Callaway Golf Co

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ELY : NYSE : Consumer Goods
$14.0 -0.01 | -0.071%
Today's Range: 13.93 - 14.1
Avg. Daily Volume: 835200.0
09/21/17 - 2:28 PM ET

Financial Analysis


CALLAWAY GOLF CO's gross profit margin for the second quarter of its fiscal year 2017 has increased 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 1.54 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 34.02% 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 FY17 Q2 FY16
Net Sales ($mil)304.55245.59
EBITDA ($mil)55.4825.05
EBIT ($mil)51.320.87
Net Income ($mil)31.4434.11


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)61.9667.62
Total Assets ($mil)855.16672.53
Total Debt ($mil)6.235.33
Equity ($mil)651.79486.31


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin50.0246.75
EBITDA Margin18.2110.19
Operating Margin16.848.5
Sales Turnover1.131.26
Return on Assets20.45.71
Return on Equity26.777.9
Debt Q2 FY17 Q2 FY16
Current Ratio2.562.98
Debt/Capital0.010.01
Interest Expense0.860.68
Interest Coverage60.030.73


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)94.3794.03
Div / share0.010.01
EPS0.330.36
Book value / share6.915.17
Institutional Own % n/a n/a
Avg Daily Volume835787.01125592.0

Valuation


HOLD. CALLAWAY GOLF CO's P/E ratio indicates a significant discount compared to an average of 23.89 for the Leisure Equipment & Products industry and a significant discount compared to the S&P 500 average of 24.88. To use another comparison, its price-to-book ratio of 2.03 indicates a discount versus the S&P 500 average of 3.10 and a significant discount versus the industry average of 5.13. 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 7.71 Peers 23.89   ELY 15.32 Peers 14.03

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 26.98 Peers 19.51   ELY NM Peers 0.99

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 2.03 Peers 5.13   ELY 366.66 Peers 5.59

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 1.37 Peers 1.54   ELY 13.69 Peers 13.90

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.

 

Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

ELY is keeping pace with its peers on the basis of sales growth.

 

 

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