Callaway Golf Co

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ELY : NYSE : Consumer Goods
$11.27 | %
Today's Range: 11.23 - 11.38
Avg. Daily Volume: 906000.0
01/20/17 - 4:02 PM ET

Financial Analysis


CALLAWAY GOLF CO's gross profit margin for the third quarter of its fiscal year 2016 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 strong liquidity. Currently, the Quick Ratio is 1.82 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has increased by 16.14% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)187.85175.78
EBITDA ($mil)-1.064.96
EBIT ($mil)-5.270.77
Net Income ($mil)-5.87-3.62


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)124.6341.59
Total Assets ($mil)688.14638.59
Total Debt ($mil)0.026.7
Equity ($mil)483.3416.13


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin44.2346.53
EBITDA Margin-0.562.82
Operating Margin-2.80.44
Sales Turnover1.251.29
Return on Assets5.250.54
Return on Equity7.480.83
Debt Q3 FY16 Q3 FY15
Current Ratio2.92.6
Debt/Capital0.00.06
Interest Expense0.491.99
Interest Coverage-10.810.39


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)94.1189.92
Div / share0.010.01
EPS-0.06-0.04
Book value / share5.144.63
Institutional Own % n/a n/a
Avg Daily Volume917415.01030147.0

Valuation


HOLD. CALLAWAY GOLF CO's P/E ratio indicates a premium compared to an average of 23.47 for the Leisure Equipment & Products industry and a premium compared to the S&P 500 average of 25.49. To use another comparison, its price-to-book ratio of 2.18 indicates a discount versus the S&P 500 average of 2.84 and a significant discount versus the industry average of 4.60. The current price-to-sales ratio is well below the S&P 500 average and is also below 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 30.22 Peers 23.47   ELY 12.15 Peers 14.34

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.

 

Discount. 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 discount 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 31.94 Peers 20.18   ELY 0.14 Peers 1.08

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

ELY is trading at a valuation on par with 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 2.18 Peers 4.60   ELY 1025.00 Peers 54.74

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 1.22 Peers 1.62   ELY 4.33 Peers 7.25

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 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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