TOPGOLF CALLAWAY BRANDS CORP (MODG) Stock Fundamental Analysis
USA - NYSE:MODG - US1311931042 - Common Stock
9.5 USD
+0.34 (+3.71%)
9.5 USD
0 (0%)
Overall MODG gets a fundamental rating of 3 out of 10. We evaluated MODG 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 was profitable.
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.
Of the past 5 years MODG 4 years had a positive operating cash flow.
1.2 Ratios
MODG has a Return On Assets of -19.64%. This is in the lower half of the industry: MODG underperforms 69.70% of its industry peers.
With a Return On Equity value of -60.04%, MODG is not doing good in the industry: 69.70% of the companies in the same industry are doing better.
MODG has a Return On Invested Capital (2.61%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for MODG is significantly below the industry average of 7.78%.
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 | -19.64% | ||
| ROE | -60.04% | ||
| 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 (5.30%) than 69.70% of its industry peers.
MODG's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 62.86%, MODG belongs to the top of the industry, outperforming 87.88% of the companies in the same industry.
MODG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.3% | ||
| PM (TTM) | N/A | ||
| GM | 62.86% |
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.
The number of shares outstanding for MODG has been reduced compared to 1 year ago.
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 0.89, we must say that MODG is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.89, MODG is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
MODG has a Debt/Equity ratio of 1.12. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.12, 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 | 1.12 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.89 |
ROIC/WACC0.28
WACC9.21%
2.3 Liquidity
A Current Ratio of 1.85 indicates that MODG should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.85, MODG is in line with its industry, outperforming 45.45% of the companies in the same industry.
MODG has a Quick Ratio of 1.25. 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 (1.25) is worse than 60.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
MODG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -90.24%.
Measured over the past years, MODG shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -27.08% on average per year.
Looking at the last year, MODG shows a decrease in Revenue. The Revenue has decreased by -2.35% 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)-90.24%
EPS 3Y-40.09%
EPS 5Y-27.08%
EPS Q2Q%-42.86%
Revenue 1Y (TTM)-2.35%
Revenue growth 3Y10.6%
Revenue growth 5Y20.04%
Sales Q2Q%-4.09%
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-293.8%
EPS Next 2Y-99.44%
EPS Next 3Y-60.82%
EPS Next 5Y-6.48%
Revenue Next Year-6.3%
Revenue Next 2Y-2.36%
Revenue Next 3Y0.47%
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.
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
With a Price/Earnings ratio of 237.50, MODG can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as MODG.
MODG's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.41.
MODG is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 237.5 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MODG is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.11 |
4.3 Compensation for Growth
MODG's earnings are expected to decrease with -60.82% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-99.44%
EPS Next 3Y-60.82%
5. Dividend
5.1 Amount
No dividends for MODG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.5
+0.34 (+3.71%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners68.15%
Inst Owner ChangeN/A
Ins Owners2.07%
Ins Owner Change1.58%
Market Cap1.75B
Analysts71.58
Price Target10.24 (7.79%)
Short Float %9.81%
Short Ratio4.75
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)874.18%
Min EPS beat(2)279.74%
Max EPS beat(2)1468.63%
EPS beat(4)4
Avg EPS beat(4)470.76%
Min EPS beat(4)22.6%
Max EPS beat(4)1468.63%
EPS beat(8)8
Avg EPS beat(8)319.42%
EPS beat(12)11
Avg EPS beat(12)211.59%
EPS beat(16)15
Avg EPS beat(16)167.89%
Revenue beat(2)1
Avg Revenue beat(2)0%
Min Revenue beat(2)-0.4%
Max Revenue beat(2)0.4%
Revenue beat(4)3
Avg Revenue beat(4)0.86%
Min Revenue beat(4)-0.4%
Max Revenue beat(4)2.46%
Revenue beat(8)4
Avg Revenue beat(8)-0.78%
Revenue beat(12)6
Avg Revenue beat(12)-0.54%
Revenue beat(16)6
Avg Revenue beat(16)-0.55%
PT rev (1m)11.77%
PT rev (3m)14.16%
EPS NQ rev (1m)9.09%
EPS NQ rev (3m)-15.7%
EPS NY rev (1m)22.92%
EPS NY rev (3m)19.34%
Revenue NQ rev (1m)-0.77%
Revenue NQ rev (3m)-9.41%
Revenue NY rev (1m)-1.69%
Revenue NY rev (3m)-1.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 237.5 | ||
| Fwd PE | N/A | ||
| P/S | 0.42 | ||
| P/FCF | N/A | ||
| P/OCF | 6.41 | ||
| P/B | 0.7 | ||
| P/tB | 2.48 | ||
| EV/EBITDA | 8.11 |
EPS(TTM)0.04
EY0.42%
EPS(NY)-0.4
Fwd EYN/A
FCF(TTM)-0.11
FCFYN/A
OCF(TTM)1.48
OCFY15.59%
SpS22.52
BVpS13.53
TBVpS3.83
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -19.64% | ||
| ROE | -60.04% | ||
| ROCE | 3.33% | ||
| ROIC | 2.61% | ||
| ROICexc | 2.91% | ||
| ROICexgc | 4.16% | ||
| OM | 5.3% | ||
| PM (TTM) | N/A | ||
| GM | 62.86% | ||
| FCFM | N/A |
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-Score5
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.63 | ||
| Cap/Depr | 106.93% | ||
| Cap/Sales | 7.08% | ||
| Interest Coverage | 1.13 | ||
| Cash Conversion | 55.16% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 0.89 |
F-Score5
WACC9.21%
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)-90.24%
EPS 3Y-40.09%
EPS 5Y-27.08%
EPS Q2Q%-42.86%
EPS Next Y-293.8%
EPS Next 2Y-99.44%
EPS Next 3Y-60.82%
EPS Next 5Y-6.48%
Revenue 1Y (TTM)-2.35%
Revenue growth 3Y10.6%
Revenue growth 5Y20.04%
Sales Q2Q%-4.09%
Revenue Next Year-6.3%
Revenue Next 2Y-2.36%
Revenue Next 3Y0.47%
Revenue Next 5Y9.72%
EBIT growth 1Y1.01%
EBIT growth 3Y-2.12%
EBIT growth 5Y8.72%
EBIT Next Year99.49%
EBIT Next 3Y30.56%
EBIT Next 5Y40.58%
FCF growth 1Y96.32%
FCF growth 3YN/A
FCF growth 5Y21.19%
OCF growth 1Y3194.32%
OCF growth 3Y11.13%
OCF growth 5Y34.56%