TOPGOLF CALLAWAY BRANDS CORP (MODG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MODG - US1311931042 - Common Stock
10.11 USD
+0.38 (+3.91%)
10.31 USD
+0.2 (+1.98%)
Overall MODG gets a fundamental rating of 3 out of 10. We evaluated MODG against 33 industry peers in the Leisure Products industry. MODG has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, MODG is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
MODG had negative 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 -19.88%, MODG is not doing good in the industry: 75.76% of the companies in the same industry are doing better.
With a Return On Equity value of -60.79%, MODG is not doing good in the industry: 75.76% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 2.61%, MODG is in line with its industry, outperforming 51.52% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MODG is below the industry average of 7.07%.
The 3 year average ROIC (2.56%) for MODG is below the current ROIC(2.61%), indicating increased profibility in the last year.
| 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 better Operating Margin (5.38%) than 69.70% of its industry peers.
MODG's Operating Margin has declined in the last couple of years.
MODG's Gross Margin of 63.31% is amongst the best of the industry. MODG outperforms 84.85% of its industry peers.
MODG's Gross Margin has improved in the last couple of years.
| 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
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 0.90. This is a bad value and indicates that MODG is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.90, MODG is doing worse than 69.70% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 91.74, MODG is in line with its industry, outperforming 48.48% of the companies in the same 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 | 0.9 |
ROIC/WACC0.28
WACC9.36%
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.
MODG's Current ratio of 1.87 is on the low side compared to the rest of the industry. MODG is outperformed by 60.61% of its industry peers.
A Quick Ratio of 1.30 indicates that MODG should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.30, MODG perfoms like the industry average, outperforming 42.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
MODG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -113.04%.
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 -3.58% in the last year.
MODG shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.04% yearly.
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.
The Revenue is expected to grow by 9.72% on average over the next years. This is quite good.
EPS Next Y-290.74%
EPS Next 2Y-92.84%
EPS Next 3Y-40.36%
EPS Next 5Y-6.48%
Revenue Next Year-6.37%
Revenue Next 2Y-2.47%
Revenue Next 3Y0.03%
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
The Price/Earnings Ratio is negative for MODG. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for MODG. No positive earnings are expected for the next year.
| 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 84.85% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MODG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.49 | ||
| EV/EBITDA | 8.21 |
4.3 Compensation for Growth
A cheap valuation may be justified as MODG's earnings are expected to decrease with -40.36% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-92.84%
EPS Next 3Y-40.36%
5. Dividend
5.1 Amount
MODG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.11
+0.38 (+3.91%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners66.86%
Inst Owner ChangeN/A
Ins Owners1.93%
Ins Owner Change-0.3%
Market Cap1.86B
Revenue(TTM)4.06B
Net Income(TTM)-1.50B
Analysts72
Price Target11.12 (9.99%)
Short Float %7.23%
Short Ratio3.87
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)8.62%
PT rev (3m)21.4%
EPS NQ rev (1m)10.93%
EPS NQ rev (3m)13.76%
EPS NY rev (1m)0%
EPS NY rev (3m)24.14%
Revenue NQ rev (1m)1.24%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.46 | ||
| P/FCF | 55.49 | ||
| P/OCF | 5.93 | ||
| P/B | 0.75 | ||
| P/tB | 2.68 | ||
| EV/EBITDA | 8.21 |
EPS(TTM)-0.03
EYN/A
EPS(NY)-0.34
Fwd EYN/A
FCF(TTM)0.18
FCFY1.8%
OCF(TTM)1.7
OCFY16.86%
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 | 0.9 |
F-Score5
WACC9.36%
ROIC/WACC0.28
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-290.74%
EPS Next 2Y-92.84%
EPS Next 3Y-40.36%
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-6.37%
Revenue Next 2Y-2.47%
Revenue Next 3Y0.03%
Revenue Next 5Y9.72%
EBIT growth 1Y23.12%
EBIT growth 3Y-2.12%
EBIT growth 5Y8.72%
EBIT Next Year107.11%
EBIT Next 3Y33.76%
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 -290.74% in the next year.