TOPGOLF CALLAWAY BRANDS CORP (MODG) Stock Fundamental Analysis
USA - NYSE:MODG - US1311931042 - Common Stock
9.41 USD
+0.24 (+2.62%)
9.2381 USD
-0.17 (-1.83%)
We assign a fundamental rating of 3 out of 10 to MODG. MODG was compared to 33 industry peers in the Leisure Products industry. While MODG is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
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
MODG has a Return On Assets of -19.64%. This is in the lower half of the industry: MODG underperforms 72.73% of its industry peers.
The Return On Equity of MODG (-60.04%) is worse than 69.70% of its industry peers.
The Return On Invested Capital of MODG (2.61%) is comparable to the rest of the industry.
MODG had an Average Return On Invested Capital over the past 3 years of 2.56%. This is below the industry average of 7.26%.
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 66.67% 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 84.85% 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 | 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
MODG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
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.
The Altman-Z score of MODG (0.89) is worse than 66.67% of its industry peers.
MODG has a Debt/Equity ratio of 1.12. This is a high value indicating a heavy dependency on external financing.
MODG has a worse Debt to Equity ratio (1.12) than 69.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.89 |
ROIC/WACC0.28
WACC9.2%
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 42.42% of the companies in the same industry.
A Quick Ratio of 1.25 indicates that MODG should not have too much problems paying its short term obligations.
The Quick ratio of MODG (1.25) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The earnings per share for MODG have decreased strongly by -90.24% in the last year.
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.
MODG shows a decrease in Revenue. In the last year, the revenue decreased by -2.35%.
The Revenue has been growing by 20.04% on average over the past years. This is a very strong growth!
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.
MODG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.72% yearly.
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.
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
MODG is valuated quite expensively with a Price/Earnings ratio of 235.25.
Compared to the rest of the industry, the Price/Earnings ratio of MODG is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.11, MODG is valued quite expensively.
MODG is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 235.25 | ||
| Fwd PE | N/A |
4.2 Price Multiples
87.88% of the companies in the same industry are more expensive than MODG, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.2 |
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
No dividends for MODG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.41
+0.24 (+2.62%)
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 Change1.31%
Market Cap1.73B
Revenue(TTM)4.14B
Net Income(TTM)-1493900000
Analysts71.58
Price Target10.44 (10.95%)
Short Float %9.15%
Short Ratio5.76
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)1.95%
PT rev (3m)17.56%
EPS NQ rev (1m)0.41%
EPS NQ rev (3m)23.78%
EPS NY rev (1m)1.58%
EPS NY rev (3m)24.14%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-5.28%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-1.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 235.25 | ||
| Fwd PE | N/A | ||
| P/S | 0.42 | ||
| P/FCF | N/A | ||
| P/OCF | 6.35 | ||
| P/B | 0.7 | ||
| P/tB | 2.46 | ||
| EV/EBITDA | 8.2 |
EPS(TTM)0.04
EY0.43%
EPS(NY)-0.34
Fwd EYN/A
FCF(TTM)-0.11
FCFYN/A
OCF(TTM)1.48
OCFY15.74%
SpS22.52
BVpS13.53
TBVpS3.83
PEG (NY)N/A
PEG (5Y)N/A
Graham Number3.49
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%
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 | 1.12 | ||
| 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
WACC9.2%
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-290.74%
EPS Next 2Y-92.84%
EPS Next 3Y-40.36%
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-6.37%
Revenue Next 2Y-2.47%
Revenue Next 3Y0.03%
Revenue Next 5Y9.72%
EBIT growth 1Y1.01%
EBIT growth 3Y-2.12%
EBIT growth 5Y8.72%
EBIT Next Year107.11%
EBIT Next 3Y33.76%
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%
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 valuation of TOPGOLF CALLAWAY BRANDS CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TOPGOLF CALLAWAY BRANDS CORP (MODG) is 235.25 and the Price/Book (PB) ratio is 0.7.
What is the expected EPS growth for TOPGOLF CALLAWAY BRANDS CORP (MODG) stock?
The Earnings per Share (EPS) of TOPGOLF CALLAWAY BRANDS CORP (MODG) is expected to decline by -290.74% in the next year.