One-glance verdict
Undervalued
$34.79 our estimate vs market $14.44
Wall Street consensus: $20.40 (-41.4% lower than our fair-value estimate)
58% below our estimate, below the bear case
Fundamentals snapshot
Callaway Golf Company
CALY · NYQ · Consumer Cyclical · Leisure
Current price
$14.44
52-week range
$8.39 - $20.28
Market cap
$2.58B
Balance sheet
Healthy
2.11x Stretched
Net cash $4.70M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 26.3% last year.
- Reward Returns 3.5% on equity, ahead of 25% of its peers.
- Reward Free cash flow was positive in 8/10 years.
What this company does
Callaway Golf Company
Callaway Golf makes and sells golf clubs, balls, and clothing under well-known brands like Callaway, Odyssey, and TravisMathew. The company earns its money selling these golf and lifestyle products through retail stores, online shops, and its own website. This matters because its strong brand recognition and diverse ways of reaching customers, from sporting goods stores to direct online sales, help it connect with a large and loyal base of golf enthusiasts.
How the company got here
Callaway Golf was started in 1982 by a retired winemaker and textile executive named Ely Callaway Jr., who bought a small, niche golf club company. A major turning point was the 1991 launch of the 'Big Bertha' driver, a larger-headed club that made it easier for average golfers to hit the ball well, which transformed the company into an industry giant. Over the years, Callaway grew by acquiring other brands, like Odyssey putters and apparel companies TravisMathew and OGIO. The company recently went through a significant change, merging with the golf entertainment chain Topgolf and renaming itself, but then sold its majority stake in Topgolf in early 2026 to refocus on its core business of making golf products and changed its name back to Callaway Golf Company.
What it actually does
Callaway is a company that makes and sells high-performance golf gear for everyone from professional players to weekend hobbyists. You would recognize their products in golf shops and major sporting goods stores. This includes everything from the clubs used to hit the ball, the golf balls themselves, and the clothing and bags golfers use on the course. They sell these items through retail stores, online, and directly to consumers.
Golf Equipment
This is the company's largest and most well-known business, making up the majority of its sales. This segment designs and sells golf clubs—like drivers, irons, and wedges—under the main Callaway brand, which is known for its technology that helps players improve their game. It also includes Odyssey, the top brand for putters (the clubs used for short, precise shots on the green). Essentially, this part of the business provides the core tools that people use to play the game of golf.
Apparel, Gear and Other
This part of the business sells clothing and accessories that are connected to the golf lifestyle but are often worn off the course as well. It features the TravisMathew brand, which offers premium, casual clothing, and OGIO, which is known for high-quality golf bags, backpacks, and travel gear. While smaller than the equipment business, this segment is an important area of growth for the company. It makes money by selling these lifestyle products to consumers who want the style and quality associated with the Callaway name.
What management is betting on now
After selling its majority ownership of Topgolf, the company's leadership is focusing back on its original strengths in golf equipment and apparel. A major priority is continued innovation (creating new and improved products), such as using artificial intelligence to design better-performing golf clubs. They are also focused on growing their apparel brands, like TravisMathew, by expanding into new markets and product categories beyond just golf. Finally, the company is emphasizing financial discipline, meaning they are carefully managing their spending to ensure the business is profitable and provides value back to its investors.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$109.50M
FY2024 Q4
$-25.00M
FY2025 Q1
$-155.10M
FY2025 Q2
$52.50M
FY2025 Q3
$162.10M
FY2025 Q4
$-114.90M
FY2026 Q1
$-176.00M
FY2026 Q2
$238.10M
Revenue
$612.20M
Net income
$75.20M
Diluted EPS
0.40
Operating cash flow
$249.50M
Free cash flow
$238.10M
Fetching…
Sources
Revenue
$687.50M
Net income
$93.10M
Diluted EPS
0.47
Operating cash flow
$-169.00M
Free cash flow
$-176.00M
Fetching…
Sources
Revenue
$367.50M
Net income
$-417.00M
Diluted EPS
-2.27
Operating cash flow
$63.90M
Free cash flow
$-114.90M
Fetching…
Sources
Revenue
$934.00M
Net income
$-14.70M
Diluted EPS
-0.08
Operating cash flow
$228.40M
Free cash flow
$162.10M
Fetching…
Sources
Revenue
$1.11B
Net income
$20.30M
Diluted EPS
0.11
Operating cash flow
$126.90M
Free cash flow
$52.50M
Fetching…
Sources
Revenue
$1.09B
Net income
$2.10M
Diluted EPS
0.01
Operating cash flow
$-85.20M
Free cash flow
$-155.10M
Fetching…
Sources
Revenue
$371.40M
Net income
$-1.51B
Diluted EPS
-8.23
Operating cash flow
$43.30M
Free cash flow
$-25.00M
Fetching…
Sources
Revenue
$1.01B
Net income
$-3.60M
Diluted EPS
-0.02
Operating cash flow
$187.30M
Free cash flow
$109.50M
Fetching…
Sources
Is it cheap or expensive?
Fair value $34.79 vs current price $14.44
Wall Street consensus is the average analyst price target: $20.40 (-41.4% lower than our fair-value estimate).
Our most-likely fair value is $34.79 a share — about 141.0% above today's price of $14.44, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $4.7M - more cash than debt. Interest coverage 2.1x.
Net debt
$-4.70M
Interest coverage
2.11x
Callaway Golf Company's profit covers its interest bill about 2.1 times over.
Healthy
Worse cushion
Baseline
Better cushion
CALY
BASELINE
Callaway Golf Company
Total debt $273.40M Interest coverage 2.11x This is the baseline the peer rows are being compared against.
Total debt $1.09B Interest coverage 5.04x +138% vs CALY Carries about 2.4x more debt cushion than CALY.
Total debt $253.03M Interest coverage 482.07x +22,705% vs CALY Carries about 228.1x more debt cushion than CALY.
Total debt $1.71B Interest coverage 1.72x -19% vs CALY Carries about 1.2x less debt cushion than CALY.
Total debt $2.29B Interest coverage 2.80x +32% vs CALY Carries about 1.3x more debt cushion than CALY.
What you should know
The case for and against CALY
3 Rewards
0 Risks
Rewards
-
Revenue grew 26.3% last year.
-
Returns 3.5% on equity, ahead of 25% of its peers.
-
Free cash flow was positive in 8/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
33.58x
Forward P/E
16.29x
P/B
1.20x
P/S
1.21x
EV/EBITDA
10.49x
PEG ratio
0.72x
Profitability
How much profit each dollar creates
Gross margin
44.3%
Operating margin
17.3%
Net margin
-12.4%
ROE
3.5%
ROA
2.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.13x
Current ratio
3.04x
Quick ratio
1.57x
Total debt
$273.40M
Total cash
$278.10M
Growth
How the business has been compounding
Revenue TTM
$2.60B
Revenue 5Y CAGR
-10.0%
EPS TTM
0.43
EPS 5Y CAGR
-36.5%
Cash flow
How much cash the business throws off
Operating CF TTM
$372.80M
Free CF TTM
$302.20M
FCF margin
11.6%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
2020-05-26