54.12 USD
-1.23 (-2.22%)
54.17 USD
+0.05 (+0.09%)
ASO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 122 industry peers in the Specialty Retail industry. ASO has an excellent profitability rating, but there are some minor concerns on its financial health. ASO is valued quite cheap, while showing a decent growth score. This is a good combination! This makes ASO very considerable for value investing!
1. Profitability
1.1 Basic Checks
- ASO had positive earnings in the past year.
- ASO had a positive operating cash flow in the past year.
- In the past 5 years ASO has always been profitable.
- In the past 5 years ASO always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of ASO (6.96%) is better than 79.51% of its industry peers.
- Looking at the Return On Equity, with a value of 17.55%, ASO is in the better half of the industry, outperforming 76.23% of the companies in the same industry.
- ASO has a better Return On Invested Capital (9.26%) than 72.95% of its industry peers.
- ASO had an Average Return On Invested Capital over the past 3 years of 14.39%. This is above the industry average of 12.24%.
- The 3 year average ROIC (14.39%) for ASO is well above the current ROIC(9.26%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.96% | ||
| ROE | 17.55% | ||
| ROIC | 9.26% |
ROA(3y)11.1%
ROA(5y)11%
ROE(3y)28.67%
ROE(5y)31.91%
ROIC(3y)14.39%
ROIC(5y)14.77%
1.3 Margins
- ASO has a better Profit Margin (6.27%) than 80.33% of its industry peers.
- ASO's Profit Margin has improved in the last couple of years.
- The Operating Margin of ASO (8.26%) is better than 77.87% of its industry peers.
- In the last couple of years the Operating Margin of ASO has grown nicely.
- ASO has a Gross Margin of 34.42%. This is comparable to the rest of the industry: ASO outperforms 42.62% of its industry peers.
- ASO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.26% | ||
| PM (TTM) | 6.27% | ||
| GM | 34.42% |
OM growth 3Y-12.18%
OM growth 5Y19.57%
PM growth 3Y-10.73%
PM growth 5Y23.2%
GM growth 3Y-0.79%
GM growth 5Y2.73%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ASO is creating some value.
- Compared to 1 year ago, ASO has less shares outstanding
- Compared to 5 years ago, ASO has less shares outstanding
- Compared to 1 year ago, ASO has an improved debt to assets ratio.
2.2 Solvency
- ASO has an Altman-Z score of 2.77. This is not the best score and indicates that ASO is in the grey zone with still only limited risk for bankruptcy at the moment.
- ASO has a Altman-Z score of 2.77. This is comparable to the rest of the industry: ASO outperforms 59.84% of its industry peers.
- ASO has a debt to FCF ratio of 2.54. This is a good value and a sign of high solvency as ASO would need 2.54 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 2.54, ASO is doing good in the industry, outperforming 73.77% of the companies in the same industry.
- A Debt/Equity ratio of 0.22 indicates that ASO is not too dependend on debt financing.
- The Debt to Equity ratio of ASO (0.22) is better than 61.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.54 | ||
| Altman-Z | 2.77 |
ROIC/WACC0.95
WACC9.72%
2.3 Liquidity
- A Current Ratio of 1.71 indicates that ASO should not have too much problems paying its short term obligations.
- ASO has a Current ratio of 1.71. This is in the better half of the industry: ASO outperforms 70.49% of its industry peers.
- ASO has a Quick Ratio of 1.71. This is a bad value and indicates that ASO is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of ASO (0.32) is worse than 68.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
- ASO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.94%.
- ASO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 33.32% yearly.
- ASO shows a decrease in Revenue. In the last year, the revenue decreased by -0.65%.
- Measured over the past years, ASO shows a small growth in Revenue. The Revenue has been growing by 4.20% on average per year.
EPS 1Y (TTM)-7.94%
EPS 3Y-7.28%
EPS 5Y33.32%
EPS Q2Q%16.33%
Revenue 1Y (TTM)-0.65%
Revenue growth 3Y-4.32%
Revenue growth 5Y4.2%
Sales Q2Q%3%
3.2 Future
- ASO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.55% yearly.
- ASO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.66% yearly.
EPS Next Y-1.47%
EPS Next 2Y3.94%
EPS Next 3Y6.1%
EPS Next 5Y9.55%
Revenue Next Year2.74%
Revenue Next 2Y4.42%
Revenue Next 3Y5.16%
Revenue Next 5Y5.66%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 9.33, the valuation of ASO can be described as reasonable.
- 87.70% of the companies in the same industry are more expensive than ASO, based on the Price/Earnings ratio.
- ASO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.25.
- With a Price/Forward Earnings ratio of 8.28, the valuation of ASO can be described as very reasonable.
- 91.80% of the companies in the same industry are more expensive than ASO, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. ASO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.33 | ||
| Fwd PE | 8.28 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ASO is valued a bit cheaper than 79.51% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, ASO is valued a bit cheaper than 72.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.92 | ||
| EV/EBITDA | 6.26 |
4.3 Compensation for Growth
- The excellent profitability rating of ASO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.28
EPS Next 2Y3.94%
EPS Next 3Y6.1%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.91%, ASO is not a good candidate for dividend investing.
- ASO's Dividend Yield is a higher than the industry average which is at 2.15.
- With a Dividend Yield of 0.91, ASO pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
5.2 History
- ASO has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- 8.93% of the earnings are spent on dividend by ASO. This is a low number and sustainable payout ratio.
DP8.93%
EPS Next 2Y3.94%
EPS Next 3Y6.1%
ACADEMY SPORTS & OUTDOORS IN / ASO FAQ
What is the fundamental rating for ASO stock?
ChartMill assigns a fundamental rating of 6 / 10 to ASO.
What is the valuation status for ASO stock?
ChartMill assigns a valuation rating of 7 / 10 to ACADEMY SPORTS & OUTDOORS IN (ASO). This can be considered as Undervalued.
How profitable is ACADEMY SPORTS & OUTDOORS IN (ASO) stock?
ACADEMY SPORTS & OUTDOORS IN (ASO) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for ASO stock?
The Price/Earnings (PE) ratio for ACADEMY SPORTS & OUTDOORS IN (ASO) is 9.33 and the Price/Book (PB) ratio is 1.68.
What is the financial health of ACADEMY SPORTS & OUTDOORS IN (ASO) stock?
The financial health rating of ACADEMY SPORTS & OUTDOORS IN (ASO) is 6 / 10.