Callaway Golf CoFRA:CLY +3.51%72 Gross Margin % is 47.52% as of Mar. 2026, which is 6% above its 10-year median of 44.64. GuruFocus rates FRA:CLY with a GF Score™ of 72/100 and a GF Value™ of €10.38 (Significantly Overvalued). The stock has 11 warning signs investors should review. Among 793 Travel & Leisure companies, Callaway Golf Co ranks worse than 68.73% on this metric.
Callaway Golf Co gross margin has been in long-term decline. The average rate of decline per year is -3.5%.
The historical rank and industry rank for Callaway Golf Co's Gross Margin % or its related term are showing as below:
FRA:CLY'
s Gross Margin % Range Over the Past 10 Years
Min: 31.83 Med: 44.64 Max: 60.34
Current: 31.83
During the past 13 years, the highestGross Margin % of Callaway Golf Co was 60.34%. The lowest was 31.83%. And the median was 44.64%.
FRA:CLY's Gross Margin % is ranked worse than 68.73% of 793
companies
in the Travel & Leisure industry
Industry Median: 43.92
vs FRA:CLY: 31.83
Callaway Golf Co had a gross margin of 47.52% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Callaway Golf Co was -3.50% per year.
Callaway Golf Co (FRA:CLY) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Callaway Golf Co had a gross margin of 47.52% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Callaway Golf Co Gross Margin % Related Terms
Callaway Golf Co Gross Margin % Historical Data
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The historical data trend for Callaway Golf Co's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:CLY vs PTON, OSW, FUN: Gross Margin % Comparison
For the Leisure subindustry, Callaway Golf Co's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Callaway Golf Co Gross Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Callaway Golf Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Callaway Golf Co's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Callaway Golf Co (FRA:CLY) has a Gross Margin % of 47.52% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Callaway Golf Co and its competitors. This is near median its historical median of 44.64. Over the past decade, Callaway Golf Co's Gross Margin % has ranged from 31.83 to 60.34. According to the industry distribution chart, Callaway Golf Co ranks #545 out of 793 companies in the Travel & Leisure industry, placing it in the top 68.7%.
Is Callaway Golf Co's Gross Margin % too high?
Callaway Golf Co's current Gross Margin % of 47.52% is near median its 10-year median of 44.64. Over the past 10 years, this metric has ranged from a low of 31.83 to a high of 60.34. The Travel & Leisure industry median Gross Margin % is 43.92. Callaway Golf Co's value of 47.52% is 8.2% above this industry median. Based on the distribution chart, Callaway Golf Co ranks #545 out of 793 companies in the Travel & Leisure industry, which is below the industry midpoint. Overall, Callaway Golf Co has a GF Score™ of 72/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Callaway Golf Co's Gross Margin % compare to PTON and OSW?
According to the Travel & Leisure industry distribution chart, Callaway Golf Co ranks #545 out of 793 companies for Gross Margin %. This places Callaway Golf Co in the lower half of its industry. The industry median Gross Margin % is 43.92. Callaway Golf Co's value of 47.52% is 8.2% above this benchmark. Historically, Callaway Golf Co's own Gross Margin % has ranged from 31.83 to 60.34 over the past decade. While the company's 10-year median is 44.64 vs. the industry median of 43.92, Callaway Golf Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Travel & Leisure company?
The median Gross Margin % among Travel & Leisure companies is 43.92, based on 793 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Callaway Golf Co's current Gross Margin % of 47.52% is 8.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Callaway Golf Co and its competitors. For the Travel & Leisure industry, the median Gross Margin % is 43.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Callaway Golf Co's current Gross Margin % is 47.52%, which is near median its own 10-year median of 44.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Callaway Golf Co stock overvalued right now?
Based on GuruFocus' analysis, Callaway Golf Co (FRA:CLY) is currently considered Significantly Overvalued. The stock's GF Value™ is €10.38, compared to a current price of €16.80 — trading 61.8% above its estimated fair value. The current Gross Margin % is 47.52%, which is near median its 10-year median of 44.64 and 8.2% above the Travel & Leisure industry median of 43.92. Callaway Golf Co's overall GF Score™ is 72/100 with 11 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Callaway Golf Co (FRA:CLY), the current Gross Margin % is 47.52% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Callaway Golf Co (FRA:CLY) Overvalued in 2026?
Based on GuruFocus' analysis, Callaway Golf Co stock appears to be overvalued.
The current stock price of €16.80 is trading 61.8% above its estimated GF Value™ of €10.38.
GuruFocus considers Callaway Golf Co to be Significantly Overvalued.
Key valuation signals for FRA:CLY:
Gross Margin %: 47.52% (near median its 10-year median of 44.64)
GF Value™: €10.38 vs. price of €16.80 (61.8% above fair value)
Industry Position: 8.2% above the Travel & Leisure median (#545 of 793)
No single metric tells the full story. See the FRA:CLY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Callaway Golf Co is a golf equipment, gear and apparel company with a portfolio of world-wide brands, including Callaway Golf, Odyssey, TravisMathew, and OGIO. Callaway designs, manufactures, and sells high-performance golf clubs, golf balls, apparel, bags, and other accessories-setting the standard for performance in the game of golf. The company has two operating and reportable business segments: Golf Equipment and Apparel, Gear and Other. Geographically, the company operates in United States, Europe, Asia, and Rest of World, of which it derives maximum revenue from United States.
72GF Score
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