Topgolf Callaway Brands Corp.

Consumer Discretionary
Recreational Games/Products/Toys
www.topgolfcallawaybrands.com

Earnings Score
Moat Score
Safety Score

Market Cap $1.26B
PE -1
Debt $1.52B
Cash $450.30M
EV $2.33B
FCF $86.60M

Earnings

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Sales & Net Margins

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Earnings	-$1.45B
EBIT	-$1.26B
ROE	-60%
ROA	-16%
FCF	$86.60M
Equity	$2.41B
Growth Stability	-755%
PE	-0.87
PEG	0.07
PB	0.52
P/FCF	14.56
P/S	0.3
Price/Cash	0.36
Debt/Equity	0.63
Debt/FCF	17.56
Net Margins	-34%
Op. Margins	-30%
Earnings CAGR	1%
Sales Growth YoY	3%
Sales Growth QoQ	-9%
Sales CAGR	26%
FCF CAGR	2%
Equity CAGR	33%
Earnings Stability	0.01
Earnings Growth YoY	2K%
Earnings Growth QoQ	42K%

Earnings CAGR 5Y	-13%
Sales CAGR 5Y	28%
FCF CAGR 5Y	-2%
Equity CAGR 5Y	37%
Earnings CAGR 3Y	6%
Sales CAGR 3Y	6%
FCF CAGR 3Y	10%
Equity CAGR 3Y	-5%
Market Cap	$1.26B
Revenue	$4.24B
Assets	$7.64B
Total Debt	$1.52B
Cash	$450.30M
Shares Outstanding	183.7M
EV	2.33B
Earnings Score	6%
Moat Score	2%
Safety Score	42%
Final Score	17%
Working Capital	774.8M
Current Ratio	1.94
Shares Growth 3y	-0%
Equity Growth QoQ	-39%
Equity Growth YoY	-38%

Assets & ROA

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Stockholders Equity & ROE

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Topgolf Callaway Brands Corp, formerly Callaway Golf Co manufactures golf clubs. It operates in the below segments: Topgolf; Golf Equipment and Apparel, Gear & Other. The golf equipment segment manufactures golf balls and golf clubs, which includes woods, irons, and putters. The Apparel, Gear & Other segment manufactures golf apparel, footwear, golf bags, golf gloves, headwear, practice aids, and also tops bottoms and outerwear. Some of its brands are Odyssey, OGIO, TravisMathew, and Jack Wolfskin. Its geographical segments are the United States, Europe, Japan, and the Rest of the World.

SEC Filings

Direct access to Topgolf Callaway Brands Corp. (MODG) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Topgolf Callaway Brands Corp. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Topgolf Callaway Brands Corp. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 1%

Stability 1%

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Topgolf Callaway Brands Corp. Discounted Cash Flow

Fully customizable DCF calculator online for Topgolf Callaway Brands Corp..

Years

Calculation mode

= $959M

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$87M	$88M	$89M	$91M	$92M	$93M	$95M	$96M	$98M	$99M	$101M	$1B
DCF		$80M	$74M	$68M	$63M	$58M	$53M	$49M	$46M	$42M	$39M	$388M
Value	$959M

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Net Margins	2%	22%	4%	8%	5%	-8%	10%	4%	2%	-34%	-34%
ROA	-	8%	8%	13%	7%	-4%	5%	3%	3%	-16%	-16%
ROE	-	31%	6%	14%	10%	-19%	9%	4%	2%	-60%	-60%

Bad Net Margins (-34.15%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Debt over FCF	-	0	0.13	0.17	14.87	4.11	-25.88	-2.53	-13.82	17.56	17.56
Debt over Equity	-	0	0.02	0.01	0.62	1.15	0.31	0.38	0.42	0.63	0.63
Growth Stability	-	-	-	100%	71%	-169%	100%	100%	81%	-755%	-755%

Bad Debt/FCF ratio (17.56)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (0.63)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (-755%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	3%	20%	19%	37%	-7%	97%	28%	7%	-1%	28%
Earnings YoY growth	-	1K%	-79%	157%	-24%	-260%	-354%	-51%	-40%	-2K%	-13%
Equity YoY growth	-	47%	8%	11%	5%	-12%	445%	2%	3%	-38%	37%
FCF YoY growth	-	280%	49%	-39%	-43%	493%	-123%	1K%	-79%	-174%	-2%