For those who appreciate value investing, NASDAQ:ASO is a compelling option with its solid fundamentals.

Last update: Oct 17, 2023

Our stock screener has singled out ACADEMY SPORTS & OUTDOORS IN (NASDAQ:ASO) as a stellar value proposition. NASDAQ:ASO not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

Valuation Assessment of NASDAQ:ASO

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:ASO boasts a 8 out of 10:

The Price/Earnings ratio is 6.37, which indicates a rather cheap valuation of ASO.
Based on the Price/Earnings ratio, ASO is valued cheaply inside the industry as 93.18% of the companies are valued more expensively.
ASO is valuated cheaply when we compare the Price/Earnings ratio to 25.90, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 5.68, which indicates a rather cheap valuation of ASO.
Based on the Price/Forward Earnings ratio, ASO is valued cheaper than 95.45% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 18.97. ASO is valued rather cheaply when compared to this.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ASO indicates a rather cheap valuation: ASO is cheaper than 84.09% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ASO is valued a bit cheaper than the industry average as 78.79% of the companies are valued more expensively.
The excellent profitability rating of ASO may justify a higher PE ratio.

Profitability Insights: NASDAQ:ASO

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:ASO has earned a 8 out of 10:

Looking at the Return On Assets, with a value of 11.56%, ASO belongs to the top of the industry, outperforming 87.12% of the companies in the same industry.
With an excellent Return On Equity value of 31.09%, ASO belongs to the best of the industry, outperforming 84.85% of the companies in the same industry.
ASO's Return On Invested Capital of 15.28% is amongst the best of the industry. ASO outperforms 84.09% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ASO is above the industry average of 13.73%.
ASO has a better Profit Margin (8.71%) than 89.39% of its industry peers.
ASO's Profit Margin has improved in the last couple of years.
The Operating Margin of ASO (11.62%) is better than 87.88% of its industry peers.
In the last couple of years the Operating Margin of ASO has grown nicely.
ASO's Gross Margin has improved in the last couple of years.

Analyzing Health Metrics

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:ASO, the assigned 7 reflects its health status:

ASO has an Altman-Z score of 3.15. This indicates that ASO is financially healthy and has little risk of bankruptcy at the moment.
ASO has a better Altman-Z score (3.15) than 68.18% of its industry peers.
The Debt to FCF ratio of ASO is 1.60, which is an excellent value as it means it would take ASO, only 1.60 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.60, ASO is doing good in the industry, outperforming 72.73% of the companies in the same industry.
A Debt/Equity ratio of 0.34 indicates that ASO is not too dependend on debt financing.
The Debt to Equity ratio of ASO (0.34) is better than 62.12% of its industry peers.
ASO's Current ratio of 1.68 is fine compared to the rest of the industry. ASO outperforms 62.88% of its industry peers.
The current and quick ratio evaluation for ASO is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Growth Insights: NASDAQ:ASO

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:ASO has earned a 5 for growth:

Measured over the past years, ASO shows a very strong growth in Earnings Per Share. The EPS has been growing by 62.53% on average per year.
Based on estimates for the next years, ASO will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.51% on average per year.
Based on estimates for the next years, ASO will show a quite strong growth in Revenue. The Revenue will grow by 8.70% on average per year.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Our latest full fundamental report of ASO contains the most current fundamental analsysis.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.