NYSE:GOLF

Stock Analysis Report

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.

Rewards

Trading at 10.2% below its fair value

Earnings are forecast to grow 3.68% per year

Earnings grew by 7.4% over the past year

Risk Analysis

Has a high level of debt

Unstable dividend track record



Snowflake Analysis

Proven track record with adequate balance sheet.


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: GOLF has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.6%

GOLF

4.4%

US Leisure

0.6%

US Market


1 Year Return

43.2%

GOLF

21.6%

US Leisure

20.8%

US Market

Return vs Industry: GOLF exceeded the US Leisure industry which returned 21.6% over the past year.

Return vs Market: GOLF exceeded the US Market which returned 20.8% over the past year.


Shareholder returns

GOLFIndustryMarket
7 Day2.6%4.4%0.6%
30 Day4.2%10.8%2.5%
90 Day12.7%2.2%4.9%
1 Year46.4%43.2%23.7%21.6%23.5%20.8%
3 Year78.1%66.1%2.9%-2.2%46.5%37.0%
5 Yearn/a16.3%4.0%64.6%46.5%

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

Valuation

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

10.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GOLF ($31.78) is trading below our estimate of fair value ($35.39)

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 good value based on its PE Ratio (20.9x) compared to the Leisure industry average (20.9x).

PE vs Market: GOLF is poor value based on its PE Ratio (20.9x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: GOLF is poor value based on its PEG Ratio (5.7x)


Price to Book Ratio

PB vs Industry: GOLF is good value based on its PB Ratio (2.6x) compared to the US Leisure industry average (2.6x).


Next Steps

Future Growth

How is Acushnet Holdings forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

3.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GOLF's forecast earnings growth (3.7% per year) is above the savings rate (1.7%).

Earnings vs Market: GOLF's earnings (3.7% per year) are forecast to grow slower than the US market (14.4% per year).

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

Revenue vs Market: GOLF's revenue (2.3% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: GOLF's revenue (2.3% 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 (12.6%).


Next Steps

Past Performance

How has Acushnet Holdings performed over the past 5 years?

51.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GOLF has high quality earnings.

Growing Profit Margin: GOLF's current net profit margins (6.9%) are higher than last year (6.5%).


Past Earnings Growth Analysis

Earnings Trend: GOLF's earnings have grown significantly by 51.5% per year over the past 5 years.

Accelerating Growth: GOLF's earnings growth over the past year (7.4%) is below its 5-year average (51.5% per year).

Earnings vs Industry: GOLF earnings growth over the past year (7.4%) exceeded the Leisure industry 3.7%.


Return on Equity

High ROE: GOLF's Return on Equity (12.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Acushnet Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: GOLF's short term assets ($765.1M) exceed its short term liabilities ($393.3M).

Long Term Liabilities: GOLF's short term assets ($765.1M) exceed its long term liabilities ($460.1M).


Debt to Equity History and Analysis

Debt Level: GOLF's debt to equity ratio (43.3%) is considered high.

Reducing Debt: Insufficient data to determine if GOLF's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: GOLF's debt is well covered by operating cash flow (30.7%).

Interest Coverage: GOLF's interest payments on its debt are well covered by EBIT (9.2x coverage).


Balance Sheet

Inventory Level: GOLF has a high level of physical assets or inventory.

Debt Coverage by Assets: GOLF's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

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

1.76%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%1.4%markettop25%3.7%industryaverage2.2%forecastin3Years1.9%

Current dividend yield vs market & industry

Notable Dividend: GOLF's dividend (1.76%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: GOLF's dividend (1.76%) is low compared to the top 25% of dividend payers in the US market (3.71%).


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 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.2%), GOLF's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GOLF's dividends in 3 years are forecast to be well covered by earnings (37.9% payout ratio).


Next Steps

Management

What is the CEO of Acushnet Holdings's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average management tenure


CEO

David Maher (51yo)

1.9yrs

Tenure

US$4,812,122

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 ($USD4.81M) is about average for companies of similar size in the US market ($USD3.87M).

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


Management Age and Tenure

2.0yrs

Average Tenure

50yo

Average Age

Experienced Management: GOLF's management team is considered experienced (2 years average tenure).


Board Age and Tenure

3.2yrs

Average Tenure

58yo

Average Age

Experienced Board: GOLF's board of directors are considered experienced (3.2 years average tenure).


Insider Trading

Insider Buying: GOLF insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$309,74008 Nov 19
Christopher Lindner
EntityIndividual
Role
Unit President
President of FootJoy
Shares10,436
Max PriceUS$29.68

Ownership Breakdown

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


Management Team

  • Brendan Gibbons (43yo)

    Executive VP

    • Tenure: 2yrs
    • Compensation: US$891.42k
  • Chris Lindner (50yo)

    President of FootJoy

    • Tenure: 3.3yrs
    • Compensation: US$1.16m
  • Tony Takazawa

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Wally Uihlein (70yo)

    Director & Advisor to the Chairman

    • Tenure: 3.2yrs
    • Compensation: US$169.99k
  • David Maher (51yo)

    President

    • Tenure: 1.9yrs
    • Compensation: US$4.81m
  • Mary Bohn (58yo)

    President of Titleist Golf Balls

    • Tenure: 3.5yrs
  • Steve Pelisek (58yo)

    President of Titleist Golf Clubs

    • Tenure: 3.8yrs
  • Jay Duke (50yo)

    President of Titleist Golf Gear

    • Tenure: 5.9yrs
  • Thomas Pacheco (50yo)

    Executive VP

    • Tenure: 0.9yrs
  • Brendan Reidy (41yo)

    Senior VP & Chief Human Resources Officer

    • Tenure: 0.9yrs

Board Members

  • Norm Wesley (69yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$178.74k
  • Steven Tishman (62yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$189.99k
  • Jennifer Estabrook (58yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$194.99k
  • Sean Sullivan (52yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$194.99k
  • Greg Hewett (50yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$192.49k
  • Gene Yoon (73yo)

    Chairman of the Board

    • Tenure: 8.9yrs
    • Compensation: US$249.98k
  • Kevin Yoon (44yo)

    Director

    • Tenure: 0.7yrs
  • Wally Uihlein (70yo)

    Director & Advisor to the Chairman

    • Tenure: 3.2yrs
    • Compensation: US$169.99k
  • David Maher (51yo)

    President

    • Tenure: 1.9yrs
    • Compensation: US$4.81m

Company Information

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


Key Information

  • Name: Acushnet Holdings Corp.
  • Ticker: GOLF
  • Exchange: NYSE
  • Founded: 1910
  • Industry: Leisure Products
  • Sector: Consumer Durables
  • Market Cap: US$2.389b
  • Shares outstanding: 75.17m
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/14 01:38
End of Day Share Price2019/12/13 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.