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 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 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.
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's Return On Assets of 7.49% is fine compared to the rest of the industry. ASO outperforms 78.69% of its industry peers.
The Return On Equity of ASO (19.93%) is better than 78.69% of its industry peers.
ASO has a better Return On Invested Capital (10.07%) than 72.13% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ASO is in line with the industry average of 12.95%.
The 3 year average ROIC (14.39%) for ASO is well above the current ROIC(10.07%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.49% | ||
| ROE | 19.93% | ||
| ROIC | 10.07% |
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 (6.55%) is better than 82.79% of its industry peers.
ASO's Profit Margin has improved in the last couple of years.
The Operating Margin of ASO (8.54%) is better than 81.15% of its industry peers.
In the last couple of years the Operating Margin of ASO has grown nicely.
ASO has a Gross Margin of 34.03%. This is comparable to the rest of the industry: ASO outperforms 43.44% of its industry peers.
In the last couple of years the Gross Margin of ASO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.54% | ||
| PM (TTM) | 6.55% | ||
| GM | 34.03% |
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.
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 2.70. 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 2.70 is fine compared to the rest of the industry. ASO outperforms 61.48% of its industry peers.
The Debt to FCF ratio of ASO is 1.82, which is an excellent value as it means it would take ASO, only 1.82 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ASO (1.82) is better than 77.05% of its industry peers.
A Debt/Equity ratio of 0.25 indicates that ASO is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.25, ASO is in the better half of the industry, outperforming 61.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.82 | ||
| Altman-Z | 2.7 |
ROIC/WACC1.05
WACC9.57%
2.3 Liquidity
ASO has a Current Ratio of 1.52. 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 better Current ratio (1.52) than 63.11% of its industry peers.
A Quick Ratio of 0.29 indicates that ASO may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.29, ASO is doing worse than 74.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
The earnings per share for ASO have decreased strongly by -15.24% in the last year.
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 -3.57% in the past year.
The Revenue has been growing slightly by 4.20% on average over the past years.
EPS 1Y (TTM)-15.24%
EPS 3Y-7.28%
EPS 5Y33.32%
EPS Q2Q%-29.63%
Revenue 1Y (TTM)-3.57%
Revenue growth 3Y-4.32%
Revenue growth 5Y4.2%
Sales Q2Q%-0.94%
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 8.68% on average per year.
ASO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.21% yearly.
EPS Next Y-2.81%
EPS Next 2Y4.1%
EPS Next 3Y7.48%
EPS Next 5Y8.68%
Revenue Next Year2.82%
Revenue Next 2Y4.66%
Revenue Next 3Y6.19%
Revenue Next 5Y6.21%
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 8.90 indicates a reasonable valuation of ASO.
Compared to the rest of the industry, the Price/Earnings ratio of ASO indicates a rather cheap valuation: ASO is cheaper than 88.52% of the companies listed in the same industry.
ASO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.41.
A Price/Forward Earnings ratio of 7.78 indicates a rather cheap valuation of ASO.
Based on the Price/Forward Earnings ratio, ASO is valued cheaply inside the industry as 90.98% of the companies are valued more expensively.
ASO is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.9 | ||
| Fwd PE | 7.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ASO is valued cheaper than 81.15% 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 79.51% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.7 | ||
| EV/EBITDA | 5.71 |
4.3 Compensation for Growth
The excellent profitability rating of ASO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.27
EPS Next 2Y4.1%
EPS Next 3Y7.48%
5. Dividend
5.1 Amount
With a yearly dividend of 0.93%, ASO is not a good candidate for dividend investing.
ASO's Dividend Yield is a higher than the industry average which is at 4.90.
Compared to an average S&P500 Dividend Yield of 2.35, ASO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
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
8.25% of the earnings are spent on dividend by ASO. This is a low number and sustainable payout ratio.
DP8.25%
EPS Next 2Y4.1%
EPS Next 3Y7.48%
NASDAQ:ASO (7/14/2025, 3:54:08 PM)
50.985
+0.33 (+0.64%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners114.21%
Inst Owner Change0%
Ins Owners0.87%
Ins Owner Change4.42%
Market Cap3.39B
Analysts75.65
Price Target55.08 (8.03%)
Short Float %11.1%
Short Ratio4.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
Yearly Dividend0.44
Dividend Growth(5Y)N/A
DP8.25%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-5.05%
Min EPS beat(2)-16.03%
Max EPS beat(2)5.92%
EPS beat(4)1
Avg EPS beat(4)-8.96%
Min EPS beat(4)-24.9%
Max EPS beat(4)5.92%
EPS beat(8)2
Avg EPS beat(8)-7.91%
EPS beat(12)5
Avg EPS beat(12)-4.87%
EPS beat(16)9
Avg EPS beat(16)6.12%
Revenue beat(2)0
Avg Revenue beat(2)-1.69%
Min Revenue beat(2)-2.43%
Max Revenue beat(2)-0.95%
Revenue beat(4)0
Avg Revenue beat(4)-2.52%
Min Revenue beat(4)-4.12%
Max Revenue beat(4)-0.95%
Revenue beat(8)0
Avg Revenue beat(8)-2.24%
Revenue beat(12)0
Avg Revenue beat(12)-2.71%
Revenue beat(16)4
Avg Revenue beat(16)-1.09%
PT rev (1m)-2.96%
PT rev (3m)-8.9%
EPS NQ rev (1m)-0.22%
EPS NQ rev (3m)-0.33%
EPS NY rev (1m)-2.42%
EPS NY rev (3m)-3.95%
Revenue NQ rev (1m)-0.98%
Revenue NQ rev (3m)-1.22%
Revenue NY rev (1m)-0.68%
Revenue NY rev (3m)-1.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.9 | ||
| Fwd PE | 7.78 | ||
| P/S | 0.57 | ||
| P/FCF | 12.7 | ||
| P/OCF | 6.98 | ||
| P/B | 1.74 | ||
| P/tB | 6.7 | ||
| EV/EBITDA | 5.71 |
EPS(TTM)5.73
EY11.24%
EPS(NY)6.56
Fwd EY12.86%
FCF(TTM)4.01
FCFY7.87%
OCF(TTM)7.31
OCFY14.33%
SpS89.06
BVpS29.29
TBVpS7.61
PEG (NY)N/A
PEG (5Y)0.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.49% | ||
| ROE | 19.93% | ||
| ROCE | 12.9% | ||
| ROIC | 10.07% | ||
| ROICexc | 10.86% | ||
| ROICexgc | 18% | ||
| OM | 8.54% | ||
| PM (TTM) | 6.55% | ||
| GM | 34.03% | ||
| FCFM | 4.51% |
ROA(3y)11.1%
ROA(5y)11%
ROE(3y)28.67%
ROE(5y)31.91%
ROIC(3y)14.39%
ROIC(5y)14.77%
ROICexc(3y)15.79%
ROICexc(5y)16.55%
ROICexgc(3y)27.48%
ROICexgc(5y)30.41%
ROCE(3y)18.44%
ROCE(5y)18.93%
ROICexcg growth 3Y-25.62%
ROICexcg growth 5Y22.03%
ROICexc growth 3Y-21.55%
ROICexc growth 5Y23.06%
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%
F-Score5
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.82 | ||
| Debt/EBITDA | 0.77 | ||
| Cap/Depr | 183.46% | ||
| Cap/Sales | 3.7% | ||
| Interest Coverage | 14.24 | ||
| Cash Conversion | 77.75% | ||
| Profit Quality | 68.77% | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.29 | ||
| Altman-Z | 2.7 |
F-Score5
WACC9.57%
ROIC/WACC1.05
Cap/Depr(3y)153.11%
Cap/Depr(5y)114.13%
Cap/Sales(3y)2.82%
Cap/Sales(5y)2.06%
Profit Quality(3y)70.66%
Profit Quality(5y)123.03%
High Growth Momentum
Growth
EPS 1Y (TTM)-15.24%
EPS 3Y-7.28%
EPS 5Y33.32%
EPS Q2Q%-29.63%
EPS Next Y-2.81%
EPS Next 2Y4.1%
EPS Next 3Y7.48%
EPS Next 5Y8.68%
Revenue 1Y (TTM)-3.57%
Revenue growth 3Y-4.32%
Revenue growth 5Y4.2%
Sales Q2Q%-0.94%
Revenue Next Year2.82%
Revenue Next 2Y4.66%
Revenue Next 3Y6.19%
Revenue Next 5Y6.21%
EBIT growth 1Y-22.71%
EBIT growth 3Y-15.97%
EBIT growth 5Y24.59%
EBIT Next Year16.58%
EBIT Next 3Y10.22%
EBIT Next 5Y10.72%
FCF growth 1Y-28.83%
FCF growth 3Y-18.13%
FCF growth 5Y10.28%
OCF growth 1Y-4.17%
OCF growth 3Y-7.78%
OCF growth 5Y14.9%