TOPGOLF CALLAWAY BRANDS CORP (MODG) Stock Fundamental Analysis
NYSE:MODG - New York Stock Exchange, Inc. - US1311931042 - Common Stock - Currency: USD
Taking everything into account, MODG scores 3 out of 10 in our fundamental rating. MODG was compared to 31 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.
In the past year MODG had a positive cash flow from operations.
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
The Return On Assets of MODG (-18.96%) is worse than 74.19% of its industry peers.
The Return On Equity of MODG (-60.13%) is worse than 77.42% of its industry peers.
MODG's Return On Invested Capital of 2.33% is fine compared to the rest of the industry. MODG outperforms 61.29% of its industry peers.
MODG had an Average Return On Invested Capital over the past 3 years of 2.56%. This is significantly below the industry average of 7.96%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -18.96% | ||
| ROE | -60.13% | ||
| ROIC | 2.33% |
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
Looking at the Operating Margin, with a value of 4.75%, MODG is in the better half of the industry, outperforming 64.52% of the companies in the same industry.
MODG's Operating Margin has declined in the last couple of years.
MODG has a better Gross Margin (62.53%) than 93.55% of its industry peers.
MODG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.75% | ||
| PM (TTM) | N/A | ||
| GM | 62.53% |
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.
MODG has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MODG has more shares outstanding
MODG has a worse debt/assets ratio than last year.
2.2 Solvency
MODG has an Altman-Z score of 0.81. This is a bad value and indicates that MODG is not financially healthy and even has some risk of bankruptcy.
MODG has a Altman-Z score of 0.81. This is in the lower half of the industry: MODG underperforms 64.52% of its industry peers.
The Debt to FCF ratio of MODG is 21.61, which is on the high side as it means it would take MODG, 21.61 years of fcf income to pay off all of its debts.
MODG has a worse Debt to FCF ratio (21.61) than 61.29% of its industry peers.
A Debt/Equity ratio of 0.74 indicates that MODG is somewhat dependend on debt financing.
MODG has a worse Debt to Equity ratio (0.74) than 64.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 21.61 | ||
| Altman-Z | 0.81 |
ROIC/WACC0.21
WACC10.99%
2.3 Liquidity
A Current Ratio of 1.94 indicates that MODG should not have too much problems paying its short term obligations.
MODG has a Current ratio (1.94) which is in line with its industry peers.
A Quick Ratio of 1.02 indicates that MODG should not have too much problems paying its short term obligations.
MODG has a worse Quick ratio (1.02) than 64.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.94 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
MODG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -56.52%.
The earnings per share for MODG have been decreasing by -27.08% on average. This is quite bad
MODG shows a decrease in Revenue. In the last year, the revenue decreased by -1.06%.
Measured over the past years, MODG shows a very strong growth in Revenue. The Revenue has been growing by 20.04% on average per year.
EPS 1Y (TTM)-56.52%
EPS 3Y-40.09%
EPS 5Y-27.08%
EPS Q2Q%-10%
Revenue 1Y (TTM)-1.06%
Revenue growth 3Y10.6%
Revenue growth 5Y20.04%
Sales Q2Q%3.04%
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-344.8%
EPS Next 2Y-99.57%
EPS Next 3Y-37.72%
EPS Next 5Y-6.48%
Revenue Next Year-3.11%
Revenue Next 2Y0.14%
Revenue Next 3Y2.09%
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 is valuated quite expensively with a Price/Earnings ratio of 34.25.
The rest of the industry has a similar Price/Earnings ratio as MODG.
MODG is valuated rather expensively when we compare the Price/Earnings ratio to 28.22, which is the current average of the S&P500 Index.
MODG is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.25 | ||
| Fwd PE | N/A |
4.2 Price Multiples
90.32% of the companies in the same industry are more expensive than MODG, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, MODG is valued a bit cheaper than 67.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.09 | ||
| EV/EBITDA | 5.44 |
4.3 Compensation for Growth
MODG's earnings are expected to decrease with -37.72% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-99.57%
EPS Next 3Y-37.72%
5. Dividend
5.1 Amount
No dividends for MODG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
6.85
+0.19 (+2.85%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners72.05%
Inst Owner ChangeN/A
Ins Owners1.66%
Ins Owner Change8.67%
Market Cap1.26B
Analysts73.75
Price Target9.01 (31.53%)
Short Float %15.37%
Short Ratio6.21
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)67.34%
Min EPS beat(2)22.6%
Max EPS beat(2)112.09%
EPS beat(4)4
Avg EPS beat(4)181.95%
Min EPS beat(4)22.6%
Max EPS beat(4)541.71%
EPS beat(8)8
Avg EPS beat(8)103.37%
EPS beat(12)11
Avg EPS beat(12)70.45%
EPS beat(16)15
Avg EPS beat(16)256.45%
Revenue beat(2)2
Avg Revenue beat(2)1.73%
Min Revenue beat(2)0.99%
Max Revenue beat(2)2.46%
Revenue beat(4)2
Avg Revenue beat(4)-1.07%
Min Revenue beat(4)-4.71%
Max Revenue beat(4)2.46%
Revenue beat(8)4
Avg Revenue beat(8)-1.04%
Revenue beat(12)5
Avg Revenue beat(12)-0.61%
Revenue beat(16)7
Avg Revenue beat(16)1.5%
PT rev (1m)-33.28%
PT rev (3m)-38.16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-177.42%
EPS NY rev (1m)-5.21%
EPS NY rev (3m)-930.74%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.95%
Revenue NY rev (1m)-1%
Revenue NY rev (3m)-6.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.25 | ||
| Fwd PE | N/A | ||
| P/S | 0.3 | ||
| P/FCF | 15.09 | ||
| P/OCF | 3.29 | ||
| P/B | 0.52 | ||
| P/tB | 3.03 | ||
| EV/EBITDA | 5.44 |
EPS(TTM)0.2
EY2.92%
EPS(NY)-0.49
Fwd EYN/A
FCF(TTM)0.45
FCFY6.63%
OCF(TTM)2.08
OCFY30.35%
SpS23.07
BVpS13.1
TBVpS2.26
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -18.96% | ||
| ROE | -60.13% | ||
| ROCE | 2.96% | ||
| ROIC | 2.33% | ||
| ROICexc | 2.49% | ||
| ROICexgc | 3.62% | ||
| OM | 4.75% | ||
| PM (TTM) | N/A | ||
| GM | 62.53% | ||
| FCFM | 1.97% |
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-Score6
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 21.61 | ||
| Debt/EBITDA | 3.8 | ||
| Cap/Depr | 111.25% | ||
| Cap/Sales | 7.04% | ||
| Interest Coverage | 1.01 | ||
| Cash Conversion | 81.29% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.94 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 0.81 |
F-Score6
WACC10.99%
ROIC/WACC0.21
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)-56.52%
EPS 3Y-40.09%
EPS 5Y-27.08%
EPS Q2Q%-10%
EPS Next Y-344.8%
EPS Next 2Y-99.57%
EPS Next 3Y-37.72%
EPS Next 5Y-6.48%
Revenue 1Y (TTM)-1.06%
Revenue growth 3Y10.6%
Revenue growth 5Y20.04%
Sales Q2Q%3.04%
Revenue Next Year-3.11%
Revenue Next 2Y0.14%
Revenue Next 3Y2.09%
Revenue Next 5Y9.72%
EBIT growth 1Y-15.23%
EBIT growth 3Y-2.12%
EBIT growth 5Y8.72%
EBIT Next Year104.3%
EBIT Next 3Y33.92%
EBIT Next 5Y40.58%
FCF growth 1Y170.62%
FCF growth 3YN/A
FCF growth 5Y21.19%
OCF growth 1Y4.74%
OCF growth 3Y11.13%
OCF growth 5Y34.56%