TOPGOLF CALLAWAY BRANDS CORP (MODG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MODG - US1311931042 - Common Stock
14.68 USD
+0.08 (+0.55%)
14.68 USD
0 (0%)
MODG gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 30 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 has reported negative net income.
- In the past year MODG had a positive cash flow from operations.
- 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 -19.88%. This is in the lower half of the industry: MODG underperforms 74.19% of its industry peers.
- With a Return On Equity value of -60.79%, MODG is not doing good in the industry: 67.74% of the companies in the same industry are doing better.
- MODG has a Return On Invested Capital of 2.61%. This is comparable to the rest of the industry: MODG outperforms 48.39% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for MODG is significantly below the industry average of 7.97%.
- The last Return On Invested Capital (2.61%) for MODG is above the 3 year average (2.56%), which is a sign of increasing profitability.
| 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
- With a decent Operating Margin value of 5.38%, MODG is doing good in the industry, outperforming 67.74% of the companies in the same industry.
- In the last couple of years the Operating Margin of MODG has declined.
- With an excellent Gross Margin value of 63.31%, MODG belongs to the best of the industry, outperforming 90.32% of the companies in the same industry.
- MODG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.38% | ||
| 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
- 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.
- The number of shares outstanding for MODG has been increased compared to 5 years ago.
- MODG has a worse debt/assets ratio than last year.
2.2 Solvency
- MODG has an Altman-Z score of 1.00. This is a bad value and indicates that MODG is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 1.00, MODG is not doing good in the industry: 61.29% of the companies in the same industry are doing better.
- MODG has a debt to FCF ratio of 91.74. This is a negative value and a sign of low solvency as MODG would need 91.74 years to pay back of all of its debts.
- The Debt to FCF ratio of MODG (91.74) is comparable to the rest of the 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: 64.52% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 91.74 | ||
| Altman-Z | 1 |
ROIC/WACC0.28
WACC9.2%
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.
- Looking at the Current ratio, with a value of 1.87, MODG is in line with its industry, outperforming 45.16% of the companies in the same industry.
- MODG has a Quick Ratio of 1.30. 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 Quick ratio of 1.30 is in line compared to the rest of the industry. MODG outperforms 48.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
- The earnings per share for MODG have decreased strongly by -113.04% 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 -3.58%.
- 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.
- 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-192.82%
EPS Next 2Y-84.46%
EPS Next 3Y-58.51%
EPS Next 5Y-6.48%
Revenue Next Year-6.65%
Revenue Next 2Y-3.11%
Revenue Next 3Y-0.61%
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 reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- Also next year MODG is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MODG indicates a rather cheap valuation: MODG is cheaper than 87.10% of the companies listed in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as MODG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 80.58 | ||
| EV/EBITDA | 9.92 |
4.3 Compensation for Growth
- A cheap valuation may be justified as MODG's earnings are expected to decrease with -58.51% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-84.46%
EPS Next 3Y-58.51%
5. Dividend
5.1 Amount
- No dividends for MODG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
TOPGOLF CALLAWAY BRANDS CORP / MODG FAQ
What is the fundamental rating for MODG stock?
ChartMill assigns a fundamental rating of 3 / 10 to MODG.
Can you provide the valuation status for TOPGOLF CALLAWAY BRANDS CORP?
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 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 -192.82% in the next year.