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Callaway Golf Co (CALY) stock analysis

CALYNYSESporting & Athletic Goods, NECFiscal year ends December 31
Financials through Q3 FY2026, quarter ended Sep 30, 2026Last filing: 10-Q on Nov 5, 2026Score 11/308% below fair value
$17.43+0.06 (+0.35%)

Close on Nov 11, 2026Market cap $3.11BP/E –Yield –

StockData Score

Prices as of Nov 11, 2026How the score works

Value3Growth1Performance1Health6Dividend0

Mixed11 of 30 checks passed

Callaway Golf passes 11 of the 30 checks behind our score; 11 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
3/6
Growth
1/6
Past performance
1/6
Financial health
6/6
Dividend
0/6

What stands out

  • Trading below fair value

    The share price of $17.43 is below our fair value estimate of $18.85.

  • Low debt

    Debt is 2.3% of shareholders' equity, under the 40% we consider low.

  • Interest well covered

    Operating income covers interest expense 9.6 times.

  • Debt covered by cash flow

    Operating cash flow over the last twelve months equals 669% of total debt.

What to watch

  • Margin of safety under 20%

    The price is 7.6% below fair value, less than the 20% cushion we look for.

  • Return on equity under 15%

    Return on equity was -8.7% over the last twelve months and averaged -8.6% over five years; we look for 15% on both.

  • Return on capital under 10%

    Return on invested capital was 6.8%, below the 10% that usually covers the cost of capital.

  • Revenue growing under 10% a year

    Revenue grew -19.8% a year over the last three fiscal years, short of the 10% we look for.

Valuation3/6

  • P/E against its history

    Not enough price and earnings history to compare.

  • P/E against the industry

    Needs positive earnings and enough profitable companies in the industry.

  • EV/EBITDA below its 5-year median

    Callaway Golf's EV/EBITDA of 9.5 is below its 5-year median of 13.4.

  • P/B below the industry

    Callaway Golf's price-to-book of 1.44 is below the Dolls, Toys, Games and Sporting and Athletic median of 1.53.

  • Trading below fair value

    The share price of $17.43 is below our fair value estimate of $18.85.

  • Margin of safety under 20%

    The price is 7.6% below fair value, less than the 20% cushion we look for.

Growth1/6

  • Revenue growing under 10% a year

    Revenue grew -19.8% a year over the last three fiscal years, short of the 10% we look for.

  • EPS growth over 3 years

    Needs positive EPS three years ago and today.

  • Earnings acceleration

    Needs positive net income now, a year ago and five years ago.

  • Growing slower than the industry

    Revenue grew 1.9% over the last twelve months; the Dolls, Toys, Games and Sporting and Athletic median is 1.9%.

  • Guidance raised

    Callaway Golf raised its full year 2026 net sales outlook on Aug 4, 2026.

  • Gross margin trend

    This company does not report gross profit.

Past performance1/6

  • Return on equity under 15%

    Return on equity was -8.7% over the last twelve months and averaged -8.6% over five years; we look for 15% on both.

  • Return on capital under 10%

    Return on invested capital was 6.8%, below the 10% that usually covers the cost of capital.

  • Return on equity below the industry

    Callaway Golf's return on equity of -8.7% is below the Dolls, Toys, Games and Sporting and Athletic median of 0.3%.

  • Earnings over 5 years

    Needs positive net income five years ago and in the latest year.

  • Net margin above its 5-year average

    Net margin was -9.6% over the last twelve months, against a 5-year average of -14.2%.

  • Net margin below the industry

    Callaway Golf's net margin of -9.6% is below the Dolls, Toys, Games and Sporting and Athletic median of 0.5%.

Financial health6/6

  • Low debt

    Debt is 2.3% of shareholders' equity, under the 40% we consider low.

  • Debt falling against equity

    Debt to equity fell from 102% five years ago to 2.3%.

  • Debt covered by cash flow

    Operating cash flow over the last twelve months equals 669% of total debt.

  • Interest well covered

    Operating income covers interest expense 9.6 times.

  • Short-term assets cover short-term debts

    Current assets are 3.09 times current liabilities.

  • Low bankruptcy risk

    The Altman Z-score is 4.10; above 3 is the safe zone and below 1.8 the distress zone.

Dividend0/6

  • No dividend

    Callaway Golf has not paid a dividend in the last twelve months.

  • Yield against Treasuries

    No dividend.

  • Yield against the market

    No dividend.

  • Dividend stability

    No dividend.

  • Earnings cover

    No dividend.

  • Cash-flow cover

    No dividend.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$18.85

The share price is 8% below this estimate.

20%+ below
Near fair value
20%+ above
$17.43Price
MethodMultiple usedOwn 5Y medianIndustry medianValue per shareWeight
EV/EBITDA11.5×13.4×9.5×$20.6258%
P/B1.2×0.9×1.5×$14.9517%
Earnings power10.3% cost of equity––$17.3425%
Fair value$18.85100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

  • P/E at month end
  • Own 5-year median 27.8
  • Dolls, Toys, Games and Sporting and Athletic median 18.1

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Low risk

Average value traded per day
$28.86M
Value traded per 1% price move
$18.73M

Downside

Medium risk

Typical loss in a bad month
16.1%
Volatility (annualized)
49%
Sharpe ratio, 1 year
1.23
Beta to the S&P 500 (5Y)
1.09

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2011 to 2025

Gross margin

42.1%+0.7 pts over 5 years

Operating margin

6.2%+12.9 pts over 5 years

Net margin

-19.9%−11.9 pts over 5 years

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