NYSE:ELY

Stock Analysis Report

Executive Summary

Callaway Golf Company, together with its subsidiaries, designs, manufactures, and sells golf clubs and golf balls, apparel, gear, and other products.


Snowflake Analysis

Fair value with mediocre balance sheet.


Similar Companies

Share Price & News

How has Callaway Golf's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ELY's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-15.4%

ELY

1.7%

US Leisure

-4.1%

US Market


1 Year Return

-40.8%

ELY

-30.3%

US Leisure

-14.9%

US Market

Return vs Industry: ELY underperformed the US Leisure industry which returned -29.2% over the past year.

Return vs Market: ELY underperformed the US Market which returned -13.6% over the past year.


Shareholder returns

ELYIndustryMarket
7 Day-15.4%1.7%-4.1%
30 Day-41.1%-15.4%-19.1%
90 Day-55.0%-33.9%-23.4%
1 Year-40.7%-40.8%-29.2%-30.3%-13.2%-14.9%
3 Year-14.6%-15.2%-34.8%-38.0%10.7%3.5%
5 Year3.5%1.9%-34.3%-40.5%28.5%14.5%

Price Volatility Vs. Market

How volatile is Callaway Golf's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Callaway Golf undervalued compared to its fair value and its price relative to the market?

11.37x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ELY ($9.58) is trading above our estimate of fair value ($1.01)

Significantly Below Fair Value: ELY is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ELY is poor value based on its PE Ratio (11.4x) compared to the Leisure industry average (11.2x).

PE vs Market: ELY is good value based on its PE Ratio (11.4x) compared to the US market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: ELY is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: ELY is good value based on its PB Ratio (1.2x) compared to the US Leisure industry average (2x).


Next Steps

Future Growth

How is Callaway Golf forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

15.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ELY's forecast earnings growth (15.8% per year) is above the savings rate (1.7%).

Earnings vs Market: ELY's earnings (15.8% per year) are forecast to grow faster than the US market (12.3% per year).

High Growth Earnings: ELY's earnings are forecast to grow, but not significantly.

Revenue vs Market: ELY's revenue (3.1% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: ELY's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ELY's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Callaway Golf performed over the past 5 years?

24.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ELY has high quality earnings.

Growing Profit Margin: ELY's current net profit margins (4.7%) are lower than last year (8.4%).


Past Earnings Growth Analysis

Earnings Trend: ELY's earnings have grown significantly by 24% per year over the past 5 years.

Accelerating Growth: ELY's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ELY had negative earnings growth (-24.2%) over the past year, making it difficult to compare to the Leisure industry average (-3.4%).


Return on Equity

High ROE: ELY's Return on Equity (10.3%) is considered low.


Next Steps

Financial Health

How is Callaway Golf's financial position?


Financial Position Analysis

Short Term Liabilities: ELY's short term assets ($789.4M) exceed its short term liabilities ($523.2M).

Long Term Liabilities: ELY's short term assets ($789.4M) exceed its long term liabilities ($669.9M).


Debt to Equity History and Analysis

Debt Level: ELY's debt to equity ratio (78.7%) is considered high.

Reducing Debt: ELY's debt to equity ratio has increased from 42.5% to 78.7% over the past 5 years.

Debt Coverage: ELY's debt is not well covered by operating cash flow (14.3%).

Interest Coverage: ELY's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet

Inventory Level: ELY has a high level of physical assets or inventory.

Debt Coverage by Assets: ELY's debt is covered by short term assets (assets are 1.3x debt).


Next Steps

Dividend

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

0.42%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ELY's dividend (0.42%) isn’t notable compared to the bottom 25% of dividend payers in the US market (2%).

High Dividend: ELY's dividend (0.42%) is low compared to the top 25% of dividend payers in the US market (5.56%).


Stability and Growth of Payments

Stable Dividend: ELY is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: ELY is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: ELY is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ELY's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.9yrs

Average management tenure


CEO

Chip Brewer (55yo)

8.08s

Tenure

US$5,831,314

Compensation

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 Go ...


CEO Compensation Analysis

Compensation vs Market: Chip's total compensation ($USD5.83M) is above average for companies of similar size in the US market ($USD3.20M).

Compensation vs Earnings: Chip's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Oliver Brewer
President8.08yrsUS$5.83m0.86% $7.7m
Brian Lynch
Executive VP & CFO3yrsUS$1.43m0.065% $583.3k
Mark Leposky
Executive Vice President of Global Operations8yrsUS$1.15m0.21% $1.9m
Glenn Hickey
Executive Vice President of Callaway Golf1.25yrsUS$1.14m0.032% $285.2k
Melody Harris-Jensbach
Chief Executive Officer of Jack Wolfskin5.42yrsUS$2.14mno data
Jennifer Thomas
VP & Chief Accounting Officer6.92yrsno data0.047% $428.1k
Patrick Burke
Vice President of Finance & Investor Relationsno datano datano data
Sarah Kim
VP, General Counsel & Corporate Secretaryno datano datano data
Christopher Carroll
Senior Vice President of Global Human Resourcesno datano datano data
Neil Howie
MD & President of Europe8.75yrsUS$1.06mno data

6.9yrs

Average Tenure

56yo

Average Age

Experienced Management: ELY's management team is seasoned and experienced (6.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Oliver Brewer
President8.08yrsUS$5.83m0.86% $7.7m
Samuel Armacost
Independent Director17yrsUS$188.31k0.096% $861.4k
John Lundgren
Independent Director11.08yrsUS$185.81k0.067% $605.1k
Anthony Thornley
Independent Director16yrsUS$173.31k0.053% $474.6k
Russell Fleischer
Independent Director1.92yrsUS$173.31k0.017% $152.1k
John Cushman
Independent Director17yrsUS$173.31k0.088% $789.7k
Ronald Beard
Independent Chairman of the Board14.67yrsUS$213.31k0.093% $840.4k
Adebayo Ogunlesi
Independent Director10.25yrsUS$183.31k0.065% $582.3k
Linda Segre
Independent Director4.67yrsUS$173.31k0.030% $270.4k
Laura Flanagan
Independent Director1.42yrsUS$173.31k0.0047% $42.7k

10.7yrs

Average Tenure

66yo

Average Age

Experienced Board: ELY's board of directors are seasoned and experienced ( 10.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Callaway Golf Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Callaway Golf Company
  • Ticker: ELY
  • Exchange: NYSE
  • Founded: 1982
  • Industry: Leisure Products
  • Sector: Consumer Durables
  • Market Cap: US$901.554m
  • Shares outstanding: 94.11m
  • Website: https://www.callawaygolf.com

Number of Employees


Location

  • Callaway Golf Company
  • 2180 Rutherford Road
  • Carlsbad
  • California
  • 92008
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ELYNYSE (New York Stock Exchange)YesCommon StockUSUSDFeb 1992
CLYDB (Deutsche Boerse AG)YesCommon StockDEEURFeb 1992
CLYBRSE (Berne Stock Exchange)YesCommon StockCHCHFFeb 1992

Biography

Callaway Golf Company, together with its subsidiaries, designs, manufactures, and sells golf clubs and golf balls, apparel, gear, and other products. It operates through two segments, Golf Equipment; and Apparel, Gear and Other. The Golf Equipment segment provides drivers, fairway woods, hybrids, irons, wedges and packaged sets, putters, and pre-owned golf clubs under the Callaway and Odyssey brands, as well as golf balls under the Callaway Golf and Strata brand names. The Apparel, Gear and Other segment offers golf apparel and footwear; golf accessories, including golf bags, golf gloves, headwear, and practice aids under the Callaway brand; and golf and lifestyle apparel, hats, luggage and accessories, footwear, belts, hats, socks, and underwear under the TravisMathew brand name. This segment also provides storage gear for sport and personal use, including backpacks; travel, duffel, and golf bags; and storage gear accessories, as well as outerwear, headwear, and accessories under the OGIO brand. In addition, it offers outdoor apparel, such as jackets, and trousers and tops; and footwear and outdoor equipment, including packs and bags, travel bags, tents, sleeping bags, and accessories. The company sells its products through golf retailers, sporting goods retailers, mass merchants, Internet retailers, department stores, field representatives, on-line retailers, mail order stores, and in-house sales representatives, as well as to third-party distributors in the United States and approximately 100 countries. It also offers pre-owned golf products through its Website callawaygolfpreowned.com; and OGIO and TravisMathew products through its Websites callawaygolf.com, odysseygolf.com, ogio.com, and travismathew.com. The company was incorporated in 1982 and is headquartered in Carlsbad, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/02 23:33
End of Day Share Price2020/04/02 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.