Don't overlook NASDAQ:HIBB—it's a hidden gem with strong fundamentals and an attractive price tag.

Discover HIBBETT INC (NASDAQ:HIBB), an undervalued stock highlighted by our stock screener. NASDAQ:HIBB showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Exploring NASDAQ:HIBB's Valuation

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:HIBB has achieved a 8 out of 10:

• With a Price/Earnings ratio of 10.77, the valuation of HIBB can be described as very reasonable.
• Based on the Price/Earnings ratio, HIBB is valued cheaper than 81.75% of the companies in the same industry.
• HIBB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.86.
• The Price/Forward Earnings ratio is 9.82, which indicates a very decent valuation of HIBB.
• Based on the Price/Forward Earnings ratio, HIBB is valued cheaply inside the industry as 80.95% of the companies are valued more expensively.
• HIBB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.69.
• Based on the Enterprise Value to EBITDA ratio, HIBB is valued cheaper than 84.13% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, HIBB is valued cheaply inside the industry as 92.06% of the companies are valued more expensively.
• HIBB has an outstanding profitability rating, which may justify a higher PE ratio.

Understanding NASDAQ:HIBB's Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:HIBB has earned a 8 out of 10:

• HIBB's Return On Assets of 10.67% is amongst the best of the industry. HIBB outperforms 87.30% of its industry peers.
• Looking at the Return On Equity, with a value of 22.31%, HIBB is in the better half of the industry, outperforming 79.37% of the companies in the same industry.
• HIBB has a better Return On Invested Capital (14.54%) than 83.33% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for HIBB is significantly above the industry average of 13.06%.
• 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.
• The Profit Margin of HIBB (5.80%) is better than 80.16% of its industry peers.
• HIBB's Profit Margin has improved in the last couple of years.
• HIBB has a Operating Margin of 7.69%. This is in the better half of the industry: HIBB outperforms 77.78% of its industry peers.
• In the last couple of years the Operating Margin of HIBB has grown nicely.

A Closer Look at Health for NASDAQ:HIBB

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:HIBB, the assigned 8 reflects its health status:

• An Altman-Z score of 5.73 indicates that HIBB is not in any danger for bankruptcy at the moment.
• With an excellent Altman-Z score value of 5.73, HIBB belongs to the best of the industry, outperforming 91.27% of the companies in the same industry.
• The Debt to FCF ratio of HIBB is 0.06, which is an excellent value as it means it would take HIBB, only 0.06 years of fcf income to pay off all of its debts.
• With an excellent Debt to FCF ratio value of 0.06, HIBB belongs to the best of the industry, outperforming 86.51% 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.
• With a decent Debt to Equity ratio value of 0.02, HIBB is doing good in the industry, outperforming 73.02% 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 76.19% of its industry peers.
• The current and quick ratio evaluation for HIBB 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:HIBB

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:HIBB scores a 6 out of 10:

• Measured over the past years, HIBB shows a very strong growth in Earnings Per Share. The EPS has been growing by 35.85% on average per year.
• The Revenue has been growing by 11.38% on average over the past years. This is quite good.
• Based on estimates for the next years, HIBB will show a very strong growth in Revenue. The Revenue will grow by 49.40% on average per year.
• When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

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 HIBB

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.