Callaway Golf Co

Find Ratings Reports
ELY : NYSE : Consumer Goods
$10.43 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 767,100
07/26/16 - 4:02 PM ET

Financial Analysis


CALLAWAY GOLF CO's gross profit margin for the first quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased. CALLAWAY GOLF CO has average liquidity. Currently, the Quick Ratio is 1.23 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 39.66% 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.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)274.05284.18
EBITDA ($mil)49.4941.64
EBIT ($mil)45.3336.93
Net Income ($mil)38.3935.82


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)35.1423.24
Total Assets ($mil)711.87733.14
Total Debt ($mil)78.97203.09
Equity ($mil)452.66324.11


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin49.8346.44
EBITDA Margin18.0514.65
Operating Margin16.5413.0
Sales Turnover1.171.12
Return on Assets2.4-0.47
Return on Equity3.78-1.07
Debt Q1 FY16 Q1 FY15
Current Ratio2.141.91
Debt/Capital0.150.39
Interest Expense0.782.09
Interest Coverage57.8917.65


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)93.9478.06
Div / share0.010.01
EPS0.40.39
Book value / share4.824.15
Institutional Own % n/a n/a
Avg Daily Volume790538.0771761.0

Valuation


HOLD. CALLAWAY GOLF CO's P/E ratio indicates a significant premium compared to an average of 23.91 for the Leisure Equipment & Products industry and a significant premium compared to the S&P 500 average of 25.05. To use another comparison, its price-to-book ratio of 2.17 indicates a discount versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 7.61. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ELY 58.22 Peers 23.91   ELY 14.50 Peers 13.83

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

ELY is trading at a significant premium to its peers.

 

Average. 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 is trading at a valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
ELY 26.20 Peers 19.31   ELY 0.35 Peers 1.19

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

ELY is trading at a premium to its peers.

 

Discount. 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.

ELY trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ELY 2.17 Peers 7.61   ELY 250.00 Peers 202.43

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 exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ELY 1.18 Peers 1.72   ELY 1.75 Peers 12.84

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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