Johnson Outdoors (JOUT) Company Overview & Stock Price Forecast
This article provides a brief analysis and stock rating for Johnson Outdoors (JOUT) including an updated stock price target. Additional data on the company’s earnings yield, price/earnings ratio, return on invested capital and YTD performance are discussed as well.
Johnson Outdoors Fundamentals
Stock Price Target: $143.81
In the section below, we discuss the earnings yield, P/E, return on invested capital and YTD performance for Johnson Outdoors in comparison to the Recreation industry and the S&P 500.
Johnson Outdoors is a Small Cap company with a Market Cap of $960M.
How are investors using Johnson Outdoors earnings yield to assess the company?
The earnings yield is used to show the percentage of a company’s earnings per share. Investors typically use earnings yield to determine which assets are underpriced or overpriced relative to other variables, like sector, industry or bond yields. Simply put, the earnings yield of a company can be used to assess how expensive a company is in relation to the earnings that are generated. When valuing companies, the SIS Research Group does not utilize the inverse P/E ratio to calculate the earnings yield. Instead, we use an adjusted earning yield calculation to capture variation amongst companies (i.e. debt and tax rates).
The current earnings yield for Johnson Outdoors is 14.35%, in comparison to 3.36% for the S&P 500 and 1.50% for the 10-year treasury bond. The median earnings yield for the Recreation industry is 4.03%.
What does Johnson Outdoors Price-to-Earnings Ratio (P/E) tell investors about the company?
The price-to-earnings ratio (P/E) is a relatively popular metric used by investors and analysts for valuing a company’s stock. The P/E ratio can be used to show how a stock’s valuation compares to other companies and the total market. Investors use the P/E ratio to determine what the market is willing to pay today based on a company’s past or future earnings. A high P/E ratio could mean that a stock’s price is too high relative to earnings, which could be a signal that a stock is currently overvalued. In turn, a low P/E ratio could indicate that a company’s current stock price is low relative to earnings.
Johnson Outdoors is currently trading at a P/E of 11.42. The P/E for the Recreation industry is 14.62 and the P/E for the S&P 500 is 29.77.
What is the current Price-to-Sales Ratio (P/S) for Johnson Outdoors?
The Price-to-Sales Ratio (P/S) looks at a company’s market cap and revenue to determine valuation. The P/S ratio is calculated by taking a company’s market cap and dividing by the total sales or revenue. The P/S ratio gives an idea of how much the market values every dollar of a company’s sales and can be effective in valuing unprofitable growth stocks or companies that are currently undergoing special situations or challenges. A lower the P/S ratio can be an indicator of good value.
Johnson Outdoors is currently trading at a P/S of 1.26. The P/S for the Recreation industry is 3.16 and the P/S for the S&P 500 is 3.23.
How does Johnson Outdoors Price-to-BookRatio (P/B) compare to the Recreation industry?
Price-to-book value (P/B) is the ratio of the market value of a company’s shares divided by its book value of equity (the value of it’s assets on the books). The book value is the difference between the book value of assets and liabilities. Typically, investors use the P/B ratio to assess if a stock is valued properly (a value of one means that the stock price is trading in line with the book value of the company). A company with a high P/B ratio could mean the stock price is overvalued as well as the converse.
Johnson Outdoors P/B ratio is 2.05. The P/B for the Recreation industry is 10.37 and the P/B for the S&P 500 is 4.87.
How attractive is Johnson Outdoors Return on Invested Capital (ROIC) to investors?
Investors use the return on invested capital (ROIC) to assess how efficient a company is at turning capital into profits. The ROIC is the amount of money a company makes on it’s investments that is above the average cost of debt and equity.
Investors can use the ROIC to provide context for metrics like the (P/E) ratio. For instance, when used in isolation a low P/E ratio could suggest a company is oversold but the decline could be because a company is no longer generating value for shareholders. Conversely, companies that consistently generate high rates of ROIC can plausibly trade at a premium compared to other stocks, even if their P/E ratios are high.
Johnson Outdoors ROIC is currently 18.21% in comparison to -3.74% for the Recreation industry and 8.60% for the S&P 500.
How has JOUT stock performed over the past year? What is the current analyst price target?
Over the past 52 weeks, Johnson Outdoors has traded between the range of $91.83 and $154.18.
The current Analyst Price Target for Johnson Outdoors is $143.81.
What is Johnson Outdoors YTD Performance in comparison to its industry and the total market?
The year-to-date (YTD) performance is the amount of profit/loss realized by a stock since the first trading day of the current calendar year.
The YTD performance for Johnson Outdoors is -16.08%. The Recreation industry has a YTD performance of 4.67% in comparison to the YTD S&P 500 performance of 25.82%.
Recent Financial Results
- Net sales in the fiscal fourth quarter were $166.3M, an increase from the prior fiscal year’s strong fourth quarter sales
- Operating profit of $13.6M in the current year fourth quarter declined from $19.5M in the prior year fourth quarter
- Gross margin declined from the prior year quarter due to increased tariffs, inbound air freight costs and higher cost of goods sold
- Operating expenses increased slightly due to higher sales volume-related expenses, but remained consistent with the prior year quarter as a percent of net sales
- Net earnings for the fourth quarter were $6.9M compared to $15.5M in FY 2020
- Debt-free balance sheet
- Increased quarterly dividend to shareholders 43%
Stock Price Target: $143.81
Johnson Outdoors Inc. designs, manufactures, and markets seasonal and outdoor recreational products for fishing worldwide. It operates through four segments: Fishing, Camping, Watercraft Recreation, and Diving.
The company was founded in 1970 and is headquartered in Racine, Wisconsin. The current CEO is Helen Johnson-Leipold.
Be sure to add Johnson Outdoors (JOUT) to your Watch List and if you haven’t done so already, check in on the performance of our Current Portfolio. Keep it simple and always do your due diligence.
This material is provided for informational purposes only and is not financial advice. The information contained herein should not solely be used for the formation of an investment decision, whether you are a long term or short term investor.