Investors should take notice of NASDAQ:ASO—it offers a great deal for the fundamentals it presents.

Last update: Aug 15, 2024

Our stock screening tool has pinpointed ACADEMY SPORTS & OUTDOORS IN (NASDAQ:ASO) as an undervalued stock option. NASDAQ:ASO retains a strong financial foundation and an attractive price tag. Let's delve into the specifics below.

Valuation Analysis 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 7.50, 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 96.80% 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 29.02.
The Price/Forward Earnings ratio is 6.95, which indicates a rather cheap valuation of ASO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ASO indicates a rather cheap valuation: ASO is cheaper than 94.40% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ASO to the average of the S&P500 Index (20.56), we can say ASO is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, ASO is valued cheaply inside the industry as 88.80% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ASO is valued cheaper than 87.20% of the companies in the same industry.
ASO has an outstanding profitability rating, which may justify a higher PE ratio.

Assessing Profitability for 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 9 for profitability:

With an excellent Return On Assets value of 10.29%, ASO belongs to the best of the industry, outperforming 84.80% of the companies in the same industry.
With an excellent Return On Equity value of 26.33%, ASO belongs to the best of the industry, outperforming 81.60% of the companies in the same industry.
With an excellent Return On Invested Capital value of 13.51%, ASO belongs to the best of the industry, outperforming 82.40% 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 12.78%.
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.
The Profit Margin of ASO (8.17%) is better than 85.60% 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 10.65%, ASO belongs to the best of the industry, outperforming 86.40% of the companies in the same industry.
ASO's Operating Margin has improved in the last couple of years.
ASO's Gross Margin has improved in the last couple of years.

Health Examination for NASDAQ:ASO

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:ASO has earned a 7 out of 10:

An Altman-Z score of 3.09 indicates that ASO is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.09, ASO is in the better half of the industry, outperforming 69.60% of the companies in the same industry.
The Debt to FCF ratio of ASO is 1.01, which is an excellent value as it means it would take ASO, only 1.01 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ASO (1.01) is better than 80.00% of its industry peers.
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 65.60% 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.

Assessing Growth Metrics for NASDAQ:ASO

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:ASO boasts 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
The Earnings Per Share is expected to grow by 10.51% 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.

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. 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.