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MODGTopgolf Callaway Brands Corp.
$12.59$2.3B
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  4. Financial Ratios

Topgolf Callaway Brands Corp. (MODG) Financial Ratios

Latest Ratios: P/E Ratio -1.6x · EV/EBITDA N/A · ROE -46.1%. (1995–2024 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

MODG Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016FY 2015
Market Cap$2.3B$1.4B$2.9B$4.0B$4.9B$2.3B$2.0B$1.5B$1.3B$1.1B$797M
Enterprise Value$6.0B$5.1B$6.6B$7.4B$7.5B$2.8B$2.7B$1.5B$1.3B$936M$762M
P/E Ratio →-1.60—30.5125.3215.08—25.8514.1733.175.5455.41
P/S Ratio0.550.340.670.991.551.421.201.201.281.210.94
P/B Ratio0.960.600.741.051.323.352.662.022.041.731.93
P/FCF26.7316.67———11.9764.0926.8014.7017.0649.16
P/OCF6.063.787.91—17.459.9123.5916.1111.4313.5226.06

P/E links to full P/E history page with 30-year chart

MODG EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016FY 2015
EV / Revenue—1.211.531.842.381.751.581.181.281.070.90
EV / EBITDA——13.7516.3820.68—16.079.8613.9715.4117.20
EV / EBIT——26.7925.8615.99—20.0611.0717.0921.2028.29
EV / FCF—59.39———14.6984.5926.3814.7315.2147.01

MODG Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016FY 2015
Gross Margin62.5%62.5%61.9%60.3%59.5%41.4%45.1%46.5%45.8%44.2%42.4%
Operating Margin-29.7%-29.7%5.5%6.4%6.5%-6.6%7.8%10.3%7.5%5.1%3.2%
Net Profit Margin-34.1%-34.1%2.2%4.0%10.3%-8.0%4.7%8.4%3.9%21.8%1.7%

Return on Capital

MetricTTMFY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016FY 2015
ROE-46.1%-46.1%2.5%4.2%14.8%-17.6%10.6%15.0%6.4%37.2%4.1%
ROA-17.3%-17.3%1.1%1.9%6.6%-6.4%5.3%10.2%4.6%26.5%2.3%
ROIC-13.8%-13.8%2.4%2.9%4.1%-6.1%9.3%14.0%10.2%7.6%6.2%
ROCE-16.8%-16.8%3.0%3.6%4.8%-7.0%12.1%18.0%12.2%8.3%6.0%

MODG Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016FY 2015
Debt / Equity1.721.721.050.950.801.300.990.050.130.020.04
Debt / EBITDA——8.537.938.19—4.530.270.910.200.34
Net Debt / Equity—1.540.950.900.710.760.85-0.030.00-0.19-0.08
Net Debt / EBITDA——7.717.537.21—3.89-0.160.02-1.88-0.79
Debt / FCF—42.72———2.7220.49-0.430.02-1.85-2.15
Interest Coverage-5.44-5.441.131.801.77-2.223.3823.1718.0618.653.09

MODG Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016FY 2015
Current Ratio1.941.941.721.291.352.331.511.731.482.462.19
Quick Ratio1.021.020.880.480.731.430.640.620.651.451.02
Cash Ratio0.540.540.420.150.410.940.200.210.270.670.28
Asset Turnover—0.560.470.470.400.800.871.181.061.091.34
Inventory Turnover2.102.102.051.652.382.642.051.972.172.572.33
Days Sales Outstanding—24.3328.6622.5418.1731.9432.2720.9632.9753.5750.01

MODG Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016FY 2015
Dividend Yield————0.0%0.1%0.2%0.3%0.3%0.4%0.4%
Payout Ratio————0.0%—4.8%3.6%9.2%2.0%23.3%

Total Shareholder Return Metrics

MetricTTMFY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016FY 2015
Earnings Yield——3.3%3.9%6.6%—3.9%7.1%3.0%18.1%1.8%
FCF Yield3.7%6.0%———8.4%1.6%3.7%6.8%5.9%2.0%
Buyback Yield1.4%2.2%1.9%0.9%0.8%1.0%1.4%1.5%1.2%0.5%0.2%
Total Shareholder Yield1.4%2.2%1.9%0.9%0.8%1.1%1.6%1.8%1.5%0.8%0.7%
Shares Outstanding—$184M$201M$201M$177M$94M$96M$97M$97M$96M$85M

Key Metrics

Growth RegimeContracting
ProfitabilityNegative
Balance SheetStrained
Cash FlowMixed
Top Statement Risk

High Capital Intensity Risk

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2025Q3)

Market Valuation Reflects Structural Uncertainty

According to current market data, MODG trades at a P/S ratio of 0.55, which suggests that investors are heavily discounting the firm's growth prospects compared to historical averages and peer benchmarks, likely due to the persistent negative earnings and the ongoing integration challenges within its diverse business segments.

The negative P/E ratio and the absence of a meaningful forward P/E indicate that the market is struggling to assign a value to the company's future earnings potential. This valuation gap relative to peers like Acushnet suggests that the market views the Topgolf entertainment model as a high-risk, capital-intensive venture rather than a stable consumer goods business.

Capital Efficiency Remains Under Pressure

Based on reported financial figures, the company's ROIC has fluctuated significantly, reaching a low of -17.4% in 2024Q4, which indicates that the firm is currently failing to generate returns that exceed its cost of capital, largely due to the heavy asset base required for venue expansion.

The erratic trend in ROIC highlights the difficulty in scaling the Topgolf segment while maintaining the profitability of the legacy equipment business. Investors should monitor whether management can improve capital allocation efficiency, as the current returns suggest that recent investments in physical infrastructure have yet to yield the expected synergistic value.

Working Capital Cycles Signal Inefficiency

As reported in recent quarterly filings, the cash conversion cycle has ballooned to 749 days in 2025Q3, a stark increase from historical levels, which suggests that the company is facing significant challenges in managing its inventory turnover and collecting payments from its diverse customer base.

The extremely high days inventory outstanding (DIO) of 744 days indicates a potential overstocking of equipment or a slowdown in the velocity of goods moving through the retail channel. This inefficiency in working capital management places additional strain on liquidity and suggests that the company's operational leverage is currently working against its cash flow generation.

Debt Serviceability Risks Remain Elevated

According to the latest quarterly data, the debt-to-EBITDA ratio has reached 47.49, which indicates that the company's ability to service its debt obligations is severely compromised compared to historical norms and industry standards for leisure and consumer cyclical firms.

The sharp rise in leverage, coupled with an interest coverage ratio of 0.48, suggests that the company may face significant refinancing risks if operational performance does not improve. The reliance on external financing to support the capital-intensive venue model warrants close investigation by stakeholders concerned with long-term solvency.

Misapplied Metrics Obscure True Performance

The most commonly misapplied metric for MODG is the P/E ratio, which fails to account for the massive non-cash impairment charges and pre-opening costs that currently distort the company's bottom line and mask the underlying cash-generative potential of its mature Topgolf venues.

Analysts should instead focus on four-wall EBITDA or free cash flow metrics to better understand the operational health of the venue business. Relying on traditional earnings multiples in this context obscures the reality that the company is in a heavy investment phase, leading to an inaccurate assessment of its true economic value.

Download Financial Ratios Data

Includes 30+ ratios · 30 years · Updated daily

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MODG — Frequently Asked Questions

Quick answers to the most common questions about buying MODG stock.

What is Topgolf Callaway Brands Corp.'s P/E ratio?

Topgolf Callaway Brands Corp.'s current P/E ratio is -1.6x. The historical average is 25.6x.

What is Topgolf Callaway Brands Corp.'s ROE?

Topgolf Callaway Brands Corp.'s return on equity (ROE) is -46.1%. The historical average is 5.6%.

Is MODG stock overvalued?

Based on historical data, Topgolf Callaway Brands Corp. is trading at a P/E of -1.6x. Compare with industry peers and growth rates for a complete picture.

What are Topgolf Callaway Brands Corp.'s profit margins?

Topgolf Callaway Brands Corp. has 62.5% gross margin and -29.7% operating margin.