NYSE:ELY

Stock Analysis Report

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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

Mediocre balance sheet with moderate growth potential.


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 +/- 8% a week.

Volatility Over Time: ELY's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

10.5%

ELY

0.6%

US Leisure

2.8%

US Market


1 Year Return

-0.2%

ELY

57.5%

US Leisure

20.9%

US Market

Return vs Industry: ELY underperformed the US Leisure industry which returned 57.5% over the past year.

Return vs Market: ELY underperformed the US Market which returned 20.9% over the past year.


Shareholder returns

ELYIndustryMarket
7 Day10.5%0.6%2.8%
30 Day33.8%6.9%12.8%
90 Day-0.6%24.0%6.6%
1 Year-0.07%-0.2%60.2%57.5%23.6%20.9%
3 Year47.6%46.8%13.1%7.0%47.3%37.6%
5 Year106.7%104.0%19.6%8.5%94.3%72.9%

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?

2.84x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: ELY ($20.73) is trading above our estimate of fair value ($13.8)

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


Price To Earnings Ratio

PE vs Industry: ELY is unprofitable, so we can't compare its PE Ratio to the US Leisure industry average.

PE vs Market: ELY is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ELY's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ELY is good value based on its PB Ratio (2.8x) compared to the US Leisure industry average (4.4x).


Next Steps

Future Growth

How is Callaway Golf forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

115.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ELY is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: ELY is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ELY's is expected to become profitable in the next 3 years.

Revenue vs Market: ELY's revenue (5.6% per year) is forecast to grow slower than the US market (10.3% per year).

High Growth Revenue: ELY's revenue (5.6% 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?

-16.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ELY is currently unprofitable.

Growing Profit Margin: ELY is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ELY is unprofitable, and losses have increased over the past 5 years at a rate of 16.9% per year.

Accelerating Growth: Unable to compare ELY's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ELY is unprofitable, making it difficult to compare its past year earnings growth to the Leisure industry (22.4%).


Return on Equity

High ROE: ELY has a negative Return on Equity (-16.79%), as it is currently unprofitable.


Next Steps

Financial Health

How is Callaway Golf's financial position?


Financial Position Analysis

Short Term Liabilities: ELY's short term assets ($925.1M) exceed its short term liabilities ($371.4M).

Long Term Liabilities: ELY's short term assets ($925.1M) exceed its long term liabilities ($906.4M).


Debt to Equity History and Analysis

Debt Level: ELY's debt to equity ratio (103.9%) is considered high.

Reducing Debt: ELY's debt to equity ratio has increased from 6.4% to 103.9% over the past 5 years.

Debt Coverage: ELY's debt is well covered by operating cash flow (20.3%).

Interest Coverage: ELY is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

0.23%

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?

8.0yrs

Average management tenure


CEO

Chip Brewer (56 yo)

8.67yrs

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 ($USD5.83M) is above average for companies of similar size in the US market ($USD4.18M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Oliver Brewer
President8.67yrsUS$5.83m0.86%
$ 16.8m
Brian Lynch
Executive VP & CFO3.58yrsUS$1.43m0.065%
$ 1.3m
Mark Leposky
Executive Vice President of Global Operations8.58yrsUS$1.15m0.21%
$ 4.1m
Glenn Hickey
Executive Vice President of Callaway Golf1.83yrsUS$1.14m0.032%
$ 617.1k
Melody Harris-Jensbach
Chief Executive Officer of Jack Wolfskin6yrsUS$2.14mno data
Jennifer Thomas
VP & Chief Accounting Officer7.5yrsno data0.047%
$ 926.4k
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 Europe9.33yrsUS$1.06mno data
Alan Hocknell
Senior Vice President of Research & Development11.25yrsUS$1.19mno data
Sean Toulon
Senior Vice Presidentno datano datano data

8.0yrs

Average Tenure

56.5yo

Average Age

Experienced Management: ELY's management team is seasoned and experienced (8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Oliver Brewer
President8.67yrsUS$5.83m0.86%
$ 16.8m
Samuel Armacost
Independent Director17.58yrsUS$188.31k0.10%
$ 2.0m
John Lundgren
Independent Chairman0.50yrUS$185.81k0.073%
$ 1.4m
Anthony Thornley
Independent Director16.58yrsUS$173.31k0.059%
$ 1.1m
Russell Fleischer
Independent Director2.5yrsUS$173.31k0.023%
$ 451.2k
John Cushman
Independent Director17.58yrsUS$173.31k0.094%
$ 1.8m
Adebayo Ogunlesi
Independent Director10.83yrsUS$183.31k0.071%
$ 1.4m
Scott Baxter
Independent Director1yrUS$58.06k0.0026%
$ 51.0k
Linda Segre
Independent Director5.25yrsUS$173.31k0.036%
$ 707.1k
Laura Flanagan
Independent Director2yrsUS$173.31k0.011%
$ 214.6k

7.0yrs

Average Tenure

63yo

Average Age

Experienced Board: ELY's board of directors are considered experienced (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$1.952b
  • Shares outstanding: 94.18m
  • 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

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 Analysis2020/11/29 23:20
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
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.