ACUSHNET HOLDINGS CORP (GOLF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GOLF - US0050981085 - Common Stock
94.82 USD
+1.79 (+1.92%)
GOLF gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 31 industry peers in the Leisure Products industry. GOLF scores excellent on profitability, but there are some minor concerns on its financial health. GOLF is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- GOLF had positive earnings in the past year.
- In the past year GOLF had a positive cash flow from operations.
- GOLF had positive earnings in each of the past 5 years.
- Of the past 5 years GOLF 4 years had a positive operating cash flow.
1.2 Ratios
- GOLF has a Return On Assets of 9.45%. This is amongst the best in the industry. GOLF outperforms 96.77% of its industry peers.
- GOLF has a Return On Equity of 26.09%. This is amongst the best in the industry. GOLF outperforms 100.00% of its industry peers.
- GOLF has a Return On Invested Capital of 13.29%. This is amongst the best in the industry. GOLF outperforms 93.55% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for GOLF is significantly above the industry average of 7.35%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.45% | ||
| ROE | 26.09% | ||
| ROIC | 13.29% |
ROA(3y)9.32%
ROA(5y)8.4%
ROE(3y)24.07%
ROE(5y)19.82%
ROIC(3y)14.1%
ROIC(5y)12.99%
1.3 Margins
- GOLF's Profit Margin of 8.80% is amongst the best of the industry. GOLF outperforms 100.00% of its industry peers.
- GOLF's Profit Margin has improved in the last couple of years.
- GOLF's Operating Margin of 12.35% is amongst the best of the industry. GOLF outperforms 93.55% of its industry peers.
- GOLF's Operating Margin has improved in the last couple of years.
- With a decent Gross Margin value of 43.98%, GOLF is doing good in the industry, outperforming 70.97% of the companies in the same industry.
- In the last couple of years the Gross Margin of GOLF has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.35% | ||
| PM (TTM) | 8.8% | ||
| GM | 43.98% |
OM growth 3Y1.65%
OM growth 5Y2.86%
PM growth 3Y1.55%
PM growth 5Y3.9%
GM growth 3Y-2.45%
GM growth 5Y-1.4%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GOLF is creating some value.
- The number of shares outstanding for GOLF has been increased compared to 1 year ago.
- Compared to 5 years ago, GOLF has less shares outstanding
- Compared to 1 year ago, GOLF has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 4.15 indicates that GOLF is not in any danger for bankruptcy at the moment.
- The Altman-Z score of GOLF (4.15) is better than 77.42% of its industry peers.
- GOLF has a debt to FCF ratio of 8.19. This is a slightly negative value and a sign of low solvency as GOLF would need 8.19 years to pay back of all of its debts.
- GOLF has a Debt to FCF ratio (8.19) which is comparable to the rest of the industry.
- A Debt/Equity ratio of 1.06 is on the high side and indicates that GOLF has dependencies on debt financing.
- GOLF has a Debt to Equity ratio of 1.06. This is in the lower half of the industry: GOLF underperforms 61.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 8.19 | ||
| Altman-Z | 4.15 |
ROIC/WACC1.43
WACC9.27%
2.3 Liquidity
- A Current Ratio of 2.42 indicates that GOLF has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 2.42, GOLF is in the better half of the industry, outperforming 64.52% of the companies in the same industry.
- GOLF has a Quick Ratio of 1.30. This is a normal value and indicates that GOLF is financially healthy and should not expect problems in meeting its short term obligations.
- GOLF has a Quick ratio (1.30) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.42 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
- GOLF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.49%, which is quite impressive.
- The Earnings Per Share has been growing by 15.79% on average over the past years. This is quite good.
- GOLF shows a small growth in Revenue. In the last year, the Revenue has grown by 4.20%.
- GOLF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.88% yearly.
EPS 1Y (TTM)24.49%
EPS 3Y12%
EPS 5Y15.79%
EPS Q2Q%-8.99%
Revenue 1Y (TTM)4.2%
Revenue growth 3Y4.58%
Revenue growth 5Y7.88%
Sales Q2Q%5.99%
3.2 Future
- Based on estimates for the next years, GOLF will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.93% on average per year.
- The Revenue is expected to grow by 3.02% on average over the next years.
EPS Next Y4.91%
EPS Next 2Y6.53%
EPS Next 3Y8.93%
EPS Next 5YN/A
Revenue Next Year2.7%
Revenue Next 2Y2.61%
Revenue Next 3Y3.02%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- GOLF is valuated quite expensively with a Price/Earnings ratio of 25.91.
- 67.74% of the companies in the same industry are more expensive than GOLF, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of GOLF to the average of the S&P500 Index (27.30), we can say GOLF is valued inline with the index average.
- A Price/Forward Earnings ratio of 25.09 indicates a quite expensive valuation of GOLF.
- GOLF's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GOLF is cheaper than 64.52% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.32. GOLF is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.91 | ||
| Fwd PE | 25.09 |
4.2 Price Multiples
- GOLF's Enterprise Value to EBITDA ratio is in line with the industry average.
- GOLF's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.5 | ||
| EV/EBITDA | 16.95 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GOLF does not grow enough to justify the current Price/Earnings ratio.
- The excellent profitability rating of GOLF may justify a higher PE ratio.
PEG (NY)5.28
PEG (5Y)1.64
EPS Next 2Y6.53%
EPS Next 3Y8.93%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.01%, GOLF has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.22, GOLF pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, GOLF's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
5.2 History
- On average, the dividend of GOLF grows each year by 10.12%, which is quite nice.
- GOLF has been paying a dividend for over 5 years, so it has already some track record.
- As GOLF did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)10.12%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
- 24.93% of the earnings are spent on dividend by GOLF. This is a low number and sustainable payout ratio.
- GOLF's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP24.93%
EPS Next 2Y6.53%
EPS Next 3Y8.93%
ACUSHNET HOLDINGS CORP / GOLF FAQ
What is the fundamental rating for GOLF stock?
ChartMill assigns a fundamental rating of 5 / 10 to GOLF.
What is the valuation status of ACUSHNET HOLDINGS CORP (GOLF) stock?
ChartMill assigns a valuation rating of 3 / 10 to ACUSHNET HOLDINGS CORP (GOLF). This can be considered as Overvalued.
Can you provide the profitability details for ACUSHNET HOLDINGS CORP?
ACUSHNET HOLDINGS CORP (GOLF) has a profitability rating of 8 / 10.
What is the earnings growth outlook for ACUSHNET HOLDINGS CORP?
The Earnings per Share (EPS) of ACUSHNET HOLDINGS CORP (GOLF) is expected to grow by 4.91% in the next year.
Is the dividend of ACUSHNET HOLDINGS CORP sustainable?
The dividend rating of ACUSHNET HOLDINGS CORP (GOLF) is 5 / 10 and the dividend payout ratio is 24.93%.