NASDAQ:ASO is an undervalued gem with solid fundamentals.

Last update: May 17, 2024

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.

How do we evaluate the Valuation for NASDAQ:ASO?

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:ASO scores a 8 out of 10:

The Price/Earnings ratio is 7.79, which indicates a rather cheap valuation of ASO.
ASO's Price/Earnings ratio is rather cheap when compared to the industry. ASO is cheaper than 94.44% of the companies in the same industry.
ASO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.83.
The Price/Forward Earnings ratio is 7.93, which indicates a rather cheap valuation of ASO.
ASO's Price/Forward Earnings ratio is rather cheap when compared to the industry. ASO is cheaper than 91.27% of the companies in the same industry.
ASO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.47.
Based on the Enterprise Value to EBITDA ratio, ASO is valued cheaply inside the industry as 84.13% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ASO is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
The excellent profitability rating of ASO may justify a higher PE ratio.

Evaluating Profitability: NASDAQ:ASO

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:ASO, the assigned 8 is a significant indicator of profitability:

Looking at the Return On Assets, with a value of 11.10%, ASO belongs to the top of the industry, outperforming 86.51% of the companies in the same industry.
ASO's Return On Equity of 26.56% is amongst the best of the industry. ASO outperforms 81.75% of its industry peers.
ASO has a Return On Invested Capital of 13.84%. This is amongst the best in the industry. ASO outperforms 80.95% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ASO is above the industry average of 13.62%.
With an excellent Profit Margin value of 8.43%, ASO belongs to the best of the industry, outperforming 87.30% of the companies in the same industry.
ASO's Profit Margin has improved in the last couple of years.
The Operating Margin of ASO (11.01%) is better than 86.51% 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.

Health Analysis for NASDAQ:ASO

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:ASO scores a 8 out of 10:

An Altman-Z score of 3.41 indicates that ASO is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.41, ASO is doing good in the industry, outperforming 70.63% of the companies in the same industry.
The Debt to FCF ratio of ASO is 1.49, which is an excellent value as it means it would take ASO, only 1.49 years of fcf income to pay off all of its debts.
ASO has a better Debt to FCF ratio (1.49) than 76.19% of its industry peers.
ASO has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
ASO has a Debt to Equity ratio of 0.25. This is in the better half of the industry: ASO outperforms 60.32% of its industry peers.
ASO has a Current ratio of 1.87. This is in the better half of the industry: ASO outperforms 74.60% of its industry peers.
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:

The Earnings Per Share has been growing by 94.62% on average over the past years. This is a very strong growth
Based on estimates for the next years, ASO will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.65% on average per year.

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

Keep in mind

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.