55.13 USD
+0.96 (+1.77%)
55.13 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on ASO. 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.
- ASO had positive earnings in each of the past 5 years.
- In the past 5 years ASO always reported a positive cash flow from operatings.
1.2 Ratios
- ASO has a better Return On Assets (6.96%) 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.
- With a decent Return On Invested Capital value of 9.26%, ASO is doing good in the industry, outperforming 72.95% of the companies in the same industry.
- 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 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
- ASO has a better Profit Margin (6.27%) than 80.33% of its industry peers.
- In the last couple of years the Profit Margin of ASO has grown nicely.
- ASO has a Operating Margin of 8.26%. This is in the better half of the industry: ASO outperforms 77.87% of its industry peers.
- ASO's Operating Margin has improved in the last couple of years.
- ASO has a Gross Margin (34.42%) which is in line with 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
- ASO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- ASO has less shares outstanding than it did 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
- 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's Altman-Z score of 2.77 is fine compared to the rest of the industry. ASO outperforms 60.66% of its industry peers.
- 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.
- The Debt to FCF ratio of ASO (2.54) is better than 73.77% of its industry peers.
- A Debt/Equity ratio of 0.22 indicates that ASO is not too dependend on debt financing.
- ASO has a better Debt to Equity ratio (0.22) 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
- 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's Current ratio of 1.71 is fine compared to the rest 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.
- Looking at the Quick ratio, with a value of 0.32, ASO is doing worse than 68.03% of the companies in the same industry.
| 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%.
- The Revenue has been growing slightly by 4.20% on average over the past years.
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
- The Earnings Per Share is expected to grow by 9.55% on average over the next years. This is quite good.
- 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.
- 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
- A Price/Earnings ratio of 9.51 indicates a reasonable valuation of ASO.
- Based on the Price/Earnings ratio, ASO is valued cheaply inside the industry as 87.70% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 28.60. ASO is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 8.44 indicates a reasonable valuation of ASO.
- 93.44% 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 25.83. ASO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.51 | ||
| Fwd PE | 8.44 |
4.2 Price Multiples
- ASO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ASO is cheaper than 80.33% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, ASO is valued a bit cheaper than the industry average as 72.13% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.27 | ||
| EV/EBITDA | 6.24 |
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
- ASO has a yearly dividend return of 0.91%, which is pretty low.
- Compared to an average industry Dividend Yield of 2.15, ASO pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, 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
- ASO pays out 8.93% of its income as dividend. This is a 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 9.51 and the Price/Book (PB) ratio is 1.71.
What is the financial health of ACADEMY SPORTS & OUTDOORS IN (ASO) stock?
The financial health rating of ACADEMY SPORTS & OUTDOORS IN (ASO) is 5 / 10.