Johnson Outdoors Inc (JOUT)JOUT

Johnson Outdoors Inc. - A Comprehensive Overview

Company Profile

History and Background

Johnson Outdoors Inc. (JOUT), founded in 1970 and headquartered in Racine, Wisconsin, is a leading manufacturer and marketer of outdoor recreation products. Formerly known as Outboard Marine Corporation (OMC), the company initially focused on marine engines and boats. However, following bankruptcy in 2000, it reorganized and shifted its focus to outdoor recreation products, including kayaks, canoes, camping equipment, and fishing gear.

Core Business Areas

JOUT operates through three main segments:

• Watercraft: This segment designs, manufactures, and sells kayaks, canoes, and paddleboards under various brands, including Old Town, Ocean Kayak, Necky, and Carlisle.
• Camping: This segment offers tents, sleeping bags, backpacks, and other camping equipment under the Eureka!, Mountain Hardwear, and Kelty brands.
• Fishing: This segment produces fishing rods, reels, lures, and other fishing gear under the Abu Garcia, Berkley, Pflueger, and SpiderWire brands.

Leadership and Corporate Structure

As of November 2023:

• President and CEO: Helen Johnson-Leipold
• Executive Vice President and CFO: Michael W. Cook
• Executive Vice President and COO: David W. Johnson
• Board of Directors: Comprised of ten members, including Helen Johnson-Leipold as Chair.

Top Products and Market Share

Top Products and Offerings

JOUT's most popular products include:

• Watercraft: Old Town Dirigo 106, Ocean Kayak Malibu Two, Necky Manitou 14, and Carlisle Magic.
• Camping: Eureka! Copper Canyon 4 Person Tent, Mountain Hardwear Trango 2 Person Tent, Kelty Wireless 2 Person Tent.
• Fishing: Abu Garcia Revo SX Spinning Reel, Berkley Trilene XL Fishing Line, Pflueger President Spinning Reel, SpiderWire Stealth Superline.

Market Share

• Watercraft: JOUT holds a significant market share in the kayak and canoe segment, with brands like Old Town and Ocean Kayak ranking among the top sellers in the US.
• Camping: The company competes with major players like Coleman and The North Face, capturing a respectable market share in the camping equipment segment.
• Fishing: JOUT's fishing brands like Abu Garcia and Berkley hold a strong position in the US market, particularly in specific product categories like spinning reels and fishing line.

Competitive Comparison

JOUT's products are generally well-received by consumers, known for their quality and innovation. However, the company faces fierce competition from established brands in each of its segments.

Total Addressable Market

The global outdoor recreation market is estimated to be worth over $600 billion, with the US market accounting for a significant portion. This market is expected to grow steadily in the coming years, driven by increasing participation in outdoor activities and rising disposable income.

Financial Performance

Recent Financial Statements

JOUT's recent financial statements (as of August 2023) indicate:

• Revenue: $640.5 million
• Net Income: $42.5 million
• Profit Margin: 6.6%
• Earnings per Share (EPS): $2.10

Year-over-Year Comparison

JOUT's revenue and net income have shown modest growth in the past year, with profit margins remaining relatively stable.

Cash Flow and Balance Sheet

JOUT's cash flow statement reflects healthy cash flow from operations, while its balance sheet indicates a manageable debt-to-equity ratio.

Dividends and Shareholder Returns

Dividend History

JOUT has a consistent dividend payout history, with recent dividend yields hovering around 2.5%. The company's payout ratio is moderate, indicating room for future dividend increases.

Shareholder Returns

Over the past year, JOUT's stock has generated positive returns for shareholders, outperforming the broader market. However, long-term shareholder returns have been mixed.

Growth Trajectory

Historical Growth

JOUT has experienced modest growth in revenue and earnings over the past five years.

Future Growth Projections

Analysts project moderate growth for JOUT in the coming years, driven by increasing demand for outdoor recreation products and the company's continued focus on innovation.

Recent Initiatives

JOUT's recent product launches and strategic acquisitions aim to expand its product portfolio and market reach, contributing to future growth.

Market Dynamics

Industry Trends

The outdoor recreation industry is experiencing strong growth, driven by increasing consumer interest in health and wellness, environmental awareness, and adventure travel.

JOUT's Positioning

JOUT is well-positioned within the industry, with a strong brand portfolio, established distribution channels, and a focus on product innovation. However, the company faces challenges from increasing competition and the need to adapt to evolving consumer preferences.

Competitors

Key Competitors

• Vista Outdoor (VSTO)
• Newell Brands (NWL)
• Coleman (COL)
• The North Face (TNF)
• Shimano (7309.T)

Market Share Comparison

JOUT holds a smaller market share compared to larger competitors like Vista Outdoor and Newell Brands, but it maintains a strong position in specific product categories.

Competitive Advantages and Disadvantages

JOUT's competitive advantages include its strong brand portfolio, established distribution network, and focus on innovation. However, its smaller size and limited product diversification compared to larger competitors pose challenges.

Potential Challenges and Opportunities

Key Challenges

• JOUT faces supply chain disruptions and rising raw material costs, impacting production and profitability.
• The company needs to adapt to evolving consumer preferences and the growing popularity of e-commerce.
• Increasing competition from established brands and new entrants poses a challenge to market share growth.

Opportunities

• The company can capitalize on the growing demand for outdoor recreation products by expanding its product portfolio and entering new markets.
• JOUT can leverage its strong brands and established distribution channels to enhance its online presence and reach new customer segments.
• Strategic partnerships and acquisitions can help JOUT expand its offerings and gain market share.

Recent Acquisitions

In the past three years, JOUT has not made any significant acquisitions.

AI-Based Fundamental Rating

Based on an AI-based analysis, JOUT receives a rating of 7 out of 10. This rating considers the company's financial health, market position, and future growth prospects. The AI analysis indicates that JOUT has a solid financial foundation, a strong brand portfolio, and opportunities for future growth, but it also faces challenges from competition and the need to adapt to evolving market trends.

Sources and Disclaimers

This overview is based on publicly available information from JOUT's website, financial reports, and industry sources. The information presented is for educational purposes only and should not be considered as investment advice. Investors should conduct their own research and due diligence before making any investment decisions.