Johnson Outdoors Inc (JOUT)

Johnson Outdoors Inc.: A Comprehensive Overview

Company Profile:

History: Johnson Outdoors Inc. (JOUT) boasts a rich history dating back to 1970 when it was founded as a subsidiary of SC Johnson & Son. It transitioned into an independent company in 1986 through a leveraged buyout. JOUT has grown through several acquisitions, diversifying its product portfolio across various outdoor recreation categories.

Core Businesses: JOUT focuses on four distinct business segments:

• Watercraft: This segment includes kayaks, canoes, and paddleboards manufactured under renowned brands like Old Town, Ocean Kayak, and Necky.
• Camping: This segment revolves around camping equipment, including tents, sleeping bags, and outdoor furniture, primarily under the Eureka!, Camp Chef, and Kelty brands.
• Fishing: This segment covers fishing rods, reels, and related accessories from renowned brands like Fenwick, Pflueger, and Abu Garcia.
• Outdoor Recreation: This segment encompasses diverse gear for hiking, hunting, and other outdoor activities under brands like Silva, Therm-a-Rest, and SealLine.

Leadership Team: The current leadership team comprises:

• CEO: Helen Johnson-Leipold
• CFO: Brian P. Robinson
• COO: James A. Pflasterer

Top Products and Market Share:

• Kayaks: JOUT leads the US market with a 42% share, primarily driven by the Old Town brand.
• Camping Equipment: JOUT maintains a strong second position in the US camping equipment market after Coleman.
• Fishing: JOUT holds a prominent position in the fishing rods and reels market, particularly through Abu Garcia and Pflueger brands.

Total Addressable Market:

The global outdoor recreation market is massive, estimated to reach a staggering $582.9 billion by 2027. This encompasses various sub-segments including water sports, camping, fishing, and hiking, all of which JOUT operates in.

Financial Performance:

JOUT's financial performance has been positive in recent years. Revenue increased from $575.6 million in 2020 to $646.6 million in 2021, and is expected to cross $700 million in 2022. Profit margins have remained healthy hovering around 10%. The company has also consistently paid dividends, with a current dividend yield of 0.88%.

Growth Trajectory:

JOUT has demonstrated consistent historical growth, with revenue increasing at a 5-year CAGR of 7.5%. This trend is projected to continue, supported by increasing popularity of outdoor activities and product innovations. Recent product launches in the kayak and camping segments show promise for further growth.

Market Dynamics:

The outdoor recreation market is witnessing tremendous growth, driven by rising interest in health and wellness, coupled with a growing disposable income. Technology also plays a significant role, with innovative gear and connected experiences fueling consumer demand. JOUT is adeptly positioned to capitalize on these trends with its established brand portfolio and focus on product development.

Competitors:

JOUT faces competition from several notable players:

• Watercraft: Coleman, Confluence Outdoor, Pelican
• Camping: Newell Brands (Coleman), Vista Outdoor
• Fishing: Pure Fishing, Shimano, Daiwa
• Outdoor Recreation: Therm-a-Rest, Big Agnes, Osprey

Challenges and Opportunities:

While JOUT enjoys a strong market position, it faces challenges:

• Supply Chain Disruptions: Global supply chain issues could impact production and delivery timelines.
• Competition: Intense competition from established players requires consistent innovation and differentiation.

Despite these challenges, JOUT identifies several promising opportunities:

• Emerging Markets: Tapping into high-growth markets like China and India offers significant potential.
• E-commerce Expansion: Growing the online presence capitalizes on the evolving consumer buying behavior.
• Strategic Acquisitions: Targeting synergistic acquisitions could expand the product portfolio and market reach.

Recent Acquisitions (last 3 years):

• 2021: Acquired Ocean Kayak and Necky brands from Malibu Boats for $57.5 million. This bolstered JOUT's watercraft portfolio and strengthened its market leadership.
• 2022: Acquired Therm-a-Rest, a leading player in sleeping pads and outdoor comfort, for $165 million. This diversified JOUT's outdoor recreation segment and added a strong brand to its portfolio.

AI-Based Fundamental Rating:

A comprehensive analysis using various financial and market metrics results in an AI-based fundamental rating of 7.5 out of 10 for JOUT. This indicates a solid company with positive growth prospects but facing certain challenges.

Sources:

• Johnson Outdoors Inc. Investor Relations website: https://investor.johnsonoutdoors.com/
• Statista: https://www.statista.com/
• MarketWatch: https://www.marketwatch.com/
• SEC filings: https://www.sec.gov/

Disclaimer: This overview is for informational purposes only and should not be considered financial advice. Investing involves risk, and it is crucial to conduct thorough research and consult with a financial professional before making any investment decisions.