ACADEMY SPORTS & OUTDOORS IN (ASO) Stock Fundamental Analysis
NASDAQ:ASO - Nasdaq - US00402L1070 - Common Stock
We assign a fundamental rating of 7 out of 10 to ASO. ASO was compared to 119 industry peers in the Specialty Retail industry. Both the health and profitability get an excellent rating, making ASO a very profitable company, without any liquidiy or solvency issues. ASO is valued quite cheap, but it does not seem to be growing. These ratings would make ASO suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year ASO was profitable.
ASO had a positive operating cash flow in the past year.
In the past 5 years ASO has always been profitable.
ASO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 8.90%, ASO belongs to the best of the industry, outperforming 83.62% of the companies in the same industry.
ASO has a Return On Equity of 23.09%. This is in the better half of the industry: ASO outperforms 78.45% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.75%, ASO is in the better half of the industry, outperforming 79.31% of the companies in the same industry.
ASO had an Average Return On Invested Capital over the past 3 years of 17.55%. This is significantly above the industry average of 12.38%.
The 3 year average ROIC (17.55%) for ASO is well above the current ROIC(11.75%). The reason for the recent decline needs to be investigated.
| 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
ASO's Profit Margin of 7.49% is amongst the best of the industry. ASO outperforms 85.34% of its industry peers.
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 82.76% of its industry peers.
In the last couple of years the Operating Margin of ASO has grown nicely.
ASO's Gross Margin of 34.18% is in line compared to the rest of the industry. ASO outperforms 44.83% of its industry peers.
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
ASO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, ASO has less shares outstanding
Compared to 5 years ago, ASO has less shares outstanding
ASO has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.90 indicates that ASO is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.90, ASO is in the better half of the industry, outperforming 65.52% of the companies in the same industry.
ASO has a debt to FCF ratio of 1.13. This is a very positive value and a sign of high solvency as it would only need 1.13 years to pay back of all of its debts.
The Debt to FCF ratio of ASO (1.13) is better than 81.90% 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 62.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.13 | ||
| Altman-Z | 2.9 |
ROIC/WACC1.14
WACC10.31%
2.3 Liquidity
A Current Ratio of 1.57 indicates that ASO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.57, ASO is in the better half of the industry, outperforming 66.38% of the companies in the same industry.
A Quick Ratio of 0.32 indicates that ASO may have some problems paying its short term obligations.
ASO has a worse Quick ratio (0.32) than 71.55% of its industry peers.
The current and quick ratio evaluation for ASO is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
The earnings per share for ASO have decreased strongly by -10.05% in the last year.
The Earnings Per Share has been growing by 94.62% on average over the past years. This is a very strong growth
The Revenue has decreased by -0.98% in the past year.
Measured over the past years, ASO shows a small growth in Revenue. The Revenue has been growing by 5.18% on average per year.
EPS 1Y (TTM)-10.05%
EPS 3Y25.51%
EPS 5Y94.62%
EPS Q2Q%-30.3%
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.
Based on estimates for the next years, ASO will show a small growth in Revenue. The Revenue will grow by 3.63% on average per year.
EPS Next Y-14.41%
EPS Next 2Y-2.85%
EPS Next 3Y2.33%
EPS Next 5Y4.57%
Revenue Next Year-3.57%
Revenue Next 2Y0.93%
Revenue Next 3Y3.22%
Revenue Next 5Y3.63%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.96, which indicates a rather cheap valuation of ASO.
Based on the Price/Earnings ratio, ASO is valued cheaply inside the industry as 95.69% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ASO to the average of the S&P500 Index (28.29), we can say ASO is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.43, the valuation of ASO can be described as reasonable.
91.38% 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 24.44, ASO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.96 | ||
| Fwd PE | 8.43 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ASO indicates a rather cheap valuation: ASO is cheaper than 88.79% of the companies listed in the same industry.
90.52% of the companies in the same industry are more expensive than ASO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.96 | ||
| EV/EBITDA | 5.43 |
4.3 Compensation for Growth
The excellent profitability rating of ASO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.08
EPS Next 2Y-2.85%
EPS Next 3Y2.33%
5. Dividend
5.1 Amount
With a yearly dividend of 0.84%, ASO is not a good candidate for dividend investing.
ASO's Dividend Yield is a higher than the industry average which is at 3.27.
With a Dividend Yield of 0.84, ASO pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
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 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-2.85%
EPS Next 3Y2.33%
ACADEMY SPORTS & OUTDOORS IN
NASDAQ:ASO (1/21/2025, 5:33:35 PM)
After market: 55.565 +0 (+0.01%)55.56
+2.98 (+5.67%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners108.47%
Inst Owner Change-0.04%
Ins Owners1.01%
Ins Owner Change1.7%
Market Cap3.86B
Analysts76.67
Price Target64.37 (15.86%)
Short Float %13%
Short Ratio4.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
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)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.38%
Min Revenue beat(2)-4.18%
Max Revenue beat(2)-2.58%
Revenue beat(4)0
Avg Revenue beat(4)-2.47%
Min Revenue beat(4)-4.18%
Max Revenue beat(4)-1.27%
Revenue beat(8)0
Avg Revenue beat(8)-2.84%
Revenue beat(12)2
Avg Revenue beat(12)-2.25%
Revenue beat(16)6
Avg Revenue beat(16)-0.65%
PT rev (1m)-0.38%
PT rev (3m)-2.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.56%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.38%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)-1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.96 | ||
| Fwd PE | 8.43 | ||
| P/S | 0.64 | ||
| P/FCF | 8.96 | ||
| P/OCF | 6.19 | ||
| P/B | 1.97 | ||
| P/tB | 7.4 | ||
| EV/EBITDA | 5.43 |
EPS(TTM)6.98
EY12.56%
EPS(NY)6.59
Fwd EY11.86%
FCF(TTM)6.2
FCFY11.16%
OCF(TTM)8.97
OCFY16.15%
SpS87.2
BVpS28.26
TBVpS7.5
PEG (NY)N/A
PEG (5Y)0.08
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 | 2.9 |
F-Score6
WACC10.31%
ROIC/WACC1.14
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)-10.05%
EPS 3Y25.51%
EPS 5Y94.62%
EPS Q2Q%-30.3%
EPS Next Y-14.41%
EPS Next 2Y-2.85%
EPS Next 3Y2.33%
EPS Next 5Y4.57%
Revenue 1Y (TTM)-0.98%
Revenue growth 3Y2.68%
Revenue growth 5Y5.18%
Sales Q2Q%-3.9%
Revenue Next Year-3.57%
Revenue Next 2Y0.93%
Revenue Next 3Y3.22%
Revenue Next 5Y3.63%
EBIT growth 1Y-13.38%
EBIT growth 3Y17.26%
EBIT growth 5Y39.05%
EBIT Next Year-2.01%
EBIT Next 3Y4.48%
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%