Callaway Golf Company (CALY) AI Stock Analysis

Callaway Golf Company designs, manufactures, and sells golf equipment, lifestyle apparel, and accessories across the United States, Europe, Asia, and internationally. Operating through two segments—Golf Equipment, and Apparel, Gear and Other—its product lineup features drivers, fairway woods, hybrids, irons, and wedges under Callaway, packaged sets under Callaway and Strata, and putters under Odyssey. The company also offers golf clubs, golf balls, apparel, bags, and accessories under the TravisMathew and OGIO brands. Distribution occurs via golf retailers, sporting goods stores, online retailers, mass merchants, department stores, third-party distributors, company-owned retail stores, and e-commerce websites.

Callaway grew revenue from $3.13B in FY2021 to $4.00B in FY2022 and $4.28B in FY2023, before edging down 1.1% to $4.24B in FY2024. In FY2025, revenue contracted 51.4% to $2.06B, while gross margin dropped to 42.1% from 62.5% in FY2024. Operating margin stood at 6.2% in FY2025, recovering from -29.7% in FY2024 when net income posted -$1.45B. In FY2025, net income rebounded to $38.8M with EPS of $0.05. Over five years from FY2020 to FY2025, revenue achieved a CAGR of 5.3%. For the latest quarter ended June 30, 2026, quarterly revenue grew 2.0% year-over-year, while quarterly earnings grew 262.1%.

As of June 30, 2026, Callaway held $278.1M in cash and short-term investments against total debt of $250.4M, resulting in a net cash position of $27.7M. Total assets stood at $2.78B, backed by shareholders' equity of $2.16B. The company maintains a current ratio of 3.04 and a debt-to-equity ratio of 0.12. In FY2025, operating cash flow reached $334.0M and free cash flow was $301.4M. Capital expenditures totaled $32.6M, while share buybacks accounted for $3.7M.

At a last close of $13.81, Callaway trades at a trailing P/E of 15.9x, below the 18.0x median of its US-listed Consumer Cyclical peers. However, its forward P/E of 18.9x sits above the peer median of 14.1x. The company's price-to-sales multiple is 1.2x compared to the peer median of 0.7x, while its EV/EBITDA of 10.7x is slightly below the peer median of 11.1x. Over the past year, the stock returned 54.2%, outperforming the S&P 500 (SPY) return of 16.8%, though its 5-year return of -31.2% trails the index return of 83.0%.

Wall Street coverage consists of 5 Strong Buy, 5 Hold, and 1 Sell ratings. The mean price target of $20.40 implies upside of 47.7% from the last close of $13.81. Analysts estimate current fiscal year EPS of $0.74 on revenue of $2.06B, representing EPS growth of 254.4%. For next fiscal year, 10 analysts project EPS of $0.89 on revenue of $2.13B. Callaway beat EPS estimates in each of the last 4 quarters. The next earnings date is scheduled for November 5, 2026.

This page is an AI-written research summary of Callaway Golf Company (CALY). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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