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1. Company Snapshot

1.a. Company Description

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 Fishing segment offers electric motors for trolling, marine battery chargers, and shallow water anchors; sonar and GPS equipment for fish finding, navigation, and marine cartography; and downriggers for controlled-depth fishing.This segment sells its products under the Minn Kota, Humminbird, and Cannon brands through outdoor specialty and Internet retailers, retail store chains, original equipment manufacturers, and distributors.The Camping segment provides consumer, commercial, and military tents and accessories; camping furniture and stoves; other recreational camping products; and portable outdoor cooking systems, as well as manufactures fabric floors and insulated thermal liners and a subcontract manufacturer of military tents.


This segment sells its products under the Eureka! and Jetboil brands through independent sales representatives and Internet retailers.The Watercraft Recreation segment offers kayaks, canoes, and paddles for family recreation, touring, angling, and tripping through independent specialty and outdoor retailers under the Ocean Kayaks, Old Town, and Carlisle brands.The Diving segment manufactures and markets underwater diving and snorkeling equipment, such as regulators, buoyancy compensators, dive computers and gauges, wetsuits, masks, fins, snorkels, and accessories through independent specialty dive stores and diving magazines under the SCUBAPRO brand name.


This segment also provides regular maintenance, product repair, diving education, and travel program services; and sells diving gear to dive training centers, resorts, public safety units, and armed forces.It sells its products through Websites.The company was founded in 1970 and is headquartered in Racine, Wisconsin.

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1.b. Last Insights on JOUT

Johnson Outdoors' recent performance was negatively impacted by dismal market demand trends and competitive risks. The company's Q1 fiscal 2025 results reflected weak sales, partly due to the challenging market conditions for outdoor recreation products. Additionally, the acquisition of a diving equipment business for $12 million has weakened the company's balance sheet, exacerbating the poor expense control. The lack of progress on excess inventory is also a concern, indicating a need for improved operational efficiency.

1.c. Company Highlights

2. Johnson Outdoors: A Strong Q3 Performance Driven by Innovation

Johnson Outdoors reported a solid fiscal third quarter 2025, with sales increasing 5% to $180.7 million and operating profit jumping significantly to $7.3 million. The company's focus on innovation drove growth, with its Fishing business seeing strong demand for Hummingbird's new fish finder technology and XPLORE fish finder unit. Earnings per share (EPS) came in at $0.75, well above analysts' estimates of $0.24.

Publication Date: Aug -17

📋 Highlights
  • Revenue Growth:: Sales rose 5% to $180.7 million in Q3 2025, with operating profit surging to $7.3 million.
  • Product Innovation Success:: Hummingbird’s new fish finder tech and XPLORE unit drove demand, winning awards at ICAST and Marine Power Innovation.
  • Gross Margin Expansion:: Improved 1.8 points to 37.6% from overhead absorption, pricing, and cost savings.
  • Inventory Reduction:: Stock levels dropped $59.4 million to $163.7 million, reflecting better inventory management.
  • Operational Efficiency:: Operating expenses fell $1.7 million, aided by reduced promotions and professional services costs.

Segment Performance

The company's Fishing segment was a standout, with the XPLORE series winning Best in Electronics honors at ICAST and the Minn Kota brand receiving the Marine Power Innovation Award for its Riptide Instinct brushless trolling motor. In Camping and Watercraft, Old Town and Jetboil brands remain strong leaders, with Jetboil's newest Fast Boil cooking systems seeing strong orders. The Diving business saw slightly improved results amidst stronger market conditions.

Margin Expansion and Cost Savings

Gross margin improved 1.8 points to 37.6%, driven by overhead absorption, improved pricing, and cost savings efforts. Operating expenses decreased $1.7 million, with lower promotion and professional services expenses contributing to the decline. As CEO Helen Johnson-Leipold noted, "Our cost savings program remains robust, with a focus on product cost improvements."

Balance Sheet and Outlook

The company made progress on its inventory levels, with a balance of $163.7 million, down $59.4 million from the prior year. Johnson Outdoors remains debt-free with a solid cash position. Looking ahead, the company expects to see more cost impact from tariffs in the fourth quarter but is working to mitigate this through supply chain efforts and potential pricing actions.

Valuation

With a P/E Ratio of -10.09, P/B Ratio of 0.89, and P/S Ratio of 0.72, Johnson Outdoors appears undervalued. The company's strong free cash flow yield of 18.28% and ROIC of -8.51% also suggest that it has the potential to create value for shareholders. Analysts estimate next year's revenue growth at 7.4%, which could drive further upside in the stock.

3. NewsRoom

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Johnson Outdoors to Release Fiscal 2025 Fourth Quarter Results on December 12, 2025

Nov -25

Source: globenewswire.com

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Johnson Outdoors (NASDAQ:JOUT) Stock Price Passes Above Two Hundred Day Moving Average – What’s Next?

Nov -19

Source: defenseworld.net

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Head-To-Head Contrast: Kandi Technologies Group (NASDAQ:KNDI) versus Johnson Outdoors (NASDAQ:JOUT)

Oct -30

Source: defenseworld.net

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New Strong Sell Stocks for October 2nd

Oct -02

Source: zacks.com

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Johnson Outdoors Announces Cash Dividend

Sep -26

Source: globenewswire.com

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Johnson Outdoors (JOUT) Q3 EPS Soars

Aug -02

Source: fool.com

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Johnson Outdoors Inc. (JOUT) Q3 2025 Earnings Call Transcript

Aug -01

Source: seekingalpha.com

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Johnson Outdoor (JOUT) Q3 Earnings and Revenues Surpass Estimates

Aug -01

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.18%)

6. Segments

Fishing

Expected Growth: 4.83%

Johnson Outdoors Inc.'s 4.83% growth in Fishing segment is driven by increasing demand for recreational fishing, innovative product offerings, and strategic acquisitions. Expanding distribution channels, favorable government regulations, and growing popularity of outdoor activities also contribute to the growth. Additionally, the company's focus on sustainability and eco-friendly products resonates with environmentally conscious consumers, further boosting sales.

Diving

Expected Growth: 7.43%

Johnson Outdoors Inc.'s 7.43% growth is driven by increasing demand for outdoor recreational products, particularly in fishing and camping segments. Strong brand recognition, innovative product offerings, and strategic acquisitions have contributed to the company's growth. Additionally, the trend towards outdoor activities and wellness has boosted sales, while effective cost management has improved profitability.

Camping

Expected Growth: 4.83%

Johnson Outdoors Inc.'s Camping segment growth of 4.83% is driven by increasing outdoor recreation participation, particularly among millennials and Gen Z. Growing demand for camping gear and accessories, such as tents, sleeping bags, and backpacks, also contributes to this growth. Additionally, the company's strategic investments in e-commerce and digital marketing have expanded its online presence, further boosting sales.

Watercraft Recreation

Expected Growth: 5.15%

Johnson Outdoors Inc.'s Watercraft Recreation segment growth of 5.15% is driven by increasing consumer spending on outdoor activities, rising popularity of kayaking and paddleboarding, and the company's strategic expansion into new markets and product lines, such as fishing kayaks and stand-up paddleboards.

Other/Corporate

Expected Growth: 4.83%

Johnson Outdoors Inc.'s Other/Corporate segment growth of 4.83% is driven by strategic investments in digital marketing, expansion of e-commerce platforms, and cost savings initiatives. Additionally, the company's focus on innovation and new product development has contributed to increased sales and revenue growth.

7. Detailed Products

Fishing

Johnson Outdoors Inc. offers a wide range of fishing products, including rods, reels, lures, and other fishing gear under its brands such as Minn Kota, Humminbird, and Cannon.

Watercraft

The company designs and manufactures watercraft, including canoes, kayaks, and paddleboards, under its Old Town and Necky Kayaks brands.

Scuba Diving

Johnson Outdoors Inc. offers scuba diving gear and equipment, including regulators, BCDs, and dive computers, under its SCUBAPRO brand.

Marine Electronics

The company provides marine electronics, including fish finders, GPS, and chart plotters, under its Humminbird and Minn Kota brands.

8. Johnson Outdoors Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Johnson Outdoors Inc. is medium due to the availability of alternative outdoor recreational products and services.

Bargaining Power Of Customers

The bargaining power of customers for Johnson Outdoors Inc. is low due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Johnson Outdoors Inc. is medium due to the company's dependence on a few key suppliers for raw materials.

Threat Of New Entrants

The threat of new entrants for Johnson Outdoors Inc. is high due to the relatively low barriers to entry in the outdoor recreational products industry.

Intensity Of Rivalry

The intensity of rivalry for Johnson Outdoors Inc. is high due to the competitive nature of the outdoor recreational products industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 9.48%
Debt Cost 3.95%
Equity Weight 90.52%
Equity Cost 7.70%
WACC 7.34%
Leverage 10.47%

11. Quality Control: Johnson Outdoors Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Johnson Outdoors

A-Score: 5.4/10

Value: 8.7

Growth: 1.9

Quality: 3.3

Yield: 5.0

Momentum: 8.0

Volatility: 5.3

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Vista Outdoor

A-Score: 4.5/10

Value: 5.2

Growth: 5.0

Quality: 5.7

Yield: 0.0

Momentum: 5.0

Volatility: 6.0

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JAKKS Pacific

A-Score: 4.1/10

Value: 5.9

Growth: 4.4

Quality: 4.6

Yield: 4.0

Momentum: 2.0

Volatility: 4.0

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Xponential Fitness

A-Score: 3.7/10

Value: 8.5

Growth: 5.7

Quality: 5.5

Yield: 0.0

Momentum: 1.5

Volatility: 1.0

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American Outdoor Brands

A-Score: 3.6/10

Value: 6.9

Growth: 4.2

Quality: 4.2

Yield: 0.0

Momentum: 3.0

Volatility: 3.3

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Inspirato

A-Score: 3.3/10

Value: 9.8

Growth: 2.6

Quality: 5.5

Yield: 0.0

Momentum: 0.5

Volatility: 1.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

40.95$

Current Price

40.95$

Potential

-0.00%

Expected Cash-Flows