TOPGOLF CALLAWAY BRANDS CORP (MODG) Stock Fundamental Analysis
USA - NYSE:MODG - US1311931042 - Common Stock
9.41 USD
+0.24 (+2.62%)
9.2381 USD
-0.17 (-1.83%)
Taking everything into account, MODG scores 3 out of 10 in our fundamental rating. MODG was compared to 33 industry peers in the Leisure Products industry. MODG has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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: 72.73% of the companies in the same industry are doing better.
MODG has a Return On Equity of -60.04%. This is in the lower half of the industry: MODG underperforms 69.70% of its industry peers.
With a Return On Invested Capital value of 2.61%, MODG perfoms like the industry average, outperforming 51.52% of the companies in the same industry.
MODG had an Average Return On Invested Capital over the past 3 years of 2.56%. This is below the industry average of 7.26%.
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
The Operating Margin of MODG (5.30%) is better than 66.67% of its industry peers.
In the last couple of years the Operating Margin of MODG has declined.
Looking at the Gross Margin, with a value of 62.86%, MODG belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.
MODG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.3% | ||
| 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
Compared to 5 years ago, MODG has more shares outstanding
The debt/assets ratio for MODG is higher compared to a year ago.
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 Altman-Z score of 0.89. This is in the lower half of the industry: MODG underperforms 66.67% of its industry peers.
A Debt/Equity ratio of 1.12 is on the high side and indicates that MODG has dependencies on debt financing.
MODG's Debt to Equity ratio of 1.12 is on the low side compared to the rest of the industry. MODG is outperformed by 69.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.89 |
ROIC/WACC0.28
WACC9.2%
2.3 Liquidity
MODG has a Current Ratio of 1.85. This is a normal value and indicates that MODG is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.85, MODG perfoms like the industry average, outperforming 42.42% 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.
MODG's Quick ratio of 1.25 is in line compared to the rest of the industry. MODG outperforms 42.42% of its industry peers.
| 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.
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 -2.35% 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)-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.
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-290.74%
EPS Next 2Y-92.84%
EPS Next 3Y-40.36%
EPS Next 5Y-6.48%
Revenue Next Year-6.37%
Revenue Next 2Y-2.47%
Revenue Next 3Y0.03%
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
With a Price/Earnings ratio of 235.25, MODG can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of MODG is on the same level as its industry peers.
MODG is valuated expensively when we compare the Price/Earnings ratio to 26.10, 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 | 235.25 | ||
| Fwd PE | N/A |
4.2 Price Multiples
90.91% of the companies in the same industry are more expensive than MODG, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.11 |
4.3 Compensation for Growth
A cheap valuation may be justified as MODG's earnings are expected to decrease with -40.36% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-92.84%
EPS Next 3Y-40.36%
5. Dividend
5.1 Amount
MODG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.41
+0.24 (+2.62%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners66.86%
Inst Owner ChangeN/A
Ins Owners1.93%
Ins Owner Change1.31%
Market Cap1.73B
Revenue(TTM)4.14B
Net Income(TTM)-1493900000
Analysts71.58
Price Target10.24 (8.82%)
Short Float %9.15%
Short Ratio5.76
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)0%
PT rev (3m)15.31%
EPS NQ rev (1m)0.41%
EPS NQ rev (3m)20.41%
EPS NY rev (1m)1.58%
EPS NY rev (3m)24.14%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-4.36%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-1.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 235.25 | ||
| Fwd PE | N/A | ||
| P/S | 0.42 | ||
| P/FCF | N/A | ||
| P/OCF | 6.35 | ||
| P/B | 0.7 | ||
| P/tB | 2.46 | ||
| EV/EBITDA | 8.11 |
EPS(TTM)0.04
EY0.43%
EPS(NY)-0.34
Fwd EYN/A
FCF(TTM)-0.11
FCFYN/A
OCF(TTM)1.48
OCFY15.74%
SpS22.52
BVpS13.53
TBVpS3.83
PEG (NY)N/A
PEG (5Y)N/A
Graham Number3.49
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%
ROICexgc growth 3Y-13.36%
ROICexgc 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
WACC9.2%
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-290.74%
EPS Next 2Y-92.84%
EPS Next 3Y-40.36%
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-6.37%
Revenue Next 2Y-2.47%
Revenue Next 3Y0.03%
Revenue Next 5Y9.72%
EBIT growth 1Y1.01%
EBIT growth 3Y-2.12%
EBIT growth 5Y8.72%
EBIT Next Year107.11%
EBIT Next 3Y33.76%
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%
TOPGOLF CALLAWAY BRANDS CORP / MODG FAQ
What is the fundamental rating for MODG stock?
ChartMill assigns a fundamental rating of 3 / 10 to MODG.
What is the valuation status for MODG stock?
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 valuation of TOPGOLF CALLAWAY BRANDS CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TOPGOLF CALLAWAY BRANDS CORP (MODG) is 235.25 and the Price/Book (PB) ratio is 0.7.
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 -290.74% in the next year.