0.01 | 0.15%
CALLAWAY GOLF CO's gross profit margin for the first quarter of its fiscal year 2013 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. CALLAWAY GOLF CO has average liquidity. Currently, the Quick Ratio is 1.12 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has significantly decreased by 34.79% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
| Income Statement | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Net Sales ($mil) | 287.76 | 285.1 |
| EBITDA ($mil) | 50.59 | 30.42 |
| EBIT ($mil) | 43.64 | 21.68 |
| Net Income ($mil) | 41.66 | 31.8 |
| Balance Sheet | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Cash & Equiv. ($mil) | 28.07 | 51.67 |
| Total Assets ($mil) | 764.31 | 859.23 |
| Total Debt ($mil) | 186.79 | 85.9 |
| Equity ($mil) | 351.42 | 538.96 |
| Profitability | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Gross Profit Margin | 48.54 | 46.75 |
| EBITDA Margin | 17.58 | 10.67 |
| Operating Margin | 15.16 | 7.6 |
| Sales Turnover | 1.09 | 1.03 |
| Return on Assets | -14.79 | -17.78 |
| Return on Equity | -34.05 | -30.3 |
| Debt | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Current Ratio | 2.03 | 2.1 |
| Debt/Capital | 0.35 | 0.14 |
| Interest Expense | 0.0 | 0.0 |
| Interest Coverage | 0.0 | 0.0 |
| Share Data | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Shares outstanding (mil) | 71.09 | 65.03 |
| Div / share | 0.01 | 0.01 |
| EPS | 0.47 | 0.37 |
| Book value / share | 4.94 | 8.29 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 567126.0 | 508188.0 |
SELL. This stock?s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. To use another comparison, its price-to-book ratio of 1.34 indicates a discount versus the S&P 500 average of 2.44 and a significant discount versus the industry average of 6.88. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, CALLAWAY GOLF CO proves to trade at a discount to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ELY NM | Peers 19.17 | ELY NM | Peers 14.57 | |||||||||||||||||||||
|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. ELY's P/E is negative making this valuation measure meaningless. |
Neutral. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. ELY's P/CF is negative making the measure meaningless. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
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| ELY 41.31 | Peers 16.07 | ELY NA | Peers 0.93 | |||||||||||||||||||||
|
Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings. ELY's ratio is negative making this valuation measure meaningless. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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| Price/Book |
|
Earnings Growth |
|
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| ELY 1.34 | Peers 6.88 | ELY 28.36 | Peers 2.99 | |||||||||||||||||||||
|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. ELY is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. ELY is expected to have an earnings growth rate that significantly exceeds its peers. |
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| Price/Sales |
|
Sales Growth |
|
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| ELY 0.56 | Peers 1.88 | ELY -5.57 | Peers 7.10 | |||||||||||||||||||||
|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. ELY is trading at a significant discount to its industry on this measurement. |
Lower. A sales growth rate that trails the industry implies that a company is losing market share. ELY significantly trails its peers on the basis of sales growth |
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