Acushnet Holdings (GOLF) AI Stock Analysis

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Acushnet Holdings

(NYSE:GOLF)

81Outperform

Acushnet Holdings shows strong financial performance with robust revenue growth and operational efficiency. The technical indicators suggest a strong bullish trend, though caution is advised due to overbought signals. Valuation appears reasonable, offering a balanced view of growth potential and current earnings. The earnings call provides a positive outlook, despite challenges in certain segments and macroeconomic uncertainties. Overall, the company is well-positioned, but attention to rising leverage and cash flow stability is necessary.

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

$4.23B

Dividend Yield1.22%

Average Volume (3M)530.00K

Price to Earnings (P/E)20.0

Beta (1Y)0.98

Revenue Growth2.07%

EPS Growth24.87%

CountryUS

Employees7,300

SectorConsumer Cyclical

Sector Strength75

IndustryLeisure

Share Statistics

EPS (TTM)1.62

Shares Outstanding58,766,254

10 Day Avg. Volume475,772

30 Day Avg. Volume530,003

Financial Highlights & Ratios

PEG Ratio1.48

Price to Book (P/B)5.45

Price to Sales (P/S)0.00

P/FCF Ratio23.66

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$66.17

Price Target Upside-7.98% 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

Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Positive

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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

Technical Analysis Sentiment

Positive

Last Price71.91

Price Trends

50DMA

65.35

Positive

100DMA

66.80

Positive

200DMA

66.63

Positive

Market Momentum

MACD

2.11

Negative

RSI

67.00

Neutral

STOCH

86.62

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 71.91 is above the 20-day moving average (MA) of 66.87, above the 50-day MA of 65.35, and above the 200-day MA of 66.63, indicating a bullish trend. The MACD of 2.11 indicates Negative momentum. The RSI at 67.00 is Neutral, neither overbought nor oversold. The STOCH value of 86.62 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
GOLF	81 Outperform	$4.23B	20.01	27.15%	1.22%	2.07%	24.87%
JOUT	65 Neutral	$281.87M	―	-9.70%	4.79%	-7.28%	-924.86%
Sector *	61 Neutral	$6.97B	11.38	2.88%	3.90%	2.64%	-22.07%
AS	51 Neutral	$17.25B	220.38	3.00%	―	18.26%	―
MODG	45 Neutral	$1.21B	―	-46.00%	―	-1.74%	-2020.38%
NWTG	36 Underperform	$8.22M	―	-184.23%	―	607.22%	49.36%
YYAI	25 Underperform	$13.39M	―	-124.69%	―	-45.46%	96.89%

* Consumer Cyclical Sector Average

Performance Comparison

GOLF

Acushnet Holdings

71.91

8.66

13.69%

MODG

Topgolf Callaway Brands

6.57

-8.33

-55.91%

JOUT

Johnson Outdoors

27.26

-7.55

-21.69%

YYAI

Connexa Sports Technologies

0.92

-15.22

-94.30%

NWTG

Newton Golf Company

1.82

-148.18

-98.79%

Amer Sports, Inc.

31.39

15.36

95.82%

Acushnet Holdings Earnings Call Summary

Earnings Call Date:May 07, 2025

(Q1-2025)

% Change Since: 10.61%|

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.