear downward trend in online engagement.

Acushnet Holdings (GOLF) vs. S&P 500 (SPY)

Market Cap

$3.65B

Dividend Yield1.45%

Average Volume (3M)586.95K

Price to Earnings (P/E)18.1

Beta (1Y)0.93

Revenue Growth3.15%

EPS Growth15.44%

CountryUS

Employees7,300

SectorConsumer Cyclical

Sector Strength62

IndustryLeisure

Share Statistics

EPS (TTM)3.34

Shares Outstanding59,928,970

10 Day Avg. Volume729,553

30 Day Avg. Volume586,950

Financial Highlights & Ratios

PEG Ratio1.17

Price to Book (P/B)N/A

Price to Sales (P/S)1.60

Price to Cash Flow (P/CF)-877.80

P/FCF Ratio116.90

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$70.60

Price Target Upside14.35% Upside

Rating ConsensusHold

Number of Analyst Covering6

Acushnet Holdings Business Overview & Revenue Model

Company DescriptionAcushnet Holdings Corp. designs, develops, manufactures, and distributes golf products in the United States, Europe, the Middle East, Africa, Japan, Korea, and internationally. The company operates through four segments: Titleist Golf Balls, Titleist Golf Clubs, Titleist Golf Gear, and FootJoy Golf Wear. It offers golf balls under the Titleist brand; golf clubs, such as drivers, fairways, hybrids, and irons under the Titleist brand name; wedges under the Vokey Design brand; and putters under the Scotty Cameron brand. The company also provides golf bags, headwear, golf gloves, travel products, head covers, and other golf accessories, as well as offers customization and personalization of products in Titleist golf gear. In addition, it offers golf shoes, gloves, golf outerwear, and men's and women's golf apparels under the FootJoy brand; and ski, golf, and lifestyle apparels under the KJUS brand name. It sells its products through on-course golf shops and golf specialty retailers, as well as through representatives, other retailers, and online. The company was formerly known as Alexandria Holdings Corp. and changed its name to Acushnet Holdings Corp. in March 2016. Acushnet Holdings Corp. was founded in 1910 and is headquartered in Fairhaven, Massachusetts.

How the Company Makes MoneyAcushnet Holdings generates revenue primarily through the sale of its golf products. The company's key revenue streams include golf balls, which are a significant part of its business due to the popularity of its Titleist brand. Additionally, Acushnet earns from the sale of golf clubs and golf gear, including apparel and footwear, under its FootJoy brand. The company benefits from strong brand loyalty and continuous innovation, which helps maintain its market position. Acushnet's earnings are also supported by strategic partnerships with professional golfers and sponsorships of golf events, enhancing brand visibility and driving sales.

Acushnet Holdings Financial Statement Overview

Summary

Acushnet Holdings shows solid financial performance with consistent revenue growth and operational efficiency. While leverage has increased, the company maintains a stable equity position. Cash flow generation is improving, though historical fluctuations suggest some cash management challenges. Overall, the company is on a positive trajectory with some areas to monitor.

Income Statement

Positive

Acushnet Holdings shows a consistent revenue growth trend, with a notable increase from $1,612 million in 2020 to $2,457 million in 2024. Gross profit margin remains strong, indicating efficient cost management. However, the net profit margin saw fluctuations, suggesting some volatility in net earnings. EBIT and EBITDA margins are healthy, reflecting stable operational performance.

Balance Sheet

Positive

The company's debt-to-equity ratio has increased over the years, indicating higher leverage which might pose a risk. However, the equity ratio remains relatively stable, suggesting a balanced asset structure. Return on equity is positive, driven by consistent net income growth, though it shows slight variability over the observed period.

Cash Flow

Positive

Free cash flow has seen significant growth after a dip in 2022, indicating improved cash generation efficiency. The operating cash flow to net income ratio is robust, demonstrating strong cash conversion from operations. However, historical fluctuations in free cash flow to net income ratio highlight potential instability in free cash generation over time.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
2.46B	2.38B	2.27B	2.15B	1.61B
	Gross Profit
1.19B	1.25B	1.18B	1.12B	829.84M
	EBIT
304.26M	285.31M	281.53M	259.81M	145.46M
	EBITDA
360.27M	336.59M	315.15M	295.80M	171.27M
	Net Income Common Stockholders
214.30M	198.43M	199.28M	178.87M	96.01M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
53.06M	65.44M	58.90M	281.68M	151.45M
	Total Assets
2.18B	2.20B	2.19B	2.01B	1.87B
	Total Debt
763.96M	794.09M	567.85M	314.97M	333.93M
	Net Debt
710.90M	728.65M	508.94M	33.29M	182.48M
	Total Liabilities
1.38B	1.28B	1.21B	922.27M	849.18M
	Stockholders Equity
765.25M	864.24M	939.06M	1.04B	984.08M
Cash Flow		Free Cash Flow
170.48M	271.23M	-194.15M	276.52M	239.75M
	Operating Cash Flow
245.11M	371.83M	-67.79M	314.12M	264.43M
	Investing Cash Flow
-74.62M	-101.49M	-140.22M	-37.60M	-24.68M
	Financing Cash Flow
-179.68M	-264.73M	-8.58M	-140.33M	-128.59M

Acushnet Holdings Technical Analysis

Technical Analysis Sentiment

Negative

Last Price61.74

Price Trends

50DMA

65.48

Negative

100DMA

68.46

Negative

200DMA

66.59

Negative

Market Momentum

MACD

0.30

Negative

RSI

52.34

Neutral

STOCH

73.10

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GOLF, the sentiment is Negative. The current price of 61.74 is below the 20-day moving average (MA) of 64.70, below the 50-day MA of 65.48, and below the 200-day MA of 66.59, indicating a bearish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 52.34 is Neutral, neither overbought nor oversold. The STOCH value of 73.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GOLF.

Acushnet Holdings Risk Analysis

Acushnet Holdings disclosed 64 risk factors in its most recent earnings report. Acushnet Holdings reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Acushnet Holdings Peers Comparison

Overall Rating

UnderperformOutperform

Sector (59)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GOLF	70 Outperform	$3.65B	18.08	26.30%	1.45%	3.15%	15.44%
Sector *	59 Neutral	$11.38B	10.18	-0.84%	4.04%	1.25%	-16.04%
AS	49 Neutral	$12.21B	156.90	3.00%	―	18.26%	―
JOUT	48 Neutral	$227.38M	―	-9.70%	5.93%	-9.98%	-348.96%
MODG	46 Neutral	$1.15B	―	-46.06%	―	-1.06%	-1641.55%
NWTG	30 Underperform	$8.45M	―	-3549.92%	―	840.00%	-29.73%
YYAI	25 Underperform	$10.21M	―	-124.69%	―	-45.46%	96.89%

* Consumer Cyclical Sector Average

Performance Comparison

GOLF

Acushnet Holdings

61.74

1.66

2.76%

MODG

Topgolf Callaway Brands

6.27

-9.43

-60.06%

JOUT

Johnson Outdoors

22.62

-18.31

-44.73%

YYAI

Connexa Sports Technologies

0.72

-44.08

-98.39%

NWTG

Newton Golf Company

1.85

-145.15

-98.74%

Amer Sports, Inc.

22.17

8.53

62.54%

Acushnet Holdings Earnings Call Summary

Earnings Call Date: Feb 27, 2025 | % Change Since: -6.34% | Next Earnings Date: May 1, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted strong financial performance in 2024, with growth in sales and adjusted EBITDA, as well as strategic investments and increased shareholder returns. However, challenges such as declining FootJoy sales and macroeconomic issues in key international markets were noted.

Highlights

Fourth Quarter Sales Growth

Acushnet delivered fourth quarter sales of $445 million, up 8% for the period, driven by strong golf equipment sales led by Titleist GT Metals and double-digit gains in gear.

Full Year Financial Performance

Acushnet achieved sales of $2.46 billion in 2024, a 4% constant currency gain, and adjusted EBITDA of $404 million, a 7.5% increase for the year.

Dividend Increase

The Board approved a 9% increase to the quarterly dividend payout in 2025 to $0.235 per share, marking the eighth consecutive annual increase since 2017.

Strong Golf Equipment Segment

Titleist Golf Equipment increased net sales by 7% for the year, with double-digit growth in golf clubs and strong performance in all regions led by the U.S. and Japan.

Healthy Golfer Participation

U.S. rounds increased 2% in 2024 to a record 543 million, with the golfer base increasing by 6% to 28.1 million golfers.

Lowlights

FootJoy Sales Decline

FootJoy sales were off 2% for the year due to declines in international markets, despite gains in the U.S.

Softness in Asia's Titleist Apparel Market

There was continued softness in the Asia-specific Titleist apparel market, impacting overall performance.

Macroeconomic Challenges

Challenging macroeconomic conditions persist in key regions outside the U.S., impacting growth expectations.

Company Guidance

During the Acushnet Company 4Q '24 earnings call, the company reported strong financial results, with fourth-quarter sales reaching $445 million, an 8% increase, and adjusted EBITDA of $12.4 million. For the full year 2024, Acushnet achieved sales of $2.46 billion, marking a 4% gain on a constant currency basis, and adjusted EBITDA of $404 million, a 7.5% increase. Titleist Golf Equipment sales rose by 7%, with notable growth in both golf balls and clubs. Additionally, the company announced a 9% increase in its quarterly dividend payout for 2025 to $0.235 per share and reported a total return to shareholders of over $850 million in the past three years. Looking ahead, Acushnet is planning for a 2.6% to 4.6% growth in net sales in 2025 on a constant currency basis, with continued investments in global fitting networks, digital commerce, and the Titleist Performance Institute.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.