Updated 3/5/25
Acushnet Holdings Corp., the company behind iconic golf brands like Titleist and FootJoy, is a well-established name in the golf industry. For investors who prioritize dividends, GOLF presents an interesting mix of reliability and financial strength. While it may not be a high-yielding stock, its steady payouts and financial discipline make it worth considering. Here’s a closer look at how it stacks up for dividend-focused portfolios.
Key Dividend Metrics
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🟢 Dividend Yield (Forward): 1.45% – Consistent with its five-year average.
🟢 Payout Ratio: 25.52% – Leaves room for future increases.
🟢 Dividend Growth: Moderate – Has shown steady increases over time.
🟢 Ex-Dividend Date: March 7, 2025 – Investors must own shares before this date to receive the payout.
🟢 Dividend Date: March 21, 2025 – Scheduled payout for eligible shareholders.
🔴 High Yield: No – The yield is relatively low, making it less attractive for those focused solely on income.
🔴 Debt-to-Equity Ratio: 105.91% – Debt is on the higher side, but still manageable.
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Acushnet’s Dividend Profile
Acushnet has a track record of paying dividends consistently, offering investors a sense of reliability rather than rapid growth. The company’s forward dividend yield of 1.45% aligns with its historical average, and its low payout ratio of 25.52% suggests plenty of room for future increases.
Dividend Stability and Growth
One of the biggest strengths of Acushnet’s dividend policy is its stability. While the yield is not high enough to be a major draw for income-focused investors, the company has been steady in delivering payouts. The low payout ratio indicates that dividends are well-covered by earnings, allowing room for increases over time. Additionally, with $218 million in free cash flow, Acushnet has the flexibility to maintain and gradually raise its dividend without financial strain.
Dividend Safety
A dividend is only as good as the company’s ability to sustain it, and Acushnet appears to be in a solid position. Its current ratio of 2.06 shows it has enough liquidity to cover short-term obligations. While its debt-to-equity ratio of 105.91% is on the higher side, the company’s strong cash flow helps balance that risk. The stock’s beta of 0.80 also suggests lower volatility, which is appealing to investors looking for stability.
Chart Analysis
The chart presents a clear visual of Acushnet Holdings Corp. (GOLF) over the past year, showcasing price trends, moving averages, volume activity, and momentum indicators.
The stock price saw a strong uptrend from mid-year into late December, reaching highs above $75. However, after peaking, the stock experienced a notable pullback, bringing it below the $70 level and closer to where it currently sits around $64.50. This pullback aligns with the downward-sloping orange moving average, likely the 50-day moving average, which suggests recent selling pressure. Meanwhile, the longer-term blue moving average, likely the 200-day moving average, remains on an upward trajectory, acting as a potential area of support.
Volume analysis highlights key moments of increased activity, particularly a major spike in February, signaling a period of heightened trading interest. Such spikes often accompany institutional moves or earnings releases, adding weight to the price movement. Since that spike, volume has settled back to more typical levels, indicating a cooling-off phase.
The RSI, positioned just under 44, suggests the stock is in a neutral-to-weak momentum zone, with no extreme overbought or oversold conditions. This aligns with the recent consolidation phase, where price action has steadied rather than making aggressive moves in either direction.
Examining the last five candles, there is a balance of indecision and attempts to regain ground. Wicks on both ends of recent candles suggest a tug-of-war between buyers and sellers, with no clear dominance. The price remains near a potential support level, hinting that traders are assessing whether this area will hold or if further downside is possible.
Earnings Report Summary
Acushnet Holdings Corp., the company behind Titleist and FootJoy, recently released its earnings for the fourth quarter and full-year 2024, and the results were mostly positive. Sales for the year came in at $2.46 billion, marking a 4% increase on a constant currency basis. Meanwhile, adjusted EBITDA climbed 7.5% to $404 million, showing that the company is managing operations efficiently.
For the fourth quarter, sales reached $445.17 million, up from $412.96 million in the same period last year. While the company did post a small net loss of $1.12 million, this was a major improvement compared to the $26.81 million loss from the fourth quarter of 2023. Earnings per share came in at a loss of $0.02, beating expectations, as analysts had anticipated a much bigger loss of around $0.33 per share.
Breaking things down by product category, Titleist golf balls saw sales increase by 3% to $650 million, while Titleist golf clubs grew 5% to $510 million. FootJoy apparel also did well, posting a 4% increase to $420 million. These steady gains reflect the strong demand for premium golf gear, even as broader consumer spending trends remain somewhat uncertain.
Regionally, the U.S. continues to be Acushnet’s largest market, with sales growing 5% to $1.5 billion. Europe, the Middle East, and Africa (EMEA) saw a 3% increase, bringing in $520 million, while sales in Japan rose 2% to $310 million. Korea posted the highest growth at 6%, totaling $130 million. These numbers highlight the company’s ability to expand across key markets, even in a competitive industry.
Acushnet’s balance sheet remains in good shape, with $120 million in cash at the end of 2024. The company’s total debt sits at $420 million, leaving a net debt position of $300 million. The leverage ratio also improved, dropping to 0.74x from 0.82x the previous year, indicating a focus on keeping debt under control.
With these solid financials, the company announced a 6.8% increase in its dividend, raising the quarterly payout to $0.235 per share. The dividend will be paid on March 21, 2025, to shareholders who hold the stock as of March 7, 2025, reinforcing Acushnet’s commitment to rewarding investors.
Looking ahead, Acushnet expects 2025 sales to land between $2.5 billion and $2.55 billion, which would represent a growth rate of 2% to 4%. Adjusted EBITDA is projected to fall in the range of $410 million to $430 million. These targets suggest that while growth may moderate slightly, the company remains confident in its long-term prospects.
Analyst Ratings
On March 4, 2025, Compass Point upgraded Acushnet from a “Neutral” to a “Buy” rating, setting a price target of $80.00. This optimistic stance is based on the company’s robust brand portfolio, including Titleist and FootJoy, and its consistent financial performance, which suggests potential for future growth. Analysts cited strong demand for premium golf equipment and steady revenue trends as key factors in their decision.
Conversely, on February 28, 2025, J.P. Morgan analyst Matthew R. Boss downgraded Acushnet from “Neutral” to “Underweight,” reducing the price target to $64.00. This cautious view stems from concerns about overvaluation and projections of flat growth due to strategic challenges and tariff impacts, indicating limited upside potential. Analysts expressed concerns about increased competition and the potential for slowing consumer demand, which could pressure margins.
As of March 5, 2025, the consensus among analysts is a “Hold” rating, with an average price target of $70.43, suggesting a modest upside from the current trading price. This consensus reflects a balanced view of Acushnet’s prospects, acknowledging both its strengths and the challenges it faces in the market.
Acushnet’s Financial Health & Performance
Revenue & Profitability
Acushnet has been growing steadily, with revenue reaching $2.46 billion over the trailing twelve months. The company also reported 7.8% year-over-year revenue growth, a positive sign for investors looking for stability in earnings. Net income came in at $214.3 million, reinforcing the company’s ability to continue funding its dividend payments. Additionally, strong operating cash flow of $245.11 million further supports its financial strength.
Valuation & Market Performance
In terms of valuation, Acushnet trades at a trailing price-to-earnings (P/E) ratio of 19.24, which is reasonable given its market position. The price-to-book ratio of 5.08 suggests a premium valuation, but that is expected for a well-established consumer brand.
Stock performance has been resilient, with shares trading within a 52-week range of $58.54 to $76.65. The company has maintained a solid presence in the market, reflecting the strength of its brand and steady demand for its products.
Risks & Considerations
Moderate Dividend Yield
For investors seeking high-yield dividend stocks, Acushnet may not be the most compelling choice. A 1.45% yield is decent, but it doesn’t stand out compared to other dividend-paying companies offering 3% or more.
High Debt Levels
With a debt-to-equity ratio exceeding 100%, Acushnet carries a notable amount of leverage. While its cash flow is strong enough to manage this debt, investors should keep an eye on how the company balances growth initiatives with debt reduction.
Cyclical Demand for Golf Equipment
Golf equipment sales can fluctuate based on economic conditions and consumer spending trends. While Acushnet’s premium branding helps it maintain strong margins, changes in the sports industry or broader economic downturns could impact sales.
Limited Dividend Growth
The low payout ratio gives Acushnet room to increase dividends, but past growth has been moderate rather than aggressive. Investors looking for rapid dividend hikes may find better opportunities elsewhere.
Final Thoughts
Acushnet Holdings is a solid, stable dividend payer that fits well in a portfolio focused on steady income rather than high yields. While it doesn’t offer the most generous dividend, it does provide consistency, strong financial health, and a well-covered payout. Investors who appreciate lower volatility, strong cash flow, and a brand with staying power may find Acushnet an attractive long-term option.
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