Take a swing at callaway golf

Callaway Golf is a Carlsbad, CA based driver manufacturer. As well as its subsidiaries, Callaway Golf designs, manufactures and sells golf equipment, baseballs, and various golf accessories. The organization owns golf brands including Callaway Golf, Odyssey, Top-Flight and U Pro. Callaway Golf 's primary competition is other club sets manufacturers like TaylorMade Golf, Cleveland Golf, and Accushnet Golf. Callaway Golf features a market capitalization of $436 Million, and annual sales of $887 Million.

The business features a positive gross profit margin of 35% that is in-line along with the rest with the recreational products sector. However the company has negative operating and net gain margins, which demonstrates the business's expenses discount golf clubs are far outweighing their revenues. A lot of their expenses are derived from increased promoting costs surrounding their new product line.

According to these valuation techniques, shares of Callaway Golf look for be pretty cheap. However after posting three straight many years of losses, the shares might be deservedly cheap. The stock is trading well below book value, possibly at nearly 50% of their sales. Considering that the company posted fabric decrease of 2011, the stock's current price to earnings ratio is often a negative figure. However the stock's forward price to earnings ratio is really a positive number, implying how the projected earnings in the next four quarters would have been a positive figure.

Callaway Golf's most recent earnings showed a narrowing loss per share of $1.01. In the latest earnings conference call, Callaway Golf CEO Tony Thornley had many positive circumstances to say in regards to the quarter. He was happy about taylormade burner superfast 2.0 fairway wood achievement in reaching their $50 million savings target, and that he expects the business to post money in 2012.

Meanwhile Callaway Golf seems to be in a very safe budget - they have a positive cash flow of thirteen cents per share, which takes care of their four cent dividend, and now have zero debt on their own Balance Sheet. Looking forward I do believe there are several bright spots ahead for Callaway Golf. As an example nearly 50% of their revenues come from inside United states of america, and just 13% emanates from Europe. With all the ladder facing an economic downturn, the belief that the majority of their revenues come from an economy whose economy happens to be recovering is a positive.

The recovering U.S economy can be another bright spot for the company as the golf companies are closely correlated to discretionary spending, which obviously TaylorMade Rossa Corza Ghost Putter continues to be with a low-level within the last number of years. The corporation has spent a lot of 2011 concentrating on cost- savings, which combined with a heightened demand have a very positive impact on their future earnings.