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 30 industry peers in the Leisure Products industry. MODG may be in some trouble as it scores bad on both profitability and health. MODG is valied quite expensively at the moment, while it does show a decent growth rate.
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.
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 -18.87%. This is in the lower half of the industry: MODG underperforms 73.33% of its industry peers.
MODG's Return On Equity of -59.84% is on the low side compared to the rest of the industry. MODG is outperformed by 76.67% of its industry peers.
The Return On Invested Capital of MODG (2.33%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for MODG is significantly below the industry average of 8.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -18.87% | ||
| ROE | -59.84% | ||
| 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
With a decent Operating Margin value of 4.80%, MODG is doing good in the industry, outperforming 63.33% of the companies in the same industry.
In the last couple of years the Operating Margin of MODG has declined.
Looking at the Gross Margin, with a value of 62.78%, MODG belongs to the top of the industry, outperforming 93.33% 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 | 4.8% | ||
| PM (TTM) | N/A | ||
| GM | 62.78% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MODG is destroying value.
Compared to 1 year ago, MODG has less shares outstanding
MODG has more shares outstanding than it did 5 years ago.
MODG has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.84, we must say that MODG is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.84, MODG is not doing good in the industry: 76.67% of the companies in the same industry are doing better.
MODG has a debt to FCF ratio of 27.12. This is a negative value and a sign of low solvency as MODG would need 27.12 years to pay back of all of its debts.
With a Debt to FCF ratio value of 27.12, MODG is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
MODG has a Debt/Equity ratio of 0.74. This is a neutral value indicating MODG is somewhat dependend on debt financing.
MODG has a Debt to Equity ratio of 0.74. This is in the lower half of the industry: MODG underperforms 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 27.12 | ||
| Altman-Z | 0.84 |
ROIC/WACC0.21
WACC10.96%
2.3 Liquidity
A Current Ratio of 2.12 indicates that MODG has no problem at all paying its short term obligations.
MODG's Current ratio of 2.12 is on the low side compared to the rest of the industry. MODG is outperformed by 60.00% of its industry peers.
MODG has a Quick Ratio of 1.41. This is a normal value and indicates that MODG is financially healthy and should not expect problems in meeting its short term obligations.
MODG has a Quick ratio (1.41) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.12 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
MODG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -42.11%.
MODG shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -27.08% yearly.
The Revenue has decreased by -1.74% in the past year.
The Revenue has been growing by 20.04% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-42.11%
EPS 3Y-40.09%
EPS 5Y-27.08%
EPS Q2Q%22.22%
Revenue 1Y (TTM)-1.74%
Revenue growth 3Y10.6%
Revenue growth 5Y20.04%
Sales Q2Q%-4.54%
3.2 Future
The Earnings Per Share is expected to decrease by -6.48% on average over the next years.
Based on estimates for the next years, MODG will show a quite strong growth in Revenue. The Revenue will grow by 9.72% on average per year.
EPS Next Y-340.27%
EPS Next 2Y-111.2%
EPS Next 3Y-59.27%
EPS Next 5Y-6.48%
Revenue Next Year-4.44%
Revenue Next 2Y-1.03%
Revenue Next 3Y1.15%
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
A Price/Earnings ratio of 29.23 indicates a quite expensive valuation of MODG.
MODG's Price/Earnings ratio is in line with the industry average.
MODG is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.52, which is the current average of the S&P500 Index.
The Forward Price/Earnings Ratio is negative for MODG. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.23 | ||
| Fwd PE | N/A |
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.
MODG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.58 | ||
| EV/EBITDA | 5.58 |
4.3 Compensation for Growth
MODG's earnings are expected to decrease with -59.27% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-111.2%
EPS Next 3Y-59.27%
5. Dividend
5.1 Amount
MODG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
6.43
-0.01 (-0.16%)
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 Change14.93%
Market Cap1.18B
Analysts72.22
Price Target8.97 (39.5%)
Short Float %15.56%
Short Ratio7.14
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)151.17%
Min EPS beat(2)22.6%
Max EPS beat(2)279.74%
EPS beat(4)4
Avg EPS beat(4)116.45%
Min EPS beat(4)22.6%
Max EPS beat(4)279.74%
EPS beat(8)8
Avg EPS beat(8)137.44%
EPS beat(12)11
Avg EPS beat(12)89.8%
EPS beat(16)15
Avg EPS beat(16)252.16%
Revenue beat(2)2
Avg Revenue beat(2)1.43%
Min Revenue beat(2)0.4%
Max Revenue beat(2)2.46%
Revenue beat(4)3
Avg Revenue beat(4)-0.22%
Min Revenue beat(4)-4.71%
Max Revenue beat(4)2.46%
Revenue beat(8)4
Avg Revenue beat(8)-1.08%
Revenue beat(12)6
Avg Revenue beat(12)-0.57%
Revenue beat(16)7
Avg Revenue beat(16)0.66%
PT rev (1m)-0.48%
PT rev (3m)-33.59%
EPS NQ rev (1m)-79.9%
EPS NQ rev (3m)-83.21%
EPS NY rev (1m)1.85%
EPS NY rev (3m)-1215.85%
Revenue NQ rev (1m)-3.46%
Revenue NQ rev (3m)-4.04%
Revenue NY rev (1m)-1.37%
Revenue NY rev (3m)-7.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.23 | ||
| Fwd PE | N/A | ||
| P/S | 0.28 | ||
| P/FCF | 17.58 | ||
| P/OCF | 3.19 | ||
| P/B | 0.49 | ||
| P/tB | 1.84 | ||
| EV/EBITDA | 5.58 |
EPS(TTM)0.22
EY3.42%
EPS(NY)-0.49
Fwd EYN/A
FCF(TTM)0.37
FCFY5.69%
OCF(TTM)2.01
OCFY31.32%
SpS22.79
BVpS13.21
TBVpS3.5
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -18.87% | ||
| ROE | -59.84% | ||
| ROCE | 2.97% | ||
| ROIC | 2.33% | ||
| ROICexc | 2.45% | ||
| ROICexgc | 3.37% | ||
| OM | 4.8% | ||
| PM (TTM) | N/A | ||
| GM | 62.78% | ||
| FCFM | 1.6% |
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 Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 27.12 | ||
| Debt/EBITDA | 3.82 | ||
| Cap/Depr | 111.32% | ||
| Cap/Sales | 7.23% | ||
| Interest Coverage | 1.03 | ||
| Cash Conversion | 78.21% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.12 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 0.84 |
F-Score6
WACC10.96%
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)-42.11%
EPS 3Y-40.09%
EPS 5Y-27.08%
EPS Q2Q%22.22%
EPS Next Y-340.27%
EPS Next 2Y-111.2%
EPS Next 3Y-59.27%
EPS Next 5Y-6.48%
Revenue 1Y (TTM)-1.74%
Revenue growth 3Y10.6%
Revenue growth 5Y20.04%
Sales Q2Q%-4.54%
Revenue Next Year-4.44%
Revenue Next 2Y-1.03%
Revenue Next 3Y1.15%
Revenue Next 5Y9.72%
EBIT growth 1Y-10.26%
EBIT growth 3Y-2.12%
EBIT growth 5Y8.72%
EBIT Next Year97.13%
EBIT Next 3Y28.17%
EBIT Next 5Y40.58%
FCF growth 1Y112.56%
FCF growth 3YN/A
FCF growth 5Y21.19%
OCF growth 1Y19578.9%
OCF growth 3Y11.13%
OCF growth 5Y34.56%