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

Last update: Nov 7, 2023

Consider ACADEMY SPORTS & OUTDOORS IN (NASDAQ:ASO) as a top value stock, identified by our stock screening tool. NASDAQ:ASO shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

Evaluating Valuation: NASDAQ:ASO

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:ASO has achieved a 8 out of 10:

ASO is valuated cheaply with a Price/Earnings ratio of 6.88.
ASO's Price/Earnings ratio is rather cheap when compared to the industry. ASO is cheaper than 91.60% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 23.48. ASO is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 6.16, which indicates a rather cheap valuation of ASO.
Based on the Price/Forward Earnings ratio, ASO is valued cheaply inside the industry as 94.66% of the companies are valued more expensively.
ASO is valuated cheaply when we compare the Price/Forward Earnings ratio to 18.84, which is the current average of the S&P500 Index.
Based on the Enterprise Value to EBITDA ratio, ASO is valued cheaply inside the industry as 80.92% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ASO is valued a bit cheaper than 76.34% of the companies in the same industry.
ASO has an outstanding profitability rating, which may justify a higher PE ratio.

How do we evaluate the Profitability for NASDAQ:ASO?

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:ASO has achieved a 8:

The Return On Assets of ASO (11.56%) is better than 87.02% of its industry peers.
Looking at the Return On Equity, with a value of 31.09%, ASO belongs to the top of the industry, outperforming 83.97% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 15.28%, ASO belongs to the top of the industry, outperforming 83.21% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ASO is above the industry average of 13.32%.
ASO has a better Profit Margin (8.71%) than 89.31% of its industry peers.
In the last couple of years the Profit Margin of ASO has grown nicely.
The Operating Margin of ASO (11.62%) is better than 87.79% of its industry peers.
In the last couple of years the Operating Margin of ASO has grown nicely.
In the last couple of years the Gross Margin of ASO has grown nicely.

ChartMill's Evaluation of Health

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:ASO has achieved a 7 out of 10:

ASO has an Altman-Z score of 3.21. This indicates that ASO is financially healthy and has little risk of bankruptcy at the moment.
ASO's Altman-Z score of 3.21 is fine compared to the rest of the industry. ASO outperforms 68.70% 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.
Looking at the Debt to FCF ratio, with a value of 1.60, ASO is in the better half of the industry, outperforming 71.76% of the companies in the same industry.
ASO has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
ASO's Debt to Equity ratio of 0.34 is fine compared to the rest of the industry. ASO outperforms 61.07% of its industry peers.
With a decent Current ratio value of 1.68, ASO is doing good in the industry, outperforming 61.83% of the companies in the same industry.
ASO does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

How We Gauge Growth for NASDAQ:ASO

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:ASO has achieved a 4 out of 10:

ASO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 62.53% yearly.
ASO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.81% yearly.

More Decent Value stocks can be found in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of ASO

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.