Acushnet Holdings Corp. (NYSE: GOLF)

Sector: Consumer Cyclical Industry: Leisure CIK: 0001672013
Market Cap 7.40 Bn
P/B 7.70
P/E 80.24
P/S 4.75
ROIC (Qtr) 11.83
Div Yield % 0.84
Rev 1y % (Qtr) 5.99
Total Debt (Qtr) 901.73 Mn
Debt/Equity (Qtr) 1.06
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About

Acushnet Holdings Corp., also known as GOLF, is a prominent player in the design, development, manufacture, and distribution of performance-driven golf products. With a rich history dating back to 1910, the company has established itself as a trusted brand in the golf industry, with its Titleist and FootJoy brands recognized for their superior performance, quality, innovation, and design. Acushnet's primary business activities revolve around the production and sale of golf balls, golf clubs, wedges, putters, golf shoes, gloves, and apparel under...

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Investment thesis

Bull case

  • Healthy cash reserves of 89.48M provide 3.82x coverage of short-term debt 23.41M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 193.59M fully covers other non-current liabilities 157.43M by 1.23x, showing strong long-term stability.
  • Tangible assets of 1.61B provide robust 5.83x coverage of other current liabilities 277.05M, indicating strong asset backing.
  • Operating cash flow of 193.59M provides strong 3.14x coverage of tax liabilities 61.56M, showing excellent fiscal position.
  • Strong tangible asset base of 1.61B provides 2.19x coverage of intangibles 738.69M, indicating robust asset quality.

Bear case

  • Operating cash flow of 193.59M barely covers its investment activities of (83.45M), with a coverage ratio of -2.32, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • With cash reserves of 89.48M against inventory of 513.70M, the 0.17 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Operating cash flow of 193.59M provides thin coverage of dividend payments of (55.42M) with a -3.49 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Investment activities of (83.45M) provide weak support for R&D spending of 72.72M, which is -1.15x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 193.59M barely covers operating expenses of (3.29M) with a -58.88 ratio, suggesting thin operational efficiency margins and limited flexibility.

Segments Breakdown of Revenue (2024)

Geographical Breakdown of Revenue (2024)

Peer comparison

Companies in the Leisure
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 AS Amer Sports, Inc. 22.38 Bn 71.89 3.67 1.87 Bn
2 HAS Hasbro, Inc. 13.30 Bn 46.47 3.26 3.32 Bn
3 PLNT Planet Fitness, Inc. 7.78 Bn 37.79 6.04 2.58 Bn
4 GOLF Acushnet Holdings Corp. 7.40 Bn 80.24 4.75 0.90 Bn
5 LTH Life Time Group Holdings, Inc. 6.29 Bn 21.85 2.16 4.13 Bn
6 MAT Mattel Inc /De/ 5.43 Bn 12.57 1.04 2.59 Bn
7 YETI YETI Holdings, Inc. 3.97 Bn 24.75 2.17 0.22 Bn
8 MSGE Madison Square Garden Entertainment Corp. 2.95 Bn 56.80 2.91 1.20 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 3.32 1.19
EV to Cash from Ops. EV/CFO 37.84 -6.09
EV to Debt EV to Debt 8.66 14.49
EV to EBIT EV/EBIT 57.80 -159.90
EV to EBITDA EV/EBITDA 42.89 -4.06
EV to Free Cash Flow [EV/FCF] EV/FCF 44.32 0.74
EV to Market Cap EV to Market Cap 1.06 -0.64
EV to Revenue EV/Rev 5.01 4.65
Price to Book Value [P/B] P/B 7.70 4.75
Price to Earnings [P/E] P/E 80.24 12.00
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 4.01 -0.51
Dividend Payout Ratio % Div Payout % (Qtr) 25.10 3.11
Dividend per Basic Share Div per Share (Qtr) 0.93 0.22
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 50.30 6.13
Interest Coverage Int. cover (Qtr) 6.04 -30.68
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -10.59 -13.50
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -9.67 1,190.33
Dividend Growth (1y) % Div 1y % (Qtr) 9.47 13.88
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 16.06 -111.75
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 13.90 -165.31
EBIT Growth (1y) % EBIT 1y % (Qtr) 16.95 -1,562.20
EBT Growth (1y) % EBT 1y % (Qtr) 18.78 -1,555.34
EPS Growth (1y) % EPS 1y % (Qtr) 22.59 -377.44
FCF Growth (1y) % FCF 1y % (Qtr) -55.17 10.93
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 5.10 17.65
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.07 0.73
Cash Payout Ratio Cash Payout (Qtr) 0.20 0.07
Cash Ratio Cash Ratio (Qtr) 0.19 3.31
Current Ratio Curr Ratio (Qtr) 2.42 4.80
Debt to Equity Ratio Debt/Equity (Qtr) 1.06 2.35
Interest Cover Ratio Int Coverage (Qtr) 6.04 -30.68
Times Interest Earned Times Interest Earned (Qtr) 6.04 -30.68
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 15.60 -57.55
EBIT Margin % EBIT Margin % (Qtr) 13.33 -65.38
EBT Margin % EBT Margin % (Qtr) 11.13 -69.55
Gross Margin % Gross Margin % (Qtr) 44.00 46.51
Net Profit Margin % Net Margin % (Qtr) 8.80 -74.45