Topgolf Callaway Brands (MODG) AI Stock Analysis

• Market Cap: $1.41B
• Dividend Yield: N/A
• Average Volume (3M): 2.71M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.78
• Revenue Growth: -1.74%
• EPS Growth: -2020.38%
• Country: US
• Employees: 30,000
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Leisure
• EPS (TTM): 0.11
• Shares Outstanding: 183,752,230
• 10 Day Avg. Volume: 2,761,476
• 30 Day Avg. Volume: 2,713,758
• PEG Ratio: -0.42
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.40
• Enterprise Value/Market Cap: 4.51
• Enterprise Value/Revenue: 0.38
• Enterprise Value/Gross Profit: 2.38
• Enterprise Value/Ebitda: -6.53
• 1Y Price Target: $8.17
• Price Target Upside: 4.61% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 54 Neutral
• Price Target: $7.50 ▼(-3.97%Downside)

Topgolf Callaway Brands faces substantial financial challenges, including high leverage and net losses, impacting its overall score negatively. However, positive short-term technical indicators and strategic corporate moves, such as the sale of Jack Wolfskin, provide some optimism. The company's ability to meet full-year guidance amidst macroeconomic challenges is a testament to its operational resilience, though longer-term valuation concerns remain significant.

Positive Factors

Business Strategy

The sale of Jack Wolfskin is seen as a positive move because it removes a slower growing and less profitable segment from the company's core legacy golf business.

Financial Performance

MODG's 1Q EBITDA came in well ahead of expectations primarily due to better than expected margin performance in the company's core product businesses.

Liquidity

Proceeds from the sale of Jack Wolfskin improve the company's balance sheet and liquidity outlook, enhancing the investment case before the planned TopGolf spin.

Negative Factors

Corporate Events

Corporate events bookings have softened, driving a reduction in the company's '25 SVS outlook.

Macro Environment

Greater macro concerns are seen as adding incremental downside risk to guidance with seemingly less cushion should demand trends deteriorate.

Sales Performance

TopGolf SVS remain pressured, down 12% in 1Q with weaker trends continuing into April.

Topgolf Callaway Brands Business Overview & Revenue Model

Company Description

Topgolf Callaway Brands Corp. (MODG) is a leading sports and entertainment company that operates in the sectors of golf equipment, entertainment venues, and active lifestyle products. The company is renowned for its Topgolf venues, which combine technology-driven golf entertainment with food and beverage services, and its Callaway Golf division, which manufactures and sells high-quality golf equipment, including clubs, balls, and accessories. Additionally, the company owns other brands such as Odyssey, TravisMathew, and Jack Wolfskin, which offer apparel and lifestyle products.

How the Company Makes Money

Topgolf Callaway Brands generates revenue through several key streams. A significant portion comes from its Topgolf venues, which earn money through gameplay fees, food and beverage sales, and event hosting. The Callaway Golf division contributes revenue by selling golf equipment, such as clubs and balls, to both individual customers and retail partners. The company's other brands, including Odyssey, TravisMathew, and Jack Wolfskin, expand its revenue base by offering golf accessories, apparel, and active lifestyle products. Strategic partnerships, brand licensing, and a global distribution network further bolster the company's financial performance.

Topgolf Callaway Brands Financial Statement Overview

Summary

Topgolf Callaway Brands is facing significant financial challenges with declining revenues and high net losses, impacting its profitability and operational efficiency. The high leverage increases financial risk, though recent improvements in free cash flow provide some positive outlook. Strategic cost management and revenue enhancement are essential to improve financial standing.

Income Statement

Topgolf Callaway Brands has experienced a decline in revenue from 2023 to TTM (Trailing-Twelve-Months), with significant net losses and negative EBIT and EBITDA margins, indicating operational inefficiencies and profitability challenges. The gross profit margin remains relatively high, but the company struggles with high costs leading to substantial net losses.

Balance Sheet

The company maintains a high level of debt, as indicated by an increased debt-to-equity ratio in the TTM period. While the equity ratio shows moderate stability, the high leverage could be a potential risk if not managed properly. The return on equity has been negative in recent periods due to net losses, affecting the financial health of the company.

Cash Flow

Free cash flow has shown improvement in the TTM period compared to previous years, indicating better cash management. However, the operating cash flow to net income ratio suggests that cash generation from operations is not yet strong enough to cover net losses. The company needs to focus on improving operational efficiency to sustain cash flows.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.19B	4.24B	4.28B	4.00B	3.13B	1.59B
	Gross Profit
2.68B	2.65B	2.65B	2.41B	1.86B	657.59M
	EBIT
-1.26B	-1.26B	237.70M	256.80M	-47.82M	243.02M
	EBITDA
-965.70M	-973.60M	484.70M	455.10M	707.45M	-5.69M
	Net Income Common Stockholders
-1.45B	-1.45B	95.00M	157.90M	322.00M	-126.93M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
317.00M	445.00M	398.70M	180.20M	352.22M	366.12M
	Total Assets
7.69B	7.64B	9.12B	8.59B	7.75B	1.98B
	Total Debt
1.40B	4.14B	4.36B	2.91B	2.95B	894.87M
	Net Debt
1.08B	3.70B	3.97B	2.73B	2.60B	528.75M
	Total Liabilities
5.27B	5.23B	5.24B	4.82B	4.06B	1.30B
	Stockholders Equity
2.43B	2.41B	3.88B	3.77B	3.68B	675.64M
Cash Flow		Free Cash Flow
362.20M	86.60M	-118.10M	-570.60M	-44.02M	188.98M
	Operating Cash Flow
569.60M	382.00M	364.70M	-35.10M	278.26M	228.24M
	Investing Cash Flow
-209.20M	-297.30M	-542.90M	-535.10M	-161.86M	-59.21M
	Financing Cash Flow
-5.80M	-23.60M	375.80M	425.30M	-124.10M	96.07M

Topgolf Callaway Brands Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MODG, the sentiment is Positive. The current price of 7.81 is above the 20-day moving average (MA) of 6.61, above the 50-day MA of 6.58, and below the 200-day MA of 8.10, indicating a neutral trend. The MACD of 0.17 indicates Negative momentum. The RSI at 66.05 is Neutral, neither overbought nor oversold. The STOCH value of 93.20 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MODG.

Topgolf Callaway Brands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GOLF	81 Outperform	$4.30B	20.32	27.15%	1.28%	2.07%	24.87%
YETI	76 Outperform	$2.69B	15.20	25.01%	―	8.38%	3.69%
Sector *	63 Neutral	$6.98B	11.41	2.80%	4.24%	2.68%	-24.94%
PRKS	62 Neutral	$2.35B	11.32	-52.57%	―	-0.92%	0.80%
LUCK	57 Neutral	$1.25B	―	-108.04%	2.47%	6.65%	-111.16%
MODG	54 Neutral	$1.41B	―	-46.00%	―	-1.74%	-2020.38%
XPOF	51 Neutral	$440.52M	―	22.27%	―	-3.17%	-194.72%

Topgolf Callaway Brands Corporate Events

Topgolf Callaway Sells Jack Wolfskin to ANTA Sports

On May 31, 2025, Topgolf Callaway Brands completed the sale of its Jack Wolfskin business to ANTA Sports for $290 million. This transaction marks a strategic shift for the company, allowing it to focus on its core businesses and enhance financial flexibility, particularly in anticipation of separating Topgolf from its core operations.

The most recent analyst rating on (MODG) stock is a Buy with a $13.50 price target. To see the full list of analyst forecasts on Topgolf Callaway Brands stock, see the MODG Stock Forecast page.

Topgolf Callaway Brands Approves Amended 2022 Incentive Plan

On May 29, 2025, Topgolf Callaway Brands Corp. held its annual meeting of shareholders, where the amended and restated 2022 Incentive Plan was approved. This plan, effective from the meeting date, increases the shares available for issuance and outlines specific terms for stock options and awards. The meeting also saw the approval of other proposals, including the election of directors, ratification of Deloitte & Touche LLP as the independent auditor, and an advisory vote on executive compensation, all of which reflect the company’s ongoing governance and operational strategies.

The most recent analyst rating on (MODG) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on Topgolf Callaway Brands stock, see the MODG Stock Forecast page.

Topgolf Callaway Sells Jack Wolfskin to ANTA Sports

Topgolf Callaway Brands Corp. announced on April 10, 2025, that it has entered into an agreement to sell its Jack Wolfskin business to ANTA Sports for $290 million in cash. This strategic move is expected to enhance the company’s financial flexibility and allow it to focus on its core operations, with the transaction anticipated to close by the late second quarter or early third quarter of 2025, pending regulatory approvals.