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 has a great profitability rating, there are some minor concerns on its financial health. ASO scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make ASO a good candidate 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.
- Each year in the past 5 years ASO has 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 79.34% of its industry peers.
- The Return On Equity of ASO (17.55%) is better than 76.03% of its industry peers.
- ASO has a better Return On Invested Capital (9.26%) than 72.73% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ASO 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
- The Profit Margin of ASO (6.27%) is better than 80.17% of its industry peers.
- ASO's Profit Margin has improved in the last couple of years.
- ASO has a better Operating Margin (8.26%) than 77.69% of its industry peers.
- ASO's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 34.42%, ASO perfoms like the industry average, outperforming 42.98% of the companies in the same industry.
- 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
- 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
- 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
- ASO has an Altman-Z score of 2.79. 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.
- The Altman-Z score of ASO (2.79) is better than 61.16% 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.
- 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.
- ASO has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.22, ASO is in the better half of 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
- ASO has a Current Ratio of 1.71. This is a normal value and indicates that ASO is financially healthy and should not expect problems in meeting its short term obligations.
- ASO has a Current ratio of 1.71. This is in the better half of the industry: ASO outperforms 71.07% 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.
- ASO has a Quick ratio of 0.32. This is in the lower half of the industry: ASO underperforms 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.
- 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
- Based on estimates for the next years, ASO will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.55% on average per year.
- The Revenue is expected to grow by 5.66% on average over the next years.
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 9.80, the valuation of ASO can be described as reasonable.
- Based on the Price/Earnings ratio, ASO is valued cheaply inside the industry as 86.78% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of ASO to the average of the S&P500 Index (27.21), we can say ASO is valued rather cheaply.
- The Price/Forward Earnings ratio is 8.69, which indicates a very decent valuation of ASO.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ASO indicates a rather cheap valuation: ASO is cheaper than 90.08% of the companies listed in the same industry.
- 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 | 9.8 | ||
| Fwd PE | 8.69 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ASO indicates a somewhat cheap valuation: ASO is cheaper than 79.34% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, ASO is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.86 | ||
| EV/EBITDA | 6.42 |
4.3 Compensation for Growth
- ASO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.29
EPS Next 2Y3.94%
EPS Next 3Y6.1%
5. Dividend
5.1 Amount
- ASO has a yearly dividend return of 0.91%, which is pretty low.
- ASO's Dividend Yield is a higher than the industry average which is at 2.15.
- Compared to an average S&P500 Dividend Yield of 1.81, ASO's dividend is way lower than the S&P500 average.
| 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.