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TOPGOLF CALLAWAY BRANDS CORP (MODG) Stock Fundamental Analysis

NYSE:MODG - New York Stock Exchange, Inc. - US1311931042 - Common Stock

8.415  -0.17 (-1.92%)

Fundamental Rating

3

Overall MODG gets a fundamental rating of 3 out of 10. We evaluated MODG against 30 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. MODG has a expensive valuation and it also scores bad on growth.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

In the past year MODG was profitable.
MODG had a positive operating cash flow in the past year.
Of the past 5 years MODG 4 years were profitable.
Of the past 5 years MODG 4 years had a positive operating cash flow.
MODG Yearly Net Income VS EBIT VS OCF VS FCFMODG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M -400M

1.2 Ratios

Looking at the Return On Assets, with a value of -0.13%, MODG is in line with its industry, outperforming 56.67% of the companies in the same industry.
The Return On Equity of MODG (-0.31%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 1.68%, MODG is in line with its industry, outperforming 53.33% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MODG is significantly below the industry average of 8.25%.
Industry RankSector 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%
MODG Yearly ROA, ROE, ROICMODG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20 30

1.3 Margins

MODG's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 4.21%, MODG is in line with its industry, outperforming 60.00% of the companies in the same industry.
In the last couple of years the Operating Margin of MODG has declined.
MODG has a Gross Margin of 62.49%. This is amongst the best in the industry. MODG outperforms 100.00% of its industry peers.
In the last couple of years the Gross Margin of MODG has grown nicely.
Industry RankSector 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%
MODG Yearly Profit, Operating, Gross MarginsMODG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40 60

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3

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.
The number of shares outstanding for MODG has been reduced compared to 1 year ago.
The number of shares outstanding for MODG has been increased compared to 5 years ago.
The debt/assets ratio for MODG is higher compared to a year ago.
MODG Yearly Shares OutstandingMODG Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M
MODG Yearly Total Debt VS Total AssetsMODG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B

2.2 Solvency

Based on the Altman-Z score of 0.96, we must say that MODG is in the distress zone and has some risk of bankruptcy.
MODG has a worse Altman-Z score (0.96) than 70.00% of its industry peers.
MODG has a debt to FCF ratio of 11.89. This is a negative value and a sign of low solvency as MODG would need 11.89 years to pay back of all of its debts.
With a Debt to FCF ratio value of 11.89, MODG perfoms like the industry average, outperforming 43.33% of the companies in the same industry.
A Debt/Equity ratio of 0.46 indicates that MODG is not too dependend on debt financing.
MODG has a Debt to Equity ratio of 0.46. This is comparable to the rest of the industry: MODG outperforms 43.33% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.46
Debt/FCF 11.89
Altman-Z 0.96
ROIC/WACC0.17
WACC10%
MODG Yearly LT Debt VS Equity VS FCFMODG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B 2B 3B

2.3 Liquidity

A Current Ratio of 1.93 indicates that MODG should not have too much problems paying its short term obligations.
The Current ratio of MODG (1.93) is worse 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: 63.33% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.93
Quick Ratio 1.14
MODG Yearly Current Assets VS Current LiabilitesMODG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B

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3

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.
The Revenue has decreased by -0.64% in the past year.
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

MODG is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -19.76% yearly.
The Revenue is expected to grow by 3.48% on average over the next years.
EPS Next Y-66.49%
EPS Next 2Y-64.21%
EPS Next 3Y-31.34%
EPS Next 5Y-19.76%
Revenue Next Year-1.27%
Revenue Next 2Y0.95%
Revenue Next 3Y2.16%
Revenue Next 5Y3.48%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
MODG Yearly Revenue VS EstimatesMODG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B
MODG Yearly EPS VS EstimatesMODG Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0.2 0.4 0.6 0.8 1

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3

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 36.59, 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.
The average S&P500 Price/Earnings ratio is at 28.29. MODG is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 142.78, which means the current valuation is very expensive for MODG.
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.
MODG is valuated expensively when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 36.59
Fwd PE 142.78
MODG Price Earnings VS Forward Price EarningsMODG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100

4.2 Price Multiples

MODG's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MODG is cheaper than 93.33% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MODG is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 10.16
EV/EBITDA 6.59
MODG Per share dataMODG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

4.3 Compensation for Growth

A cheap valuation may be justified as MODG's earnings are expected to decrease with -31.34% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-64.21%
EPS Next 3Y-31.34%

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0

5. Dividend

5.1 Amount

MODG does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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TOPGOLF CALLAWAY BRANDS CORP

NYSE:MODG (1/22/2025, 10:41:09 AM)

8.415

-0.17 (-1.92%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)11-12 2024-11-12/amc
Earnings (Next)02-05 2025-02-05/amc
Inst Owners74.82%
Inst Owner ChangeN/A
Ins Owners1.63%
Ins Owner Change1.08%
Market Cap1.55B
Analysts72
Price Target14.58 (73.26%)
Short Float %11.89%
Short Ratio6
Dividend
Industry RankSector 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)-3.38%
PT rev (3m)-11.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-80.49%
EPS NY rev (1m)0%
EPS NY rev (3m)-23.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.68%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.23%
Valuation
Industry RankSector Rank
PE 36.59
Fwd PE 142.78
P/S 0.37
P/FCF 10.16
P/OCF 3.25
P/B 0.39
P/tB 3.55
EV/EBITDA 6.59
EPS(TTM)0.23
EY2.73%
EPS(NY)0.06
Fwd EY0.7%
FCF(TTM)0.83
FCFY9.84%
OCF(TTM)2.59
OCFY30.76%
SpS22.92
BVpS21.41
TBVpS2.37
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 0.96
F-Score6
WACC10%
ROIC/WACC0.17
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-64.21%
EPS Next 3Y-31.34%
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-1.27%
Revenue Next 2Y0.95%
Revenue Next 3Y2.16%
Revenue Next 5Y3.48%
EBIT growth 1Y-24.75%
EBIT growth 3Y56.1%
EBIT growth 5Y15.3%
EBIT Next Year98.27%
EBIT Next 3Y27.57%
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%