ACADEMY SPORTS & OUTDOORS IN (ASO) Stock Fundamental Analysis
NASDAQ:ASO - Nasdaq - US00402L1070 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to ASO. ASO was compared to 120 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 is valued quite cheap, but it does not seem to be growing. With these ratings, ASO could be worth investigating further 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.
ASO had positive earnings in each of the past 5 years.
Each year in the past 5 years ASO had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ASO (8.90%) is better than 82.91% of its industry peers.
Looking at the Return On Equity, with a value of 23.09%, ASO is in the better half of the industry, outperforming 78.63% of the companies in the same industry.
ASO's Return On Invested Capital of 11.75% is fine compared to the rest of the industry. ASO outperforms 79.49% 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 12.30%.
The last Return On Invested Capital (11.75%) for ASO is well below the 3 year average (17.55%), which needs to be investigated, but indicates that ASO had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.9% | ||
| ROE | 23.09% | ||
| ROIC | 11.75% |
ROA(3y)13.14%
ROA(5y)9.84%
ROE(3y)36.97%
ROE(5y)30.16%
ROIC(3y)17.55%
ROIC(5y)13.33%
1.3 Margins
With an excellent Profit Margin value of 7.49%, ASO belongs to the best of the industry, outperforming 86.32% of the companies in the same industry.
ASO's Profit Margin has improved in the last couple of years.
ASO's Operating Margin of 9.72% is amongst the best of the industry. ASO outperforms 82.91% of its industry peers.
ASO's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 34.18%, ASO is in line with its industry, outperforming 44.44% of the companies in the same industry.
ASO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.72% | ||
| PM (TTM) | 7.49% | ||
| GM | 34.18% |
OM growth 3Y14.2%
OM growth 5Y32.2%
PM growth 3Y15.8%
PM growth 5Y79.9%
GM growth 3Y3.98%
GM growth 5Y3.68%
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.
The number of shares outstanding for ASO has been reduced compared to 5 years ago.
The debt/assets ratio for ASO has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.89 indicates that ASO is not a great score, but indicates only limited risk for bankruptcy at the moment.
ASO has a better Altman-Z score (2.89) than 63.25% of its industry peers.
The Debt to FCF ratio of ASO is 1.13, which is an excellent value as it means it would take ASO, only 1.13 years of fcf income to pay off all of its debts.
ASO's Debt to FCF ratio of 1.13 is fine compared to the rest of the industry. ASO outperforms 79.49% 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.
The Debt to Equity ratio of ASO (0.25) is better than 60.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.13 | ||
| Altman-Z | 2.89 |
ROIC/WACC1.13
WACC10.37%
2.3 Liquidity
ASO has a Current Ratio of 1.57. This is a normal value and indicates that ASO is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of ASO (1.57) is better than 65.81% of its industry peers.
A Quick Ratio of 0.32 indicates that ASO may have some problems paying its short term obligations.
With a Quick ratio value of 0.32, ASO is not doing good in the industry: 71.79% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| 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 -7.49%.
ASO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 94.62% yearly.
ASO shows a decrease in Revenue. In the last year, the revenue decreased by -0.98%.
ASO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.18% yearly.
EPS 1Y (TTM)-7.49%
EPS 3Y25.51%
EPS 5Y94.62%
EPS Q2Q%-28.99%
Revenue 1Y (TTM)-0.98%
Revenue growth 3Y2.68%
Revenue growth 5Y5.18%
Sales Q2Q%-3.9%
3.2 Future
Based on estimates for the next years, ASO will show a small growth in Earnings Per Share. The EPS will grow by 4.57% on average per year.
The Revenue is expected to grow by 3.63% on average over the next years.
EPS Next Y-14.22%
EPS Next 2Y-2.65%
EPS Next 3Y2.48%
EPS Next 5Y4.57%
Revenue Next Year-3.58%
Revenue Next 2Y0.98%
Revenue Next 3Y3.27%
Revenue Next 5Y3.63%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.07, which indicates a very decent valuation of ASO.
91.45% of the companies in the same industry are more expensive than ASO, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ASO to the average of the S&P500 Index (29.63), we can say ASO is valued rather cheaply.
A Price/Forward Earnings ratio of 7.69 indicates a rather cheap valuation of ASO.
90.60% of the companies in the same industry are more expensive than ASO, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, ASO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.07 | ||
| Fwd PE | 7.69 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ASO is valued cheaply inside the industry as 86.32% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ASO is valued cheaper than 87.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.2 | ||
| EV/EBITDA | 5.33 |
4.3 Compensation for Growth
ASO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.09
EPS Next 2Y-2.65%
EPS Next 3Y2.48%
5. Dividend
5.1 Amount
With a yearly dividend of 0.82%, ASO is not a good candidate for dividend investing.
ASO's Dividend Yield is a higher than the industry average which is at 4.01.
With a Dividend Yield of 0.82, ASO pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
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 Years1
Div Non Decr Years1
5.3 Sustainability
6.74% of the earnings are spent on dividend by ASO. This is a low number and sustainable payout ratio.
DP6.74%
EPS Next 2Y-2.65%
EPS Next 3Y2.48%
50.84
-0.67 (-1.3%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners108.47%
Inst Owner Change4.67%
Ins Owners1.01%
Ins Owner Change2.33%
Market Cap3.53B
Analysts76.67
Price Target64.66 (27.18%)
Short Float %11.23%
Short Ratio4.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
Yearly Dividend0.36
Dividend Growth(5Y)N/A
DP6.74%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-12.87%
Min EPS beat(2)-24.9%
Max EPS beat(2)-0.84%
EPS beat(4)0
Avg EPS beat(4)-10.74%
Min EPS beat(4)-24.9%
Max EPS beat(4)-0.84%
EPS beat(8)2
Avg EPS beat(8)-7.96%
EPS beat(12)6
Avg EPS beat(12)-0.86%
EPS beat(16)10
Avg EPS beat(16)21.02%
Revenue beat(2)0
Avg Revenue beat(2)-3.35%
Min Revenue beat(2)-4.12%
Max Revenue beat(2)-2.58%
Revenue beat(4)0
Avg Revenue beat(4)-2.46%
Min Revenue beat(4)-4.12%
Max Revenue beat(4)-1.27%
Revenue beat(8)0
Avg Revenue beat(8)-2.83%
Revenue beat(12)2
Avg Revenue beat(12)-2.25%
Revenue beat(16)6
Avg Revenue beat(16)-0.65%
PT rev (1m)0.44%
PT rev (3m)-1.14%
EPS NQ rev (1m)0.53%
EPS NQ rev (3m)-9.08%
EPS NY rev (1m)0.23%
EPS NY rev (3m)-4.75%
Revenue NQ rev (1m)-1.62%
Revenue NQ rev (3m)-5.93%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-1.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.07 | ||
| Fwd PE | 7.69 | ||
| P/S | 0.58 | ||
| P/FCF | 8.2 | ||
| P/OCF | 5.67 | ||
| P/B | 1.8 | ||
| P/tB | 6.77 | ||
| EV/EBITDA | 5.33 |
EPS(TTM)6.3
EY12.39%
EPS(NY)6.62
Fwd EY13.01%
FCF(TTM)6.2
FCFY12.19%
OCF(TTM)8.97
OCFY17.65%
SpS87.2
BVpS28.26
TBVpS7.5
PEG (NY)N/A
PEG (5Y)0.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.9% | ||
| ROE | 23.09% | ||
| ROCE | 15.15% | ||
| ROIC | 11.75% | ||
| ROICexc | 12.72% | ||
| ROICexgc | 21.27% | ||
| OM | 9.72% | ||
| PM (TTM) | 7.49% | ||
| GM | 34.18% | ||
| FCFM | 7.11% |
ROA(3y)13.14%
ROA(5y)9.84%
ROE(3y)36.97%
ROE(5y)30.16%
ROIC(3y)17.55%
ROIC(5y)13.33%
ROICexc(3y)19.77%
ROICexc(5y)14.97%
ROICexgc(3y)36.31%
ROICexgc(5y)27.84%
ROCE(3y)22.64%
ROCE(5y)17.2%
ROICexcg growth 3Y3.99%
ROICexcg growth 5Y21.54%
ROICexc growth 3Y9.91%
ROICexc growth 5Y30.16%
OM growth 3Y14.2%
OM growth 5Y32.2%
PM growth 3Y15.8%
PM growth 5Y79.9%
GM growth 3Y3.98%
GM growth 5Y3.68%
F-Score6
Asset Turnover1.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.13 | ||
| Debt/EBITDA | 0.68 | ||
| Cap/Depr | 162.17% | ||
| Cap/Sales | 3.18% | ||
| Interest Coverage | 14.97 | ||
| Cash Conversion | 88.12% | ||
| Profit Quality | 94.98% | ||
| Current Ratio | 1.57 | ||
| Quick Ratio | 0.32 | ||
| Altman-Z | 2.89 |
F-Score6
WACC10.37%
ROIC/WACC1.13
Cap/Depr(3y)120.6%
Cap/Depr(5y)90.9%
Cap/Sales(3y)2.07%
Cap/Sales(5y)1.65%
Profit Quality(3y)74.2%
Profit Quality(5y)140.85%
High Growth Momentum
Growth
EPS 1Y (TTM)-7.49%
EPS 3Y25.51%
EPS 5Y94.62%
EPS Q2Q%-28.99%
EPS Next Y-14.22%
EPS Next 2Y-2.65%
EPS Next 3Y2.48%
EPS Next 5Y4.57%
Revenue 1Y (TTM)-0.98%
Revenue growth 3Y2.68%
Revenue growth 5Y5.18%
Sales Q2Q%-3.9%
Revenue Next Year-3.58%
Revenue Next 2Y0.98%
Revenue Next 3Y3.27%
Revenue Next 5Y3.63%
EBIT growth 1Y-13.38%
EBIT growth 3Y17.26%
EBIT growth 5Y39.05%
EBIT Next Year-2.15%
EBIT Next 3Y4.47%
EBIT Next 5Y9.05%
FCF growth 1Y16.18%
FCF growth 3Y-30.38%
FCF growth 5Y29.3%
OCF growth 1Y33.22%
OCF growth 3Y-19.09%
OCF growth 5Y21.97%