February 04, 2022 - 5:13pm EST by
2022 2023
Price: 45.12 EPS 0 0
Shares Out. (in M): 74 P/E 0 0
Market Cap (in $M): 3,322 P/FCF 0 0
Net Debt (in $M): 0 EBIT 0 0
TEV (in $M): 0 TEV/EBIT 0 0
Borrow Cost: General Collateral

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GOLF operates under four reportable segments:  Titleist golf balls (32% of sales), Titleist golf clubs (26%), Titleist golf gear (9%) and Footjoy golf wear (26%).  The Company generated its sales across the US (52%), Korea (15%), EMEA (14%), Japan (9%), and Rest of World (10%).  GOLF is most well known for its ProV1 golf ball.  The Company has nearly 50% market share of golf balls.


Investment Thesis / Variant Perception:

  • Demand for Golf Products Unsustainable: 

o   Golf has had a resurgence due to COVID that will prove unsustainable.  With consumers looking for a socially-distanced and outdoor activity, golf has materially benefited.  Rounds played were up 13% in 2020 and were up an additional 8% YTD through September 2021.  Prior to COVID, rounds played had been declining as the sport had structural problems with participation principally driven by the time required to play.  By contrast, during COVID, people have been looking for activities to fill time.  On-course golf participation has been effectively flat for the past decade with participation growth only coming from off-course (ie, Top Golf) that doesn’t require golf clubs or balls.


o   There is a strong correlation between rounds played and spending on golf products.