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Acushnet Holdings Corp

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Acushnet Holdings Corp AI Insights

Informational only. Not investment advice.
As of 2026-01-16

Snapshot

  • ROE of 25.9% TTM vs industry median of -15.7% - profitable outlier in largely unprofitable peer group[Return on Equity]
  • Intangibles at 738.7M represent 87% of equity (852.3M) - brand value critical but impairment risk material[Goodwill and Other Intangible Assets]
  • P/B of 48.7x reflects tangible book of only 113.6M vs 5.5B market cap - paying massive premium for brand[Price to Book Ratio]

Watch Triggers

  • Change in Inventory: Inventory build exceeds 10% of prior year for 2+ quartersCurrent 19.1M build may signal channel stuffing or demand weakness
  • Operating Margin: Falls below 10% TTMWould compress ROIC toward cost of capital, eroding valuation premium
  • Free Cash Flow: FCF conversion falls below 50% of net incomeCurrent 49.5% (110.1M FCF / 222.3M NI) already borderline

Bull Case

Capital-efficient compounder: ROIC of 13.3% TTM with asset turnover 2x industry median (1.09x vs 0.55x) generates superior returns on invested capital

ROICAsset TurnoverROE

Consistent dividend payer: 7-year avg payout ratio 29.5% with $0.92/share TTM yield sustainable at 25% of EPS

Dividend Payout Ratio Avg 7yrDividends Paid Per Share

Bear Case

Debt/equity of 1.06x with 901.7M total debt vs 89.5M cash leaves thin liquidity buffer; net debt 812.2M is 2.2x EBITDA

Debt to EquityTotal DebtNet Debt

EPS declined 9% YoY with inventory up 19.1M and receivables up 67M - working capital deterioration signals demand softness

EPS Growth 1yrChange in InventoryChange in Receivables

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

BearBull
55%

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Forward Thesis

Premium brand positioning sustains above-industry margins despite cyclical headwinds

1-3ymed
  • Operating margin 12.4% vs industry median -4.8%
  • Gross margin 48.2% near industry median 52.8%
  • R&D spend of 72.7M (2.9% of revenue) protects product edge
ROIC 13.3% TTM vs median -10.3%Net margin 8.8% vs median -6.1%Asset turnover 1.09x vs median 0.55x

Valuation Context

Caveats

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Fundamental company data provided by Morningstar, updated daily.

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