TOPGOLF CALLAWAY BRANDS CORP (MODG) Stock Fundamental Analysis
NYSE:MODG - New York Stock Exchange, Inc. - US1311931042 - Common Stock - Currency: USD
Overall MODG gets a fundamental rating of 3 out of 10. We evaluated MODG against 30 industry peers in the Leisure Products industry. MODG has a bad profitability rating. Also its financial health evaluation is rather negative. MODG is quite expensive at the moment. 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
Looking at the Return On Assets, with a value of -18.87%, MODG is doing worse than 73.33% of the companies in the same industry.
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.
MODG has a Return On Invested Capital (2.33%) which is comparable to the rest of the industry.
MODG had an Average Return On Invested Capital over the past 3 years of 2.56%. This is significantly below the industry average of 7.91%.
| 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
MODG's Operating Margin of 4.80% is fine compared to the rest of the industry. MODG outperforms 63.33% of its industry peers.
MODG's Operating Margin has declined in the last couple of years.
MODG has a Gross Margin of 62.78%. This is amongst the best in the industry. MODG outperforms 93.33% of its industry peers.
MODG's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
Compared to 1 year ago, MODG has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.89, we must say that MODG is in the distress zone and has some risk of bankruptcy.
MODG has a worse Altman-Z score (0.89) than 76.67% of its industry peers.
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.
MODG has a Debt to FCF ratio of 27.12. This is in the lower half of the industry: MODG underperforms 60.00% of its industry peers.
A Debt/Equity ratio of 0.74 indicates that MODG is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.74, MODG is not doing good in the industry: 63.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 27.12 | ||
| Altman-Z | 0.89 |
ROIC/WACC0.23
WACC9.98%
2.3 Liquidity
MODG has a Current Ratio of 2.12. This indicates that MODG is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of MODG (2.12) is worse than 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.
With a Quick ratio value of 1.41, MODG perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| 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.
MODG shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.04% yearly.
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
MODG is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -6.48% yearly.
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-351.43%
EPS Next 2Y-114.14%
EPS Next 3Y-59.27%
EPS Next 5Y-6.48%
Revenue Next Year-4.97%
Revenue Next 2Y-1.45%
Revenue Next 3Y1.15%
Revenue Next 5Y9.72%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 41.27 indicates a quite expensive valuation of MODG.
MODG's Price/Earnings is on the same level as the industry average.
MODG is valuated expensively when we compare the Price/Earnings ratio to 27.45, 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 | 41.27 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MODG is valued cheaper than 90.00% of the companies in the same industry.
MODG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.83 | ||
| EV/EBITDA | 6.61 |
4.3 Compensation for Growth
A cheap valuation may be justified as MODG's earnings are expected to decrease with -59.27% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-114.14%
EPS Next 3Y-59.27%
5. Dividend
5.1 Amount
No dividends for MODG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.08
-0.15 (-1.63%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners67.78%
Inst Owner ChangeN/A
Ins Owners2.07%
Ins Owner Change13.88%
Market Cap1.67B
Analysts72.22
Price Target8.97 (-1.21%)
Short Float %14.97%
Short Ratio7.28
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)-44.05%
EPS NQ rev (3m)-79.9%
EPS NY rev (1m)-4.65%
EPS NY rev (3m)-1267.69%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)-3.46%
Revenue NY rev (1m)-1.05%
Revenue NY rev (3m)-2.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.27 | ||
| Fwd PE | N/A | ||
| P/S | 0.4 | ||
| P/FCF | 24.83 | ||
| P/OCF | 4.51 | ||
| P/B | 0.69 | ||
| P/tB | 2.59 | ||
| EV/EBITDA | 6.61 |
EPS(TTM)0.22
EY2.42%
EPS(NY)-0.52
Fwd EYN/A
FCF(TTM)0.37
FCFY4.03%
OCF(TTM)2.01
OCFY22.18%
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 | 0.89 |
F-Score6
WACC9.98%
ROIC/WACC0.23
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-351.43%
EPS Next 2Y-114.14%
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-4.97%
Revenue Next 2Y-1.45%
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%