Topgolf Callaway Brands (MODG) AI Stock Analysis

• Market Cap: $1.70B
• Dividend Yield: N/A
• Average Volume (3M): 2.62M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• Revenue Growth: -1.74%
• EPS Growth: -2020.38%
• Country: US
• Employees: 30,000
• Sector: Consumer Cyclical
• Sector Strength: 68
• Industry: Leisure
• EPS (TTM): 0.11
• Shares Outstanding: 183,752,230
• 10 Day Avg. Volume: 2,430,454
• 30 Day Avg. Volume: 2,618,051
• PEG Ratio: <0.01
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.50
• Enterprise Value/Market Cap: 1.59
• Enterprise Value/Revenue: 0.16
• Enterprise Value/Gross Profit: 1.01
• Enterprise Value/Ebitda: -2.76
• 1Y Price Target: $8.69
• Price Target Upside: -9.95% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 53 Neutral
• Price Target: $9.00 ▼(-6.74%Downside)

Topgolf Callaway Brands scores moderately due to significant financial challenges and valuation concerns. Positive technical momentum and strategic initiatives provide some optimism. The company's ability to maintain guidance amid macroeconomic challenges is noteworthy.

Positive Factors

Asset Sale

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.

Business Strategy

A successful TopGolf separation should unlock value in MODG along with a cleaner, de-risked balance sheet.

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.

Negative Factors

Competitive Environment

N-T earnings are likely to remain under pressure due to the competitive launch environment and TopGolf's value pivot.

Macro Concerns

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

Sales Performance

Topgolf same venue sales are under continued pressure.

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 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 faces financial challenges with declining revenues and high net losses, impacting profitability and operational efficiency. The high leverage increases financial risk, though improvements in free cash flow provide a positive outlook.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.24B	4.28B	4.00B	3.13B	1.59B
Gross Profit	2.65B	2.65B	2.41B	1.86B	657.59M
EBITDA	-973.60M	484.70M	455.10M	707.45M	-5.69M
Net Income	-1.45B	95.00M	157.90M	322.00M	-126.93M
Balance Sheet
Total Assets	7.64B	9.12B	8.59B	7.75B	1.98B
Cash, Cash Equivalents and Short-Term Investments	445.00M	398.70M	180.20M	352.22M	366.12M
Total Debt	4.14B	4.36B	2.91B	2.95B	894.87M
Total Liabilities	5.23B	5.24B	4.82B	4.06B	1.30B
Stockholders Equity	2.41B	3.88B	3.77B	3.68B	675.64M
Cash Flow
Free Cash Flow	86.60M	-118.10M	-570.60M	-44.02M	188.98M
Operating Cash Flow	382.00M	364.70M	-35.10M	278.26M	228.24M
Investing Cash Flow	-297.30M	-542.90M	-535.10M	-161.86M	-59.21M
Financing Cash Flow	-23.60M	375.80M	425.30M	-124.10M	96.07M

Topgolf Callaway Brands Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 9.65 is above the 20-day moving average (MA) of 8.77, above the 50-day MA of 7.74, and above the 200-day MA of 7.86, indicating a bullish trend. The MACD of 0.45 indicates Negative momentum. The RSI at 67.83 is Neutral, neither overbought nor oversold. The STOCH value of 67.63 is Neutral, 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	79 Outperform	$4.75B	22.44	27.15%	1.35%	2.07%	24.87%
YETI	75 Outperform	$2.90B	17.28	25.01%	―	8.38%	3.69%
PRKS	66 Neutral	$2.64B	12.98	-52.57%	―	-0.92%	0.80%
LUCK	60 Neutral	$1.56B	―	-108.04%	1.98%	6.65%	-111.16%
Sector *	57 Neutral	HK$25.90B	4.13	-2.03%	5.77%	-0.31%	-67.64%
MODG	53 Neutral	$1.70B	―	-46.00%	―	-1.74%	-2020.38%
XPOF	53 Neutral	$534.15M	―	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.