Topgolf Callaway Brands (MODG) AI Stock Analysis

• Market Cap: $2.34B
• Dividend Yield: N/A
• Average Volume (3M): 3.09M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.85
• Revenue Growth: -3.58%
• EPS Growth: -12720.97%
• Country: US
• Employees: 30,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): -0.05
• Shares Outstanding: 183,883,640
• 10 Day Avg. Volume: 4,513,399
• 30 Day Avg. Volume: 3,085,939
• PEG Ratio: <0.01
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.34
• P/FCF Ratio: 16.67
• Enterprise Value/Market Cap: 2.28
• Enterprise Value/Revenue: 1.31
• Enterprise Value/Gross Profit: 2.03
• Enterprise Value/Ebitda: -5.41
• 1Y Price Target: $11.56
• Price Target Upside: -9.12% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): -0.19
• Revenue Forecast (FY): $3.92B

• Rating: 58 Neutral
• Price Target: $11.50 ▼(-9.59% Downside)

Topgolf Callaway Brands' overall stock score is driven by significant financial challenges, particularly in profitability and cash flow, which weigh heavily on the score. However, positive technical indicators and a strong earnings call with increased guidance provide some optimism. The valuation remains a concern due to negative earnings, suggesting caution for investors.

Positive Factors

Segment Growth

The growth in the Topgolf segment indicates strong consumer demand and successful execution of business strategies, supporting long-term revenue potential.

Debt Reduction

Reducing debt levels enhances financial flexibility and reduces interest expenses, contributing to improved long-term financial health.

Strategic Sale

The sale of a majority stake in Topgolf can provide significant capital for reinvestment in core operations, potentially enhancing focus and profitability.

Negative Factors

Negative Revenue Growth

Declining revenue growth suggests challenges in maintaining market share or pricing power, which could impact long-term competitiveness.

Cash Flow Challenges

Weak cash flow performance limits the company's ability to invest in growth opportunities and meet financial obligations, affecting sustainability.

Profitability Issues

Ongoing profitability challenges can hinder reinvestment in business operations and reduce shareholder value over time.

Topgolf Callaway Brands Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Topgolf Callaway Brands generates revenue through multiple streams, primarily from its Topgolf venues, which earn income through game play fees, food and beverage sales, and event hosting. Each venue operates a high-tech driving range where customers pay for access to hitting bays equipped with interactive gaming technology. Additionally, the sale of Callaway's golf equipment, including clubs and balls, serves as a significant revenue source. The company also engages in merchandise sales and partnerships, including collaborations with other brands and sponsorships, which further enhance its earnings. The combination of these diverse revenue streams and a strong brand presence in the golf industry solidifies the company's financial performance.

Topgolf Callaway Brands Financial Statement Overview

Summary

Topgolf Callaway Brands faces significant financial challenges, particularly in terms of profitability and cash flow generation. While the company maintains a strong gross profit margin and has improved its leverage position, negative revenue growth and profitability metrics indicate a need for strategic adjustments. The cash flow situation is concerning, with declining free cash flow and limited cash conversion from operations.

Income Statement

Topgolf Callaway Brands has experienced declining revenue growth in recent periods, with a negative growth rate of -1.91% in the TTM. The company also faces challenges with profitability, as evidenced by negative net profit and EBIT margins. However, the gross profit margin remains relatively strong at 64.55%, indicating efficient cost management at the production level.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.78 in the TTM, indicating a reduction in leverage compared to previous years. However, the return on equity remains negative, reflecting ongoing profitability challenges. The equity ratio is stable, suggesting a balanced asset structure.

Cash Flow

Cash flow performance is weak, with a significant decline in free cash flow growth of -87.49% in the TTM. The operating cash flow to net income ratio is low, indicating challenges in converting earnings into cash. The free cash flow to net income ratio is also low, reflecting limited cash generation relative to net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.06B	4.24B	4.28B	4.00B	3.13B	1.59B
Gross Profit	2.62B	2.65B	2.65B	2.41B	1.86B	657.60M
EBITDA	-985.60M	-973.60M	484.70M	477.50M	622.00M	-41.10M
Net Income	-1.50B	-1.45B	95.00M	157.90M	322.00M	-126.90M
Balance Sheet
Total Assets	7.57B	7.64B	9.12B	8.59B	7.75B	1.98B
Cash, Cash Equivalents and Short-Term Investments	865.60M	445.00M	393.50M	180.20M	352.20M	366.12M
Total Debt	4.45B	4.14B	4.07B	3.57B	2.95B	880.27M
Total Liabilities	5.09B	5.23B	5.24B	4.82B	4.06B	1.30B
Stockholders Equity	2.48B	2.41B	3.88B	3.77B	3.68B	675.64M
Cash Flow
Free Cash Flow	34.50M	86.60M	-117.30M	-567.40M	-44.02M	188.98M
Operating Cash Flow	313.40M	382.00M	364.70M	-35.10M	278.26M	228.24M
Investing Cash Flow	30.70M	-297.30M	-542.90M	-535.10M	-161.86M	-59.21M
Financing Cash Flow	76.20M	-23.60M	375.80M	425.30M	-124.07M	96.07M

Topgolf Callaway Brands Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 12.72 is above the 20-day moving average (MA) of 10.24, above the 50-day MA of 9.74, and above the 200-day MA of 8.22, indicating a bullish trend. The MACD of 0.50 indicates Negative momentum. The RSI at 69.99 is Neutral, neither overbought nor oversold. The STOCH value of 88.52 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
YETI	78 Outperform	$3.23B	21.60	21.77%	―	1.56%	-17.21%
GOLF	68 Neutral	$4.96B	23.11	25.91%	1.17%	4.20%	24.12%
OSW	68 Neutral	$2.08B	28.75	13.53%	0.83%	7.27%	45.12%
JOUT	64 Neutral	$421.89M	―	-8.33%	3.21%	-3.56%	-407.47%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MODG	58 Neutral	$2.34B	―	-46.95%	―	-3.58%	-12720.97%
XPOF	47 Neutral	$321.31M	―	―	―	-3.55%	-111.90%

Topgolf Callaway Brands Corporate Events

Topgolf Callaway Brands Reports Q3 2025 Growth

Topgolf Callaway Brands Corp. is a leading company in the golf and active lifestyle sector, known for its innovative golf equipment, apparel, and entertainment offerings, including the popular Topgolf venues. The company operates in both on-course and off-course golf markets, providing a comprehensive golf experience.

Topgolf Callaway Brands Board Restructures After Director Resignation

On August 25, 2025, Scott M. Marimow resigned from his position as a director at Topgolf Callaway Brands Corp. His departure was not due to any disagreements with the company’s operations or policies. Subsequently, on August 26, 2025, the company’s Board of Directors decided to reduce its size to 10 members.

The most recent analyst rating on (MODG) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on Topgolf Callaway Brands stock, see the MODG Stock Forecast page.