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Upturn AI SWOT - About
MODG 
Callaway Golf Company (MODG)
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Upturn Advisory Summary
04/01/2025: MODG (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit -43.66% | Avg. Invested days 25 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.16B USD | Price to earnings Ratio - | 1Y Target Price 9.57 |
Price to earnings Ratio - | 1Y Target Price 9.57 | ||
Volume (30-day avg) 3253189 | Beta 1.7 | 52 Weeks Range 5.59 - 16.89 | Updated Date 04/1/2025 |
52 Weeks Range 5.59 - 16.89 | Updated Date 04/1/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) -7.88 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -34.15% | Operating Margin (TTM) -0.91% |
Management Effectiveness
Return on Assets (TTM) 1.5% | Return on Equity (TTM) -46.06% |
Valuation
Trailing PE - | Forward PE 156.25 | Enterprise Value 5227682304 | Price to Sales(TTM) 0.29 |
Enterprise Value 5227682304 | Price to Sales(TTM) 0.29 | ||
Enterprise Value to Revenue 1.16 | Enterprise Value to EBITDA 9.65 | Shares Outstanding 183396000 | Shares Floating 139792048 |
Shares Outstanding 183396000 | Shares Floating 139792048 | ||
Percent Insiders 11.85 | Percent Institutions 87.72 |
Analyst Ratings
Rating 3.42 | Target Price 11.92 | Buy 2 | Strong Buy 3 |
Buy 2 | Strong Buy 3 | ||
Hold 5 | Sell 1 | Strong Sell 1 | |
Strong Sell 1 |
Upturn AI SWOT
Callaway Golf Company
Company Overview
History and Background
Callaway Golf Company, founded in 1982 by Ely Callaway, initially focused on high-quality golf clubs. Over time, it expanded to include apparel, accessories, and golf entertainment through acquisitions like Topgolf. It has become a leading brand in the golf industry known for innovation and performance.
Core Business Areas
- Topgolf: Operates entertainment venues featuring golf games, food, and beverages. This segment focuses on attracting a broader audience beyond traditional golfers.
- Golf Equipment: Designs, manufactures, and sells golf clubs (drivers, irons, putters), golf balls, and other golf-related equipment under the Callaway and Odyssey brands.
- Apparel and Gear: Offers golf apparel, footwear, and accessories under the Callaway, TravisMathew, and Jack Wolfskin brands. This segment focuses on providing stylish and functional products for golfers and outdoor enthusiasts.
Leadership and Structure
Chip Brewer serves as the President and CEO. The company has a structured management team overseeing each business segment, reporting to the CEO and Board of Directors.
Top Products and Market Share
Key Offerings
- Callaway Drivers (e.g., Paradym Series): Flagship product in the golf club category, competing with TaylorMade, Titleist, and Ping. Callaway historically has maintained a strong market share in the driver category, fluctuating between 20-30%. Specific revenue data isn't publicly broken down for individual models.
- Competitors: TaylorMade,Titleist,Ping
- Competitors: Scotty Cameron,Ping
- Odyssey Putters: Leading putter brand with a significant market share in putters, often exceeding 30%. Competes with Scotty Cameron (Titleist) and Ping. Specific revenue data isn't publicly broken down for individual models.
- Competitors: Drive Shack,Other entertainment venues
- Topgolf Venues: A major revenue generator for the company through entertainment and food and beverage sales. Competes with other entertainment venues, but holds a unique position within the golf entertainment sector. Topgolf's revenue contribution forms a substantial portion of Callaway's total revenue.
Market Dynamics
Industry Overview
The golf industry is influenced by factors like participation rates, economic conditions, and technological advancements in equipment. The industry has seen growth in recent years, driven by increased interest in outdoor activities.
Positioning
Callaway is positioned as a premium brand offering high-performance golf equipment and innovative entertainment experiences. The acquisition of Topgolf has broadened its appeal and market reach.
Total Addressable Market (TAM)
The global golf equipment market is estimated to be around $13 billion USD, while the golf entertainment market, led by Topgolf, shows significant growth potential. Callaway is well-positioned to capture a significant share of both markets through its diverse product offerings.
Upturn SWOT Analysis
Strengths
- Strong brand recognition
- Innovative product development
- Diversified revenue streams (equipment, apparel, entertainment)
- Topgolf's growth potential
- Strong presence in both golf equipment and entertainment markets
Weaknesses
- Dependence on consumer spending
- Seasonality of golf participation
- Potential integration challenges with acquired companies
- High marketing expenses
- Exposure to economic downturns affecting discretionary spending
Opportunities
- Further expansion of Topgolf venues
- Increased online sales and e-commerce presence
- Growth in emerging markets
- Development of new golf technologies
- Partnerships and collaborations with other brands
Threats
- Intense competition from other golf equipment manufacturers
- Changes in consumer preferences
- Economic downturns impacting discretionary spending
- Supply chain disruptions
- Impact of weather conditions on golf participation
Competitors and Market Share
Key Competitors
- TaylorMade Golf Company Private
- Acushnet Holdings Corp (GOLF)
- Ping Private
Competitive Landscape
Callaway benefits from its diverse revenue streams and strong brand recognition, particularly within the golf market. TaylorMade is a major competitor in golf equipment, while Acushnet (Titleist) competes in both equipment and golf balls. Topgolf faces competition in the entertainment sector.
Major Acquisitions
Jack Wolfskin
- Year: 2019
- Acquisition Price (USD millions): 476
- Strategic Rationale: Expanded Callaway's apparel and outdoor gear offerings, diversifying its revenue streams and targeting a broader customer base.
Growth Trajectory and Initiatives
Historical Growth: Callaway's growth has been driven by innovation in golf equipment and the expansion of Topgolf. Revenue has generally trended upwards, with significant increases following the Topgolf acquisition.
Future Projections: Analyst projections vary, but generally expect continued growth driven by Topgolf's expansion and ongoing strength in the golf equipment market. Revenue and earnings are expected to increase steadily over the next few years.
Recent Initiatives: Recent initiatives include expanding Topgolf venues, launching new golf equipment lines (e.g., Paradym), and focusing on digital marketing and e-commerce.
Summary
Callaway is a strong company with a diversified portfolio, including golf equipment, apparel, and entertainment (Topgolf). The company benefits from a strong brand and innovative products. However, it is exposed to consumer spending trends, seasonality, and intense competition. Continued expansion of Topgolf and growth in emerging markets represent significant opportunities.
Similar Companies
- GOLF
- DECK
- NKE
- UA
- ADDYY
Sources and Disclaimers
Data Sources:
- Company filings
- Industry reports
- Analyst estimates
- Market research reports
Disclaimers:
This analysis is based on publicly available information and analyst estimates. Actual results may vary. Not financial advice.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Callaway Golf Company
Exchange NYSE | Headquaters Carlsbad, CA, United States | ||
IPO Launch date 1992-02-27 | President, CEO & Director Mr. Oliver G. Brewer III | ||
Sector Consumer Cyclical | Industry Leisure | Full time employees 30000 | |
Full time employees 30000 | |||
Topgolf Callaway Brands Corp. designs, manufactures, and sells golf equipment, golf and lifestyle apparel, and other accessories in the United States, Europe, Asia, and Internationally. It operates in three business segments: Topgolf, Golf Equipment, and Active Lifestyle. The Topgolf segment operates Topgolf venues equipped with technology-enabled hitting bays, bars, dining areas, and event spaces, as well as Toptracer ball-flight tracking technology. The Golf Equipment segment provides drivers, fairway woods, hybrids, irons, wedges and packaged sets, putters, and pre-owned golf clubs under the Callaway and Odyssey brands, and golf balls under the Callaway Golf and Strata brands. The Active Lifestyle segment offers golf apparel and footwear; golf accessories, including golf bags, golf gloves, headwear, and practice aids under the Callaway brand; men's, women's, and youth apparel as well as footwear, outerwear and accessories under the TravisMathew brand. This segment also provides storage and travel gear for sport and personal use, such as backpacks, travel bags, duffel and golf bags, and accessories under the OGIO brand. In addition, it offers outdoor apparel for men, women and children comprising jackets, trousers, dresses, skirts, and tops; and footwear and outdoor equipment, including packs and bags, travel bags, tents, sleeping bags, and accessories under the Jack Wolfskin brand. It sells its products through golf retailers, sporting goods retailers, online retailers, mass merchants, department stores, third-party distributors, and mail order stores, and directly to consumers through its retail stores and websites. The company was formerly known as Callaway Golf Company and changed its name to Topgolf Callaway Brands Corp. in September 2022. Topgolf Callaway Brands Corp. was incorporated in 1982 and is headquartered in Carlsbad, California.
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