Topgolf Callaway Brands Corp.

Topgolf Callaway Brands Corp.

MODGยทNYSE

$14.68

+0.0000%
Consumer CyclicalLeisure

Topgolf Callaway Brands Corp. designs, manufactures, and sells golf equipment, golf and lifestyle apparel, and other accessories. It operates through three segments: Topgolf; Golf Equipment; and Apparel, Gear and Other. The Topgolf segment operates Topgolf venues equipped with technology-enabled hitting bays, multiple bars, dining areas, and event spaces, as well as Toptracer ball-flight tracking technology; and World Golf Tour digital golf game. 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, as well as golf balls under the Callaway Golf and Strata brands. The Apparel, Gear and Other segment offers golf apparel and footwear; golf accessories, including golf bags, golf gloves, headwear, and practice aids under the Callaway brand; and golf and lifestyle apparel, hats, luggage and accessories, footwear, belts, facemasks, sunglasses, socks, and underwear under the TravisMathew brand. This segment also provides storage gear for sport and personal use, such as backpacks; travel, duffel, and golf bags; and storage gear accessories, as well as outerwear, headwear, and accessories under the OGIO brand. In addition, it offers outdoor apparel 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. The company sells its products through golf retailers, sporting goods retailers, on-line retailers, mass merchants, department stores, third-party distributors, and mail order stores, as well as through its websites in the United States and approximately 120 countries. 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.

At a Glance

Live Snapshot
Market Cap$2.70B
EPS-7.8800
P/E Ratio-1.86
Earnings Date02/23/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

Medium confidence

Valuation multiple is compressed (P/E -1.9).

Valuation inputs: P/E -1.9, earnings yield N/A, momentum 0.0%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is soft (ROE -60.1%, ROIC -17.8%).

Profitability stack: net margin -34.2%, ROE -60.1%, ROIC -17.8%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Risk profile is balanced but has notable pressure points to monitor.

Risk factors: liabilities/assets +68.5%, momentum 0.0%, net margin -34.2%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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Topgolf Callaway Brands Corp. Market vs Earnings Trajectory

MODG ยท NYSE

Loading price and EPS data...

Topgolf Callaway Brands Corp.

Topgolf Callaway Brands Corp. Fair Value Envelope

MODG ยท NYSE

Our analysis suggests that MODG has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $14.68, this represents a potential HIDDEN relative to our calculated worth for Topgolf Callaway Brands Corp..

Intrinsic Value
Current Price: $14.68
3Y-515.0%
5Y-1038.0%
10Y-4478.0%
3Y+35.0%
5Y+149.0%
10Y+402.0%
3Y-550.0%
5Y-1923.0%
10Y-10038.0%
3Y+37.0%
5Y+341.0%
10Y+1149.0%
3Y-297.0%
5Y+172.0%
10Y+434.0%
3Y-1.0%
5Y+289.0%
10Y+1110.0%
Topgolf Callaway Brands Corp.

Topgolf Callaway Brands Corp. Profit Bridge

MODG ยท NYSE
Revenue4.24B
Cost of Goods Sold (1.59B)
Gross Profit2.65B
Operating Expenses (3.91B)
Operating Income-1.26B
Interest Expense (231.20M)
Other Income/Expense-216.00M
Pretax Income-1.47B
Income Tax (-25.50M)
Net Income-1.45B
Net Income
-1.45B

Profitability Analysis

Gross Margin

62.5%

Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.

Operating Margin

-29.7%

Operating losses indicate the core business is unprofitable. Requires restructuring or revenue growth.

Net Profit Margin

-34.1%

Net losses indicate the company is burning cash. Sustainability depends on path to profitability.

Profitability Insight

Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.

62.53%
Gross Profit Margin
1%
3Y+5.0%
5Y+39.0%
10Y+48.0%
-29.66%
Operating Profit Margin
-635%
3Y-554.0%
5Y-480.0%
10Y-1029.0%
-34.15%
Net Profit Margin
-1640%
3Y-432.0%
5Y-832.0%
10Y-2078.0%
-60.13%
Return on Equity
-2555%
3Y-788.0%
5Y-681.0%
10Y-1804.0%
-18.96%
Return on Assets
-1920%
3Y-556.0%
5Y-568.0%
10Y-921.0%
-17.84%
Return on Invested Capital
-722%
3Y-761.0%
5Y-363.0%
10Y-526.0%
MODG

Topgolf Callaway Brands Corp. Cash Conversion Engine

MODG ยท NYSE
Net Income-1.45B
Depreciation & Amortization268.40M
Stock-Based Compensation37.00M
Change in Working Capital46.70M
Others1.53B
Capital Expenditures-295.40M
Free Cash Flow86.60M

Cash Flow Quality Analysis

FCF Conversion Rate

-6.0%

Negative free cash flow despite positive earnings raises concerns about cash generation ability or heavy capital requirements.

CapEx Intensity

77.3%

Very high capital intensity consumes most operating cash flow. Limited flexibility for dividends or debt reduction.

FCF Growth Trend

+173.8%

Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.

Working Capital Impact

+$46.70M

Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.

Cash Flow Quality Insight

Capital-intensive growth: Heavy reinvestment limits current cash available but may drive future returns. Assess whether CapEx supports compelling growth opportunities with adequate ROI.

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Topgolf Callaway Brands Corp. Funding & Solvency Profile

MODG ยท NYSE
Cash & Cash Equivalents865.60M
Net Receivables256.00M
Inventory568.70M
Other Current Assets107.20M
Total Current Assets2 B
Property, Plant & Equipment3.61B
Goodwill & Intangible Assets1.87B
Long-Term Investments49.90M
Other Non-Current Assets172.40M
Total Non-Current Assets4 B
Total Assets
7.57B

Financial Health Analysis

Current Ratio

1.87x

Strong liquidity. The company has adequate resources to meet short-term liabilities.

Debt-to-Equity Ratio

2.06x

High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.

Working Capital

870 M

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

25% Current

Capital-intensive business with significant long-term investments in property, equipment, or intangibles.

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Topgolf Callaway Brands Corp. Street Expectations Map

MODG ยท NYSE

Wall Street analysts project that MODG stock may see slight declines over the coming 12 months. The consensus 1-year price target stands at 14.50, with estimates ranging from a low of 11.00 to a high of 17.50.

Lowest Target
11.00
-25.07%
Consensus Target
14.50
-1.23%
Highest Target
17.50
19.21%

The consensus 1-year price target stands at 14.50, with estimates ranging from a low of 11.00 to a high of 17.50.

Analyst Consensus Analysis

Upside Potential

-1.2%

Fair value territory. Stock trading near consensus target suggests limited near-term catalysts. Focus on fundamental developments.

Analyst Agreement

44.8% spread

Mixed analyst views. Wide target range suggests differing opinions on key value drivers, growth prospects, or risk factors.

Risk-Reward Profile

0.77x

Unfavorable risk-reward. Downside risk exceeds upside potential. Consider defensive positioning or alternative opportunities.

Analyst Conviction

Moderate

Neutral sentiment. Fair value pricing with moderate agreement suggests wait-and-see approach or catalyst-driven opportunity.

Market Sentiment Insight

Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.

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Topgolf Callaway Brands Corp. Insider Positioning

MODG ยท NYSE

During the last 12 months, insiders have sold $519K worth of MODG shares, with no buying activity reported.

3 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

3-6 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

6-9 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

9-12 Months

Bought

0

0.00

Sold

60.2K

519.25K

Net Activity

-519K

-$519K

Top Buyers

No buying activity

Top Sellers

1
SA

Starrs Artie

Officer: Ceo, Topgolf

60.2K sharesโ€ข1 transactions

$519K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $519K net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.00:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Insider Participation

High Selling

1 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.

0.00%
Dividend Yield
3Y-
5Y-
10Y-100.0%
ย 

modg Dividend History

MODG
10Y CAGR +0%
Latest $0.01
Annual $0.04
Stable dividend payments
Last Period: +0%