56.82 USD
-0.21 (-0.37%)
56.82 USD
0 (0%)
ASO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 122 industry peers in the Specialty Retail industry. While ASO belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ASO may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make ASO suitable for value investing!
1. Profitability
1.1 Basic Checks
- ASO had positive earnings in the past year.
- In the past year ASO had a positive cash flow from operations.
- Each year in the past 5 years ASO has been profitable.
- Each year in the past 5 years ASO had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 6.96%, ASO is in the better half of the industry, outperforming 79.34% of the companies in the same industry.
- ASO's Return On Equity of 17.55% is fine compared to the rest of the industry. ASO outperforms 76.03% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 9.26%, ASO is in the better half of the industry, outperforming 72.73% 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 12.24%.
- The last Return On Invested Capital (9.26%) for ASO is well below the 3 year average (14.39%), which needs to be investigated, but indicates that ASO had better years and this may not be a problem.
| 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
- Looking at the Profit Margin, with a value of 6.27%, ASO belongs to the top of the industry, outperforming 80.17% of the companies in the same industry.
- In the last couple of years the Profit Margin of ASO has grown nicely.
- The Operating Margin of ASO (8.26%) is better than 77.69% of its industry peers.
- In the last couple of years the Operating Margin of ASO has grown nicely.
- ASO has a Gross Margin (34.42%) which is in line with its industry peers.
- In the last couple of years the Gross Margin of ASO has grown nicely.
| 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ASO is still creating some value.
- The number of shares outstanding for ASO has been reduced compared to 1 year ago.
- ASO has less shares outstanding than it did 5 years ago.
- ASO has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.79 indicates that ASO is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a decent Altman-Z score value of 2.79, ASO is doing good in the industry, outperforming 61.16% of the companies in the same industry.
- The Debt to FCF ratio of ASO is 2.54, which is a good value as it means it would take ASO, 2.54 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 2.54, ASO is in the better half of the industry, outperforming 74.38% of the companies in the same industry.
- A Debt/Equity ratio of 0.22 indicates that ASO is not too dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.22, ASO is doing good in the industry, outperforming 61.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.54 | ||
| Altman-Z | 2.79 |
ROIC/WACC0.95
WACC9.77%
2.3 Liquidity
- A Current Ratio of 1.71 indicates that ASO should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.71, ASO is in the better half of the industry, outperforming 71.07% of the companies in the same industry.
- 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.
- ASO has a worse Quick ratio (0.32) than 67.77% 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.
- The Revenue has decreased by -0.65% in the past year.
- 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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 9.80 indicates a reasonable valuation of ASO.
- Based on the Price/Earnings ratio, ASO is valued cheaply inside the industry as 86.78% of the companies are valued more expensively.
- ASO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- With a Price/Forward Earnings ratio of 8.69, the valuation of ASO can be described as very reasonable.
- ASO's Price/Forward Earnings ratio is rather cheap when compared to the industry. ASO is cheaper than 90.08% of the companies in the same industry.
- ASO is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.8 | ||
| Fwd PE | 8.69 |
4.2 Price Multiples
- 79.34% of the companies in the same industry are more expensive than ASO, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ASO indicates a somewhat cheap valuation: ASO is cheaper than 72.73% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.86 | ||
| EV/EBITDA | 6.42 |
4.3 Compensation for Growth
- The excellent profitability rating of ASO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.29
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.
- Compared to an average industry Dividend Yield of 2.15, ASO pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.91, ASO pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
5.2 History
- ASO has been paying a dividend for less than 5 years, so it still needs to build a track record.
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 9.8 and the Price/Book (PB) ratio is 1.76.
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.