Callaway Golf Co (CALY) Stock Analysis
Verdict: WATCH (do not buy)
Strong free cash flow yield (10.7%) and low EV/EBITDA (8.4x) cushion downside, but weak net margins (3.4%) and insider selling cap upside.
Investment score: 53/100
Analysis as of
Is Callaway Golf Co stock worth reviewing? The TradeMates thesis
Callaway Golf Co trades at $15.03 with a 53/100 model investment score. Valuation signals are mixed: EV/EBITDA of 8.43x is lower than main peer Acushnet (14.84x), but net margins are slim at 3.37%. With 4 consecutive EPS beats offset by recent insider selling, the TradeMates model rates CALY a HOLD.
7-factor investment score
- Valuation: 55/100 (weight 20%)
- Financial Health: 60/100 (weight 15%)
- Technical Momentum: 38/100 (weight 15%)
- Earnings Quality: 75/100 (weight 15%)
- Insider Sentiment: 20/100 (weight 10%)
- Analyst Consensus: 65/100 (weight 10%)
- Risk-Adjusted Return: 52/100 (weight 15%)
Callaway Golf Co opportunities and risks
What speaks for CALY
- High Free Cash Flow Generation
What speaks against CALY
- Margin Compression & Premium Trailing P/E
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| CALY | 30.7x | 1.0x | 8.4x | 52.8% | 3.4% | 10.7% |
| GOLF | 22.4x | 1.8x | 14.8x | 49.0% | 8.1% | 3.8% |
| BC | n/a | 0.8x | 21.9x | 25.3% | -1.5% | 7.7% |
| MAT | 9.9x | 0.7x | 8.1x | 47.4% | 7.8% | 16.2% |
| YETI | 18.0x | 1.6x | 11.6x | 59.2% | 9.2% | 6.6% |
| PII | n/a | 0.4x | 41.8x | 21.0% | -3.5% | 2.1% |
| Peer median | 9.9x | 0.8x | 14.8x | 47.4% | 7.8% | 6.6% |
Frequently asked questions about Callaway Golf Co (CALY)
Is CALY stock a good investment?
The TradeMates model rates Callaway Golf Co as WATCH (do not buy) with an investment score of 53/100. Callaway Golf Co trades at $15.03 with a 53/100 model investment score. Valuation signals are mixed: EV/EBITDA of 8.43x is lower than main peer Acushnet (14.84x), but net margins are slim at 3.37%. With 4 consecutive EPS beats offset by recent insider selling, the TradeMates model rates CALY a HOLD. This is algorithmic model output, not personal investment advice.
Is CALY stock a buy?
The TradeMates model verdict for CALY is WATCH (do not buy) with an investment score of 53/100. Treat this as a model signal to review, not a personal buy recommendation.