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To own Acushnet Holdings, you need to believe that global golf participation and demand for premium brands like Titleist and FootJoy can support steady revenue and earnings, even with modest growth expectations. The new US$500,000,000 senior notes and recent insider selling do not materially change the near term catalyst of continued product strength, but they do keep the focus on balance sheet leverage as a key risk.
The freshly issued US$500,000,000 senior notes due 2033 at 5.625% are the most relevant recent development here, as they directly affect Acushnet’s capital structure and financial flexibility. When combined with ongoing buybacks, this additional debt could influence how investors weigh the appeal of strong cash generation and shareholder returns against the company’s already high leverage and sensitivity to any slowdown in golf demand.
Yet investors should also be aware of how Acushnet’s high debt level could interact with...
Read the full narrative on Acushnet Holdings (it's free!)
Acushnet Holdings' narrative projects $2.7 billion revenue and $208.8 million earnings by 2028. This requires 2.5% yearly revenue growth and a $21.2 million earnings decrease from $230.0 million today.
Uncover how Acushnet Holdings' forecasts yield a $78.86 fair value, a 8% downside to its current price.
Three Simply Wall St Community fair value estimates for Acushnet span about US$78.86 to US$144.83, showing how far apart individual views can be. You can weigh those opinions against Acushnet’s reliance on strong cash flow and premium pricing to manage its higher debt load and consider what that might mean for future performance.
Explore 3 other fair value estimates on Acushnet Holdings - why the stock might be worth as much as 70% more than the current price!
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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