Acushnet Holdings (NYSE:GOLF) - Share price, News & Analysis

GOLF fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	1/6
Past Performance	2/6
Financial Health	6/6
Dividends	3/6

GOLF Stock Overview

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

Rewards

Trading at 14.5% below our estimate of its fair value

Earnings are forecast to grow 5.26% per year

Earnings have grown 20.6% per year over the past 5 years

Risk Analysis

Unstable dividend track record

Acushnet Holdings Competitors

Callaway Golf

NYSE:ELY

US$3.5b

adidas

XTRA:ADS

€31.6b

Bridgestone

TSE:5108

JP¥3.4t

PUMA

XTRA:PUM

€9.0b

Price History & Performance

Summary of all time highs, changes and price drops for Acushnet Holdings
Historical stock prices
Current Share Price	US$37.99
52 Week High	US$57.87
52 Week Low	US$37.46
Beta	0.77
1 Month Change	-6.45%
3 Month Change	-9.38%
1 Year Change	-25.86%
3 Year Change	54.87%
5 Year Change	102.61%
Change since IPO	111.64%

Recent News & Updates

May 19

Acushnet Holdings: Limited Upside Due To Minimal Growth Drivers

Acushnet Holdings' Titleist brands are among the most valuable in the golf equipment industry. Significant increases in beginner golfers and total rounds played over the past two years bode well for GOLF and other golf equipment providers. GOLF has greater exposure to consumables such as golf balls and golf gloves, giving the company some financial stability in a seasonal industry for many of their geographical markets. Golf equipment market is slowly expanding at a CAGR rate of 2.2% through 2025, which limits top-line growth for GOLF in the future. GOLF is fairly-valued according to relative metrics and slightly undervalued under absolute metrics assuming analyst estimates for free cash flow in FY22 and FY23.

May 11

Acushnet Holdings Corp.: A Quality Player In A Growing Market

Acushnet Holdings Corp. is the owner of some of the top names in golf. The golf market has shown attractive growth in recent years and the company seems to be trading at an attractive price. This makes the business an appealing long-term opportunity for investors to consider.

Shareholder Returns

	GOLF	US Leisure	US Market
7D	-11.6%	-14.0%	-4.0%
1Y	-25.9%	-47.7%	-13.2%

Return vs Industry: GOLF exceeded the US Leisure industry which returned -45.4% over the past year.

Return vs Market: GOLF underperformed the US Market which returned -12.3% over the past year.

Price Volatility

Is GOLF's price volatile compared to industry and market?
GOLF volatility
GOLF Average Weekly Movement	5.3%
Leisure Industry Average Movement	7.7%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: GOLF is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: GOLF's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1910	6,500	David Maher	https://www.acushnetholdingscorp.com

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. 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.

Acushnet Holdings Fundamentals Summary

How do Acushnet Holdings's earnings and revenue compare to its market cap?
GOLF fundamental statistics
Market Cap	US$2.74b
Earnings (TTM)	US$174.96m
Revenue (TTM)	US$2.17b

15.7x

P/E Ratio

1.3x

P/S Ratio

Is GOLF overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
GOLF income statement (TTM)
Revenue	US$2.17b
Cost of Revenue	US$1.05b
Gross Profit	US$1.12b
Other Expenses	US$949.74m
Earnings	US$174.96m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	2.42
Gross Margin	51.75%
Net Profit Margin	8.05%
Debt/Equity Ratio	36.7%

How did GOLF perform over the long term?

See historical performance and comparison

Dividends

1.9%

Current Dividend Yield

29%

Payout Ratio

Does GOLF pay a reliable dividends?

See GOLF dividend history and benchmarks

When do you need to buy GOLF by to receive an upcoming dividend?
Acushnet Holdings dividend dates
Ex Dividend Date	Jun 02 2022
Dividend Pay Date	Jun 17 2022
Days until Ex dividend	7 days
Days until Dividend pay date	22 days

Does GOLF pay a reliable dividends?

See GOLF dividend history and benchmarks

Valuation

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

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

14.5%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: GOLF ($37.99) is trading below our estimate of fair value ($44.45)

Significantly Below Fair Value: GOLF is trading below fair value, but not by a significant amount.

Price To Earnings Ratio

PE vs Industry: GOLF is poor value based on its Price-To-Earnings Ratio (15.7x) compared to the US Leisure industry average (10x).

PE vs Market: GOLF is poor value based on its Price-To-Earnings Ratio (15.7x) compared to the US market (15.1x).

Price to Earnings Growth Ratio

PEG Ratio: GOLF is poor value based on its PEG Ratio (3x)

Price to Book Ratio

PB vs Industry: GOLF's Price-To-Book Ratio (2.6x) is in line with the US Leisure industry average.

Future Growth

How is Acushnet Holdings forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

5.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: GOLF's forecast earnings growth (5.3% per year) is above the savings rate (1.9%).

Earnings vs Market: GOLF's earnings (5.3% per year) are forecast to grow slower than the US market (12.3% per year).

High Growth Earnings: GOLF's earnings are forecast to grow, but not significantly.

Revenue vs Market: GOLF's revenue (2.6% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: GOLF's revenue (2.6% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: GOLF's Return on Equity is forecast to be low in 3 years time (18.7%).

Past Performance

How has Acushnet Holdings performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

20.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GOLF has high quality earnings.

Growing Profit Margin: GOLF's current net profit margins (8.1%) are lower than last year (9.6%).

Past Earnings Growth Analysis

Earnings Trend: GOLF's earnings have grown significantly by 20.6% per year over the past 5 years.

Accelerating Growth: GOLF's earnings growth over the past year (1.7%) is below its 5-year average (20.6% per year).

Earnings vs Industry: GOLF earnings growth over the past year (1.7%) underperformed the Leisure industry 30.9%.

Return on Equity

High ROE: GOLF's Return on Equity (16.1%) is considered low.

Financial Health

How is Acushnet Holdings's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: GOLF's short term assets ($1.1B) exceed its short term liabilities ($535.9M).

Long Term Liabilities: GOLF's short term assets ($1.1B) exceed its long term liabilities ($438.0M).

Debt to Equity History and Analysis

Debt Level: GOLF's net debt to equity ratio (26.6%) is considered satisfactory.

Reducing Debt: GOLF's debt to equity ratio has reduced from 78.5% to 36.7% over the past 5 years.

Debt Coverage: GOLF's debt is well covered by operating cash flow (44.1%).

Interest Coverage: GOLF's interest payments on its debt are well covered by EBIT (44.9x coverage).

Balance Sheet

Dividend

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

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.90%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: GOLF's dividend (1.9%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: GOLF's dividend (1.9%) is low compared to the top 25% of dividend payers in the US market (4.05%).

Stability and Growth of Payments

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

Growing Dividend: GOLF's dividend payments have increased, but the company has only paid a dividend for 5 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (28.6%), GOLF's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (37.9%), GOLF's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

4.7yrs

Average management tenure

CEO

David Maher (53 yo)

4.33yrs

Tenure

US$8,092,225

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. He was appointed President and Chief Executive...

CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD8.09M) is about average for companies of similar size in the US market ($USD6.83M).

Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: GOLF's management team is considered experienced (4.7 years average tenure).

Board Members

Experienced Board: GOLF's board of directors are considered experienced (5.6 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/24 00:00
End of Day Share Price	2022/05/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31