NASDAQ:ASO is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Last update: Jun 7, 2024

ACADEMY SPORTS & OUTDOORS IN (NASDAQ:ASO) is a hidden gem identified by our stock screening tool, featuring undervaluation and robust fundamentals. NASDAQ:ASO showcases decent financial health and profitability, coupled with an attractive price. Let's dig deeper into the analysis.

Valuation Analysis for NASDAQ:ASO

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:ASO was assigned a score of 8 for valuation:

A Price/Earnings ratio of 7.87 indicates a rather cheap valuation of ASO.
ASO's Price/Earnings ratio is rather cheap when compared to the industry. ASO is cheaper than 96.00% 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 28.21.
With a Price/Forward Earnings ratio of 8.00, the valuation of ASO can be described as very cheap.
ASO's Price/Forward Earnings ratio is rather cheap when compared to the industry. ASO is cheaper than 88.80% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.07, ASO is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, ASO is valued cheaper than 86.40% of the companies in the same industry.
76.80% of the companies in the same industry are more expensive than ASO, based on the Price/Free Cash Flow ratio.
ASO has an outstanding profitability rating, which may justify a higher PE ratio.

Profitability Insights: NASDAQ:ASO

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:ASO was assigned a score of 8 for profitability:

The Return On Assets of ASO (11.10%) is better than 87.20% of its industry peers.
The Return On Equity of ASO (26.56%) is better than 81.60% of its industry peers.
ASO has a Return On Invested Capital of 13.84%. This is amongst the best in the industry. ASO outperforms 80.80% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ASO is above the industry average of 14.03%.
The Profit Margin of ASO (8.43%) is better than 86.40% of its industry peers.
ASO's Profit Margin has improved in the last couple of years.
ASO has a better Operating Margin (11.01%) than 86.40% of its industry peers.
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.

Health Assessment of NASDAQ:ASO

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 8 for health:

ASO has an Altman-Z score of 3.40. This indicates that ASO is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.40, ASO is in the better half of the industry, outperforming 71.20% of the companies in the same industry.
ASO has a debt to FCF ratio of 1.49. This is a very positive value and a sign of high solvency as it would only need 1.49 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.49, ASO is in the better half of the industry, outperforming 73.60% of the companies in the same industry.
A Debt/Equity ratio of 0.25 indicates that ASO is not too dependend on debt financing.
Looking at the Current ratio, with a value of 1.87, ASO is in the better half of the industry, outperforming 76.80% of the companies in the same industry.
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.

Exploring NASDAQ:ASO's Growth

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:ASO has received 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 94.62% yearly.
The Earnings Per Share is expected to grow by 9.65% on average over the next years. This is quite good.

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

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.