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Acushnet Holdings (GOLF)
NYSE:GOLF
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Acushnet Holdings
(NYSE:GOLF)
71Outperform
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
$4.11B
Dividend Yield1.25%
Average Volume (3M)684.79K
Price to Earnings (P/E)20.3
Beta (1Y)0.92
Revenue Growth3.15%
EPS Growth15.44%
CountryUS
Employees7,300
SectorConsumer Cyclical
Sector Strength50
IndustryHotels, Lodging & Leisure
Share Statistics
EPS (TTM)3.34
Shares Outstanding59,928,970
10 Day Avg. Volume611,512
30 Day Avg. Volume684,793
Financial Highlights & Ratios
PEG Ratio1.32
Price to Book (P/B)N/A
Price to Sales (P/S)1.67
Price to Cash Flow (P/CF)-916.50
P/FCF Ratio122.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$70.60Price Target Upside-0.10% Downside
Rating ConsensusHold
Number of Analyst Covering6
Acushnet Holdings Business Overview & Revenue Model
Company DescriptionAcushnet Holdings Corp. (GOLF) is a leading global designer, manufacturer, and marketer of golf products. The company operates in the golf industry, offering a wide range of high-quality products including golf balls, golf clubs, footwear, gloves, and other golf-related accessories. Acushnet is best known for its premium brands such as Titleist and FootJoy, which are prominent in the golfing community for their performance and innovation.
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 demonstrates solid financial performance with steady 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.Income Statement
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.75
Positive
Balance Sheet
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.68
Positive
Cash Flow
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.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| 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
Positive
70.67
Price Trends
68.21
Positive
68.25
Positive
66.49
Positive
Market Momentum
0.16
Negative
54.83
Neutral
84.72
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GOLF, the sentiment is Positive. The current price of 70.67 is above the 20-day moving average (MA) of 66.59, above the 50-day MA of 68.21, and above the 200-day MA of 66.49, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 54.83 is Neutral, neither overbought nor oversold. The STOCH value of 84.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GOLF.
Acushnet Holdings Risk Analysis
Acushnet Holdings disclosed 66 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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $17.19B | 15.31 | 40.08% | 2.08% | 5.67% | 21.00% | |
72 Outperform | $113.01B | 24.28 | 34.67% | 1.92% | -4.77% | -5.99% | |
71 Outperform | $4.72B | 22.08 | 12.01% | 1.42% | -3.35% | -6.09% | |
71 Outperform | $4.11B | 20.35 | 26.30% | 1.25% | 3.15% | 15.44% | |
60 Neutral | $12.41B | 10.84 | 1.22% | 3.53% | 1.65% | -18.69% | |
52 Neutral | $2.98B | ― | -6.12% | ― | -7.47% | -131.70% | |
39 Underperform | $23.37M | ― | -32.89% | 45.24% | -10.09% | -867.80% |
* Consumer Cyclical Sector Average
Performance Comparison
GOLF
Acushnet Holdings
68.48
6.98
11.35%
BGFV
Big 5 Sporting Goods
0.98
-2.64
-72.93%
COLM
Columbia Sportswear
80.52
1.58
2.00%
DKS
Dick's Sporting Goods
198.97
20.37
11.41%
NKE
Nike
74.17
-24.17
-24.58%
UA
Under Armour
6.65
-1.14
-14.63%
Acushnet Holdings Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: 7.21% | 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.