TOPGOLF CALLAWAY BRANDS CORP (MODG) Stock Fundamental Analysis
NYSE:MODG - New York Stock Exchange, Inc. - US1311931042 - Common Stock - Currency: USD
Overall MODG gets a fundamental rating of 3 out of 10. We evaluated MODG against 30 industry peers in the Leisure Products industry. Both the profitability and financial health of MODG have multiple concerns. MODG is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MODG was profitable.
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
With a Return On Assets value of -18.96%, MODG is not doing good in the industry: 73.33% of the companies in the same industry are doing better.
With a Return On Equity value of -60.13%, MODG is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
MODG has a Return On Invested Capital (2.33%) which is in line with its industry peers.
MODG had an Average Return On Invested Capital over the past 3 years of 2.56%. This is significantly below the industry average of 8.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -18.96% | ||
| ROE | -60.13% | ||
| ROIC | 2.33% |
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's Operating Margin of 4.75% is fine compared to the rest of the industry. MODG outperforms 63.33% of its industry peers.
MODG's Operating Margin has declined in the last couple of years.
MODG has a better Gross Margin (62.53%) than 96.67% of its industry peers.
MODG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.75% | ||
| PM (TTM) | N/A | ||
| GM | 62.53% |
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
The number of shares outstanding for MODG has been increased compared to 5 years ago.
Compared to 1 year ago, MODG has a worse debt to assets ratio.
2.2 Solvency
MODG has an Altman-Z score of 0.80. This is a bad value and indicates that MODG is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.80, MODG is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
The Debt to FCF ratio of MODG is 21.61, which is on the high side as it means it would take MODG, 21.61 years of fcf income to pay off all of its debts.
MODG's Debt to FCF ratio of 21.61 is on the low side compared to the rest of the industry. MODG is outperformed by 60.00% of its industry peers.
MODG has a Debt/Equity ratio of 0.74. This is a neutral value indicating MODG is somewhat dependend on debt financing.
MODG's Debt to Equity ratio of 0.74 is on the low side compared to the rest of the industry. MODG is outperformed by 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 21.61 | ||
| Altman-Z | 0.8 |
ROIC/WACC0.22
WACC10.7%
2.3 Liquidity
A Current Ratio of 1.94 indicates that MODG should not have too much problems paying its short term obligations.
MODG has a Current ratio (1.94) which is in line with its industry peers.
MODG has a Quick Ratio of 1.02. This is a normal value and indicates that MODG is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of MODG (1.02) is worse than 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.94 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
MODG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -56.52%.
MODG shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -27.08% yearly.
Looking at the last year, MODG shows a decrease in Revenue. The Revenue has decreased by -1.06% in the last year.
The Revenue has been growing by 20.04% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-56.52%
EPS 3Y-40.09%
EPS 5Y-27.08%
EPS Q2Q%-10%
Revenue 1Y (TTM)-1.06%
Revenue growth 3Y10.6%
Revenue growth 5Y20.04%
Sales Q2Q%3.04%
3.2 Future
The Earnings Per Share is expected to decrease by -6.48% on average over the next years.
The Revenue is expected to grow by 9.72% on average over the next years. This is quite good.
EPS Next Y-344.8%
EPS Next 2Y-99.57%
EPS Next 3Y-37.72%
EPS Next 5Y-6.48%
Revenue Next Year-2.12%
Revenue Next 2Y0.88%
Revenue Next 3Y2.27%
Revenue Next 5Y9.72%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 31.90, MODG can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of MODG is on the same level as its industry peers.
MODG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.63.
MODG is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.9 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MODG indicates a rather cheap valuation: MODG is cheaper than 90.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, MODG is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.06 | ||
| EV/EBITDA | 5.25 |
4.3 Compensation for Growth
A cheap valuation may be justified as MODG's earnings are expected to decrease with -37.72% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-99.57%
EPS Next 3Y-37.72%
5. Dividend
5.1 Amount
No dividends for MODG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
6.38
+0.19 (+3.07%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners72.05%
Inst Owner ChangeN/A
Ins Owners1.66%
Ins Owner Change8.67%
Market Cap1.17B
Analysts73.75
Price Target14.18 (122.26%)
Short Float %12.79%
Short Ratio5.2
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)67.34%
Min EPS beat(2)22.6%
Max EPS beat(2)112.09%
EPS beat(4)4
Avg EPS beat(4)181.95%
Min EPS beat(4)22.6%
Max EPS beat(4)541.71%
EPS beat(8)8
Avg EPS beat(8)103.37%
EPS beat(12)11
Avg EPS beat(12)70.45%
EPS beat(16)15
Avg EPS beat(16)256.45%
Revenue beat(2)2
Avg Revenue beat(2)1.73%
Min Revenue beat(2)0.99%
Max Revenue beat(2)2.46%
Revenue beat(4)2
Avg Revenue beat(4)-1.07%
Min Revenue beat(4)-4.71%
Max Revenue beat(4)2.46%
Revenue beat(8)4
Avg Revenue beat(8)-1.04%
Revenue beat(12)5
Avg Revenue beat(12)-0.61%
Revenue beat(16)7
Avg Revenue beat(16)1.5%
PT rev (1m)4.95%
PT rev (3m)-2.74%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-177.42%
EPS NY rev (1m)-1236.9%
EPS NY rev (3m)-930.74%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.95%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.9 | ||
| Fwd PE | N/A | ||
| P/S | 0.28 | ||
| P/FCF | 14.06 | ||
| P/OCF | 3.07 | ||
| P/B | 0.49 | ||
| P/tB | 2.83 | ||
| EV/EBITDA | 5.25 |
EPS(TTM)0.2
EY3.13%
EPS(NY)-0.49
Fwd EYN/A
FCF(TTM)0.45
FCFY7.11%
OCF(TTM)2.08
OCFY32.58%
SpS23.07
BVpS13.1
TBVpS2.26
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -18.96% | ||
| ROE | -60.13% | ||
| ROCE | 2.96% | ||
| ROIC | 2.33% | ||
| ROICexc | 2.49% | ||
| ROICexgc | 3.62% | ||
| OM | 4.75% | ||
| PM (TTM) | N/A | ||
| GM | 62.53% | ||
| FCFM | 1.97% |
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%
ROICexcg growth 3Y-13.36%
ROICexcg 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-Score6
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 21.61 | ||
| Debt/EBITDA | 3.8 | ||
| Cap/Depr | 111.25% | ||
| Cap/Sales | 7.04% | ||
| Interest Coverage | 1.01 | ||
| Cash Conversion | 81.29% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.94 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 0.8 |
F-Score6
WACC10.7%
ROIC/WACC0.22
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)-56.52%
EPS 3Y-40.09%
EPS 5Y-27.08%
EPS Q2Q%-10%
EPS Next Y-344.8%
EPS Next 2Y-99.57%
EPS Next 3Y-37.72%
EPS Next 5Y-6.48%
Revenue 1Y (TTM)-1.06%
Revenue growth 3Y10.6%
Revenue growth 5Y20.04%
Sales Q2Q%3.04%
Revenue Next Year-2.12%
Revenue Next 2Y0.88%
Revenue Next 3Y2.27%
Revenue Next 5Y9.72%
EBIT growth 1Y-15.23%
EBIT growth 3Y-2.12%
EBIT growth 5Y8.72%
EBIT Next Year104.3%
EBIT Next 3Y33.92%
EBIT Next 5Y40.58%
FCF growth 1Y170.62%
FCF growth 3YN/A
FCF growth 5Y21.19%
OCF growth 1Y4.74%
OCF growth 3Y11.13%
OCF growth 5Y34.56%