TOPGOLF CALLAWAY BRANDS CORP (MODG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MODG - US1311931042 - Common Stock
11.35 USD
+0.16 (+1.43%)
11.35 USD
0 (0%)
MODG gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 33 industry peers in the Leisure Products industry. There are concerns on the financial health of MODG while its profitability can be described as average. While showing a medium growth rate, MODG is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year MODG has reported negative net income.
MODG had a positive operating cash flow in the past year.
In multiple years MODG reported negative net income over the last 5 years.
Of the past 5 years MODG 4 years had a positive operating cash flow.
1.2 Ratios
MODG has a worse Return On Assets (-19.88%) than 75.76% of its industry peers.
With a Return On Equity value of -60.79%, MODG is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
MODG's Return On Invested Capital of 2.61% is in line compared to the rest of the industry. MODG outperforms 51.52% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MODG is below the industry average of 7.19%.
The last Return On Invested Capital (2.61%) for MODG is above the 3 year average (2.56%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -19.88% | ||
| ROE | -60.79% | ||
| ROIC | 2.61% |
ROA(3y)-5.36%
ROA(5y)-3.67%
ROE(3y)-17.83%
ROE(5y)-12.71%
ROIC(3y)2.56%
ROIC(5y)2.72%
1.3 Margins
MODG has a Operating Margin of 5.38%. This is in the better half of the industry: MODG outperforms 69.70% of its industry peers.
In the last couple of years the Operating Margin of MODG has declined.
Looking at the Gross Margin, with a value of 63.31%, MODG belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.
In the last couple of years the Gross Margin of MODG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.38% | ||
| PM (TTM) | N/A | ||
| GM | 63.31% |
OM growth 3Y-11.5%
OM growth 5Y-9.43%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.69%
GM growth 5Y6.77%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MODG is destroying value.
Compared to 1 year ago, MODG has less shares outstanding
MODG has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, MODG has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.92, we must say that MODG is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of MODG (0.92) is worse than 69.70% of its industry peers.
The Debt to FCF ratio of MODG is 91.74, which is on the high side as it means it would take MODG, 91.74 years of fcf income to pay off all of its debts.
MODG has a Debt to FCF ratio (91.74) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.13 is on the high side and indicates that MODG has dependencies on debt financing.
With a Debt to Equity ratio value of 1.13, MODG is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 91.74 | ||
| Altman-Z | 0.92 |
ROIC/WACC0.27
WACC9.69%
2.3 Liquidity
MODG has a Current Ratio of 1.87. This is a normal value and indicates that MODG is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.87, MODG is not doing good in the industry: 60.61% of the companies in the same industry are doing better.
A Quick Ratio of 1.30 indicates that MODG should not have too much problems paying its short term obligations.
MODG has a Quick ratio of 1.30. This is comparable to the rest of the industry: MODG outperforms 42.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
The earnings per share for MODG have decreased strongly by -113.04% in the last year.
The earnings per share for MODG have been decreasing by -27.08% on average. This is quite bad
Looking at the last year, MODG shows a decrease in Revenue. The Revenue has decreased by -3.58% in the last year.
Measured over the past years, MODG shows a very strong growth in Revenue. The Revenue has been growing by 20.04% on average per year.
EPS 1Y (TTM)-113.04%
EPS 3Y-40.09%
EPS 5Y-27.08%
EPS Q2Q%-350%
Revenue 1Y (TTM)-3.58%
Revenue growth 3Y10.6%
Revenue growth 5Y20.04%
Sales Q2Q%-7.79%
3.2 Future
Based on estimates for the next years, MODG will show a decrease in Earnings Per Share. The EPS will decrease by -6.48% on average per year.
Based on estimates for the next years, MODG will show a quite strong growth in Revenue. The Revenue will grow by 9.72% on average per year.
EPS Next Y-196.9%
EPS Next 2Y-78.61%
EPS Next 3Y-34.74%
EPS Next 5Y-6.48%
Revenue Next Year-6.54%
Revenue Next 2Y-2.96%
Revenue Next 3Y-0.9%
Revenue Next 5Y9.72%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
MODG reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year MODG is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MODG is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as MODG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 62.3 | ||
| EV/EBITDA | 8.61 |
4.3 Compensation for Growth
MODG's earnings are expected to decrease with -34.74% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-78.61%
EPS Next 3Y-34.74%
5. Dividend
5.1 Amount
No dividends for MODG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.35
+0.16 (+1.43%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners65.75%
Inst Owner ChangeN/A
Ins Owners1.93%
Ins Owner Change-5.08%
Market Cap2.09B
Revenue(TTM)4.06B
Net Income(TTM)-1.50B
Analysts72.38
Price Target12.27 (8.11%)
Short Float %5.64%
Short Ratio2.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)771.95%
Min EPS beat(2)75.27%
Max EPS beat(2)1468.63%
EPS beat(4)4
Avg EPS beat(4)461.56%
Min EPS beat(4)22.6%
Max EPS beat(4)1468.63%
EPS beat(8)8
Avg EPS beat(8)320.35%
EPS beat(12)11
Avg EPS beat(12)215.49%
EPS beat(16)15
Avg EPS beat(16)168.95%
Revenue beat(2)1
Avg Revenue beat(2)0.36%
Min Revenue beat(2)-0.4%
Max Revenue beat(2)1.12%
Revenue beat(4)3
Avg Revenue beat(4)0.89%
Min Revenue beat(4)-0.4%
Max Revenue beat(4)2.46%
Revenue beat(8)5
Avg Revenue beat(8)-0.2%
Revenue beat(12)6
Avg Revenue beat(12)-0.66%
Revenue beat(16)7
Avg Revenue beat(16)-0.43%
PT rev (1m)17.53%
PT rev (3m)19.82%
EPS NQ rev (1m)10.18%
EPS NQ rev (3m)9.92%
EPS NY rev (1m)49.2%
EPS NY rev (3m)50%
Revenue NQ rev (1m)0.76%
Revenue NQ rev (3m)0.48%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.51 | ||
| P/FCF | 62.3 | ||
| P/OCF | 6.66 | ||
| P/B | 0.84 | ||
| P/tB | 3.01 | ||
| EV/EBITDA | 8.61 |
EPS(TTM)-0.03
EYN/A
EPS(NY)-0.24
Fwd EYN/A
FCF(TTM)0.18
FCFY1.61%
OCF(TTM)1.7
OCFY15.02%
SpS22.09
BVpS13.46
TBVpS3.78
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -19.88% | ||
| ROE | -60.79% | ||
| ROCE | 3.32% | ||
| ROIC | 2.61% | ||
| ROICexc | 3% | ||
| ROICexgc | 4.34% | ||
| OM | 5.38% | ||
| PM (TTM) | N/A | ||
| GM | 63.31% | ||
| FCFM | 0.82% |
ROA(3y)-5.36%
ROA(5y)-3.67%
ROE(3y)-17.83%
ROE(5y)-12.71%
ROIC(3y)2.56%
ROIC(5y)2.72%
ROICexc(3y)2.68%
ROICexc(5y)3.02%
ROICexgc(3y)4.6%
ROICexgc(5y)5.47%
ROCE(3y)3.28%
ROCE(5y)3.49%
ROICexgc growth 3Y-13.36%
ROICexgc growth 5Y-23.11%
ROICexc growth 3Y-1.37%
ROICexc growth 5Y-18.91%
OM growth 3Y-11.5%
OM growth 5Y-9.43%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.69%
GM growth 5Y6.77%
F-Score5
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 91.74 | ||
| Debt/EBITDA | 5.71 | ||
| Cap/Depr | 103.09% | ||
| Cap/Sales | 6.89% | ||
| Interest Coverage | 1.12 | ||
| Cash Conversion | 63.99% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 0.92 |
F-Score5
WACC9.69%
ROIC/WACC0.27
Cap/Depr(3y)196.81%
Cap/Depr(5y)179.36%
Cap/Sales(3y)10.57%
Cap/Sales(5y)8.89%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-113.04%
EPS 3Y-40.09%
EPS 5Y-27.08%
EPS Q2Q%-350%
EPS Next Y-196.9%
EPS Next 2Y-78.61%
EPS Next 3Y-34.74%
EPS Next 5Y-6.48%
Revenue 1Y (TTM)-3.58%
Revenue growth 3Y10.6%
Revenue growth 5Y20.04%
Sales Q2Q%-7.79%
Revenue Next Year-6.54%
Revenue Next 2Y-2.96%
Revenue Next 3Y-0.9%
Revenue Next 5Y9.72%
EBIT growth 1Y23.12%
EBIT growth 3Y-2.12%
EBIT growth 5Y8.72%
EBIT Next Year119.41%
EBIT Next 3Y33.37%
EBIT Next 5Y40.58%
FCF growth 1Y108.11%
FCF growth 3YN/A
FCF growth 5Y21.19%
OCF growth 1Y98.35%
OCF growth 3Y11.13%
OCF growth 5Y34.56%
TOPGOLF CALLAWAY BRANDS CORP / MODG FAQ
What is the fundamental rating for MODG stock?
ChartMill assigns a fundamental rating of 3 / 10 to MODG.
What is the valuation status for MODG stock?
ChartMill assigns a valuation rating of 1 / 10 to TOPGOLF CALLAWAY BRANDS CORP (MODG). This can be considered as Overvalued.
Can you provide the profitability details for TOPGOLF CALLAWAY BRANDS CORP?
TOPGOLF CALLAWAY BRANDS CORP (MODG) has a profitability rating of 4 / 10.
What is the earnings growth outlook for TOPGOLF CALLAWAY BRANDS CORP?
The Earnings per Share (EPS) of TOPGOLF CALLAWAY BRANDS CORP (MODG) is expected to decline by -196.9% in the next year.