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Topgolf Callaway Brands Corp.
MODG
Sporting & Athletic Goods, NEC
Mkt Cap
$2.746BPE
35.90Debt
$1.614BCash
$239.3MEV
$4.121BFCF
$17.5MP/E Ratio
35.90Debt
$1.614BCash
$239.3MEV
$4.121BFCF
$17.5MCharts data: {"Earnings":[{"time":"2014-12-30","value":16008000},{"time":"2015-12-30","value":14568000},{"time":"2016-12-30","value":189900000},{"time":"2017-12-30","value":40806000},{"time":"2018-12-30","value":104740000},{"time":"2019-12-30","value":79229000},{"time":"2020-12-30","value":-126934000},{"time":"2021-12-30","value":321988000},{"time":"2022-12-30","value":157900000},{"time":"2023-12-30","value":95000000}],"Sales":[{"time":"2014-12-30","value":886945000},{"time":"2015-12-30","value":843794000},{"time":"2016-12-30","value":871192000},{"time":"2017-12-30","value":1048736000},{"time":"2018-12-30","value":1242834000},{"time":"2019-12-30","value":1701063000},{"time":"2020-12-30","value":1589460000},{"time":"2021-12-30","value":3133447000},{"time":"2022-12-30","value":3995700000},{"time":"2023-12-30","value":4284800000}],"Net Margins":[{"time":"2014-12-30","value":0.01804846974727858},{"time":"2015-12-30","value":0.017264877446390943},{"time":"2016-12-30","value":0.2179772082388268},{"time":"2017-12-30","value":0.03890969700668233},{"time":"2018-12-30","value":0.08427513247947835},{"time":"2019-12-30","value":0.04657617031232823},{"time":"2020-12-30","value":-0.07985982660777874},{"time":"2021-12-30","value":0.10275839993464067},{"time":"2022-12-30","value":0.03951748129238932},{"time":"2023-12-30","value":0.02217139656460045}],"Assets":[{"time":"2014-12-30","value":624811000},{"time":"2015-12-30","value":631224000},{"time":"2016-12-30","value":801282000},{"time":"2017-12-30","value":991157000},{"time":"2018-12-30","value":1052944000},{"time":"2019-12-30","value":1960548000},{"time":"2020-12-30","value":1980600000},{"time":"2021-12-30","value":7747780000},{"time":"2022-12-30","value":8590400000},{"time":"2023-12-30","value":9120600000}],"Stockholders Equity":[{"time":"2014-12-30","value":291534000},{"time":"2015-12-30","value":412945000},{"time":"2016-12-30","value":608600000},{"time":"2017-12-30","value":659375000},{"time":"2018-12-30","value":734308000},{"time":"2019-12-30","value":767353000},{"time":"2020-12-30","value":675644000},{"time":"2021-12-30","value":3682902000},{"time":"2022-12-30","value":3774300000},{"time":"2023-12-30","value":3878200000}],"ROE":[{"time":"2014-12-30","value":0.0549095474284303},{"time":"2015-12-30","value":0.035278305827652595},{"time":"2016-12-30","value":0.3120276043378245},{"time":"2017-12-30","value":0.061885876777251186},{"time":"2018-12-30","value":0.14263769426453204},{"time":"2019-12-30","value":0.10324974294750916},{"time":"2020-12-30","value":-0.18787112739845244},{"time":"2021-12-30","value":0.08742779471188752},{"time":"2022-12-30","value":0.04183557215907586},{"time":"2023-12-30","value":0.02449590015986798}],"ROA":[{"time":"2014-12-30","value":0.04983587036719904},{"time":"2015-12-30","value":0.04561930471591701},{"time":"2016-12-30","value":0.0768156529162018},{"time":"2017-12-30","value":0.07954037554090825},{"time":"2018-12-30","value":0.12993568508866568},{"time":"2019-12-30","value":0.06889349304378163},{"time":"2020-12-30","value":-0.04041906492981925},{"time":"2021-12-30","value":0.04525709299954309},{"time":"2022-12-30","value":0.029893834978580742},{"time":"2023-12-30","value":0.02606188189373506}]}
Topgolf Callaway Brands Corp. designs, manufactures, and sells golf equipment, golf and lifestyle apparel, and other accessories in the United States, Europe, Asia, and Internationally. It operates through three segments: Topgolf; Golf Equipment; and Active Lifestyle. The Topgolf segment operates Topgolf venues equipped with technology-enabled hitting bays, bars, dining areas, and event spaces, as well as Toptracer ball-flight tracking technology; and World Golf Tour digital golf game. 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 brands. The Active Lifestyle 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, facemasks, sunglasses, socks, and underwear under the TravisMathew brand. This segment also provides storage and travel gear for sport and personal use, such as 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 comprising jackets, trousers, dresses, skirts, and tops; and footwear and outdoor equipment, including packs and bags, travel bags, tents, sleeping bags, and accessories under the Jack Wolfskin brand. The company sells its products through golf retailers, sporting goods retailers, online retailers, mass merchants, department stores, third-party distributors, and mail order stores, as well as through its websites. The company was formerly known as Callaway Golf Company and changed its name to Topgolf Callaway Brands Corp. in September 2022. Topgolf Callaway Brands Corp. was incorporated in 1982 and is headquartered in Carlsbad, California.
DCF
Discounted Cash Flow Valuation of Topgolf Callaway Brands Corp.
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $17.5M | $19.85M | $22.32M | $24.89M | $27.53M | $30.19M | $32.83M | $35.39M | $37.82M | $40.07M | $42.07M | $420.7M |
| DCF | $17.26M | $16.88M | $16.37M | $15.74M | $15.01M | $14.19M | $13.31M | $12.36M | $11.39M | $10.4M | $104M | |
| Value | $246.9M | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 25%
Earnings Stability 29%
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 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 1.7% | 22% | 3.9% | 8.4% | 4.7% | -8% | 10% | 4% | 2.2% | 1.8% |
| ROA | 4.6% | 7.7% | 8% | 13% | 6.9% | -4% | 4.5% | 3% | 2.6% | 2.5% |
| ROE | 3.5% | 31% | 6.2% | 14% | 10% | -19% | 8.7% | 4.2% | 2.4% | 2% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +3.59%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is -0.43%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +4.33%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is -1.57%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +3.53%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is -1.43%.
Safety & Stabiliy
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 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | - | 0.00 | 0.13 | 0.17 | 14.87 | 4.11 | -25.88 | -2.53 | -13.82 | 92.20 |
| Debt Equity | - | 0.00 | 0.02 | 0.01 | 0.62 | 1.15 | 0.31 | 0.38 | 0.42 | 0.42 |
| MIN | ||||||||||
| Graham Stability | - | - | 56% | 100% | 71% | -170% | 100% | 100% | 81% | -170% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 92.20.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is -4.35.
What is the Graham’s Stability?
Graham’s Stability measure stands at -1.69.
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 | 12-2016 | 12-2018 | 12-2020 | 12-2022 | Trend |
|---|---|---|---|---|---|
| Revenue | 26% | 28% | 39% | 7.2% | 4.2% |
| Net Income | -9.4% | -1.9% | - | -40% | -63% |
| Stockholders Equity | 30% | 39% | 79% | 2.8% | 9.3% |
| FCF | - | - | - | - | 46% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +28.09%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is +4.16%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is -1.93%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is -63.12%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +39.49%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is +9.33%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is -.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is +45.76%.