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U.S. Leisure Industry Analysis

UpdatedAug 17, 2022
DataAggregated Company Financials
Companies53
  • 7D9.1%
  • 3M4.8%
  • 1Y-43.1%
  • YTD-22.4%

The Leisure industry is up 9.1% in the last week, with Peloton Interactive up 23%. In the same time, AMMO was down 13%. However, the industry is down 43% over the past year. Earnings are forecast to grow by 16% annually.

Industry Valuation and Performance

Has the U.S. Leisure Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 17 Aug 2022US$61.3bUS$49.7bUS$2.3b10.4x26.5x1.2x
Fri, 15 Jul 2022US$53.9bUS$48.6bUS$2.2b9.9x24.8x1.1x
Sun, 12 Jun 2022US$56.0bUS$48.7bUS$2.2b10x25.8x1.2x
Tue, 10 May 2022US$61.2bUS$48.4bUS$2.5b10.2x24.7x1.3x
Thu, 07 Apr 2022US$62.7bUS$47.6bUS$3.1b11.4x20.1x1.3x
Sat, 05 Mar 2022US$72.3bUS$50.3bUS$3.5b12x20.5x1.4x
Mon, 31 Jan 2022US$72.1bUS$47.5bUS$3.6b13.1x20.1x1.5x
Wed, 29 Dec 2021US$83.9bUS$47.2bUS$3.7b14.1x22.7x1.8x
Fri, 26 Nov 2021US$91.6bUS$47.2bUS$3.7b14.8x24.7x1.9x
Sun, 24 Oct 2021US$99.0bUS$44.8bUS$4.2b13.6x23.7x2.2x
Tue, 21 Sep 2021US$127.3bUS$45.3bUS$3.7b14.9x34.5x2.8x
Thu, 19 Aug 2021US$104.3bUS$44.7bUS$3.7b14.4x28.3x2.3x
Thu, 03 Jun 2021US$110.5bUS$40.4bUS$2.5b22.9x43.5x2.7x
Sun, 07 Mar 2021US$92.2bUS$35.7bUS$1.2b29.3x76.8x2.6x
Wed, 09 Dec 2020US$82.8bUS$33.1bUS$739.0m18.3x112x2.5x
Tue, 01 Sep 2020US$60.7bUS$26.8b-US$152,762,130.0026.4x-397.4x2.3x
Fri, 05 Jun 2020US$44.2bUS$27.1bUS$649.2m22.1x68.1x1.6x
Mon, 09 Mar 2020US$42.6bUS$31.4bUS$769.6m16.8x55.3x1.4x
Sun, 01 Dec 2019US$50.8bUS$31.6b-US$129,242,979.0019.7x-393.3x1.6x
Wed, 04 Sep 2019US$37.1bUS$29.7bUS$398.9m17.6x93x1.2x
Price to Earnings Ratio

93x


Total Market Cap: US$37.1bTotal Earnings: US$398.9mTotal Revenue: US$29.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Leisure Industry Price to Earnings3Y Average -40.8x202020212022
Current Industry PE
  • Investors are pessimistic on the American Leisure industry, indicating that they anticipate long term growth rates will be lower than they have historically.
  • The industry is trading at a PE ratio of 26.5x which is higher than its 3-year average PE of -40.8x.
  • The 3-year average PS ratio of 1.9x is higher than the industry's current PS ratio of 1.2x.
Past Earnings Growth
  • The earnings for companies in the Leisure industry have grown 80% per year over the last three years.
  • Revenues for these companies have grown 19% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the U.S. Consumer Discretionary industry?

US Market4.53%
Consumer Discretionary6.28%
Leisure9.09%
Leisure Products9.09%
Industry PE
  • Investors are most optimistic about the Leisure Products industry even though it's trading below its 3-year average PE ratio of 18.2x.
  • Analysts are expecting annual earnings growth of 16%, which is higher than its past year's earnings growth of 12% per year.
Forecasted Growth
  • Analysts are most optimistic on the Leisure Products industry, expecting annual earnings growth of 16% over the next 5 years.
  • This is better than its past earnings growth rate of 12% per year.

    Top Stock Gainers and Losers

    Which companies have driven the market over the last 7 days?

    CompanyLast Price7D1YValuation
    PTON Peloton InteractiveUS$13.6923.4%
    +US$877.1m
    -87.9%PS1.2x
    HAS HasbroUS$82.425.7%
    +US$615.9m
    -15.3%PE21.1x
    ELY Callaway GolfUS$24.9914.1%
    +US$569.1m
    -12.9%PE30.8x
    BC BrunswickUS$86.397.9%
    +US$472.2m
    -15.6%PE10.4x
    MAT MattelUS$23.805.5%
    +US$441.6m
    11.3%PE7.6x
    Simply Wall St
    Simply Wall Street Pty Ltd
    17-21 Bellevue Street, Surry Hills, Sydney
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    Latest News

    POWW

    US$4.76

    AMMO

    7D

    -12.9%

    1Y

    -33.1%

    BC

    US$86.39

    Brunswick

    7D

    7.9%

    1Y

    -15.6%
    Aug 14

    Peloton Attempts To Turn Around A Dire Situation. Bulls Crushed

    Pandemic-era poster boy Peloton has seen demand for its at-home workout solutions collapse. Management has been forced to initiate deep structural changes, with cash burn and a dwindling liquidity position in focus. Whilst critical to preserving its cash, these changes will be unlikely to solve the demand problem. Peloton (PTON) was once a ubiquitous part of the pandemic years, with the company's black and red exercise bikes gracing garages and bedrooms across suburbia. I described Peloton as being well-placed to capture value against the disruption to gyms posed by the pandemic when I initially covered the company. Along with Zoom (ZM), the stock would go on to become a poster boy of the pandemic era and a darling of investors who took the position that the unique conditions of lockdowns would remain in place after people were allowed to leave their homes. This overextrapolation of lockdown demand into the future post-pandemic years led to Peloton's shares trading at stratospheric multiples to revenue. The company would go on to trade at an all-time high of just over $160 per common share, now down more than 90% as this demand failed to materialize, and the broader stock market collapsed on the back of rising inflation and a hawkish Fed. PTON data by YCharts Peloton's profitability and underlying cash position have also worsened. This has placed going concerns at risk and forced management to initiate deep structural changes to the business in a turnaround attempt. Hence, current Peloton bulls have been asking whether these will be enough to save the company after seeing the value of their stake get crushed. Bears don't think so and have stated that these changes do not address the underlying issue facing Peloton; a lack of demand. The boom times are over, and Peloton thrived when gyms, its immediate competitors, had been shut down by the government. The zeitgeist that characterised Peloton's rapid ascent has ended, and households will find it hard to justify parting with thousands of dollars when there are cheaper alternatives. The Turnaround Attempt Peloton's latest turnaround attempt comes on the back of measures already implemented earlier this year when the company fired 2,800 of its employees, including its Founder CEO John Foley. The cuts at this time represented 30% of its workforce of just under 9,000 people as of the end of September last year. The company's new CEO Barry McCarthy has gone further a few months following the publication of its last earnings results which showed revenues down 24% year-over-year at $964.3 million. The results were dire with gross profits down nearly 60%, net loss that was up by a material 8,704% to $757.1 million from a loss of $8.6 million in the year-ago quarter, and negative free cash flow of $735 million. McCarthy is cutting a further 800 jobs across Peloton's distribution and customer service teams. These new cuts will mean an end to Peloton's in-house customer service and equipment deliveries. Both these functions are being outsourced to a third party, along with the production of its Bike+ and Tread machines. With the company having already reversed course on a US factory, the wholesale outsourcing of its production to a Taiwan-based contract manufacturer is not surprising. The company is also chasing demand-side measures by raising prices for its Bike+ and Tread machines, these come on top of a hike to the price of its content subscription service by $5 to $44 per month. It's important to note that by demand-side measures, Peloton aims to squeeze out more revenue from a smaller pool of prospective buyers when compared to the pandemic era. The hikes are also a reversal of previous price cuts, which McCarthy stated impacted the image of the premium brand.

    Aug 12

    Acushnet: The Consumer Leisure Industry's Best Near-Term Capital Gain Prospect

    A 3-5 month prospect from here of GOLF share prices could reasonably range from a low of $47.36 to a high of $53.46 from its present price of $51.35, a gain of +4.1%. 13 positions like today’s in the past 5 years of 1261 market days earned an average net gain of 5.6% each during 18 market days an annual CAGR rate of 111%. Those holding periods had the worst price draw-downs of only -1.5%. Investment Portfolio Discipline Summary Our performance measurement fund invests in equities whenever Market-Maker hedging activity forecasts that 80% or more of the near-coming price range is expected to be to the upside and 10% or less may be to the downside. At the time of each purchase a GTC sell order for all of those just bought shares is placed with the broker where bought. His system will monitor and direct to you the sale confirmation when accomplished, probably with encouragement for reinvestment. At the time of the buy, only on your own personal private calendar make a note to review this holding at 3 months after the purchase, Then, if not yet sold, but is priced at a loss, sell and put the proceeds into the reinvestment stream. If at a gain, after considering alternatives, decide to sell or move the calendar note a month further forward. Description of Primary Investment Candidate Acushnet Holdings Corp. (GOLF) 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 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." Source: Yahoo Finance Yahoo Finance Alternative Consumer Leisure Industry Investments Compared Figure 1 blockdesk.com (used with permission). Expected rewards for these securities are the greatest gains from current closing market prices seen worth protecting short positions. Their measure is on the horizontal green scale. The risk dimension is of actual price draw-downs at their most extreme point while being held in previous pursuit of upside rewards similar to the ones currently being seen. They are measured on the red vertical scale. Both scales are of percent change from zero to 25%. Any stock or ETF whose present risk exposure exceeds its reward prospect will be above the dotted diagonal line. Capital-gain attractive to-buy issues are in the directions down and to the right. Our principal interest is in GOLF at location [7], at the edge of the green area marking 5-to-1 ratio reward-to-risk candidates.. A "market index" norm of reward~risk tradeoffs is offered by SPY at [8]. Most appealing (to own) by this Figure 1 view is GOLF. Comparing features of Alternative Investment Stocks The Figure 1 map provides a good visual comparison of the two most important aspects of every equity investment in the short term. There are other aspects of comparison which this map sometimes does not communicate well, particularly when general market perspectives like those of SPY are involved. Where questions of "how likely' are present other comparative tables, like Figure 2, may be useful.. Yellow highlighting of the table's cells emphasize factors important to securities valuations and the security GOLF, most promising of near capital gain as ranked in column [R]. Figure 2 blockdedk.com (used with permission) Why do all this math? Figure 2's purpose is to attempt universally comparable answers, stock by stock, of a) How BIG the prospective price gain payoff may be, b) how LIKELY the payoff will be a profitable experience, c) how SOON it may happen, and d) what price draw-down RISK may be encountered during its holding period. Readers familiar with our analysis methods after quick examination of Figure 2 may wish to skip to the next section viewing Price range forecast trends for GOLF. Column headers for Figure 2 define investment-choice preference elements for each row stock whose symbol appears at the left in column [A]. The elements are derived or calculated separately for each stock, based on the specifics of its situation and current-day MM price-range forecasts. Data in red numerals are negative, usually undesirable to "long" holding positions. Table cells with yellow fills are of data for the stocks of principal interest and of all issues at the ranking column, [R]. The price-range forecast limits of columns [B] and [C] get defined by MM hedging actions to protect firm capital required to be put at risk of price changes from volume trade orders placed by big-$ "institutional" clients. [E] measures potential upside risks for MM short positions created to fill such orders, and reward potentials for the buy-side positions so created. Prior forecasts like the present provide a history of relevant price draw-down risks for buyers. The most severe ones actually encountered are in [F], during holding periods in effort to reach [E] gains. Those are where buyers are emotionally most likely to accept losses. The Range Index [G] tells where today's price lies relative to the MM community's forecast of upper and lower limits of coming prices. Its numeric is the percentage proportion of the full low to high forecast seen below the current market price. [H] tells what proportion of the [L] sample of prior like-balance forecasts have earned gains by either having price reach its [B] target or be above its [D] entry cost at the end of a 3-month max-patience holding period limit. [ I ] gives the net gains-losses of those [L] experiences. What makes GOLF most attractive in the group at this point in time is its basic strength of reward to risk ratio of 1.8 to 1 in [T], and the brevity of holdings needed to reach closeout prices.. Further Reward~Risk tradeoffs involve using the [H] odds for gains with the 100 - H loss odds as weights for N-conditioned [E] and for [F], for a combined-return score [Q]. The typical position holding period [J] on [Q] provides a figure of merit [fom] ranking measure [R] useful in portfolio position preferencing. Figure 2 is row-ranked on [R] among alternative candidate securities, with GOLF in top rank. Along with the candidate-specific stocks these selection considerations are provided for the averages of some 3000+ stocks for which MM price-range forecasts are available today, and 20 of the best-ranked (by fom) of those forecasts, as well as the forecast for S&P 500 Index ETF (SPY) as an equity-market proxy. Current-market index SPY is not competitive as an investment alternative with its Range Index of 35 indicates 2/3rds of its forecast range is to the upside, but little more than 3/4ths of previous SPY forecasts at this range index produced profitable outcomes, with enough losers to put its average in single-digit positive result.

    HAS

    US$82.42

    Hasbro

    7D

    5.7%

    1Y

    -15.3%