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Don't overlook NASDAQ:ASO—it's a hidden gem with strong fundamentals and an attractive price tag.

By Mill Chart

Last update: Nov 29, 2023

Discover ACADEMY SPORTS & OUTDOORS IN (NASDAQ:ASO)—an undervalued stock our stock screener has picked out. NASDAQ:ASO demonstrates solid fundamentals, including health and profitability, all while staying attractively priced. Let's explore the details.

Exploring NASDAQ:ASO's Valuation

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:ASO has received a 8 out of 10:

  • With a Price/Earnings ratio of 6.86, the valuation of ASO can be described as very cheap.
  • 92.31% of the companies in the same industry are more expensive than ASO, based on the Price/Earnings ratio.
  • ASO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.46.
  • The Price/Forward Earnings ratio is 6.15, which indicates a rather cheap valuation of ASO.
  • ASO's Price/Forward Earnings ratio is rather cheap when compared to the industry. ASO is cheaper than 94.62% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 19.59. ASO is valued rather cheaply when compared to this.
  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ASO indicates a rather cheap valuation: ASO is cheaper than 81.54% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, ASO is valued a bit cheaper than 76.92% of the companies in the same industry.
  • The excellent profitability rating of ASO may justify a higher PE ratio.

Profitability Analysis for NASDAQ:ASO

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:ASO scores a 8 out of 10:

  • ASO has a Return On Assets of 11.56%. This is amongst the best in the industry. ASO outperforms 86.92% of its industry peers.
  • The Return On Equity of ASO (31.10%) is better than 83.85% of its industry peers.
  • ASO has a better Return On Invested Capital (15.28%) than 83.85% of its industry peers.
  • ASO had an Average Return On Invested Capital over the past 3 years of 16.29%. This is above the industry average of 13.26%.
  • ASO has a better Profit Margin (8.71%) than 89.23% of its industry peers.
  • ASO's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 11.62%, ASO belongs to the top of the industry, outperforming 87.69% of the companies in the same industry.
  • In the last couple of years the Operating Margin of ASO has grown nicely.
  • ASO's Gross Margin has improved in the last couple of years.

Analyzing Health Metrics

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:ASO has achieved a 7 out of 10:

  • An Altman-Z score of 3.21 indicates that ASO is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of ASO (3.21) is better than 70.77% of its industry peers.
  • The Debt to FCF ratio of ASO is 1.60, which is an excellent value as it means it would take ASO, only 1.60 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 1.60, ASO is in the better half of the industry, outperforming 70.77% of the companies in the same industry.
  • A Debt/Equity ratio of 0.34 indicates that ASO is not too dependend on debt financing.
  • ASO has a Debt to Equity ratio of 0.34. This is in the better half of the industry: ASO outperforms 61.54% of its industry peers.
  • The Current ratio of ASO (1.68) is better than 62.31% 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.

Growth Analysis for NASDAQ:ASO

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:ASO, the assigned 4 reflects its growth potential:

  • Measured over the past years, ASO shows a very strong growth in Earnings Per Share. The EPS has been growing by 62.55% on average per year.
  • ASO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.81% yearly.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of ASO

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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ACADEMY SPORTS & OUTDOORS IN

NASDAQ:ASO (2/22/2024, 10:43:07 AM)

69.719

+0.71 (+1.03%)

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