Is Callaway Golf Stock a Good Investment?
Callaway Golf Investment Advice | MODG |
- Examine Callaway Golf's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Callaway Golf's leadership team and their track record. Good management can help Callaway Golf navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Leisure Products space and any emerging trends that could impact Callaway Golf's business and its evolving consumer preferences.
- Compare Callaway Golf's performance and market position to its competitors. Analyze how Callaway Golf is positioned in terms of product offerings, innovation, and market share.
- Check if Callaway Golf pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Callaway Golf's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Callaway Golf stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Callaway Golf is a good investment.
Sell | Buy |
Hold
Market Performance | Very Weak | Details | |
Volatility | Somewhat reliable | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Above Average | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Callaway Golf Stock
Researching Callaway Golf's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 90.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 0.41. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Callaway Golf has Price/Earnings To Growth (PEG) ratio of 0.67. The entity recorded a loss per share of 0.07. The firm last dividend was issued on the 26th of May 2020. Callaway Golf had 2:1 split on the 13th of March 1995.
To determine if Callaway Golf is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Callaway Golf's research are outlined below:
| Callaway Golf generated a negative expected return over the last 90 days | |
| Callaway Golf has high historical volatility and very poor performance | |
| Callaway Golf has high likelihood to experience some financial distress in the next 2 years | |
| Over 90.0% of the company shares are owned by institutional investors | |
| Latest headline from thelincolnianonline.com: Topgolf Callaway Brands Stock Price Down 5.2 percent Heres What Happened |
Callaway Golf Quarterly Liabilities And Stockholders Equity |
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Callaway Golf uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Callaway Golf. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Callaway Golf's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 8th of February 2024 Upcoming Quarterly Report | View | |
| 14th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 8th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Callaway Golf's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Callaway Golf's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2000-01-27 | 1999-12-31 | 0.01 | 0.0022 | -0.0078 | 78 | ||
2011-07-26 | 2011-06-30 | -0.02 | -0.01 | 0.01 | 50 | ||
2008-10-30 | 2008-09-30 | -0.09 | -0.08 | 0.01 | 11 | ||
2003-10-23 | 2003-09-30 | 0.02 | 0.03 | 0.01 | 50 | ||
2014-07-24 | 2014-06-30 | 0.06 | 0.04 | -0.02 | 33 | ||
2002-10-17 | 2002-09-30 | 0.13 | 0.11 | -0.02 | 15 | ||
2020-02-10 | 2019-12-31 | -0.23 | -0.26 | -0.03 | 13 | ||
2004-01-22 | 2003-12-31 | -0.29 | -0.26 | 0.03 | 10 |
Know Callaway Golf's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Callaway Golf is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Callaway Golf backward and forwards among themselves. Callaway Golf's institutional investor refers to the entity that pools money to purchase Callaway Golf's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | American Century Companies Inc | 2024-09-30 | 3.2 M | Bank Of America Corp | 2024-06-30 | 2.6 M | Nuveen Asset Management, Llc | 2024-06-30 | 2.1 M | Charles Schwab Investment Management Inc | 2024-09-30 | 2 M | Bwcp, Lp | 2024-09-30 | 1.9 M | Citadel Advisors Llc | 2024-09-30 | 1.9 M | Northern Trust Corp | 2024-09-30 | 1.9 M | Long Focus Capital Management, Llc | 2024-09-30 | 1.8 M | Hodges Capital Management Inc | 2024-06-30 | 1.6 M | Blackrock Inc | 2024-06-30 | 22.1 M | Providence Equity Partners L.l.c. | 2024-09-30 | 21.2 M |
Callaway Golf's market capitalization trends
The company currently falls under 'Mid-Cap' category with a current market capitalization of 1.53 B.Market Cap |
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Callaway Golf's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.02 | 0.02 | |
| Return On Capital Employed | 0.03 | 0.03 | |
| Return On Assets | 0.01 | 0.01 | |
| Return On Equity | 0.02 | 0.02 |
Determining Callaway Golf's profitability involves analyzing its financial statements and using various financial metrics to determine if Callaway Golf is a good buy. For example, gross profit margin measures Callaway Golf's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Callaway Golf's profitability and make more informed investment decisions.
Callaway Golf's Earnings Breakdown by Geography
Evaluate Callaway Golf's management efficiency
Callaway Golf has return on total asset (ROA) of 0.013 % which means that it generated a profit of $0.013 on every $100 spent on assets. This is way below average. Callaway Golf's management efficiency ratios could be used to measure how well Callaway Golf manages its routine affairs as well as how well it operates its assets and liabilities. The current Return On Tangible Assets is estimated to decrease to 0.02. The current Return On Capital Employed is estimated to decrease to 0.03. At this time, Callaway Golf's Other Current Assets are most likely to increase significantly in the upcoming years. The Callaway Golf's current Total Current Assets is estimated to increase to about 1.7 B, while Other Assets are projected to decrease to roughly 76.7 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 20.96 | 22.01 | |
| Tangible Book Value Per Share | 2.08 | 1.97 | |
| Enterprise Value Over EBITDA | 13.54 | 20.99 | |
| Price Book Value Ratio | 0.68 | 0.65 | |
| Enterprise Value Multiple | 13.54 | 20.99 | |
| Price Fair Value | 0.68 | 0.65 | |
| Enterprise Value | 6.5 B | 6.8 B |
Management at Callaway Golf focuses on leveraging technology and optimizing operations. We evaluate the impact of these focuses on the company's financial health and stock performance.
Beta 1.759 |
Basic technical analysis of Callaway Stock
As of the 28th of November, Callaway Golf shows the Risk Adjusted Performance of (0.09), standard deviation of 3.19, and Mean Deviation of 2.49. In respect to fundamental indicators, the technical analysis model gives you tools to check existing technical drivers of Callaway Golf, as well as the relationship between them. Please confirm Callaway Golf variance and value at risk to decide if Callaway Golf is priced correctly, providing market reflects its regular price of 8.3 per share. Given that Callaway Golf has information ratio of (0.17), we suggest you to validate Callaway Golf's prevailing market performance to make sure the company can sustain itself at a future point.Callaway Golf's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Callaway Golf insiders, such as employees or executives, is commonly permitted as long as it does not rely on Callaway Golf's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Callaway Golf insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Callaway Golf's Outstanding Corporate Bonds
Callaway Golf issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Callaway Golf uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Callaway bonds can be classified according to their maturity, which is the date when Callaway Golf has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
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| MPLX LP 52 Corp BondUS55336VAL45 | View |
Understand Callaway Golf's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Callaway Golf's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.09) | |||
| Market Risk Adjusted Performance | (0.41) | |||
| Mean Deviation | 2.49 | |||
| Coefficient Of Variation | (800.88) | |||
| Standard Deviation | 3.19 | |||
| Variance | 10.16 | |||
| Information Ratio | (0.17) | |||
| Jensen Alpha | (0.53) | |||
| Total Risk Alpha | (0.91) | |||
| Treynor Ratio | (0.42) | |||
| Maximum Drawdown | 16.58 | |||
| Value At Risk | (5.01) | |||
| Potential Upside | 4.26 | |||
| Skewness | (0.26) | |||
| Kurtosis | 0.5787 |
| Risk Adjusted Performance | (0.09) | |||
| Market Risk Adjusted Performance | (0.41) | |||
| Mean Deviation | 2.49 | |||
| Coefficient Of Variation | (800.88) | |||
| Standard Deviation | 3.19 | |||
| Variance | 10.16 | |||
| Information Ratio | (0.17) | |||
| Jensen Alpha | (0.53) | |||
| Total Risk Alpha | (0.91) | |||
| Treynor Ratio | (0.42) | |||
| Maximum Drawdown | 16.58 | |||
| Value At Risk | (5.01) | |||
| Potential Upside | 4.26 | |||
| Skewness | (0.26) | |||
| Kurtosis | 0.5787 |
Consider Callaway Golf's intraday indicators
Callaway Golf intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Callaway Golf stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Daily Balance Of Power | (9,223,372,036,855) | |||
| Rate Of Daily Change | 1.0 | |||
| Day Median Price | 8.3 | |||
| Day Typical Price | 8.3 | |||
| Price Action Indicator | (0.01) | |||
| Period Momentum Indicator | (0.01) |
Callaway Golf Corporate Filings
8K | 12th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
13A | 31st of October 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934 | ViewVerify |
F4 | 16th of September 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
ASR | 24th of July 2024 Automatic Shelf Registration Statement under Rule 415 filed with the U.S. Securities and Exchange Commission (SEC) | ViewVerify |
Callaway Stock media impact
Far too much social signal, news, headlines, and media speculation about Callaway Golf that are available to investors today. That information is available publicly through Callaway media outlets and privately through word of mouth or via Callaway internal channels. However, regardless of the origin, that massive amount of Callaway data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Callaway Golf news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Callaway Golf relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Callaway Golf's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Callaway Golf alpha.
Callaway Golf Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Callaway Golf can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Callaway Golf Historical Investor Sentiment
Investor biases related to Callaway Golf's public news can be used to forecast risks associated with an investment in Callaway. The trend in average sentiment can be used to explain how an investor holding Callaway can time the market purely based on public headlines and social activities around Callaway Golf. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Callaway Golf's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Callaway Golf and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Callaway Golf news discussions. The higher the estimate score, the more favorable the investor's outlook on Callaway Golf.
Callaway Golf Corporate Management
| Glenn Hickey | Executive Golf | Profile | |
| Maryam Morse | Chief Officer | Profile | |
| Neil Howie | Middle Europe | Profile | |
| Alan Hocknell | VP RD | Profile | |
| Arthur III | Chief International | Profile | |
| Rebecca Fine | Executive Officer | Profile | |
| Mark Leposky | Executive Officer | Profile |
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Callaway Golf. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in unemployment. For more detail on how to invest in Callaway Stock please use our How to Invest in Callaway Golf guide.You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Is Leisure Products space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Callaway Golf. If investors know Callaway will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Callaway Golf listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.46) | Earnings Share (0.07) | Revenue Per Share 22.907 | Quarterly Revenue Growth (0.03) | Return On Assets 0.013 |
The market value of Callaway Golf is measured differently than its book value, which is the value of Callaway that is recorded on the company's balance sheet. Investors also form their own opinion of Callaway Golf's value that differs from its market value or its book value, called intrinsic value, which is Callaway Golf's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Callaway Golf's market value can be influenced by many factors that don't directly affect Callaway Golf's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Callaway Golf's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Callaway Golf is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Callaway Golf's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.