Callaway Golf Co

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ELY : NYSE : Consumer Goods
$11.17 | %
Today's Range: 11.12 - 11.45
Avg. Daily Volume: 1046500.0
03/24/17 - 4:02 PM ET

Financial Analysis

CALLAWAY GOLF CO's gross profit margin for the fourth quarter of its fiscal year 2016 has increased 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 1.36 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.

At the same time, stockholders' equity ("net worth") has greatly increased by 45.03% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)163.7153.33
EBITDA ($mil)-12.72-25.32
EBIT ($mil)-16.76-29.35
Net Income ($mil)123.27-30.45

Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)125.9849.8
Total Assets ($mil)801.28631.22
Total Debt ($mil)12.4215.6
Equity ($mil)598.91412.95

Profitability Q4 FY16 Q4 FY15
Gross Profit Margin41.0335.93
EBITDA Margin-7.76-16.51
Operating Margin-10.24-19.14
Sales Turnover1.091.34
Return on Assets23.692.3
Return on Equity31.73.52
Debt Q4 FY16 Q4 FY15
Current Ratio2.462.19
Interest Expense0.420.4
Interest Coverage-40.01-73.19

Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)94.1293.77
Div / share0.010.01
Book value / share6.364.4
Institutional Own % n/a n/a
Avg Daily Volume996368.0892248.0


HOLD. CALLAWAY GOLF CO's P/E ratio indicates a significant discount compared to an average of 24.40 for the Leisure Equipment & Products industry and a significant discount compared to the S&P 500 average of 26.73. To use another comparison, its price-to-book ratio of 1.76 indicates a discount versus the S&P 500 average of 2.98 and a significant discount versus the industry average of 5.68. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, CALLAWAY GOLF CO proves to trade at a discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ELY 5.64 Peers 24.40   ELY 13.53 Peers 13.14

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

ELY is trading at a significant discount 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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
ELY 32.38 Peers 19.24   ELY NM Peers 1.36

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 significant premium to its peers.


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.

ELY's negative PEG ratio makes this valuation measure meaningless.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ELY 1.76 Peers 5.68   ELY 1064.70 Peers 24.47

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ELY 1.21 Peers 1.69   ELY 3.24 Peers 6.67

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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