Updated 4/13/25
Acushnet Holdings Corp. (NYSE: GOLF), the parent company of Titleist and FootJoy, has built a strong presence in the premium golf equipment and apparel space. With over $2.4 billion in annual revenue, a 48.3% gross margin, and a 25.5% dividend payout ratio, the company blends consistent performance with disciplined financial management. Its leadership team, led by CEO David Maher, has emphasized innovation, global expansion, and shareholder returns through growing dividends and share repurchases. Backed by a forward P/E of 17.48 and a steady stream of free cash flow, Acushnet remains well-positioned as it enters 2025 with new product launches and a growth outlook in the mid-single digits.
Recent Events
As of April 11, GOLF shares closed at $61.74, down from recent highs but still holding steady within a healthy trading range. The price has seen a bit of compression over the past few months, underperforming the S&P 500 slightly, yet there’s no panic in the fundamentals.
There’s a bit of tension in the air from short sellers. Short interest has climbed to nearly 35% of the float, a notable figure. That’s high, particularly for a stock with a fairly low beta of 0.85. It suggests some traders are betting against it in the near term, though that often has little to do with the long-term dividend picture.
On the financial front, the company is doing what it does best: delivering consistent results. Quarterly revenue came in with 7.8% growth year over year, and net income hit $214 million over the last twelve months. This isn’t explosive growth, but for a brand-centric consumer business with global reach, it signals stability and control.
Key Dividend Metrics 📊
📈 Dividend Yield: 1.52% (Forward)
🔄 5-Year Average Yield: 1.44%
💵 Annual Dividend (Forward): $0.94
📅 Most Recent Dividend Date: March 21, 2025
⚠️ Ex-Dividend Date: March 7, 2025
🧮 Payout Ratio: 25.52%
🔒 Dividend Safety: Strong
Dividend Overview
GOLF’s yield might seem modest at first glance—1.52% isn’t going to leap off the page—but it’s important to dig deeper. The payout is well-supported, predictably delivered, and comfortably below any danger zone. The company’s forward dividend sits at $0.94 per share, and with earnings per share at $3.37, the 25.5% payout ratio leaves plenty of headroom.
This isn’t a stretch-to-pay-the-bills kind of dividend. It’s a well-funded, steady return backed by real cash. Levered free cash flow is north of $218 million, which more than covers the company’s dividend obligations. That margin provides a solid buffer against tougher quarters or any curveballs the economy might throw.
Debt levels are worth a quick glance—$844 million in total—but this is offset by consistent operating cash flow of $245 million and a healthy current ratio of 2.06. The company is managing its financials carefully, keeping liquidity intact even with a relatively high debt-to-equity ratio. There’s discipline here, not overreach.
Dividend Growth and Safety
For income-focused investors, Acushnet offers something that’s often overlooked: reliable dividend growth. The forward dividend represents a nearly 10% increase from the prior rate, showing a willingness to reward shareholders while still maintaining fiscal conservatism.
That’s supported by a high return on equity—23.6%—which reflects strong capital management. The business doesn’t have to take big risks to drive returns. Its model is simple and effective, producing strong results year after year.
The combination of rising earnings, low payout ratios, and steady cash flow paints a compelling picture for future dividend growth. This isn’t a high-yield, high-risk income play—it’s more of a “sleep-well-at-night” dividend story. The company has room to increase its payout, and more importantly, it has shown that it’s willing to do so thoughtfully.
Ownership structure adds another layer of confidence. With insiders holding nearly 55% of the shares and institutions owning almost 58%, there’s a clear alignment between leadership and shareholders. The float is relatively tight, and while that may fuel some of the short interest dynamics, it also reflects long-term commitment from those closest to the business.
GOLF doesn’t need to promise the moon. It just needs to keep doing what it’s doing—serving a passionate customer base, managing its balance sheet, and paying a growing dividend backed by real cash. For investors looking for stable, reliable income from a business that knows exactly who it is, Acushnet is quietly putting together a compelling case.
Cash Flow Statement
Acushnet’s trailing twelve-month (TTM) cash flow statement highlights a steady stream of cash from operations, totaling $245.1 million. That’s a solid figure, especially when compared to recent years, though it’s down from the $371.8 million seen in 2023. Still, the company has managed to maintain positive free cash flow of $170.5 million, even after accounting for capital expenditures of $74.6 million. This balance shows the business continues to generate enough internal cash to fund investments without overreliance on external capital.
On the financing side, the story is more active. The company issued over $1.2 billion in debt during the period while repaying nearly the same amount, suggesting refinancing activity rather than net borrowing. Acushnet also repurchased $172.8 million worth of its own shares, a continuation of its shareholder return approach. Despite these outflows, the cash position remains stable at $53 million. The company’s ability to support operations, fund capital investments, and return capital to shareholders—without significantly depleting its cash reserves—speaks to disciplined financial management and a solid foundation for ongoing dividend payments.
Analyst Ratings
📈 In early March, Compass Point upgraded Acushnet Holdings from Neutral to Buy, signaling increased confidence in the company’s outlook. This move came on the back of solid performance in the premium golf gear space, where Titleist and FootJoy continue to command strong loyalty. Analysts pointed to Acushnet’s reliable cash flow, stable margins, and tight inventory management as signs that the business is well-positioned, even in a softer consumer environment.
📉 On the flip side, JPMorgan took a more cautious stance back in January, downgrading the stock from Neutral to Underweight with a reduced price target of $64. The reasoning? A lowered revenue forecast for fiscal 2025, projecting essentially flat growth year-over-year—well below the 4.5% increase the broader market was expecting. That conservative view reflects concern over demand normalization post-COVID, especially as discretionary spending shows signs of cooling in certain segments.
🔎 At the moment, the overall analyst consensus sits at Hold. The average 12-month price target comes in at $70.60, suggesting a moderate upside of about 14% from current levels. Targets range from $64 on the low end to $80 at the high, reflecting a cautious optimism balanced by tempered near-term growth expectations.
Earning Report Summary
Solid Finish to 2024
Acushnet wrapped up 2024 on a strong note, with revenue climbing 7.8% in the fourth quarter to $445.2 million. That’s a healthy boost compared to last year, and it was driven by solid demand for their Titleist golf equipment—especially the GT drivers and fairway woods—as well as an uptick in sales of golf gear and apparel. While the quarter technically ended in the red with a small net loss of $1.1 million, it’s worth noting how much of an improvement that was compared to a $26.8 million loss the year before. The company clearly tightened things up operationally. Adjusted EBITDA swung back into positive territory at $12.4 million, which tells us a lot about the improved performance under the hood.
Year-End Numbers Paint a Positive Picture
For the full year, Acushnet pulled in $2.46 billion in sales—up 3.2% from 2023. Earnings showed steady improvement too, with adjusted EBITDA rising 7.5% to $404.4 million. Net income came in at $214.3 million, which was 8% higher than the previous year. Gross margins hit 48.3%, a gain of 130 basis points, showing the company has been able to hold pricing and manage costs efficiently. Those are the kinds of numbers that give investors confidence in management’s ability to keep things humming even when the broader consumer environment is a bit choppy.
What the CEO Had to Say
CEO David Maher struck a positive tone when reflecting on the quarter and the year as a whole. He highlighted the strong response to their new product launches and noted that the fundamentals of the golf industry remain solid. “We are optimistic about the structural health of the golf industry,” he said. That optimism wasn’t just talk—the company increased its dividend by 9% during the year and continued buying back shares, signaling confidence in their long-term growth and financial strength.
Looking Ahead to 2025
Guidance for 2025 was upbeat. Acushnet expects net sales to land between $2.485 billion and $2.535 billion, a year-over-year growth of roughly 2.6% to 4.6% when adjusted for currency. They’re also projecting adjusted EBITDA to come in somewhere between $405 million and $420 million. On the product side, one of the bigger upcoming launches will be the latest versions of their flagship Pro V1 and Pro V1x golf balls—always a key moment in the Titleist calendar. The company also plans to keep pushing into international markets and continue investing in innovation and branding, which should keep momentum going.
All in all, Acushnet looks like it’s heading into 2025 with a clear sense of direction, steady hands at the wheel, and a loyal customer base that continues to show up for its products.
Chart Analysis
Price Action and Moving Averages
GOLF has had a choppy but generally upward-leaning price path over the last twelve months. The price trended nicely above the 200-day moving average for most of the year, with a particularly strong stretch from October through early February where it also stayed well above the 50-day moving average. That’s typically a sign of strength and momentum. But things changed quickly after February. The stock began slipping below the 50-day average in March, and more recently, even dipped sharply under the 200-day average. That breakdown suggests a loss of upward momentum and possible reevaluation from the market.
The 50-day moving average now appears to be trending downward, while the 200-day is flattening. This crossover dynamic, where the shorter-term average starts drifting below the longer-term one, can be a sign that sentiment is shifting and price support is weakening.
Volume Behavior
Volume has mostly been muted for the majority of the year, with the exception of a few notable spikes—especially during periods of sharp price drops. That tends to indicate that sellers are stepping in forcefully when support levels break, a behavior consistent with cautious or reactive trading. What stands out is the lack of follow-through volume on rebounds, which could point to buyers being more selective or hesitant right now.
RSI Momentum Signals
Looking at the Relative Strength Index, GOLF has spent much of the year bouncing between 40 and 70, never really entering overheated territory for long. That balance implies that while the stock has seen rallies, they haven’t been driven by unsustainable momentum. Recently though, RSI slipped below 30 during the early April drawdown, which reflects a short-term oversold condition. That type of reading can often precede a rebound—or at least a pause in selling—as bargain hunters test the waters.
There’s been a small bounce in price off the lows, which is visible both in the RSI and the price line. However, until the RSI can sustainably push back above 50, it’s hard to argue that momentum has truly turned around. That’s something to keep an eye on, especially in the context of the longer-term moving averages.
General Outlook
This past year shows a stock that enjoyed a healthy run but is now digesting those gains with a clear pullback in recent weeks. There’s nothing panic-worthy in the chart, but it does reflect a moment of pause, with the market reassessing future expectations. The current position near key technical levels, along with a modestly oversold signal from RSI, sets up a potential stabilization phase. Whether that leads to another leg up or more sideways movement will depend on how the next few weeks unfold.
Management Team
Acushnet Holdings Corp. is steered by a management team that knows the golf industry inside and out. David Maher, the company’s President and CEO, has been with Acushnet for over two decades, and his leadership reflects a strong understanding of both the sport and the business. He’s played a key role in maintaining the company’s premium brand image while pushing for innovation and global expansion.
Supporting Maher is Sean Sullivan, Executive Vice President and CFO, who’s responsible for financial operations and long-term planning. Under his oversight, Acushnet has remained financially disciplined with solid cash flow generation. Rounding out the leadership are Steven Pelisek, heading Titleist Golf Clubs, and Christopher Lindner, who leads FootJoy. Both are instrumental in product strategy and brand growth. At the board level, Chairman Yoon-Soo Yoon continues to provide strategic direction with a steady hand.
Valuation and Stock Performance
As of mid-April 2025, GOLF was trading around $61.74, with a market cap near $3.7 billion. It’s had a somewhat volatile year, ranging between $55.31 and $76.65, but overall performance has remained within a respectable band. The stock’s trailing P/E ratio is 18.32, and its forward P/E is slightly lower at 17.48, indicating that the market expects earnings to improve modestly over the next twelve months.
Enterprise value to EBITDA sits just under 13, which is reasonable for a consumer brand with consistent cash flow and a loyal customer base. Analyst consensus puts the 12-month price target around $70.86. That reflects a cautious optimism, with room for upside assuming the company continues executing on its strategy and demand for premium golf gear remains stable.
Risks and Considerations
Despite its steady hand, Acushnet isn’t without its vulnerabilities. The business is tightly tied to the health of the golf industry, which can ebb and flow based on economic conditions, demographic shifts, and weather patterns in key markets. Any slowdown in discretionary spending or a pullback in interest in the sport could weigh on future growth.
There’s also competition to consider. While Titleist and FootJoy are dominant names, other brands are always pushing for market share with aggressive pricing and innovation. Currency risk is another factor, with a significant portion of Acushnet’s revenue coming from international markets. On top of that, the company is still relatively concentrated in terms of product lines. If any major release underperforms or supply chain issues hit a key category, the impact could ripple across earnings.
Final Thoughts
Acushnet has carved out a strong position in the sports equipment world by staying focused on what it does best. It’s not chasing trends or trying to be everything to everyone. Instead, it leans into its strengths—premium gear, loyal customers, and disciplined execution. The leadership team has kept the company moving forward without taking on unnecessary risk, and the balance sheet reflects that approach.
While the stock may not be the flashiest on the market, its consistent results and solid fundamentals make it worth watching. Whether growth accelerates or stays moderate, the company seems well-equipped to handle whatever the market throws its way. For those who appreciate predictability and a long-term view, Acushnet continues to quietly deliver.