JOHNSON OUTDOORS INC (JOUT) Stock Analysis
JOHNSON OUTDOORS INC (JOUT) Stock Analysis
Overall Grade: F (Concerning)
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JOHNSON OUTDOORS INC faces challenges in financial performance that warrant careful analysis.
Key Metrics:
| Metric | Value | Context |
|---|---|---|
| ROIC | -0.6% | Below expectations |
| FCF Margin | 6.2% | Healthy cash flow |
| Debt/Equity | 0.0x | Conservative leverage |
Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.
What is JOHNSON OUTDOORS INC's Profitability and ROIC?
JOHNSON OUTDOORS INC's return on invested capital of -0.6% is below the typical cost of capital. Gross margin of 36.4% with operating margin at 0.2% reflects the company's moderate market position.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -0.6% | Red flag | Below cost of capital |
| Return on Equity (ROE) | -5.1% | Red flag | Moderate equity returns |
| Gross Margin | 36.4% | Good | Competitive pricing environment |
| Operating Margin | 0.2% | Warning | Moderate operational efficiency |
How Strong is JOHNSON OUTDOORS INC's Cash Flow Quality?
JOHNSON OUTDOORS INC generated $38.5M in free cash flow over the trailing twelve months, representing a 6.2% margin. FCF was positive in N/A of the last 8 quarters, indicating variable cash generation.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Free Cash Flow Margin | 6.2% | Adequate | Healthy cash generation |
| Free Cash Flow (TTM) | $38.5M | Good | Positive cash generation |
| OCF/Net Income | -2.5x | Warning | Potential accrual concerns |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
What is JOHNSON OUTDOORS INC's Financial Health?
JOHNSON OUTDOORS INC's debt-to-equity ratio of 0.0x indicates conservative leverage.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Debt to Equity | 0.0x | Excellent | Conservative capital structure |
Is JOHNSON OUTDOORS INC Stock Overvalued or Undervalued?
JOHNSON OUTDOORS INC trades at a P/E of -8.2x, representing a premium to the sector median of N/A. Free cash flow yield of 21.2% offers attractive cash returns.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| P/E Ratio | -8.2x | Red flag | Reasonable valuation |
| EV/Sales | 0.1x | Excellent | Attractive revenue multiple |
| FCF Yield | 21.2% | Excellent | Attractive cash return |
| Dividend Yield | 7.4% | Good | Meaningful income |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -0.6% | Bottom 10% | -0.1x below |
| Free Cash Flow Margin | 6.2% | Top 50% | 1.1x above |
| Gross Margin | 36.4% | Top 50% | 1.1x above |
| Operating Margin | 0.2% | Bottom 10% | 0.0x below |
| Return on Equity (ROE) | -5.1% | Top 5% | -0.6x below |
Rating Thresholds
Return on Invested Capital (ROIC)
Measures how efficiently a company uses its debt and equity capital to generate profits. ROIC above 15% typically indicates a competitive moat.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Exceptional capital efficiency, strong competitive moat |
| Good | 12% - 20% | Above-average returns, sustainable competitive position |
| Adequate | 8% - 12% | Around cost of capital, moderate competitive position |
| Warning | 4% - 8% | Below cost of capital, value may be eroding |
| Red flag | < 4% | Significant capital destruction, fundamental issues |
Current: -0.6% (Red flag)
Free Cash Flow Margin
The percentage of revenue converted to free cash flow. Higher margins indicate stronger cash generation and business quality.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Strong cash generation, high-quality business |
| Good | 10% - 20% | Healthy cash conversion |
| Adequate | 5% - 10% | Moderate cash generation |
| Warning | 0% - 5% | Thin cash margins, capital intensive |
| Red flag | < 0% | Cash burn, potential liquidity concerns |
Current: 6.2% (Adequate - Top 50% of sector (median: 5.4%))
Gross Margin
Revenue minus cost of goods sold as a percentage. Higher gross margins indicate pricing power and competitive advantage.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 50% | Strong pricing power and competitive moat |
| Good | 30% - 50% | Healthy margins, differentiated product |
| Adequate | 20% - 30% | Moderate margins, competitive industry |
| Warning | 10% - 20% | Thin margins, commodity-like business |
| Red flag | < 10% | Very thin margins, structural challenges |
Current: 36.4% (Good - Top 50% of sector (median: 33.4%))
Debt to Equity Ratio
Total debt divided by shareholders' equity. Lower ratios indicate more conservative financing and reduced financial risk.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | < 0.3x | Conservative leverage, strong balance sheet |
| Good | 0.3x - 0.7x | Moderate leverage, healthy financial position |
| Adequate | 0.7x - 1.5x | Elevated leverage, monitor closely |
| Warning | 1.5x - 3.0x | High leverage, increased financial risk |
| Red flag | > 3.0x | Excessive leverage, potential distress risk |
Current: 0.0% (Excellent)
Free Cash Flow Yield
Free cash flow per share divided by stock price. Higher FCF yield indicates better cash return relative to valuation.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 8% | High cash return, potential value opportunity |
| Good | 5% - 8% | Solid cash yield |
| Adequate | 3% - 5% | Moderate cash return |
| Warning | 1% - 3% | Low cash yield, growth expectations |
| Red flag | < 1% | Minimal cash return to shareholders |
Current: 21.2% (Excellent)
Frequently Asked Questions
Q: What is JOHNSON OUTDOORS INC's Return on Invested Capital (ROIC)?
JOHNSON OUTDOORS INC (JOUT) has a trailing twelve-month Return on Invested Capital (ROIC) of -0.6%. This compares below the sector median of 8.0%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is JOHNSON OUTDOORS INC's Free Cash Flow Margin?
JOHNSON OUTDOORS INC (JOUT) has a free cash flow margin of 6.2%, generating $38.5 million in free cash flow over the trailing twelve months. A FCF margin between 5-10% is typical for capital-intensive businesses.
Q: Is JOHNSON OUTDOORS INC stock overvalued or undervalued?
JOHNSON OUTDOORS INC (JOUT) trades at a P/E ratio of -8.2x, which is above the sector median of N/A. The EV/Sales multiple is 0.1x. Free cash flow yield is 21.2%, which represents an attractive cash return to investors.
Q: Does JOHNSON OUTDOORS INC pay a dividend?
JOHNSON OUTDOORS INC (JOUT) currently pays a dividend yield of 7.4%. Including share buybacks, the total shareholder yield is 7.5%. A yield above 4% is attractive for income investors, though sustainability should be verified through payout ratio analysis.
Q: What is JOHNSON OUTDOORS INC's revenue and earnings growth?
JOHNSON OUTDOORS INC (JOUT) grew revenue by 11.4% year-over-year. Earnings per share increased by 51.5% compared to the prior year. Solid growth above 10% suggests healthy business momentum.
Q: How does JOHNSON OUTDOORS INC compare to competitors in Industrials?
Compared to other companies in Industrials, JOHNSON OUTDOORS INC (JOUT) shows: ROIC of -0.6% is below the sector median of 8.0% (-0.1x median). FCF margin of 6.2% exceeds the sector median of 5.4% (Top 47% of sector). Gross margin at 36.4% is 3 percentage points higher than sector peers. These rankings are based on MetricDuck's analysis of all Industrials companies with available SEC filings.
Q: What warning signs should I watch for with JOHNSON OUTDOORS INC?
Investors in JOHNSON OUTDOORS INC (JOUT) should monitor these potential warning signs: 1) ROIC has been declining, potentially signaling deteriorating competitive position. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-K filed 2025-12-12. TTM metrics as of Q1 2026.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
This analysis is for informational purposes only and does not constitute investment advice.