Callaway Golf Company, together with its subsidiaries, designs, manufactures, and sells golf clubs and golf balls, apparel, gear, and other products. More Details
Fair value with questionable track record.
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.
7 Day Return
1 Year Return
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.
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
2 weeks ago | Simply Wall StIs Callaway Golf's (NYSE:ELY) 257% Share Price Increase Well Justified?
1 month ago | Simply Wall StThe Compensation For Callaway Golf Company's (NYSE:ELY) CEO Looks Deserved And Here's Why
1 month ago | Simply Wall StWe Think Callaway Golf (NYSE:ELY) Is Taking Some Risk With Its Debt
Is Callaway Golf undervalued compared to its fair value and its price relative to the market?
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).
How is Callaway Golf forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
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
How has Callaway Golf performed over the past 5 years?
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.
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 ($2.8B).
Debt to Equity History and Analysis
Debt Level: ELY's debt to equity ratio (33.8%) is considered satisfactory.
Reducing Debt: ELY's debt to equity ratio has increased from 17.3% to 33.8% over the past 5 years.
Debt Coverage: ELY's debt is not well covered by operating cash flow (19.9%).
Interest Coverage: ELY's interest payments on its debt are not well covered by EBIT (2.3x coverage).
What is Callaway Golf current dividend yield, its reliability and sustainability?
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate ELY's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate ELY's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if ELY's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if ELY's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: ELY is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of ELY's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Chip Brewer (56 yo)
Mr. Oliver G. Brewer, III, also known as Chip, has been the President and Chief Executive Officer at Callaway Golf Company since March 5, 2012. Mr. Brewer served as the Chief Executive Officer of Adams Gol...
CEO Compensation Analysis
Compensation vs Market: Chip's total compensation ($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.
Experienced Management: ELY's management team is seasoned and experienced (8.1 years average tenure).
Experienced Board: ELY's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.
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
Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 96.2%.
Callaway Golf Company's company bio, employee growth, exchange listings and data sources
- 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
- Callaway Golf Company
- 2180 Rutherford Road
- United States
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
|Data||Last Updated (UTC time)|
|Company Analysis||2021/06/19 22:44|
|End of Day Share Price||2021/06/18 00:00|
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.