NASDAQ:HIBB is probably undervalued for the fundamentals it is displaying.

Our stock screening tool has pinpointed HIBBETT INC (NASDAQ:HIBB) as an undervalued stock option. NASDAQ:HIBB retains a strong financial foundation and an attractive price tag. Let's delve into the specifics below.

Evaluating Valuation: NASDAQ:HIBB

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:HIBB has earned a 8 for valuation:

• A Price/Earnings ratio of 10.72 indicates a reasonable valuation of HIBB.
• Based on the Price/Earnings ratio, HIBB is valued cheaply inside the industry as 80.80% of the companies are valued more expensively.
• Compared to an average S&P500 Price/Earnings ratio of 28.60, HIBB is valued rather cheaply.
• A Price/Forward Earnings ratio of 9.77 indicates a reasonable valuation of HIBB.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of HIBB indicates a rather cheap valuation: HIBB is cheaper than 80.80% of the companies listed in the same industry.
• The average S&P500 Price/Forward Earnings ratio is at 20.14. HIBB is valued rather cheaply when compared to this.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HIBB indicates a rather cheap valuation: HIBB is cheaper than 84.00% of the companies listed in the same industry.
• Based on the Price/Free Cash Flow ratio, HIBB is valued cheaply inside the industry as 90.40% of the companies are valued more expensively.
• The excellent profitability rating of HIBB may justify a higher PE ratio.

Exploring NASDAQ:HIBB's Profitability

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:HIBB, the assigned 8 is a significant indicator of profitability:

• The Return On Assets of HIBB (10.67%) is better than 88.00% of its industry peers.
• HIBB's Return On Equity of 22.31% is fine compared to the rest of the industry. HIBB outperforms 79.20% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 14.54%, HIBB belongs to the top of the industry, outperforming 83.20% of the companies in the same industry.
• The Average Return On Invested Capital over the past 3 years for HIBB is significantly above the industry average of 13.93%.
• The last Return On Invested Capital (14.54%) for HIBB is well below the 3 year average (23.25%), which needs to be investigated, but indicates that HIBB had better years and this may not be a problem.
• HIBB has a better Profit Margin (5.80%) than 80.00% of its industry peers.
• In the last couple of years the Profit Margin of HIBB has grown nicely.
• HIBB has a better Operating Margin (7.69%) than 77.60% of its industry peers.
• HIBB's Operating Margin has improved in the last couple of years.

Looking at the Health

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:HIBB has received a 8 out of 10:

• An Altman-Z score of 5.72 indicates that HIBB is not in any danger for bankruptcy at the moment.
• The Altman-Z score of HIBB (5.72) is better than 90.40% of its industry peers.
• HIBB has a debt to FCF ratio of 0.06. This is a very positive value and a sign of high solvency as it would only need 0.06 years to pay back of all of its debts.
• With an excellent Debt to FCF ratio value of 0.06, HIBB belongs to the best of the industry, outperforming 86.40% of the companies in the same industry.
• HIBB has a Debt/Equity ratio of 0.02. This is a healthy value indicating a solid balance between debt and equity.
• Looking at the Debt to Equity ratio, with a value of 0.02, HIBB is in the better half of the industry, outperforming 72.80% of the companies in the same industry.
• HIBB has a Current ratio of 1.84. This is in the better half of the industry: HIBB outperforms 76.80% of its industry peers.
• HIBB 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.

Understanding NASDAQ:HIBB'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:HIBB has received a 6 out of 10:

• The Earnings Per Share has been growing by 35.85% on average over the past years. This is a very strong growth
• HIBB shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.38% yearly.
• The Revenue is expected to grow by 49.40% on average over the next years. This is a very strong growth
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

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

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.