StockStory Cites Growth and Cash-Flow Concerns at Acushnet

StockStory said Acushnet Holdings may underperform, citing weak five-year revenue growth, unchanged returns on invested capital and a flat free-cash-flow margin outlook. The publisher noted that shares had fallen 8% over six months, while the S&P 500 gained 22.1%.

Acushnet’s revenue grew at an annualized 5.1% over five years, which StockStory said fell short of its standard for consumer discretionary companies. Analysts’ consensus expects the company’s free-cash-flow margin to remain at 6.8% over the next year, matching the previous 12 months, the article said.

The publisher also said Acushnet’s return on invested capital had stayed unchanged in recent years. It described the stock as trading at 20.3 times forward earnings at $83.83, and said that valuation reflected too much optimism.

As of 16:21 UTC on Sept. 29, Acushnet shares traded at $83.90, up 0.13% since the previous close. StockStory said it preferred a software stock, but did not name it in the article.