TOPGOLF CALLAWAY BRANDS CORP (MODG) Stock Fundamental Analysis
NYSE:MODG - New York Stock Exchange, Inc. - US1311931042 - Common Stock - Currency: USD
MODG gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals 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
MODG had positive earnings in the past year.
MODG had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: MODG reported negative net income in multiple 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 -18.87%, MODG is not doing good in the industry: 73.33% of the companies in the same industry are doing better.
MODG has a worse Return On Equity (-59.84%) than 76.67% of its industry peers.
MODG has a Return On Invested Capital of 2.33%. This is comparable to the rest of the industry: MODG outperforms 60.00% of 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 7.91%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -18.87% | ||
| ROE | -59.84% | ||
| 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
With a decent Operating Margin value of 4.80%, MODG is doing good in the industry, outperforming 63.33% of the companies in the same industry.
MODG's Operating Margin has declined in the last couple of years.
MODG has a Gross Margin of 62.78%. This is amongst the best in the industry. MODG outperforms 93.33% of its industry peers.
In the last couple of years the Gross Margin of MODG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.8% | ||
| PM (TTM) | N/A | ||
| GM | 62.78% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MODG is destroying value.
MODG has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MODG has more shares outstanding
The debt/assets ratio for MODG is higher compared to a year ago.
2.2 Solvency
MODG has an Altman-Z score of 0.87. This is a bad value and indicates that MODG is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of MODG (0.87) is worse than 76.67% of its industry peers.
The Debt to FCF ratio of MODG is 27.12, which is on the high side as it means it would take MODG, 27.12 years of fcf income to pay off all of its debts.
MODG has a Debt to FCF ratio of 27.12. This is in the lower half of the industry: MODG underperforms 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 has a worse Debt to Equity ratio (0.74) than 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 27.12 | ||
| Altman-Z | 0.87 |
ROIC/WACC0.23
WACC10.35%
2.3 Liquidity
MODG has a Current Ratio of 2.12. This indicates that MODG is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of MODG (2.12) is worse than 60.00% of its industry peers.
MODG has a Quick Ratio of 1.41. 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 Quick ratio value of 1.41, MODG perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.12 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
The earnings per share for MODG have decreased strongly by -42.11% in the last year.
The earnings per share for MODG have been decreasing by -27.08% on average. This is quite bad
The Revenue has decreased by -1.74% in the past year.
The Revenue has been growing by 20.04% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-42.11%
EPS 3Y-40.09%
EPS 5Y-27.08%
EPS Q2Q%22.22%
Revenue 1Y (TTM)-1.74%
Revenue growth 3Y10.6%
Revenue growth 5Y20.04%
Sales Q2Q%-4.54%
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-351.43%
EPS Next 2Y-114.14%
EPS Next 3Y-59.27%
EPS Next 5Y-6.48%
Revenue Next Year-4.97%
Revenue Next 2Y-1.45%
Revenue Next 3Y1.15%
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
MODG is valuated quite expensively with a Price/Earnings ratio of 39.41.
MODG's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.21. MODG is valued slightly more expensive when compared to this.
The Forward Price/Earnings Ratio is negative for MODG. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.41 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MODG is valued cheaper than 93.33% of the companies in the same industry.
MODG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.71 | ||
| EV/EBITDA | 6.21 |
4.3 Compensation for Growth
MODG's earnings are expected to decrease with -59.27% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-114.14%
EPS Next 3Y-59.27%
5. Dividend
5.1 Amount
No dividends for MODG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
8.67
+0.62 (+7.7%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners67.78%
Inst Owner ChangeN/A
Ins Owners2.07%
Ins Owner Change13.88%
Market Cap1.59B
Analysts72.22
Price Target8.97 (3.46%)
Short Float %14.97%
Short Ratio7.28
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)151.17%
Min EPS beat(2)22.6%
Max EPS beat(2)279.74%
EPS beat(4)4
Avg EPS beat(4)116.45%
Min EPS beat(4)22.6%
Max EPS beat(4)279.74%
EPS beat(8)8
Avg EPS beat(8)137.44%
EPS beat(12)11
Avg EPS beat(12)89.8%
EPS beat(16)15
Avg EPS beat(16)252.16%
Revenue beat(2)2
Avg Revenue beat(2)1.43%
Min Revenue beat(2)0.4%
Max Revenue beat(2)2.46%
Revenue beat(4)3
Avg Revenue beat(4)-0.22%
Min Revenue beat(4)-4.71%
Max Revenue beat(4)2.46%
Revenue beat(8)4
Avg Revenue beat(8)-1.08%
Revenue beat(12)6
Avg Revenue beat(12)-0.57%
Revenue beat(16)7
Avg Revenue beat(16)0.66%
PT rev (1m)-0.48%
PT rev (3m)-33.59%
EPS NQ rev (1m)-44.05%
EPS NQ rev (3m)-79.9%
EPS NY rev (1m)-4.65%
EPS NY rev (3m)-1267.69%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)-3.46%
Revenue NY rev (1m)-1.05%
Revenue NY rev (3m)-2.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.41 | ||
| Fwd PE | N/A | ||
| P/S | 0.38 | ||
| P/FCF | 23.71 | ||
| P/OCF | 4.3 | ||
| P/B | 0.66 | ||
| P/tB | 2.47 | ||
| EV/EBITDA | 6.21 |
EPS(TTM)0.22
EY2.54%
EPS(NY)-0.52
Fwd EYN/A
FCF(TTM)0.37
FCFY4.22%
OCF(TTM)2.01
OCFY23.23%
SpS22.79
BVpS13.21
TBVpS3.5
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -18.87% | ||
| ROE | -59.84% | ||
| ROCE | 2.97% | ||
| ROIC | 2.33% | ||
| ROICexc | 2.45% | ||
| ROICexgc | 3.37% | ||
| OM | 4.8% | ||
| PM (TTM) | N/A | ||
| GM | 62.78% | ||
| FCFM | 1.6% |
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 Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 27.12 | ||
| Debt/EBITDA | 3.82 | ||
| Cap/Depr | 111.32% | ||
| Cap/Sales | 7.23% | ||
| Interest Coverage | 1.03 | ||
| Cash Conversion | 78.21% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.12 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 0.87 |
F-Score6
WACC10.35%
ROIC/WACC0.23
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)-42.11%
EPS 3Y-40.09%
EPS 5Y-27.08%
EPS Q2Q%22.22%
EPS Next Y-351.43%
EPS Next 2Y-114.14%
EPS Next 3Y-59.27%
EPS Next 5Y-6.48%
Revenue 1Y (TTM)-1.74%
Revenue growth 3Y10.6%
Revenue growth 5Y20.04%
Sales Q2Q%-4.54%
Revenue Next Year-4.97%
Revenue Next 2Y-1.45%
Revenue Next 3Y1.15%
Revenue Next 5Y9.72%
EBIT growth 1Y-10.26%
EBIT growth 3Y-2.12%
EBIT growth 5Y8.72%
EBIT Next Year97.13%
EBIT Next 3Y28.17%
EBIT Next 5Y40.58%
FCF growth 1Y112.56%
FCF growth 3YN/A
FCF growth 5Y21.19%
OCF growth 1Y19578.9%
OCF growth 3Y11.13%
OCF growth 5Y34.56%