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Acushnet Holdings (GOLF)
NYSE:GOLF
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Acushnet Holdings
(NYSE:GOLF)
72Outperform
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
$3.99B
Dividend Yield1.3%
Average Volume (3M)543.27K
Price to Earnings (P/E)19.8
Beta (1Y)0.97
Revenue Growth2.07%
EPS Growth24.87%
CountryUS
Employees7,300
SectorConsumer Cyclical
Sector Strength61
IndustryLeisure
Share Statistics
EPS (TTM)1.62
Shares Outstanding60,013,023
10 Day Avg. Volume469,691
30 Day Avg. Volume543,267
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.31
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit4.40
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$66.17Price Target Upside-2.46% 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 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
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
67.84
Price Trends
64.73
Positive
66.81
Positive
66.61
Positive
Market Momentum
1.07
Negative
60.08
Neutral
85.32
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 67.84 is above the 20-day moving average (MA) of 63.69, above the 50-day MA of 64.73, and above the 200-day MA of 66.61, indicating a bullish trend. The MACD of 1.07 indicates Negative momentum. The RSI at 60.08 is Neutral, neither overbought nor oversold. The STOCH value of 85.32 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 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $3.99B | 19.76 | 27.15% | 1.30% | 2.07% | 24.87% | |
65 Neutral | $241.38M | ― | -9.70% | 5.01% | -7.28% | -924.86% | |
61 Neutral | $6.69B | 11.69 | 3.01% | 3.94% | 2.60% | -21.51% | |
51 Neutral | $14.16B | 180.96 | 3.00% | ― | 18.26% | ― | |
50 Neutral | $1.26B | ― | -46.06% | ― | -1.06% | -1641.55% | |
36 Underperform | $8.02M | ― | -3549.92% | ― | 887.68% | 21.12% | |
25 Underperform | $15.02M | ― | -124.69% | ― | -45.46% | 96.89% |
* Consumer Cyclical Sector Average
Performance Comparison
GOLF
Acushnet Holdings
67.84
5.38
8.61%
MODG
Topgolf Callaway Brands
7.34
-7.95
-51.99%
JOUT
Johnson Outdoors
26.33
-10.17
-27.86%
YYAI
Connexa Sports Technologies
0.93
-13.93
-93.74%
NWTG
Newton Golf Company
1.84
-146.99
-98.76%
AS
Amer Sports, Inc.
26.99
12.07
80.90%
Acushnet Holdings Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 4.35%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a generally positive outlook for Acushnet, with growth in key segments and effective tariff mitigation strategies. However, challenges remain in the FootJoy segment and the Asian apparel market, along with significant tariff impacts.Q1-2025 Updates
Positive Updates
Solid Start to 2025
Acushnet delivered worldwide net sales of $703 million, a 1% increase over last year. Golf equipment net sales increased almost 4% in the quarter with gains in every region, led by new product launches.
Titleist Golf Ball and Club Growth
Titleist Golf Ball business grew 4%, with EMEA region up double digits. Titleist Golf Club business grew 4% versus last year and 15% on a reported basis compared to Q1 2023.
Positive Regional Market Performance
EMEA grew 4% with gains from all segments, and Japan and Korea's conditions improved in March and April, despite initial slow starts.
Effective Tariff Mitigation Strategies
Acushnet expects to mitigate over 50% of the $75 million gross tariff impact in 2025 through supply chain adjustments and vendor negotiations.
Negative Updates
FootJoy Sales Decline
FootJoy sales were down 5% in the quarter due to lower closeout footwear sales and product line rationalization.
Challenges in Asia Apparel Market
Net sales declined in Korea and Japan primarily due to FootJoy golf wear and Titleist apparel products. Korea's super premium apparel segment continues to correct after a period of outsized growth.
Tariff Exposure Impact
The company faces a gross impact of $75 million in 2025 due to tariffs, primarily from a 145% China import tariff rate.
Company Guidance
During Acushnet's first quarter earnings call for fiscal year 2025, the company reported a worldwide net sales increase of 1% to $703 million, driven predominantly by a 4% growth in their Titleist Golf Equipment and Golf Gear segments. Adjusted EBITDA was noted at $139 million, reflecting a $15 million decrease due to increased investment in their equipment segment. Geographically, the EMEA region exhibited a 4% sales growth, whereas the US market saw a 1% increase. However, sales in Japan and Korea declined by 2% and 4%, respectively, attributed to adverse weather conditions and corrections in the apparel segment. The FootJoy segment experienced a 5% decrease due to lower closeout sales and product line rationalizations. Despite these challenges, Acushnet anticipates mitigating over 50% of a projected $75 million gross tariff impact in 2025 through supply chain adjustments and potential selective pricing actions. The guidance remains cautious amid macroeconomic uncertainties, but the company highlights the resilience of its core consumer base and plans to focus on product fitting and service experiences to navigate the evolving landscape.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.