Acushnet Holdings Corp. Common Stock (GOLF)

FairStock Score: 40/100 — MIXED

Key Financials

Strengths

• Generates $59 million in annual free cash flow (1.0% yield on market cap)
• High return on equity of 23.6% demonstrating efficient capital deployment

Concerns

• Trades significantly above Graham Number ($31) with negative 225% margin of safety—limited downside protection
• Currently unprofitable—sustained losses could lead to dilutive capital raises or balance sheet deterioration
• Weak Piotroski F-Score of 2/9 suggests deteriorating financial quality across multiple dimensions

AI Analysis

Acushnet Holdings Corp. Common Stock is a small-cap consumer cyclical company valued at $5.8 billion. Revenue stands at $2.6 billion, though the company is currently unprofitable. From a quality standpoint, Acushnet shows weak Piotroski F-Score of 2/9 signaling deteriorating fundamentals and Altman Z-Score of 2.8 in the grey zone. On valuation, the stock is trading at a premium 31.8x earnings, with trades far above its Graham Number ($31) with no margin of safety. Growth dynamics show revenue growing at 7.2% and profit growth of -3027.3%. The 1.0% dividend yield adds an income component for patient holders. Our composite FairStock Score of 40/100 reflects below-average fundamentals overall. Without profitability, this remains speculative—suitable only for those with high risk tolerance and a long time horizon.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $59 million in annual free cash flow (1.0% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 32x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer