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Acushnet Holdings (GOLF)
NYSE:GOLF
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Acushnet Holdings
(NYSE:GOLF)
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Rating:73Outperform
Price Target:
$84.00
▲(9.40% Upside)
Acushnet Holdings' overall stock score is driven by strong financial performance and positive earnings call highlights, particularly in sales growth and profitability. However, technical indicators suggest potential bearish momentum, and valuation metrics are fair but not compelling. The company faces challenges with increased debt levels and tariff-related costs, which slightly offset the positive aspects.
Positive Factors
Revenue Growth
Consistent revenue growth, particularly in the Golf Equipment and Gear segments, indicates strong market demand and effective product strategy, supporting long-term business expansion.
Product Innovation
Innovative product launches like the Pro V1 golf balls enhance competitive positioning and customer loyalty, driving sustained revenue growth and market share.
Strong Regional Performance
Robust performance across key regions reflects effective market penetration and brand strength, ensuring diversified revenue streams and reduced geographic risk.
Negative Factors
Increased Debt Levels
Rising debt levels may strain financial flexibility and increase interest obligations, potentially impacting future investment capacity and operational agility.
Tariff-Related Costs
Significant tariff-related costs could erode profit margins and necessitate price adjustments, impacting competitive positioning and long-term profitability.
Decline in FootJoy Business
Declining sales in the FootJoy segment may indicate challenges in product appeal or market saturation, potentially affecting overall revenue diversification and brand strength.
Acushnet Holdings (GOLF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.38B
Dividend Yield1.2%
Average Volume (3M)337.01K
Price to Earnings (P/E)20.0
Beta (1Y)0.96
Revenue Growth3.83%
EPS Growth28.57%
CountryUS
Employees7,300
SectorConsumer Cyclical
Sector Strength84
IndustryLeisure
Share Statistics
EPS (TTM)1.25
Shares Outstanding58,657,043
10 Day Avg. Volume295,618
30 Day Avg. Volume337,006
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.20
Enterprise Value/Revenue2.12
Enterprise Value/Gross Profit4.67
Enterprise Value/Ebitda13.96
Forecast
1Y Price Target
$78.67Price Target Upside2.46% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Acushnet Holdings Business Overview & Revenue Model
Company DescriptionAcushnet 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. The company also provides golf bags, headwear, golf gloves, travel products, head covers, and other golf accessories, as well as offers customization and personalization of products in Titleist golf gear. In addition, it offers golf shoes, gloves, golf outerwear, and men's and women's golf apparels under the FootJoy brand; and ski, golf, and lifestyle apparels under the KJUS brand name. 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.
How the Company Makes MoneyAcushnet generates revenue primarily through the sale of golf-related products under its Titleist and FootJoy brands. The company has multiple key revenue streams, including the sale of golf balls, clubs, and accessories, which contribute significantly to its earnings. Titleist golf balls, known for their quality and performance, are a major revenue driver, while FootJoy's golf shoes and apparel also represent a substantial portion of sales. Additionally, Acushnet benefits from a strong distribution network, including partnerships with golf retailers and pro shops, which helps to maximize market reach. The company invests in marketing and sponsorships within the golf community to maintain brand presence and loyalty, further enhancing its revenue generation capabilities.
Acushnet Holdings Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
Acushnet Holdings Corp. reported a solid quarter and first half of 2025 with strong sales growth in its Golf Equipment and Gear segments. However, the FootJoy business saw a decline, and the company faces significant tariff-related costs. The sentiment of the earnings call is balanced between these positive and negative trends.Q2-2025 Updates
Positive Updates
Solid Quarterly and Half-Year Performance
Acushnet reported worldwide net sales of $720 million for the quarter, marking a 5% increase over last year, and adjusted EBITDA increased by 9% year-over-year. For the first half, net sales were up 3%, reaching $1.42 billion, while adjusted EBITDA was $282 million.
Strong Golf Equipment Sales
Golf Equipment sales increased mid-single digits in the quarter and first half, driven by new Pro V1 golf ball models and strength within the GT Metals and hybrid franchise. Titleist golf equipment sales were up in all regions for the half, leading to a 10% revenue increase compared to a similar product launch cycle in 2023.
Growth in Gear Segment
Sales in the Gear segment rose 7% in the second quarter and 6% for the first half. Titleist bag, glove, and headwear categories grew mid-single digits, while travel brands led by Club Glove grew more than 20%.
Positive Regional Performance
The U.S. business showed ongoing strength, with EMEA up 6% in the first half due to gains in Titleist Golf Equipment and gear. Revenues in Japan and Korea were up 4% and 3% in the half, respectively.
Shareholder Returns
Acushnet returned approximately $154 million to shareholders through $125 million in share repurchases and $29 million in cash dividends. A quarterly cash dividend of $0.235 per share was declared.
Negative Updates
FootJoy Business Decline
FootJoy business was down 2% in the quarter and 4% in the half, aligning with expectations as the company shifted towards a higher concentration of premium performance footwear.
Tariff-Related Costs
The company experienced approximately $5 million in costs related to newly implemented tariff policies in Q2, with an estimated additional impact of $30 million expected in the second half of the year.
Flat Adjusted EBITDA for First Half
Despite overall sales growth, adjusted EBITDA for the first half decreased by 1%, due to investments in long-term growth strategies and macroeconomic uncertainties.
Company Guidance
During the Acushnet Holdings Corp. 2Q '25 earnings call, the company reported a 5% year-over-year increase in worldwide net sales for the second quarter, reaching $720 million, driven by strong performance in their Golf Equipment and Gear segments. Adjusted EBITDA for the quarter rose by 9%. For the first half of 2025, net sales grew by 3% to $1.42 billion, while adjusted EBITDA slightly decreased by 1%, in line with expectations. Golf Equipment sales experienced mid-single-digit growth, buoyed by new product launches like the Pro V1 golf balls and T-Series irons. The Gear segment saw a 7% sales increase in Q2, while the FootJoy business declined by 2%. Despite macroeconomic uncertainties, such as tariffs, which are expected to impact the second half by approximately $30 million, the company anticipates low single-digit net sales growth across all segments, supported by a strong product pipeline and strategic mitigation efforts. The effective tax rate for Q2 was 19.9%, and the company maintained a robust balance sheet with a net leverage ratio of 2x. Capital expenditures are projected to be around $70 million for the year, down from an initial $85 million estimate.Acushnet Holdings Financial Statement Overview
Summary
Acushnet Holdings shows strong revenue growth and profitability, with effective cost management reflected in its gross profit margin. The balance sheet is stable, though increased debt levels in the TTM period warrant attention. Cash flow management needs improvement, as evidenced by the recent decline in operating cash flow. Overall, the company is in a solid financial position but should focus on enhancing operational efficiency and cash flow stability.Income Statement
Acushnet Holdings demonstrates strong revenue growth, particularly in the TTM period with a significant increase. The gross profit margin remains robust, indicating effective cost management. However, the EBIT margin in the TTM period is notably low, suggesting potential inefficiencies or increased operating expenses.85
Very Positive
Balance Sheet
The company maintains a moderate debt-to-equity ratio, indicating a balanced approach to leveraging. Return on equity is strong, reflecting efficient use of shareholder funds. However, the increase in total debt in the TTM period could pose a risk if not managed carefully.75
Positive
Cash Flow
Operating cash flow has been inconsistent, with a significant drop in the TTM period. Free cash flow growth is negative, which could impact future investments. The free cash flow to net income ratio remains positive, indicating some level of cash generation efficiency.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.49B | 2.46B | 2.38B | 2.27B | 2.15B | 1.61B |
| Gross Profit | 1.13B | 1.19B | 1.25B | 1.18B | 1.12B | 829.84M |
| EBITDA | 377.61M | 360.27M | 336.59M | 315.15M | 295.80M | 171.27M |
| Net Income | 230.04M | 214.30M | 198.43M | 199.28M | 178.87M | 96.01M |
Balance Sheet | ||||||
| Total Assets | 2.40T | 2.18B | 2.20B | 2.19B | 2.01B | 1.87B |
| Cash, Cash Equivalents and Short-Term Investments | 60.05B | 53.06M | 65.44M | 58.90M | 281.68M | 151.45M |
| Total Debt | 932.53B | 763.96M | 794.09M | 627.86M | 363.05M | 390.93M |
| Total Liabilities | 1.58T | 1.38B | 1.28B | 1.21B | 922.27M | 849.18M |
| Stockholders Equity | 808.52B | 765.25M | 864.24M | 939.06M | 1.04B | 984.08M |
Cash Flow | ||||||
| Free Cash Flow | 96.94M | 170.48M | 296.46M | -194.15M | 276.52M | 239.75M |
| Operating Cash Flow | 174.60M | 245.11M | 371.83M | -67.79M | 314.12M | 264.43M |
| Investing Cash Flow | -78.31M | -74.62M | -101.49M | -140.22M | -37.60M | -24.68M |
| Financing Cash Flow | -118.80M | -179.68M | -264.73M | -8.58M | -140.33M | -128.59M |
Acushnet Holdings Technical Analysis
Positive
76.78
Price Trends
77.57
Negative
74.71
Positive
70.70
Positive
Market Momentum
-0.50
Negative
53.93
Neutral
69.85
Neutral
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 76.78 is above the 20-day moving average (MA) of 75.28, below the 50-day MA of 77.57, and above the 200-day MA of 70.70, indicating a neutral trend. The MACD of -0.50 indicates Negative momentum. The RSI at 53.93 is Neutral, neither overbought nor oversold. The STOCH value of 69.85 is Neutral, 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 65 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $4.38B | 19.98 | 27.51% | 1.20% | 3.83% | 28.57% | |
64 Neutral | 409.06M | -10.26 | -8.77% | 3.31% | -3.56% | -407.47% | |
51 Neutral | 1.74B | -1.16 | -60.04% | ― | -2.35% | -7104.57% | |
46 Neutral | 7.98M | -0.06 | 226.57% | ― | 304.51% | 75.05% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
GOLF
Acushnet Holdings
76.78
13.43
21.20%
MODG
Topgolf Callaway Brands
9.47
-1.43
-13.12%
JOUT
Johnson Outdoors
39.86
4.96
14.21%
NWTG
Newton Golf Company
1.73
-110.77
-98.46%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.