DB:163

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Acushnet Holdings Corp. designs, develops, manufactures, and distributes golf products in the United States, Europe, the Middle East, Africa, Japan, Korea, and internationally.


Snowflake Analysis

Excellent balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has Acushnet Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 163's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.1%

163

1.8%

DE Leisure

1.5%

DE Market


1 Year Return

32.3%

163

4.4%

DE Leisure

-1.8%

DE Market

Return vs Industry: 163 exceeded the German Leisure industry which returned 3.1% over the past year.

Return vs Market: 163 exceeded the German Market which returned -0.7% over the past year.


Shareholder returns

163IndustryMarket
7 Day4.1%1.8%1.5%
30 Day4.8%3.5%4.3%
90 Day36.3%48.5%25.1%
1 Year35.1%32.3%6.2%4.4%0.2%-1.8%
3 Year89.7%77.3%40.4%30.9%1.3%-6.9%
5 Yearn/a96.9%71.8%15.0%-0.2%

Price Volatility Vs. Market

How volatile is Acushnet Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Acushnet Holdings undervalued compared to its fair value and its price relative to the market?

27.41x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 163 (€30.8) is trading above our estimate of fair value (€20.55)

Significantly Below Fair Value: 163 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 163 is poor value based on its PE Ratio (27.4x) compared to the Leisure industry average (14x).

PE vs Market: 163 is poor value based on its PE Ratio (27.4x) compared to the German market (20.7x).


Price to Earnings Growth Ratio

PEG Ratio: 163 is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: 163 is overvalued based on its PB Ratio (2.9x) compared to the XE Leisure industry average (2x).


Next Steps

Future Growth

How is Acushnet Holdings forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

34.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 163's forecast earnings growth (34.1% per year) is above the savings rate (0.2%).

Earnings vs Market: 163's earnings (34.1% per year) are forecast to grow faster than the German market (22.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 163's revenue (5.7% per year) is forecast to grow slower than the German market (5.8% per year).

High Growth Revenue: 163's revenue (5.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 163's Return on Equity is forecast to be low in 3 years time (12%).


Next Steps

Past Performance

How has Acushnet Holdings performed over the past 5 years?

44.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 163 has high quality earnings.

Growing Profit Margin: 163's current net profit margins (5.7%) are lower than last year (5.7%).


Past Earnings Growth Analysis

Earnings Trend: 163 has become profitable over the past 5 years, growing earnings by 44.4% per year.

Accelerating Growth: 163's earnings growth over the past year (1.8%) is below its 5-year average (44.4% per year).

Earnings vs Industry: 163 earnings growth over the past year (1.8%) exceeded the Leisure industry -1.6%.


Return on Equity

High ROE: 163's Return on Equity (10.6%) is considered low.


Next Steps

Financial Health

How is Acushnet Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 163's short term assets ($829.5M) exceed its short term liabilities ($466.4M).

Long Term Liabilities: 163's short term assets ($829.5M) exceed its long term liabilities ($502.2M).


Debt to Equity History and Analysis

Debt Level: 163's debt to equity ratio (51.9%) is considered high.

Reducing Debt: 163's debt to equity ratio has reduced from 276.5% to 51.9% over the past 5 years.

Debt Coverage: 163's debt is well covered by operating cash flow (31.8%).

Interest Coverage: 163's interest payments on its debt are well covered by EBIT (8.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Acushnet Holdings's current dividend yield, its reliability and sustainability?

1.79%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 163's dividend (1.79%) is higher than the bottom 25% of dividend payers in the German market (1.28%).

High Dividend: 163's dividend (1.79%) is low compared to the top 25% of dividend payers in the German market (3.82%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 163 has been paying a dividend for less than 10 years.

Growing Dividend: 163's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.4%), 163's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 163's dividends in 3 years are forecast to be well covered by earnings (46.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average management tenure


CEO

David Maher (52yo)

2.5yrs

Tenure

US$5,909,377

Compensation

Mr. David E. Maher has been the Chief Executive Officer and President of Acushnet Holdings Corp. since January 1, 2018 and its Director since March 29, 2018. Mr. Maher served as Chief Operating Officer of  ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD5.91M) is above average for companies of similar size in the German market ($USD2.41M).

Compensation vs Earnings: David's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David Maher
President2.5yrsUS$5.91m0.47% $10.8m
Thomas Pacheco
Executive VP1.5yrsUS$1.29m0.035% $807.2k
Steven Pelisek
President of Titleist Golf Clubs4.33yrsUS$2.35m0.11% $2.5m
Christopher Lindner
President of FootJoy3.92yrsUS$1.62m0.092% $2.1m
Mary Bohn
President of Titleist Golf Balls4.08yrsUS$2.74m0.15% $3.4m
Anthony Takazawa
Vice President of Investor Relationsno datano datano data
Brendan Gibbons
Executive VP2.58yrsUS$891.42k0.11% $2.5m
Brendan Reidy
Senior VP & Chief Human Resources Officer1.5yrsno data0.011% $241.8k
John Duke
President of Titleist Golf Gear6.5yrsno data0.14% $3.3m
Timo Regier
Managing Director of KJUS European Operations0.50yrno datano data

2.6yrs

Average Tenure

51yo

Average Age

Experienced Management: 163's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Maher
President2.5yrsUS$5.91m0.47% $10.8m
Steven Tishman
Independent Director3.75yrsUS$202.48k0.011% $254.9k
Jennifer Estabrook
Independent Director9.5yrsUS$204.98k0.012% $279.7k
Sean Sullivan
Independent Director3.75yrsUS$208.73k0.0084% $193.2k
Gregory Hewett
Independent Director3.75yrsUS$202.48k0.019% $424.9k
Yoon-Soo Yoon
Chairman of the Board9.5yrsUS$249.98k0.0061% $140.9k
Keun-Chang Yoon
Director1.25yrsUS$175.98k0.011% $257.2k
Walter Uihlein
Director3.75yrsUS$179.98k1.02% $23.3m

3.8yrs

Average Tenure

56yo

Average Age

Experienced Board: 163's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Acushnet Holdings Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Acushnet Holdings Corp.
  • Ticker: 163
  • Exchange: DB
  • Founded: 1910
  • Industry: Leisure Products
  • Sector: Consumer Durables
  • Market Cap: US$2.584b
  • Listing Market Cap: US$2.294b
  • Shares outstanding: 74.28m
  • Website: https://www.acushnetholdingscorp.com

Number of Employees


Location

  • Acushnet Holdings Corp.
  • 333 Bridge Street
  • Fairhaven
  • Massachusetts
  • 2719
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GOLFNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 2016
163DB (Deutsche Boerse AG)YesCommon StockDEEUROct 2016

Biography

Acushnet 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. The Titleist Golf Balls segment offers golf balls, such as Pro V1, Pro V1x, AVX, Tour Soft, Velocity, and Pinnacle golf balls, as well as provides custom imprinted golf balls with corporate logos, tournament logos, country club or resort logos, and personalization on Titleist and Pinnacle golf balls. The Titleist Golf Clubs segment designs, assembles, and sells golf clubs, such as drivers, fairways, hybrids, and irons under the Titleist brand; wedges under the Vokey Design brand; and putters under Scotty Cameron brand. The Titleist Golf Gear segment designs and develops golf bags, headwear, golf gloves, travel gears, head covers, and other golf accessories, as well as offers customization and personalization of products in Titleist golf gear. The FootJoy Golf Wear segment provides shoes, such as traditional, spikeless, athletic, and casual shoes; gloves that include leather construction, synthetic, leather/synthetic combination, and specialty gloves; and outerwear and apparels, such as performance outerwear, performance golf apparels, and men’s and women’s golf apparels. It sells its products through golf shops and golf specialty retailers, as well as through representatives, other qualified 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/01 21:49
End of Day Share Price2020/07/01 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.