Callaway Golf Co

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ELY : NYSE : Consumer Goods
$11.60 -0.23 | -1.94%
Today's Range: 11.56 - 11.79
Avg. Daily Volume: 1,013,100
09/29/16 - 4:02 PM ET

Financial Analysis

CALLAWAY GOLF CO's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. CALLAWAY GOLF CO has strong liquidity. Currently, the Quick Ratio is 1.87 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.

At the same time, stockholders' equity ("net worth") has greatly increased by 41.64% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)245.59230.5
EBITDA ($mil)25.0523.05
EBIT ($mil)20.8718.59
Net Income ($mil)34.1112.82

Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)67.6226.71
Total Assets ($mil)672.53682.56
Total Debt ($mil)5.33151.57
Equity ($mil)486.31343.34

Profitability Q2 FY16 Q2 FY15
Gross Profit Margin46.7546.05
EBITDA Margin10.199.99
Operating Margin8.58.07
Sales Turnover1.261.2
Return on Assets5.710.87
Return on Equity7.91.73
Debt Q2 FY16 Q2 FY15
Current Ratio2.982.35
Interest Expense0.682.21
Interest Coverage30.738.41

Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)94.0378.59
Div / share0.010.01
Book value / share5.174.37
Institutional Own % n/a n/a
Avg Daily Volume1032608.0713247.0


BUY. CALLAWAY GOLF CO's P/E ratio indicates a premium compared to an average of 21.76 for the Leisure Equipment & Products industry and a premium compared to the S&P 500 average of 24.84. To use another comparison, its price-to-book ratio of 2.18 indicates a discount versus the S&P 500 average of 2.78 and a significant discount versus the industry average of 4.56. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ELY 28.87 Peers 21.76   ELY 12.10 Peers 12.98

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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
ELY 28.15 Peers 19.37   ELY 0.17 Peers 1.18

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.


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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ELY 2.18 Peers 4.56   ELY 4000.00 Peers 4.85

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 1.25 Peers 1.60   ELY 3.77 Peers 9.53

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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