NASDAQ:ASO appears to be flying under the radar despite its strong fundamentals.

Last update: Nov 11, 2024

Uncover the hidden value in ACADEMY SPORTS & OUTDOORS IN (NASDAQ:ASO) as our stock screening tool recommends it as an undervalued choice. NASDAQ:ASO maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Valuation Analysis 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 8 out of 10:

A Price/Earnings ratio of 7.67 indicates a rather cheap valuation of ASO.
ASO's Price/Earnings ratio is rather cheap when compared to the industry. ASO is cheaper than 96.69% 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 29.30.
ASO is valuated cheaply with a Price/Forward Earnings ratio of 7.37.
ASO's Price/Forward Earnings ratio is rather cheap when compared to the industry. ASO is cheaper than 93.39% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ASO to the average of the S&P500 Index (23.90), we can say ASO is valued rather cheaply.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ASO indicates a rather cheap valuation: ASO is cheaper than 90.91% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ASO is valued cheaply inside the industry as 87.60% of the companies are valued more expensively.
ASO has an outstanding profitability rating, which may justify a higher PE ratio.

Profitability Insights: 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 9 is a significant indicator of profitability:

ASO has a better Return On Assets (10.00%) than 85.12% of its industry peers.
ASO has a Return On Equity of 24.95%. This is amongst the best in the industry. ASO outperforms 80.17% of its industry peers.
ASO has a Return On Invested Capital of 12.97%. This is amongst the best in the industry. ASO outperforms 82.64% of its industry peers.
ASO had an Average Return On Invested Capital over the past 3 years of 17.55%. This is significantly above the industry average of 12.29%.
The 3 year average ROIC (17.55%) for ASO is well above the current ROIC(12.97%). The reason for the recent decline needs to be investigated.
With an excellent Profit Margin value of 7.98%, ASO belongs to the best of the industry, outperforming 86.78% of the companies in the same industry.
In the last couple of years the Profit Margin of ASO has grown nicely.
ASO has a better Operating Margin (10.37%) than 85.12% 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.

Evaluating Health: NASDAQ:ASO

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:ASO, the assigned 8 reflects its health status:

ASO has an Altman-Z score of 3.09. This indicates that ASO is financially healthy and has little risk of bankruptcy at the moment.
ASO has a Altman-Z score of 3.09. This is in the better half of the industry: ASO outperforms 66.94% of its industry peers.
ASO has a debt to FCF ratio of 1.18. This is a very positive value and a sign of high solvency as it would only need 1.18 years to pay back of all of its debts.
The Debt to FCF ratio of ASO (1.18) is better than 79.34% 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 better Current ratio (1.66) than 70.25% 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.

Growth Assessment of NASDAQ:ASO

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:ASO was assigned a score of 4 for growth:

The Earnings Per Share has been growing by 94.62% on average over the past years. This is a very strong growth
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.

Our latest full fundamental report of ASO contains the most current fundamental analsysis.

Keep in mind

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.