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Callaway Golf

NYSE:ELY
Snowflake Description

Mediocre balance sheet and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ELY
NYSE
$2B
Market Cap
  1. Home
  2. US
  3. Consumer Durables
Company description

Callaway Golf Company, together with its subsidiaries, designs, manufactures, and sells golf clubs, golf balls, golf bags, and other golf-related accessories. The last earnings update was 73 days ago. More info.


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ELY Share Price and Events
7 Day Returns
-1.3%
NYSE:ELY
-1.8%
US Leisure
-1.2%
US Market
1 Year Returns
-6.6%
NYSE:ELY
-16.6%
US Leisure
3.3%
US Market
ELY Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Callaway Golf (ELY) -1.3% -0.9% 6.1% -6.6% 73.3% 131.2%
US Leisure -1.8% -0.8% -2.1% -16.6% -17.3% -8.4%
US Market -1.2% 0.8% 0.9% 3.3% 35.9% 41.7%
1 Year Return vs Industry and Market
  • ELY outperformed the Leisure industry which returned -16.6% over the past year.
  • ELY underperformed the Market in United States of America which returned 3.3% over the past year.
Price Volatility
ELY
Industry
5yr Volatility vs Market

ELY Value

 Is Callaway Golf undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Callaway Golf to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Callaway Golf.

NYSE:ELY Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 12 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:ELY
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Leisure Unlevered Beta Simply Wall St/ S&P Global 0.96
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.962 (1 + (1- 21%) (48.39%))
1.221
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.22
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.221 * 5.96%)
10.01%

Discounted Cash Flow Calculation for NYSE:ELY using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Callaway Golf is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:ELY DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.01%)
2020 97.81 Analyst x5 88.91
2021 130.00 Analyst x2 107.42
2022 85.00 Analyst x1 63.85
2023 76.20 Est @ -10.35% 52.03
2024 71.31 Est @ -6.42% 44.26
2025 68.69 Est @ -3.68% 38.76
2026 67.48 Est @ -1.76% 34.61
2027 67.20 Est @ -0.41% 31.33
2028 67.56 Est @ 0.53% 28.64
2029 68.37 Est @ 1.19% 26.34
Present value of next 10 years cash flows $516.16
NYSE:ELY DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $68.37 × (1 + 2.73%) ÷ (10.01% – 2.73%)
$965.09
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $965.09 ÷ (1 + 10.01%)10
$371.84
NYSE:ELY Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $516.16 + $371.84
$887.99
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $887.99 / 94.04
$9.44
NYSE:ELY Discount to Share Price
Calculation Result
Value per share (USD) From above. $9.44
Current discount Discount to share price of $18.08
= -1 x ($18.08 - $9.44) / $9.44
-91.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Callaway Golf is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Callaway Golf's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Callaway Golf's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:ELY PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $0.96
NYSE:ELY Share Price ** NYSE (2019-07-22) in USD $18.08
United States of America Leisure Industry PE Ratio Median Figure of 15 Publicly-Listed Leisure Companies 18.97x
United States of America Market PE Ratio Median Figure of 3,082 Publicly-Listed Companies 17.86x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Callaway Golf.

NYSE:ELY PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:ELY Share Price ÷ EPS (both in USD)

= 18.08 ÷ 0.96

18.87x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Callaway Golf is good value based on earnings compared to the US Leisure industry average.
  • Callaway Golf is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Callaway Golf's expected growth come at a high price?
Raw Data
NYSE:ELY PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 18.87x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
11.5%per year
United States of America Leisure Industry PEG Ratio Median Figure of 12 Publicly-Listed Leisure Companies 1.77x
United States of America Market PEG Ratio Median Figure of 2,119 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

NYSE:ELY PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 18.87x ÷ 11.5%

1.64x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Callaway Golf is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Callaway Golf's assets?
Raw Data
NYSE:ELY PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $7.89
NYSE:ELY Share Price * NYSE (2019-07-22) in USD $18.08
United States of America Leisure Industry PB Ratio Median Figure of 25 Publicly-Listed Leisure Companies 2.55x
United States of America Market PB Ratio Median Figure of 5,248 Publicly-Listed Companies 1.79x
NYSE:ELY PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:ELY Share Price ÷ Book Value per Share (both in USD)

= 18.08 ÷ 7.89

2.29x

* Primary Listing of Callaway Golf.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Callaway Golf is good value based on assets compared to the US Leisure industry average.
X
Value checks
We assess Callaway Golf's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Leisure industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Leisure industry average (and greater than 0)? (1 check)
  5. Callaway Golf has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

ELY Future Performance

 How is Callaway Golf expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
11.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Callaway Golf expected to grow at an attractive rate?
  • Callaway Golf's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Callaway Golf's earnings growth is positive but not above the United States of America market average.
  • Callaway Golf's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:ELY Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:ELY Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts 11.5%
NYSE:ELY Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts 4.6%
United States of America Leisure Industry Earnings Growth Rate Market Cap Weighted Average 26.3%
United States of America Leisure Industry Revenue Growth Rate Market Cap Weighted Average 4.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:ELY Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:ELY Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 1,960 132 2
2022-12-31 1,897 124 2
2021-12-31 1,833 181 128 2
2020-12-31 1,767 143 114 11
2019-12-31 1,685 192 87 12
NYSE:ELY Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 1,356 81 91
2018-12-31 1,243 92 105
2018-09-30 1,254 128 114
2018-06-30 1,235 96 107
2018-03-31 1,143 71 78
2017-12-31 1,049 118 41
2017-09-30 1,021 103 183
2017-06-30 965 86 175
2017-03-31 906 86 177
2016-12-31 871 78 190
2016-09-30 861 88 36
2016-06-30 849 81 38

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Callaway Golf's earnings are expected to grow by 11.5% yearly, however this is not considered high growth (20% yearly).
  • Callaway Golf's revenue is expected to grow by 4.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:ELY Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from Callaway Golf Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:ELY Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 1.39 1.39 1.39 1.00
2022-12-31 1.31 1.31 1.31 1.00
2021-12-31 1.34 1.44 1.23 2.00
2020-12-31 1.18 1.25 1.12 9.00
2019-12-31 0.92 1.00 0.85 9.00
NYSE:ELY Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 0.96
2018-12-31 1.11
2018-09-30 1.20
2018-06-30 1.14
2018-03-31 0.82
2017-12-31 0.43
2017-09-30 1.95
2017-06-30 1.85
2017-03-31 1.88
2016-12-31 2.02
2016-09-30 0.39
2016-06-30 0.42

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Callaway Golf will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Callaway Golf's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Callaway Golf has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

ELY Past Performance

  How has Callaway Golf performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Callaway Golf's growth in the last year to its industry (Leisure).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Callaway Golf has delivered over 20% year on year earnings growth in the past 5 years.
  • Callaway Golf's 1-year earnings growth is less than its 5-year average (16.1% vs 44.9%)
  • Callaway Golf's earnings growth has not exceeded the US Leisure industry average in the past year (16.1% vs 36.2%).
Earnings and Revenue History
Callaway Golf's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Callaway Golf Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:ELY Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 1,355.84 90.53 452.20 43.67
2018-12-31 1,242.83 104.74 405.51 40.75
2018-09-30 1,253.81 113.85 398.28 39.23
2018-06-30 1,234.76 107.40 390.08 39.16
2018-03-31 1,143.00 77.97 370.47 37.31
2017-12-31 1,048.74 40.81 356.24 36.57
2017-09-30 1,020.77 183.46 337.29 35.28
2017-06-30 965.02 174.54 325.90 34.54
2017-03-31 906.07 177.20 319.32 33.97
2016-12-31 871.19 189.90 307.53 33.32
2016-09-30 860.83 36.18 307.42 33.96
2016-06-30 848.76 38.43 299.86 34.22
2016-03-31 833.67 17.14 293.89 33.53
2015-12-31 843.79 14.57 297.48 33.21
2015-09-30 825.07 3.48 293.73 32.57
2015-06-30 817.86 5.96 285.36 32.05
2015-03-31 819.25 -3.49 283.00 31.29
2014-12-31 886.95 16.01 295.89 31.29
2014-09-30 879.51 8.05 291.16 31.41
2014-06-30 889.17 -13.74 300.12 30.95
2014-03-31 906.92 -7.82 303.81 31.44
2013-12-31 842.80 -22.25 291.40 30.94
2013-09-30 835.57 -44.29 289.99 29.60
2013-06-30 805.25 -110.58 299.76 29.89
2013-03-31 836.72 -119.69 317.08 29.48
2012-12-31 834.07 -131.39 323.26 29.54
2012-09-30 868.00 -125.47 321.29 30.49

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Callaway Golf has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Callaway Golf used its assets less efficiently than the US Leisure industry average last year based on Return on Assets.
  • Callaway Golf has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Callaway Golf's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Leisure industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Callaway Golf has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

ELY Health

 How is Callaway Golf's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Callaway Golf's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Callaway Golf is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Callaway Golf's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Callaway Golf's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Callaway Golf Company Filings, last reported 3 months ago.

NYSE:ELY Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 751.33 688.80 78.98
2018-12-31 734.31 49.93 63.98
2018-09-30 759.76 14.48 70.82
2018-06-30 749.74 106.87 57.75
2018-03-31 696.51 189.80 38.72
2017-12-31 659.38 99.57 85.67
2017-09-30 672.15 70.62 82.02
2017-06-30 660.93 6.23 61.96
2017-03-31 625.14 76.95 47.99
2016-12-31 608.60 11.97 125.98
2016-09-30 492.89 0.00 124.63
2016-06-30 486.31 5.33 67.62
2016-03-31 452.66 78.97 35.14
2015-12-31 412.95 14.97 49.80
2015-09-30 416.13 26.70 41.59
2015-06-30 343.34 151.57 26.71
2015-03-31 324.11 203.09 23.24
2014-12-31 291.53 123.81 37.64
2014-09-30 340.21 108.39 33.46
2014-06-30 350.96 168.41 28.99
2014-03-31 342.09 248.60 23.56
2013-12-31 284.62 133.50 36.79
2013-09-30 334.75 107.66 37.40
2013-06-30 358.03 145.98 29.96
2013-03-31 354.52 186.79 28.07
2012-12-31 321.71 107.13 52.00
2012-09-30 395.87 106.93 59.14
  • Callaway Golf's level of debt (91.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (72.8% vs 91.9% today).
  • Debt is not well covered by operating cash flow (11.7%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 9.6x coverage).
X
Financial health checks
We assess Callaway Golf's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Callaway Golf has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

ELY Dividends

 What is Callaway Golf's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.22%
Current annual income from Callaway Golf dividends. Estimated to be 0.49% next year.
If you bought $2,000 of Callaway Golf shares you are expected to receive $4 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Callaway Golf's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • Callaway Golf's dividend is below the markets top 25% of dividend payers in United States of America (3.78%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:ELY Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
United States of America Leisure Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 2.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:ELY Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.35 1.00
2022-12-31 0.26 1.00
2021-12-31 0.18 1.00
2020-12-31 0.04 5.00
2019-12-31 0.04 6.00
NYSE:ELY Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-08 0.040 0.240
2019-02-01 0.040 0.241
2018-11-07 0.040 0.234
2018-07-31 0.040 0.177
2018-05-09 0.040 0.209
2018-01-31 0.040 0.247
2017-11-08 0.040 0.279
2017-07-31 0.040 0.290
2017-05-02 0.040 0.317
2017-02-07 0.040 0.363
2016-11-16 0.040 0.348
2016-08-11 0.040 0.355
2016-05-11 0.040 0.392
2016-02-03 0.040 0.446
2015-11-04 0.040 0.425
2015-08-04 0.040 0.449
2015-05-12 0.040 0.436
2015-02-25 0.040 0.430
2014-11-04 0.040 0.511
2014-08-06 0.040 0.536
2014-01-28 0.040 0.468
2013-10-24 0.040 0.483
2013-07-24 0.040 0.556
2013-04-23 0.040 0.598
2013-01-29 0.040 0.596
2012-10-25 0.040 0.632
2012-07-25 0.040 0.671
2012-04-25 0.040 0.706
2012-01-23 0.040 0.596
2011-10-25 0.040 0.716
2011-07-21 0.040 0.709
2011-04-27 0.040 0.606
2011-01-24 0.040 0.550
2010-10-25 0.040 0.518
2010-07-23 0.040 0.582
2010-04-28 0.040 0.545
2010-01-25 0.040 0.461
2009-10-27 0.040 0.537
2009-07-27 0.040 0.557
2009-06-08 0.040 0.751
2009-04-01 0.280 3.781
2008-11-18 0.280 3.514
2008-09-03 0.280 2.438

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Callaway Golf is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.
  • Callaway Golf is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Callaway Golf's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Callaway Golf's dividends as it is not paying a notable one for United States of America.
Future Payout to shareholders
  • No need to calculate the sustainability of Callaway Golf's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Callaway Golf's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Callaway Golf afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Callaway Golf has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

ELY Management

 What is the CEO of Callaway Golf's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Chip Brewer
COMPENSATION $6,229,556
AGE 55
TENURE AS CEO 7.3 years
CEO Bio

Mr. Oliver G. Brewer, III, also known as Chip, has been the President and Chief Executive Officer at Callaway Golf Company. since March 5, 2012. Mr. Brewer served as the Chief Executive Officer of Adams Golf Inc. from January 2002 to February 29, 2012 and served as its President from August 2000 to February 29, 2012. He has a long tenure with Adams Golf Inc. and has years of company specific knowledge and a vast amount of golf industry knowledge. Mr. Brewer served as the President and Chief Operating Officer of Adams Golf from August 2000 to January 2002 and as its Senior Vice President of Sales and Marketing from September 1998 to August 2000. He served as Vice President of Sales and Marketing of Mead Containerboard, a division of Mead Corporation from July 1997 to August 1998. Mr. Brewer has business talents and management skills. He has been a Director of Callaway Golf Co. since March 2012. Since 2012 Mr. Brewer has served as a Director of Topgolf International, Inc. in which Callaway Golf has a minority ownership interest. Mr. Brewer served as an Executive Director of Adams Golf from October 2000 to February 2012. Mr. Brewer is a 1986 graduate of the College of William and Mary and received his MBA from Harvard in 1991.

CEO Compensation
  • Chip's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • Chip's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Callaway Golf management team in years:

7.3
Average Tenure
55
Average Age
  • The average tenure for the Callaway Golf management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Chip Brewer

TITLE
President
COMPENSATION
$6M
AGE
55
TENURE
7.3 yrs

Brian Lynch

TITLE
Executive VP & CFO
COMPENSATION
$2M
AGE
57
TENURE
2.3 yrs

Mark Leposky

TITLE
Executive Vice President of Global Operations
COMPENSATION
$1M
AGE
54
TENURE
7.3 yrs

Richard Arnett

TITLE
Executive Vice President of Global Marketing & Callaway Brands
COMPENSATION
$1M
AGE
48
TENURE
3.5 yrs

Alan Hocknell

TITLE
Senior Vice President of Research & Development
COMPENSATION
$1M
AGE
47
TENURE
9.9 yrs

Jennifer Thomas

TITLE
VP & Chief Accounting Officer
AGE
43
TENURE
6.2 yrs

Patrick Burke

TITLE
Vice President of Finance & Investor Relations

Neil Howie

TITLE
MD & President of Europe
COMPENSATION
$1M
AGE
56
TENURE
8 yrs

Glenn Hickey

TITLE
Executive Vice President of Callaway Golf
AGE
57
TENURE
0.5 yrs

Alex Boezeman

TITLE
President of Asia
COMPENSATION
$972K
AGE
60
TENURE
8 yrs
Board of Directors Tenure

Average tenure and age of the Callaway Golf board of directors in years:

9.9
Average Tenure
66
Average Age
  • The tenure for the Callaway Golf board of directors is about average.
Board of Directors

Ron Beard

TITLE
Chairman of the Board
COMPENSATION
$219K
AGE
80
TENURE
13.9 yrs

Chip Brewer

TITLE
President
COMPENSATION
$6M
AGE
55
TENURE
7.3 yrs

Samuel Armacost

TITLE
Independent Director
COMPENSATION
$194K
AGE
80
TENURE
16.3 yrs

John Lundgren

TITLE
Independent Director
COMPENSATION
$191K
AGE
67
TENURE
10.3 yrs

Bayo Ogunlesi

TITLE
Independent Director
COMPENSATION
$189K
AGE
65
TENURE
9.5 yrs

John Cushman

TITLE
Independent Director
COMPENSATION
$179K
AGE
78
TENURE
16.3 yrs

Tony Thornley

TITLE
Independent Director
COMPENSATION
$179K
AGE
72
TENURE
15.3 yrs

Linda Segre

TITLE
Independent Director
COMPENSATION
$179K
AGE
59
TENURE
3.9 yrs

Russ Fleischer

TITLE
Director
COMPENSATION
$152K
AGE
51
TENURE
1.2 yrs

Laura Flanagan

TITLE
Director
COMPENSATION
$110K
AGE
51
TENURE
0.7 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Callaway Golf individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
13. Jun 19 Buy Roger Farah Individual 06. Jun 19 06. Jun 19 100,000 $15.79 $1,579,000
13. Jun 19 Buy James Lillie Individual 29. May 19 29. May 19 150,000 $14.91 $2,236,500
13. Jun 19 Buy Cynthia Davis Individual 04. Jun 19 04. Jun 19 13,333 $15.22 $202,928
13. Jun 19 Buy JANA Partners LLC Company 10. May 19 12. Jun 19 8,671,810 $16.09 $0
23. May 19 Buy Russell Fleischer Individual 23. May 19 23. May 19 5,000 $14.75 $73,750
21. May 19 Buy Brian Lynch Individual 20. May 19 20. May 19 6,575 $15.13 $99,480
21. May 19 Buy Oliver Brewer Individual 20. May 19 20. May 19 10,000 $15.14 $151,400
13. Feb 19 Buy Russell Fleischer Individual 12. Feb 19 12. Feb 19 5,000 $15.50 $77,500
X
Management checks
We assess Callaway Golf's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Callaway Golf has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

ELY News

Simply Wall St News

Is Callaway Golf Company (NYSE:ELY) Undervalued After Accounting For Its Future Growth?

ELY is trading at price-to-earnings (PE) ratio of 19.01x, which suggests that Callaway Golf is undervalued based on its latest annual earnings update compared to the Leisure average of 19.01x , and overvalued compared to the US market average ratio of 17.92x. … However, to properly examine the value of a high-growth stock such as Callaway Golf, we must reflect its earnings growth into the valuation. … A PE ratio of 19.01x and expected year-on-year earnings growth of 12% give Callaway Golf a higher PEG ratio of 1.65x.

Simply Wall St -

Why You Should Care About Callaway Golf Company’s (NYSE:ELY) Low Return On Capital

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Callaway Golf: 0.089 = US$126m ÷ (US$1.9b - US$518m) (Based on the trailing twelve months to March 2019.) So, Callaway Golf has an ROCE of 8.9%. … Do Callaway Golf's Current Liabilities Skew Its ROCE? … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

We Think Callaway Golf (NYSE:ELY) In Taking Some Risk With Its Debt

Importantly, Callaway Golf Company (NYSE:ELY) does carry debt. … NYSE:ELY Historical Debt, July 3rd 2019 A Look At Callaway Golf's Liabilities Zooming in on the latest balance sheet data, we can see that Callaway Golf had liabilities of US$518.2m due within 12 months and liabilities of US$664.2m due beyond that. … Since Callaway Golf does have net debt, we think it is worthwhile for shareholders to keep an eye on the balance sheet, over time.

Simply Wall St -

Is Now The Time To Look At Buying Callaway Golf Company (NYSE:ELY)?

I find that Callaway Golf’s ratio of 19.02x is trading in-line with its industry peers’ ratio, which means if you buy Callaway Golf today, you’d be paying a relatively fair price for it. … Since Callaway Golf’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. … ELY’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value.

Simply Wall St -

Here's How P/E Ratios Can Help Us Understand Callaway Golf Company (NYSE:ELY)

We'll apply a basic P/E ratio analysis to Callaway Golf Company's (NYSE:ELY), to help you decide if the stock is worth further research. … The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Callaway Golf: P/E of 16.06 = $15.38 ÷ $0.96 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good? … The higher the P/E ratio, the higher the price tag of a business, relative to its trailing earnings.

Simply Wall St -

Has Callaway Golf Company (NYSE:ELY) Improved Earnings Growth In Recent Times?

Analyzing Callaway Golf Company's (NYSE:ELY) track record of past performance is a valuable exercise for investors. … While Callaway Golf has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. … I suggest you continue to research Callaway Golf to get a more holistic view of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for ELY’s future growth?

Simply Wall St -

Does Callaway Golf Company (NYSE:ELY) Have A Particularly Volatile Share Price?

If you're interested in Callaway Golf Company (NYSE:ELY), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. … Beta is worth considering, but it's also important to consider whether Callaway Golf is growing earnings and revenue.

Simply Wall St -

Based On Its ROE, Is Callaway Golf Company (NYSE:ELY) A High Quality Stock?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Callaway Golf: 12% = US$91m ÷ US$751m (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Does Callaway Golf Have A Good Return On Equity? … A company that can achieve a high return on equity without debt could be considered a high quality business.

Simply Wall St -

Is Callaway Golf Company's (NYSE:ELY) CEO Pay Fair?

Chip Brewer became the CEO of Callaway Golf Company (NYSE:ELY) in 2012. … This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Chip Brewer's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Is There An Opportunity With Callaway Golf Company's (NYSE:ELY) 34% Undervaluation?

by estimating the company's future cash flows and discounting them to their present value. … I will use the Discounted Cash Flow (DCF) model. … We generally believe that a company's value is the present value of all of the cash it will generate in the future.

Simply Wall St -

ELY Company Info

Description

Callaway Golf Company, together with its subsidiaries, designs, manufactures, and sells golf clubs, golf balls, golf bags, and other golf-related accessories. The company operates through three segments: Golf Clubs; Golf Balls; and Gear, Accessories and Other. The Golf Clubs segment provides golf drivers and fairway woods, hybrids, irons and wedges, putters, packaged sets, and pre-owned golf clubs. The Golf Balls segment designs, manufactures, and sells golf balls. The Gear, Accessories and Other segment offers golf apparel and footwear, headwear, and other lifestyle and golf-related apparel products, as well as golf bags, golf gloves, travel gears, gears, personal storage gears, and accessories. The company sells its products through golf retailers, sporting goods retailers, mass merchants, Internet retailers, department stores, field representatives, and in-house sales representatives, as well as to third-party distributors in the United States and approximately 100 countries. Callaway Golf Company sells its products under the Callaway Golf, Odyssey, Strata, OGIO, and TravisMathew brand names. It also sells pre-owned golf products through its Website, callawaygolfpreowned.com; and Callaway Golf and Odyssey products through its Websites callawaygolf.com, odysseygolf.com, ogio.com, and travismathew.com. The company was founded in 1982 and is based in Carlsbad, California.

Details
Name: Callaway Golf Company
ELY
Exchange: NYSE
Founded: 1982
$1,700,329,586
94,044,778
Website: http://www.callawaygolf.com
Address: Callaway Golf Company
2180 Rutherford Road,
Carlsbad,
California, 92008,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE ELY Common Stock New York Stock Exchange US USD 28. Feb 1992
DB CLY Common Stock Deutsche Boerse AG DE EUR 28. Feb 1992
Number of employees
Current staff
Staff numbers
2,400
Callaway Golf employees.
Industry
Leisure Products
Consumer Durables
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/22 23:34
End of day share price update: 2019/07/22 00:00
Last estimates confirmation: 2019/07/16
Last earnings filing: 2019/05/10
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.