TOPGOLF CALLAWAY BRANDS CORP (MODG) Stock Fundamental Analysis
NYSE:MODG - New York Stock Exchange, Inc. - US1311931042 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to MODG. MODG was compared to 30 industry peers in the Leisure Products industry. There are concerns on the financial health of MODG while its profitability can be described as average. MODG does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year MODG was profitable.
In the past year MODG had a positive cash flow from operations.
MODG had positive earnings in 4 of the past 5 years.
MODG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of -0.13%, MODG perfoms like the industry average, outperforming 56.67% of the companies in the same industry.
MODG's Return On Equity of -0.31% is in line compared to the rest of the industry. MODG outperforms 56.67% of its industry peers.
The Return On Invested Capital of MODG (1.68%) is comparable to the rest of the industry.
MODG had an Average Return On Invested Capital over the past 3 years of 2.60%. This is significantly below the industry average of 8.27%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.13% | ||
| ROE | -0.31% | ||
| ROIC | 1.68% |
ROA(3y)2.35%
ROA(5y)0.94%
ROE(3y)5.13%
ROE(5y)1.39%
ROIC(3y)2.6%
ROIC(5y)3.63%
1.3 Margins
In the last couple of years the Profit Margin of MODG has declined.
MODG has a Operating Margin of 4.21%. This is comparable to the rest of the industry: MODG outperforms 60.00% of its industry peers.
In the last couple of years the Operating Margin of MODG has declined.
With an excellent Gross Margin value of 62.49%, MODG belongs to the best of the industry, outperforming 100.00% 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 | 4.21% | ||
| PM (TTM) | N/A | ||
| GM | 62.49% |
OM growth 3Y12.16%
OM growth 5Y-9.98%
PM growth 3YN/A
PM growth 5Y-23.43%
GM growth 3Y14.4%
GM growth 5Y5.88%
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.
MODG has a worse debt/assets ratio than last year.
2.2 Solvency
MODG has an Altman-Z score of 0.93. This is a bad value and indicates that MODG is not financially healthy and even has some risk of bankruptcy.
MODG's Altman-Z score of 0.93 is on the low side compared to the rest of the industry. MODG is outperformed by 66.67% of its industry peers.
The Debt to FCF ratio of MODG is 11.89, which is on the high side as it means it would take MODG, 11.89 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 11.89, MODG is in line with its industry, outperforming 46.67% of the companies in the same industry.
A Debt/Equity ratio of 0.46 indicates that MODG is not too dependend on debt financing.
The Debt to Equity ratio of MODG (0.46) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 11.89 | ||
| Altman-Z | 0.93 |
ROIC/WACC0.16
WACC10.18%
2.3 Liquidity
A Current Ratio of 1.93 indicates that MODG should not have too much problems paying its short term obligations.
MODG has a worse Current ratio (1.93) than 60.00% of its industry peers.
A Quick Ratio of 1.14 indicates that MODG should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.14, MODG is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
MODG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -53.06%.
Measured over the past years, MODG shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -15.38% on average per year.
MODG shows a decrease in Revenue. In the last year, the revenue decreased by -0.64%.
Measured over the past years, MODG shows a very strong growth in Revenue. The Revenue has been growing by 28.09% on average per year.
EPS 1Y (TTM)-53.06%
EPS 3Y-10.89%
EPS 5Y-15.38%
EPS Q2Q%-90%
Revenue 1Y (TTM)-0.64%
Revenue growth 3Y39.17%
Revenue growth 5Y28.09%
Sales Q2Q%-2.66%
3.2 Future
Based on estimates for the next years, MODG will show a very negative growth in Earnings Per Share. The EPS will decrease by -19.76% on average per year.
MODG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.48% yearly.
EPS Next Y-66.49%
EPS Next 2Y-69.4%
EPS Next 3Y-28.73%
EPS Next 5Y-19.76%
Revenue Next Year-1.29%
Revenue Next 2Y0.89%
Revenue Next 3Y2.09%
Revenue Next 5Y3.48%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 30.48, the valuation of MODG can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of MODG is on the same level as its industry peers.
MODG is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 162.78, MODG can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MODG indicates a slightly more expensive valuation: MODG is more expensive than 66.67% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. MODG is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.48 | ||
| Fwd PE | 162.78 |
4.2 Price Multiples
MODG's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MODG is cheaper than 96.67% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MODG indicates a rather cheap valuation: MODG is cheaper than 93.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.47 | ||
| EV/EBITDA | 6.03 |
4.3 Compensation for Growth
A cheap valuation may be justified as MODG's earnings are expected to decrease with -28.73% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-69.4%
EPS Next 3Y-28.73%
5. Dividend
5.1 Amount
No dividends for MODG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.01
-0.22 (-3.04%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners74.82%
Inst Owner ChangeN/A
Ins Owners1.63%
Ins Owner Change3.42%
Market Cap1.29B
Analysts73.68
Price Target14.48 (106.56%)
Short Float %11.28%
Short Ratio5.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
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)81.74%
Min EPS beat(2)51.38%
Max EPS beat(2)112.09%
EPS beat(4)4
Avg EPS beat(4)179.14%
Min EPS beat(4)11.36%
Max EPS beat(4)541.71%
EPS beat(8)7
Avg EPS beat(8)92.46%
EPS beat(12)11
Avg EPS beat(12)71.41%
EPS beat(16)14
Avg EPS beat(16)250.43%
Revenue beat(2)1
Avg Revenue beat(2)-1.86%
Min Revenue beat(2)-4.71%
Max Revenue beat(2)0.99%
Revenue beat(4)2
Avg Revenue beat(4)-1.3%
Min Revenue beat(4)-4.71%
Max Revenue beat(4)1.55%
Revenue beat(8)3
Avg Revenue beat(8)-1.43%
Revenue beat(12)4
Avg Revenue beat(12)-0.87%
Revenue beat(16)7
Avg Revenue beat(16)1.9%
PT rev (1m)-0.64%
PT rev (3m)-9.29%
EPS NQ rev (1m)-1.13%
EPS NQ rev (3m)-82.53%
EPS NY rev (1m)0%
EPS NY rev (3m)-12.82%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-9.76%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.48 | ||
| Fwd PE | 162.78 | ||
| P/S | 0.31 | ||
| P/FCF | 8.47 | ||
| P/OCF | 2.71 | ||
| P/B | 0.33 | ||
| P/tB | 2.96 | ||
| EV/EBITDA | 6.03 |
EPS(TTM)0.23
EY3.28%
EPS(NY)0.04
Fwd EY0.61%
FCF(TTM)0.83
FCFY11.81%
OCF(TTM)2.59
OCFY36.92%
SpS22.92
BVpS21.41
TBVpS2.37
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.13% | ||
| ROE | -0.31% | ||
| ROCE | 2.13% | ||
| ROIC | 1.68% | ||
| ROICexc | 1.77% | ||
| ROICexgc | 3.17% | ||
| OM | 4.21% | ||
| PM (TTM) | N/A | ||
| GM | 62.49% | ||
| FCFM | 3.61% |
ROA(3y)2.35%
ROA(5y)0.94%
ROE(3y)5.13%
ROE(5y)1.39%
ROIC(3y)2.6%
ROIC(5y)3.63%
ROICexc(3y)2.71%
ROICexc(5y)3.99%
ROICexgc(3y)5.28%
ROICexgc(5y)7.53%
ROCE(3y)3.34%
ROCE(5y)4.8%
ROICexcg growth 3Y-14.85%
ROICexcg growth 5Y-26.87%
ROICexc growth 3Y-15.44%
ROICexc growth 5Y-28.35%
OM growth 3Y12.16%
OM growth 5Y-9.98%
PM growth 3YN/A
PM growth 5Y-23.43%
GM growth 3Y14.4%
GM growth 5Y5.88%
F-Score6
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 11.89 | ||
| Debt/EBITDA | 4.07 | ||
| Cap/Depr | 122.86% | ||
| Cap/Sales | 7.68% | ||
| Interest Coverage | 0.9 | ||
| Cash Conversion | 107.97% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 0.93 |
F-Score6
WACC10.18%
ROIC/WACC0.16
Cap/Depr(3y)228.68%
Cap/Depr(5y)188.36%
Cap/Sales(3y)11.65%
Cap/Sales(5y)8.13%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-53.06%
EPS 3Y-10.89%
EPS 5Y-15.38%
EPS Q2Q%-90%
EPS Next Y-66.49%
EPS Next 2Y-69.4%
EPS Next 3Y-28.73%
EPS Next 5Y-19.76%
Revenue 1Y (TTM)-0.64%
Revenue growth 3Y39.17%
Revenue growth 5Y28.09%
Sales Q2Q%-2.66%
Revenue Next Year-1.29%
Revenue Next 2Y0.89%
Revenue Next 3Y2.09%
Revenue Next 5Y3.48%
EBIT growth 1Y-24.75%
EBIT growth 3Y56.1%
EBIT growth 5Y15.3%
EBIT Next Year98.24%
EBIT Next 3Y27.4%
EBIT Next 5Y25.92%
FCF growth 1Y137.01%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y619.67%
OCF growth 3Y16.92%
OCF growth 5Y31.63%