Callaway Golf Company Common Stock (CALY)

FairStock Score: 28/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Callaway as a branded consumer business with a cyclical golf core. Callaway and Odyssey have real shelf presence, but golf equipment is discretionary, so the brand is not a fortress. The reported record is rough: in fiscal 2025, the year ended 2025-12-31, revenue was $2.1B and net loss was $409.3M, or diluted EPS -$2.20. In fiscal 2024, the year ended 2024-12-31, revenue was also $2.1B and net loss was $1.4B, or EPS -$7.23. Yet the recent quarters show a sharp turn: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $612.2M, net income $75.2M, and diluted EPS $0.40; fiscal Q1 2026, ended 2026-03-31, had revenue $687.5M, net income $93.1M, and EPS $0.47. FairStock labels this a TURNAROUND, because the latest year showed a loss after earlier profits. At the 2026-10-13 close of $13.84, FairStock calculations show P/E 32.19, P/B 1.15, ROE 3.47%, ROCE 2.41%, D/E 0.13, TTM FCF $338.6M and FCF yield 13.7%, EV/EBITDA 5.90, Graham Number $10.81 and margin of safety -28.03%, Piotroski 8/9, Altman Z 2.73. So cash flow and asset value look better than earnings. The low debt helps, but low ROE and ROCE show weak profitability relative to assets and capital employed. The FairStock Score of 28/100 also signals caution. I would want evidence that the Q1/Q2 2026 profits are durable before treating this as a healthy compounder.

In plain English: Callaway makes golf clubs, clothes, and accessories under brands such as Callaway and Odyssey. The business lost money in its latest full year, but it made money in the two most recent quarters and produces solid cash. At the current price, the stock looks expensive compared with reported profit, but less expensive compared with its assets and cash generation.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q4 2025 10-K (period ended 2025-12-31) · fiscal Q3 2025 10-K (period ended 2025-09-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer