Callaway Golf Company (CALY)
Valuation Overview•Is Callaway Golf Company Overvalued or Undervalued?
The market is pricing the stock in line with historical averages, assuming steady-state growth.
Underlying fundamental quality and solvency metrics are in stable range.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
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Verdict: Highly distressed profile flashing severe fundamental warning signs.
Wall Street is highly bullish, projecting significant upside alongside robust expected earnings growth. However, capital return yields remain modest, driven predominantly by aggressive share repurchases.
CALY demonstrates adequate business quality with stable profitability. However, the balance sheet carries elevated leverage, requiring careful monitoring of debt servicing capabilities.
The company is facing top-line contraction (-19.8% 3Y CAGR) however, earnings have severely contracted over the same period. Operating efficiency remains adequate with margins around 11.6%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $436.9M | -51.4% | -19.8% | +5.3% | +9.3% | |
| EBITDA | $55.3M | — | -27.1% | — | — | |
| Net Income | $45.7M | +102.7% | -37.4% | — | +10.3% | |
| EPS (Diluted) | $0.25 | +102.7% | -35.4% | — | +2.1% | |
| Free Cash Flow | $180.8M | -9.5% | — | +9.8% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 47.4% | 55.5% | 57.3% | 51.0% |
| Operating Margin | 11.6% | -6.0% | -1.0% | 3.2% |
| Net Margin | 7.0% | -10.0% | -3.2% | 1.5% |
| FCF Margin | 14.6% | 6.6% | 0.8% | 3.8% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q1'26Latest | $-0.42 | $-0.33 | +22.2% | ||
| Q4'25 | $-0.21 | $-0.05 | +76.2% | ||
| Q3'25 | $0.03 | $0.24 | +700.0% | ||
| Q2'25 | $-0.04 | $0.11 | +375.0% | ||
| Q1'25 | $-0.40 | $-0.33 | +17.5% | ||
| Q4'24 | $-0.18 | $0.02 | +111.1% | ||
| Q3'24 | $0.27 | $0.42 | +55.6% | ||
| Q2'24 | $0.01 | $0.09 | +554.5% |
The S&P 500 is at 29.9x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Callaway Golf Company (CALY) valuation, health, and returns.
Callaway Golf Company is estimated to be fairly valued under our discounted cash flow framework. relative multiples indicate the stock is Fair versus peers compared to industry peers. trading near fair value (DCF: $0.00)
Callaway Golf Company has multiple valuation anchors: DCF Intrinsic Value: $0.00 | Peer Relative Fair Value: $12.81 | Wall Street Analyst Target: $15.38 (implying +22.2% upside). A convergence of these signals offers higher conviction.
Callaway Golf Company displays n/a financial health with a composite quality score of N/A/100, supported by a Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 2.1%.
Callaway Golf Company does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
Callaway Golf Company's current growth trajectory is Decelerating. The company achieved -51.4% 1Y revenue growth and +102.7% 1Y EPS growth, compared to its 3Y revenue CAGR of -19.8%.
Wall Street consensus is Buy based on 23 analysts. The consensus price target represents a +22.2% change from current levels.
No major financial distress warning signs or extreme volatility triggers are flagged at this time.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.