NASDAQ:ASO stands out as a stock that provides good value for the fundamentals it showcases.

Last update: Jan 1, 2024

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.

Assessing Valuation for NASDAQ:ASO

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:ASO has received a 7 out of 10:

ASO is valuated reasonably with a Price/Earnings ratio of 9.69.
ASO's Price/Earnings ratio is rather cheap when compared to the industry. ASO is cheaper than 84.50% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.08. ASO is valued rather cheaply when compared to this.
ASO is valuated reasonably with a Price/Forward Earnings ratio of 8.64.
Based on the Price/Forward Earnings ratio, ASO is valued cheaply inside the industry as 87.60% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 20.99. ASO is valued rather cheaply when compared to this.
ASO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ASO is cheaper than 74.42% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ASO indicates a somewhat cheap valuation: ASO is cheaper than 73.64% of the companies listed in the same industry.
The excellent profitability rating of ASO may justify a higher PE ratio.

Evaluating Profitability: 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 (10.34%) is better than 83.72% of its industry peers.
With an excellent Return On Equity value of 28.37%, ASO belongs to the best of the industry, outperforming 82.17% of the companies in the same industry.
The Return On Invested Capital of ASO (14.02%) is better than 81.40% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ASO is above the industry average of 13.18%.
ASO has a Profit Margin of 8.33%. This is amongst the best in the industry. ASO outperforms 89.15% of its industry peers.
In the last couple of years the Profit Margin of ASO has grown nicely.
With an excellent Operating Margin value of 11.11%, ASO belongs to the best of the industry, outperforming 87.60% of the companies in the same industry.
ASO's Operating Margin has improved in the last couple of years.
In the last couple of years the Gross Margin of ASO has grown nicely.

Looking at the Health

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:ASO was assigned a score of 7 for health:

An Altman-Z score of 3.25 indicates that ASO is not in any danger for bankruptcy at the moment.
ASO has a Altman-Z score of 3.25. This is in the better half of the industry: ASO outperforms 70.54% of its industry peers.
The Debt to FCF ratio of ASO is 1.62, which is an excellent value as it means it would take ASO, only 1.62 years of fcf income to pay off all of its debts.
ASO has a Debt to FCF ratio of 1.62. This is in the better half of the industry: ASO outperforms 71.32% of its industry peers.
A Debt/Equity ratio of 0.33 indicates that ASO is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.33, ASO is doing good in the industry, outperforming 60.47% of the companies in the same industry.
The Current ratio of ASO (1.62) is better than 62.02% 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 Assessment of 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:

Measured over the past years, ASO shows a very strong growth in Earnings Per Share. The EPS has been growing by 62.55% on average per year.
The Earnings Per Share is expected to grow by 8.48% on average over the next years. This is quite good.

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

Check the latest full fundamental report of ASO for a complete fundamental analysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.