Acushnet Holdings Corp.

GOLF

Sporting & Athletic Goods, NEC

Mkt Cap

$3.858B

PE

17.15

Debt

$558.7M

Cash

$56.77M

EV

$4.36B

FCF

$218M

Market Cap

$3.858B

P/E Ratio

17.15

Debt

$558.7M

Cash

$56.77M

EV

$4.36B

FCF

$218M

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 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.

Sector

10-Q
9/30/23
10-Q
6/30/23
10-Q
3/31/23
10-K
12/31/22
10-Q
9/30/22
10-Q
6/30/22
10-Q
3/31/22
10-K
12/31/21
10-Q
9/30/21
10-Q
6/30/21
10-Q
3/31/21
10-K
12/31/20
10-Q
9/30/20
10-Q
6/30/20
10-Q
3/31/20
10-K
12/31/19
10-Q
9/30/19
10-Q
6/30/19
10-Q
3/31/19
10-K
12/31/18
10-Q
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Acushnet Holdings Corp.

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$218M	$240.8M	$264.4M	$288.8M	$313.7M	$338.8M	$364M	$388.8M	$412.9M	$436M	$457.8M	$4.578B
DCF		$209.4M	$199.9M	$189.9M	$179.4M	$168.5M	$157.4M	$146.1M	$135M	$123.9M	$113.2M	$1.132B
Value	$2.754B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 39%

Earnings Stability 25%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	12-2014	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	TTM
Net Margin	0.25%	-0.98%	1.5%	5.9%	6.1%	7.2%	6%	8.3%	8.8%	9.3%
ROA	-	9.6%	9.5%	9.6%	10%	10%	7.8%	13%	13%	15%
ROE	2.1%	-7.6%	3%	11%	11%	13%	9.4%	17%	20%	23%

What is the average Net Margin?

The average Net Margin over the past 5 years is +7.05%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.56%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +10.6%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +0.63%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +13.46%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +1.76%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate reliability of earnings, and consideration about the future are more dependable.

Years	12-2014	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	TTM
Debt FCF	-	12.18	5.02	-10.32	3.21	3.99	1.46	1.20	-4.40	2.56
Debt Equity	-	4.32	0.56	0.56	0.45	0.43	0.34	0.31	0.58	0.58
MIN
Graham Stability	-	-	-	100%	100%	100%	92%	100%	100%	92%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 2.56.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 0.60.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.92.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	12-2015	12-2017	12-2019	12-2021	Trend
Revenue	6.1%	7.8%	11%	5.7%	2.2%
Net Income	-	17%	18%	11%	-35%
Stockholders Equity	26%	2.9%	0.9%	-9.6%	-19%
FCF	-	-	-	-	-6.8%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +7.79%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +2.23%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +16.69%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -35.35%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +2.88%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -18.53%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +23%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -6.83%.