TOPGOLF CALLAWAY BRANDS CORP (MODG) Stock Fundamental Analysis
USA - NYSE:MODG - US1311931042 - Common Stock
9.55 USD
-0.12 (-1.24%)
9.52 USD
-0.03 (-0.31%)
MODG gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 33 industry peers in the Leisure Products industry. There are concerns on the financial health of MODG while its profitability can be described as average. 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.
MODG had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: MODG reported negative net income in multiple years.
MODG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of -19.64%, MODG is not doing good in the industry: 69.70% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of -60.04%, MODG is doing worse than 69.70% of the companies in the same industry.
MODG has a Return On Invested Capital of 2.61%. This is comparable to the rest of the industry: MODG outperforms 54.55% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MODG is significantly below the industry average of 7.78%.
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 | -19.64% | ||
| 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 69.70% of its industry peers.
In the last couple of years the Operating Margin of MODG has declined.
MODG has a better Gross Margin (62.86%) than 87.88% of its industry peers.
MODG's Gross Margin has improved in the last couple of years.
| 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
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
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 0.89. This is a bad value and indicates that MODG is not financially healthy and even has some risk of bankruptcy.
MODG has a worse Altman-Z score (0.89) 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 Debt to Equity ratio of 1.12. This is in the lower half of the industry: MODG underperforms 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.89 |
ROIC/WACC0.28
WACC9.22%
2.3 Liquidity
A Current Ratio of 1.85 indicates that MODG should not have too much problems paying its short term obligations.
With a Current ratio value of 1.85, MODG perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
MODG has a Quick Ratio of 1.25. 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 Quick ratio, with a value of 1.25, MODG is doing worse than 60.61% of the companies in the same 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.
The earnings per share for MODG have been decreasing by -27.08% on average. This is quite bad
The Revenue has decreased by -2.35% in the past year.
MODG shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.04% yearly.
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
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.
The Revenue is expected to grow by 9.72% on average over the next years. This is quite good.
EPS Next Y-293.8%
EPS Next 2Y-99.44%
EPS Next 3Y-60.82%
EPS Next 5Y-6.48%
Revenue Next Year-6.3%
Revenue Next 2Y-2.36%
Revenue Next 3Y0.47%
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
The Price/Earnings ratio is 238.75, which means the current valuation is very expensive for MODG.
MODG's Price/Earnings ratio is in line with the industry average.
MODG's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.30.
The Forward Price/Earnings Ratio is negative for MODG. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 238.75 | ||
| 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 90.91% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.26 |
4.3 Compensation for Growth
A cheap valuation may be justified as MODG's earnings are expected to decrease with -60.82% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-99.44%
EPS Next 3Y-60.82%
5. Dividend
5.1 Amount
MODG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.55
-0.12 (-1.24%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners68.15%
Inst Owner ChangeN/A
Ins Owners2.07%
Ins Owner Change1.58%
Market Cap1.76B
Analysts71.58
Price Target10.24 (7.23%)
Short Float %9.87%
Short Ratio4.53
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)11.77%
PT rev (3m)14.16%
EPS NQ rev (1m)9.09%
EPS NQ rev (3m)-15.7%
EPS NY rev (1m)22.92%
EPS NY rev (3m)19.34%
Revenue NQ rev (1m)-0.77%
Revenue NQ rev (3m)-9.41%
Revenue NY rev (1m)-1.69%
Revenue NY rev (3m)-1.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 238.75 | ||
| Fwd PE | N/A | ||
| P/S | 0.42 | ||
| P/FCF | N/A | ||
| P/OCF | 6.45 | ||
| P/B | 0.71 | ||
| P/tB | 2.49 | ||
| EV/EBITDA | 8.26 |
EPS(TTM)0.04
EY0.42%
EPS(NY)-0.4
Fwd EYN/A
FCF(TTM)-0.11
FCFYN/A
OCF(TTM)1.48
OCFY15.51%
SpS22.52
BVpS13.53
TBVpS3.83
PEG (NY)N/A
PEG (5Y)N/A
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%
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-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
WACC9.22%
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-293.8%
EPS Next 2Y-99.44%
EPS Next 3Y-60.82%
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-6.3%
Revenue Next 2Y-2.36%
Revenue Next 3Y0.47%
Revenue Next 5Y9.72%
EBIT growth 1Y1.01%
EBIT growth 3Y-2.12%
EBIT growth 5Y8.72%
EBIT Next Year99.49%
EBIT Next 3Y30.56%
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%