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NASDAQ:ASO stands out as a stock that provides good value for the fundamentals it showcases.

By Mill Chart

Last update: Mar 1, 2024

ACADEMY SPORTS & OUTDOORS IN (NASDAQ:ASO) is a hidden gem identified by our stock screening tool, featuring undervaluation and robust fundamentals. NASDAQ:ASO showcases decent financial health and profitability, coupled with an attractive price. Let's dig deeper into the analysis.

Evaluating Valuation: NASDAQ:ASO

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:ASO has achieved a 7 out of 10:

  • ASO is valuated reasonably with a Price/Earnings ratio of 10.97.
  • ASO's Price/Earnings ratio is rather cheap when compared to the industry. ASO is cheaper than 81.89% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 26.09. ASO is valued rather cheaply when compared to this.
  • Based on the Price/Forward Earnings ratio of 9.79, the valuation of ASO can be described as reasonable.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of ASO indicates a rather cheap valuation: ASO is cheaper than 83.46% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 21.73. ASO is valued rather cheaply when compared to this.
  • 70.08% of the companies in the same industry are more expensive than ASO, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, ASO is valued a bit cheaper than 68.50% of the companies in the same industry.
  • ASO has an outstanding profitability rating, which may justify a higher PE ratio.

Evaluating Profitability: NASDAQ:ASO

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:ASO was assigned a score of 8 for profitability:

  • ASO's Return On Assets of 10.34% is amongst the best of the industry. ASO outperforms 83.46% of its industry peers.
  • ASO's Return On Equity of 28.37% is amongst the best of the industry. ASO outperforms 81.10% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 14.02%, ASO belongs to the top of the industry, outperforming 81.10% of the companies in the same industry.
  • ASO had an Average Return On Invested Capital over the past 3 years of 16.29%. This is above the industry average of 12.81%.
  • The Profit Margin of ASO (8.33%) is better than 88.98% of its industry peers.
  • In the last couple of years the Profit Margin of ASO has grown nicely.
  • ASO has a better Operating Margin (11.11%) than 87.40% of its industry peers.
  • 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.

Understanding NASDAQ:ASO's Health

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:ASO, the assigned 7 for health provides valuable insights:

  • An Altman-Z score of 3.38 indicates that ASO is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of ASO (3.38) is better than 73.23% of its industry peers.
  • ASO has a debt to FCF ratio of 1.62. This is a very positive value and a sign of high solvency as it would only need 1.62 years to pay back of all of its debts.
  • With a decent Debt to FCF ratio value of 1.62, ASO is doing good in the industry, outperforming 73.23% of the companies in the same industry.
  • ASO has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
  • ASO's Current ratio of 1.62 is fine compared to the rest of the industry. ASO outperforms 62.20% 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.

What does the Growth looks like for NASDAQ:ASO

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:ASO scores a 4 out of 10:

  • ASO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 62.55% yearly.
  • ASO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.48% yearly.

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

Check the latest full fundamental report of ASO for a complete fundamental analysis.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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ACADEMY SPORTS & OUTDOORS IN

NASDAQ:ASO (5/24/2024, 7:14:50 PM)

After market: 53.28 0 (0%)

53.28

+0.24 (+0.45%)

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