Callaway Golf Company [NYSE:ELY]: Analyst Rating and Earnings
Equities traders frequently stay up to date regarding what leading market analysts think about a possible stock buy. As it relates to Callaway Golf Company [ELY], the latest mean analyst recommendation that’s publicly available is from the fiscal three-month period ending in December. On average, stock market experts give ELY an Outperform rating. Its stock price has been found in the range of 5.40 to 19.05. This is compared to its latest closing price of $15.17.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Callaway Golf Company [ELY] is sitting at 2.17. This is compared to 1 month ago, when its average rating was 2.17.
For the quarter ending in Dec-18 Callaway Golf Company [ELY] generated $0.18 billion in sales. That’s 2.49% higher than the average estimate of $0.18 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Stay on the lookout for the next quarterly financial report – the company is expected to release the following results on Thu 25 Apr (In 72 Days).
Fundamental Analysis of Callaway Golf Company [ELY]
Now let’s turn to look at profitability: with a current Operating Margin for Callaway Golf Company [ELY] sitting at +10.33 and its Gross Margin at +46.54, this company’s Net Margin is now 8.60%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 16.75, and its Return on Invested Capital has reached 8.00%. Its Return on Equity is 15.24, and its Return on Assets is 10.25. These metrics all suggest that Callaway Golf Company is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Callaway Golf Company [ELY] has generated a Total Debt to Total Equity ratio of 5.56. Similarly, its Total Debt to Total Assets stands at 3.83.
What about valuation? This company’s Enterprise Value to EBITDA is 9.50 and its Total Debt to EBITDA Value is 0.27. The Enterprise Value to Sales for this firm is now 1.13, and its Total Debt to Enterprise Value stands at 0.03.
Similarly, this company’s Receivables Turnover is 14.92 and its Total Asset Turnover is 1.22. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.62 and its Current Ratio is 1.73. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Let’s now turn our attention to trading performance: Callaway Golf Company [ELY] has 96.87M shares outstanding, amounting to a total market cap of $1.47B. Its stock price has been found in the range of 14.44 to 24.67. At its current price, it has moved by -36.77% from its 52-week high, and it has moved 8.03% from its 52-week low.
This stock’s Beta value is currently 1.05, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 41.75. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Callaway Golf Company [ELY] a Reliable Buy?
Shares of Callaway Golf Company [ELY], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.