Last Update 5/27/25
Johnson Outdoors Inc. designs and manufactures outdoor recreational products, including well-known brands like Minn Kota, Humminbird, and Jetboil. With a heritage dating back to 1970 and leadership under CEO Helen Johnson-Leipold, the company blends deep-rooted industry experience with a steady, family-guided approach. Its strong cash position, zero long-term debt, and consistent dividend policy reflect a focus on financial discipline even amid operational challenges.
Recent Events
Looking at the latest quarter ending in March 2025, it was a mixed bag but not without bright spots. Revenue took a bit of a hit, down 4.3% from the same period last year. But interestingly, earnings moved in the opposite direction, climbing 6.9%. That’s usually a good sign that the company is managing costs well or getting more margin from the products it sells.
Now, the stock’s been volatile. Over the past year, it’s dropped about 25%, and yet it bounced up over 6% just today. What’s driving this? One factor could be the high short interest—nearly 20% of the float. That’s unusually high for a stock with a beta under 1, which suggests some folks are betting big on a downturn. Others, however, might be seeing value, especially with such a strong balance sheet and solid dividend yield.
Johnson Outdoors is sitting on nearly $94 million in cash and has less than $49 million in debt. That’s a conservative financial position. And with a current ratio near 4, they’re more than capable of handling near-term obligations. This isn’t a business that’s overleveraged or overextended. It’s just in a tough sales environment like many consumer-facing names right now.
Key Dividend Metrics
💰 Forward Dividend Yield: 4.99%
📅 Ex-Dividend Date: April 10, 2025
🏦 Payout Ratio: 272.34%
📈 5-Year Average Yield: 2.06%
💵 Forward Dividend Rate: $1.32 per share annually
📊 Price-to-Book Ratio: 0.62
🔎 Free Cash Flow (ttm): $48.75M
🧾 Cash Per Share: $9.22
Dividend Overview
Let’s talk about that payout ratio first—because 272% looks rough. If you were only glancing at net income, you’d think the dividend is wildly unsustainable. But dive into the cash flow numbers and the picture changes. Despite the reported $45 million net loss over the last year, operating cash flow came in strong at $54 million. Free cash flow? Just under $49 million. And with a dividend bill that’s only a fraction of that, coverage isn’t nearly as bad as it looks on the surface.
The thing is, Johnson Outdoors had some earnings hits that don’t necessarily reflect ongoing operations. That’s why the payout ratio looks bloated. But cash flow tells the real story—and here, the dividend appears reasonably well-covered.
Management hasn’t blinked. The dividend has held steady, even when earnings turned negative. That kind of consistency matters. In fact, the 4.99% forward yield is one of the most attractive it’s been in years. Some of that might reflect investor concern—maybe pricing in more downside—but it also opens the door for income seekers looking for value and stability.
Despite the rough patches, Johnson Outdoors isn’t stretching itself to maintain the payout. There’s room on the balance sheet, and the stock is trading at just 0.62 times book. For a company with strong cash generation, that might look like a bargain to the right kind of investor.
Dividend Growth and Safety
Johnson Outdoors hasn’t been an aggressive dividend grower. If anything, it’s been conservative, keeping the payout steady rather than increasing it year after year. But that’s also a sign of prudence. The company knows it’s operating in a cyclical space. Instead of promising what it can’t sustain, it delivers a stable yield and holds the line.
The lack of growth in the dividend doesn’t necessarily scream opportunity—but the consistency might. And the high current yield makes up for the flat growth, at least for those looking primarily for income.
When it comes to safety, the company checks a lot of boxes. The free cash flow is healthy, the cash cushion is large, and debt is low. That’s not the profile of a dividend at risk, even if earnings don’t bounce back right away.
Still, it’s worth watching how revenue trends develop. If margins continue to get squeezed or sales remain soft, eventually even strong cash flow could come under pressure. For now, though, the dividend looks safe. It may not grow in the short term, but it’s not going anywhere either.
Cash Flow Statement
Johnson Outdoors generated $54.2 million in operating cash flow over the trailing twelve months, a significant improvement from previous years and an indication of solid underlying business efficiency, despite recent earnings volatility. This rebound highlights the company’s ability to convert sales into actual cash, even when net income has taken a hit. Free cash flow followed suit at nearly $35 million, more than covering the dividend and suggesting stability in the near term.
On the investing side, cash flow was negative by about $9.7 million, largely due to ongoing capital expenditures of $19.2 million. This is consistent with past years, reflecting the company’s continued investment in equipment and infrastructure rather than expansion. Financing cash flow remained negative as well, at -$13.6 million, driven primarily by routine dividend payouts and modest share repurchases. There’s been no new debt issuance or repayment activity, pointing to a debt-averse capital strategy. Overall, the company ended the period with over $91 million in cash, down from a high of $240 million a few years ago, but still providing a solid buffer.
Analyst Ratings
Johnson Outdoors Inc. (JOUT) has experienced a shift in analyst sentiment over the past year. Once rated as a “Buy,” the stock now carries a more reserved “Hold” recommendation from analysts. This change reflects recent financial setbacks and broader concerns within the consumer discretionary space.
🔻 The downgrade stemmed largely from a disappointing fiscal 2024, where the company posted a net loss of $26.5 million. Revenue dropped by 11% year-over-year, a clear sign of pressure across product lines. One particularly tough blow was an $11.2 million non-cash goodwill impairment in the Fishing segment, which hit the bottom line hard. While these issues don’t necessarily indicate long-term structural problems, they were enough to rattle sentiment in the short term.
💼 On the bright side, Johnson Outdoors remains debt-free and continues to sit on a strong cash reserve. This financial cushion gives the company some breathing room as it works through a more sluggish retail environment.
🎯 Analysts have pegged the consensus price target for JOUT at $50.00, pointing to meaningful upside from where the stock currently trades. That target is supported by the company’s potential to stabilize earnings through its core brands like Humminbird and Jetboil, both of which are still well-regarded in their categories.
🔍 Analysts will be closely watching how Johnson Outdoors manages inventory, navigates seasonal demand, and leans into product innovation to regain momentum. For now, the market is in wait-and-see mode.
Earnings Report Summary
A Tough Start to the Year
Johnson Outdoors kicked off fiscal 2025 on a challenging note. The company posted a net loss of $15.3 million, or $1.49 per share, in the first quarter—quite a reversal from the $4 million profit seen during the same time last year. Revenue also took a noticeable dip, coming in at $107.6 million compared to $138.6 million in the prior year’s first quarter. That’s about a 22% drop, and the pain was felt across all their major product categories.
Fishing, typically the company’s strongest segment, was hit especially hard. Sales in that division fell by 25%, reflecting a mix of tough market conditions and increased competition. Camping and watercraft products didn’t fare much better, sliding 12% as overall consumer demand softened. Diving equipment also saw a 10% dip in sales, with demand slowing across most global regions.
Pressure on Margins
Profit margins took a hit too. Gross margin slipped to 29.9%, down from 38.1% last year. A few things played into that—lower overhead absorption, a shift toward less profitable products, and heavier promotional pricing to move inventory. Despite all this, Johnson Outdoors managed to keep operating expenses mostly flat at $52.4 million, just a touch below last year. They saved a bit on lower sales volume and deferred comp expenses, though that was nearly offset by higher consulting and warranty costs.
Staying the Course
While the numbers were disappointing, leadership isn’t backing down. CEO Helen Johnson-Leipold made it clear that the company is staying focused on long-term goals. That includes investing in product innovation, sharpening marketing strategies, and keeping operations lean and efficient. Her message was steady—this is a cycle, and Johnson Outdoors has seen cycles before.
CFO David Johnson also pointed to the company’s strong financial foundation. They’re still completely debt-free, with over $100 million in cash and short-term investments at the end of the quarter. That kind of cushion gives them flexibility to weather the downturn while continuing to invest in their core business and maintain the dividend.
Lean Spending, Strong Balance Sheet
On the capital side, spending came in at $4.1 million, slightly down from $5 million the year before. Depreciation and amortization also edged lower, finishing at $4.8 million for the quarter. These are the kinds of numbers that show the company isn’t overextending itself, even as it deals with lower sales.
The quarter didn’t go the way anyone wanted, but management is clearly playing the long game. They’re leaning into their strengths—brand loyalty, a debt-free balance sheet, and steady hands at the wheel. Investors who’ve followed Johnson Outdoors for a while know the company tends to move through these periods with quiet resilience.
Management Team
At the helm of Johnson Outdoors is Helen Johnson-Leipold, who has served as Chairman and CEO since 1999. As a fifth-generation member of the Johnson family, she brings a deep understanding of the company’s heritage and values. Her leadership emphasizes strategic planning, global operations, and brand development, ensuring the company’s long-term vision aligns with its operational goals.
Supporting her is a seasoned executive team. David W. Johnson, the Chief Financial Officer, has been instrumental in maintaining the company’s strong financial position, focusing on cost management and capital allocation. John C. Moon, serving as Chief Information Officer and Vice President, oversees the company’s technological infrastructure, ensuring it supports the evolving needs of the business. Karen James, Vice President of Global Operations, brings extensive experience in supply chain management, crucial for the company’s diverse product lines. The team also includes Patricia Penman, Vice President of Marketing Services and Global Communication, who plays a key role in brand strategy and market outreach.
This leadership team combines deep industry knowledge with a commitment to innovation and operational excellence, positioning Johnson Outdoors to navigate the challenges of the outdoor recreation market effectively.
Valuation and Stock Performance
Johnson Outdoors’ stock performance has experienced fluctuations in recent years. As of May 27, 2025, the stock is trading at $28.43, reflecting a modest increase from previous lows. The company’s market capitalization stands at approximately $270 million, indicating its position as a small-cap stock within the consumer durables sector.
The stock’s 52-week range has seen a low of $21.33 and a high of $43.13, highlighting the volatility influenced by market conditions and company performance. Analysts have set a consensus price target of $50.00, suggesting potential upside if the company can address its operational challenges and capitalize on market opportunities.
Valuation metrics indicate that the stock may be undervalued. The price-to-book ratio is currently at 0.62, suggesting that the market price is below the company’s book value. Additionally, the forward price-to-earnings ratio stands at 22.37, reflecting investor expectations of future earnings growth.
Despite recent financial setbacks, Johnson Outdoors maintains a strong balance sheet with no long-term debt and substantial cash reserves. This financial stability provides the company with the flexibility to invest in strategic initiatives and weather economic downturns.
Risks and Considerations
Investing in Johnson Outdoors involves several risks that potential investors should consider. The company has faced declining revenues across all segments, with a notable 29% drop in Watercraft Recreation sales in fiscal year 2024. This decline is attributed to reduced consumer demand and increased competition in the outdoor recreation market.
Margin pressures are another concern, as the company reported a decrease in gross margin to 33.9% in fiscal 2024, down from 36.8% the previous year. Factors contributing to this decline include unfavorable product mix and increased promotional pricing.
Macroeconomic factors, such as economic downturns and shifts in consumer spending habits, can also impact the company’s performance. The outdoor recreation industry is sensitive to economic cycles, and prolonged downturns can lead to decreased sales and profitability.
Additionally, the company faces risks related to supply chain disruptions, which can affect product availability and lead to increased costs. Regulatory changes and environmental considerations also pose potential challenges, requiring the company to adapt to evolving standards and consumer expectations.
Final Thoughts
Johnson Outdoors stands at a crossroads, balancing its rich heritage and strong brand portfolio against the challenges of a dynamic market environment. The company’s leadership, under Helen Johnson-Leipold, demonstrates a commitment to strategic planning and operational excellence. Financially, the company maintains a solid foundation, with no long-term debt and significant cash reserves, providing the flexibility to invest in growth opportunities and navigate economic uncertainties.
While recent financial performance has been impacted by declining revenues and margin pressures, the company’s focus on innovation and market responsiveness positions it to capitalize on future opportunities. Investors should weigh these factors carefully, considering both the potential for recovery and the inherent risks associated with the outdoor recreation industry.