NYSE:ELY

Stock Analysis Report

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Market Cap

US$5.9b

Last Updated

2021/06/19 22:44 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Fair value with questionable track record.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: ELY's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-7.2%

ELY

-3.7%

US Leisure

-1.9%

US Market


1 Year Return

86.5%

ELY

73.0%

US Leisure

38.2%

US Market

Return vs Industry: ELY exceeded the US Leisure industry which returned 71.1% over the past year.

Return vs Market: ELY exceeded the US Market which returned 39.4% over the past year.


Shareholder returns

ELYIndustryMarket
7 Day-7.2%-3.7%-1.9%
30 Day-6.1%1.0%1.1%
90 Day12.3%2.3%4.3%
1 Year86.5%86.5%75.6%73.0%40.4%38.2%
3 Year62.4%61.7%31.4%24.6%57.5%47.8%
5 Year223.1%219.7%37.9%26.4%127.2%101.7%

Long-Term 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?

45.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ELY ($31.94) is trading below our estimate of fair value ($58.29)

Significantly Below Fair Value: ELY is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ELY is poor value based on its PE Ratio (27.4x) compared to the US Leisure industry average (19.2x).

PE vs Market: ELY is poor value based on its PE Ratio (27.4x) compared to the US market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: ELY's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: ELY is good value based on its PB Ratio (1.6x) compared to the US Leisure industry average (4.5x).


Future Growth

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

-9.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ELY's earnings are forecast to decline over the next 3 years (-9.2% per year).

Earnings vs Market: ELY's earnings are forecast to decline over the next 3 years (-9.2% per year).

High Growth Earnings: ELY's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ELY's revenue (13.1% per year) is forecast to grow faster than the US market (9.4% per year).

High Growth Revenue: ELY's revenue (13.1% 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


Past Performance

How has Callaway Golf performed over the past 5 years?

-28.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ELY has a large one-off gain of $54.0M impacting its March 31 2021 financial results.

Growing Profit Margin: ELY's current net profit margins (6.5%) are higher than last year (3.7%).


Past Earnings Growth Analysis

Earnings Trend: ELY's earnings have declined by 28.3% per year over the past 5 years.

Accelerating Growth: ELY's earnings growth over the past year (95.5%) exceeds its 5-year average (-28.3% per year).

Earnings vs Industry: ELY earnings growth over the past year (95.5%) underperformed the Leisure industry 95.5%.


Return on Equity

High ROE: ELY's Return on Equity (3.2%) is considered low.


Financial Health

How is Callaway Golf's financial position?


Financial Position Analysis

Short Term Liabilities: ELY's short term assets ($1.2B) exceed its short term liabilities ($696.3M).

Long Term Liabilities: ELY's short term assets ($1.2B) do not cover its long term liabilities ($2.8B).


Debt to Equity History and Analysis

Debt Level: ELY's debt to equity ratio (33.8%) is considered satisfactory.

Reducing Debt: ELY's debt to equity ratio has increased from 17.3% to 33.8% over the past 5 years.

Debt Coverage: ELY's debt is not well covered by operating cash flow (19.9%).

Interest Coverage: ELY's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet


Dividend

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

0.034%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ELY's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ELY's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ELY's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ELY's dividend payments have been 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?

8.1yrs

Average management tenure


CEO

Chip Brewer (56 yo)

9.25yrs

Tenure

US$4,929,381

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 Gol...


CEO Compensation Analysis

Compensation vs Market: Chip's total compensation ($USD4.93M) is about average for companies of similar size in the US market ($USD6.67M).

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


Leadership Team

Experienced Management: ELY's management team is seasoned and experienced (8.1 years average tenure).


Board Members

Experienced Board: ELY's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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 been substantially diluted in the past year, with total shares outstanding growing by 96.2%.


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$5.898b
  • Shares outstanding: 184.67m
  • Website: https://www.callawaygolf.com

Number of Employees


Location

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

Listings


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 A...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/19 22:44
End of Day Share Price2021/06/18 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.