Despite its impressive fundamentals, NASDAQ:ASO remains undervalued.

Last update: Jun 28, 2024

Discover ACADEMY SPORTS & OUTDOORS IN (NASDAQ:ASO), an undervalued stock highlighted by our stock screener. NASDAQ:ASO showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

What does the Valuation looks like for 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 7.88, which indicates a rather cheap valuation of ASO.
94.40% of the companies in the same industry are more expensive than ASO, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.40. ASO is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 7.19, 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 92.00% of the companies in the same industry.
ASO is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.05, which is the current average of the S&P500 Index.
Based on the Enterprise Value to EBITDA ratio, ASO is valued cheaper than 86.40% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ASO is valued cheaper than 84.00% of the companies in the same industry.
ASO has an outstanding profitability rating, which may justify a higher PE ratio.

What does the Profitability looks like for NASDAQ:ASO

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:ASO scores a 9 out of 10:

ASO's Return On Assets of 10.29% is amongst the best of the industry. ASO outperforms 84.80% of its industry peers.
ASO has a better Return On Equity (26.33%) than 81.60% of its industry peers.
ASO has a Return On Invested Capital of 13.51%. This is amongst the best in the industry. ASO outperforms 80.80% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ASO is above the industry average of 13.93%.
The last Return On Invested Capital (13.51%) for ASO is well below the 3 year average (17.55%), which needs to be investigated, but indicates that ASO had better years and this may not be a problem.
ASO's Profit Margin of 8.17% is amongst the best of the industry. ASO outperforms 84.80% of its industry peers.
ASO's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 10.65%, ASO belongs to the best of the industry, outperforming 84.80% of the companies in the same industry.
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.

Understanding NASDAQ:ASO's Health Score

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:ASO has received a 7 out of 10:

An Altman-Z score of 3.15 indicates that ASO is not in any danger for bankruptcy at the moment.
ASO's Altman-Z score of 3.15 is fine compared to the rest of the industry. ASO outperforms 67.20% of its industry peers.
ASO has a debt to FCF ratio of 1.01. This is a very positive value and a sign of high solvency as it would only need 1.01 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.01, ASO is in the better half of the industry, outperforming 79.20% of the companies in the same industry.
A Debt/Equity ratio of 0.25 indicates that ASO is not too dependend on debt financing.
With a decent Current ratio value of 1.62, ASO is doing good in the industry, outperforming 63.20% 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

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:ASO, the assigned 4 reflects its growth potential:

ASO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 94.62% yearly.
ASO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.51% 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

Keep in mind

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.