Callaway Golf Co

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ELY : NYSE : Consumer Goods
$12.74 -0.01 | -0.08%
Today's Range: 12.7 - 12.83
Avg. Daily Volume: 1015500.0
07/21/17 - 4:01 PM ET

Financial Analysis


CALLAWAY GOLF CO's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. CALLAWAY GOLF CO has average liquidity. Currently, the Quick Ratio is 1.18 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.

At the same time, stockholders' equity ("net worth") has greatly increased by 35.86% 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 FY17 Q1 FY16
Net Sales ($mil)308.93274.05
EBITDA ($mil)52.4849.49
EBIT ($mil)48.1645.33
Net Income ($mil)25.6938.39


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)47.9935.14
Total Assets ($mil)879.95711.87
Total Debt ($mil)76.9578.97
Equity ($mil)614.99452.66


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin49.2149.83
EBITDA Margin16.9818.05
Operating Margin15.5916.54
Sales Turnover1.031.17
Return on Assets20.132.4
Return on Equity28.813.78
Debt Q1 FY17 Q1 FY16
Current Ratio1.972.14
Debt/Capital0.110.15
Interest Expense0.750.78
Interest Coverage64.5657.89


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)93.8693.94
Div / share0.010.01
EPS0.270.4
Book value / share6.554.82
Institutional Own % n/a n/a
Avg Daily Volume1059290.01024810.0

Valuation


HOLD. CALLAWAY GOLF CO's P/E ratio indicates a significant discount compared to an average of 24.79 for the Leisure Equipment & Products industry and a significant discount compared to the S&P 500 average of 24.41. To use another comparison, its price-to-book ratio of 1.95 indicates a discount versus the S&P 500 average of 3.04 and a significant discount versus the industry average of 5.87. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ELY 6.89 Peers 24.79   ELY 13.90 Peers 14.88

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
ELY 30.36 Peers 20.62   ELY NM Peers 1.82

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ELY 1.95 Peers 5.87   ELY 927.77 Peers 19.22

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ELY 1.32 Peers 1.77   ELY 8.68 Peers 6.12

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

ELY has a sales growth rate that significantly exceeds its peers.

 

 

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