(CALY) Callaway Golf - Overview
Sector: Consumer Cyclical | Industry: Leisure | Exchange: NYSE (USA) | Market Cap: 2.893m USD | Total Return: 164.3% in 12m
Avg Turnover: 43.4M
Qual. Beats: 0
Rev. Trend: -70.7%
Warnings
Altman Z'' -7.07 < 1.0 - financial distress zone
Fakeout Below Avwap Earnings
Tailwinds
Rs Leader, Idiosyncratic Leader, Confidence
Callaway Golf Company (NYSE: CALY) is a global manufacturer and distributor of golf equipment, apparel, and lifestyle accessories. The firm operates through two primary segments: Golf Equipment and Apparel, Gear and Other. Its portfolio includes legacy hardware brands such as Callaway and Odyssey, alongside lifestyle brands TravisMathew and OGIO. Sales are executed through a multi-channel strategy encompassing wholesale retailers, third-party distributors, and direct-to-consumer platforms.
The leisure products sector is characterized by high cyclicality and is sensitive to changes in discretionary consumer spending. Callaway’s business model has evolved from a pure-play equipment manufacturer to a diversified lifestyle entity, a transition common among mature firms seeking to mitigate the seasonal volatility of golf hardware sales. This diversification allows the company to capture broader market share in the premium athletic and casual wear categories.
For a detailed breakdown of the companys valuation metrics and competitive positioning, consider reviewing the latest data on ValueRay. The company, headquartered in Carlsbad, California, recently reverted to its current name from Topgolf Callaway Brands Corp. in early 2026.
- Topgolf venue traffic and same-store sales growth drive core revenue expansion
- High interest rates and inflation pressure discretionary consumer spending on golf equipment
- Global expansion of TravisMathew apparel brand dictates long-term margin improvement targets
- Fluctuations in golf participation rates directly impact equipment and ball replacement cycles
- Strategic shift toward lifestyle apparel reduces seasonal reliance on equipment launch cycles
| Net Income: 32.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.09 > 0.02 and ΔFCF/TA 7.90 > 1.0 |
| NWC/Revenue: -88.47% < 20% (prev 24.75%; Δ -113.2% < -1%) |
| CFO/TA 0.08 > 3% & CFO 249.2m > Net Income 32.7m |
| Net Debt (379.3m) to EBITDA (368.3m): 1.03 < 3 |
| Current Ratio: 0.37 > 1.5 & < 3 |
| Outstanding Shares: last quarter (202.7m) vs 12m ago 10.46% < -2% |
| Gross Margin: 57.20% > 18% (prev 0.63%; Δ 5.66k% > 0.5%) |
| Asset Turnover: 57.01% > 50% (prev 54.42%; Δ 2.58% > 0%) |
| Interest Coverage Ratio: 1.53 > 6 (EBITDA TTM 368.3m / Interest Expense TTM 139.3m) |
| A: -0.86 (Total Current Assets 1.63b - Total Current Liabilities 4.37b) / Total Assets 3.18b |
| B: -0.26 (Retained Earnings -816.4m / Total Assets 3.18b) |
| C: 0.04 (EBIT TTM 213.8m / Avg Total Assets 5.44b) |
| D: -0.80 (Book Value of Equity -848.2m / Total Liabilities 1.06b) |
| Altman-Z'' = -7.07 = D |
| DSRI: 1.14 (Receivables 393.8m/466.1m, Revenue 3.10b/4.19b) |
| GMI: 1.10 (GM 57.20% / 62.76%) |
| AQI: 1.33 (AQ_t 0.39 / AQ_t-1 0.29) |
| SGI: 0.74 (Revenue 3.10b / 4.19b) |
| TATA: -0.07 (NI 32.7m - CFO 249.2m) / TA 3.18b) |
| Beneish M = -2.88 (Cap -4..+1) = A |
As of May 30, 2026, the stock is trading at USD 15.40 with a total of 1,837,839 shares traded.
Over the past week, the price has changed by -3.02%,
over one month by +1.58%,
over three months by +9.53% and
over the past year by +164.26%.
Callaway Golf has no consensus analysts rating.
P/E Trailing = 61.9038
P/E Forward = 34.1297
P/S = 1.366
P/B = 1.3135
P/EG = 0.7165
Revenue TTM = 3.10b USD
EBIT TTM = 213.8m USD
EBITDA TTM = 368.3m USD
Long Term Debt = 152.9m USD (from longTermDebt, last quarter)
Short Term Debt = 341.1m USD (from shortTermDebt, last quarter)
Debt = 878.8m USD (from shortLongTermDebtTotal, last quarter) + Leases 203.7m
Net Debt = 379.3m USD (calculated: Debt 878.8m - CCE 499.5m)
Enterprise Value = 3.27b USD (2.89b + Debt 878.8m - CCE 499.5m)
Interest Coverage Ratio = 1.53 (Ebit TTM 213.8m / Interest Expense TTM 139.3m)
EV/FCF = 11.71x (Enterprise Value 3.27b / FCF TTM 279.4m)
FCF Yield = 8.54% (FCF TTM 279.4m / Enterprise Value 3.27b)
FCF Margin = 9.01% (FCF TTM 279.4m / Revenue TTM 3.10b)
Net Margin = 1.06% (Net Income TTM 32.7m / Revenue TTM 3.10b)
Gross Margin = 57.20% ((Revenue TTM 3.10b - Cost of Revenue TTM 1.33b) / Revenue TTM)
Gross Margin QoQ = 47.52% (prev 37.09%)
Tobins Q-Ratio = 1.03 (Enterprise Value 3.27b / Total Assets 3.18b)
Interest Expense / Debt = 15.85% (Interest Expense 139.3m / Debt 878.8m)
Taxrate = 30.39% (32.7m / 107.6m)
NOPAT = 148.8m (EBIT 213.8m * (1 - 30.39%))
Current Ratio = 0.37 (Total Current Assets 1.63b / Total Current Liabilities 4.37b)
Debt / Equity = 0.41 (Debt 878.8m / totalStockholderEquity, last quarter 2.12b)
Debt / EBITDA = 1.03 (Net Debt 379.3m / EBITDA 368.3m)
Debt / FCF = 1.36 (Net Debt 379.3m / FCF TTM 279.4m)
Total Stockholder Equity = 2.29b (last 4 quarters mean from totalStockholderEquity)
RoA = 0.60% (Net Income 32.7m / Total Assets 3.18b)
RoE = 1.05% (Net Income TTM 32.7m / Total Stockholder Equity 3.11b)
RoCE = 6.56% (EBIT 213.8m / Capital Employed (Equity 3.11b + L.T.Debt 152.9m))
RoIC = 5.40% (NOPAT 148.8m / Invested Capital 2.76b)
WACC = 10.97% (E(2.89b)/V(3.77b) * Re(10.95%) + D(878.8m)/V(3.77b) * Rd(15.85%) * (1-Tc(0.30)))
Discount Rate = 10.95% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 2.27 | Cagr: 4.29%
[DCF] Terminal Value 69.98% ; FCFF base≈195.0m ; Y1≈223.5m ; Y5≈328.9m
[DCF] Fair Price = 16.69 (EV 3.38b - Net Debt 379.3m = Equity 3.00b / Shares 179.8m; r=10.97% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.02 | # QB: 0
Revenue Correlation: -70.67 | Revenue CAGR: -7.50% | SUE: N/A | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.34 | Chg30d=+37.26% | Revisions=+40% | Analysts=8
EPS next Quarter (2026-09-30): EPS=-0.02 | Chg30d=N/A | Revisions=-40% | Analysts=8
EPS current Year (2026-12-31): EPS=0.64 | Chg30d=+32.71% | Revisions=+40% | GrowthEPS=+205.1% | GrowthRev=-0.1%
EPS next Year (2027-12-31): EPS=0.76 | Chg30d=+27.25% | Revisions=+45% | GrowthEPS=+18.1% | GrowthRev=+3.4%
[Analyst] Revisions Ratio: +45%