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NASDAQ:ASO is probably undervalued for the fundamentals it is displaying.

By Mill Chart

Last update: Mar 25, 2024

Uncover the potential of ACADEMY SPORTS & OUTDOORS IN (NASDAQ:ASO) as our stock screener's choice for an undervalued stock. NASDAQ:ASO maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

Assessing Valuation for 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 8 out of 10:

  • With a Price/Earnings ratio of 9.18, the valuation of ASO can be described as very reasonable.
  • Compared to the rest of the industry, the Price/Earnings ratio of ASO indicates a rather cheap valuation: ASO is cheaper than 89.68% of the companies listed in the same industry.
  • ASO is valuated cheaply when we compare the Price/Earnings ratio to 26.17, which is the current average of the S&P500 Index.
  • ASO is valuated reasonably with a Price/Forward Earnings ratio of 8.43.
  • 90.48% 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 22.53. ASO is valued rather cheaply when compared to this.
  • Based on the Enterprise Value to EBITDA ratio, ASO is valued a bit cheaper than the industry average as 79.37% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, ASO is valued a bit cheaper than 73.02% of the companies in the same industry.
  • ASO has an outstanding profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as ASO's earnings are expected to grow with 12.96% in the coming years.

A Closer Look at Profitability for NASDAQ:ASO

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:ASO, the assigned 8 is a significant indicator of profitability:

  • With an excellent Return On Assets value of 11.10%, ASO belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
  • The Return On Equity of ASO (26.56%) is better than 80.16% of its industry peers.
  • ASO has a better Return On Invested Capital (13.84%) than 80.16% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for ASO is above the industry average of 14.54%.
  • ASO's Profit Margin of 8.43% is amongst the best of the industry. ASO outperforms 88.10% of its industry peers.
  • In the last couple of years the Profit Margin of ASO has grown nicely.
  • Looking at the Operating Margin, with a value of 11.01%, ASO belongs to the top of the industry, outperforming 84.92% of the companies in the same industry.
  • In the last couple of years the Operating Margin of ASO has grown nicely.
  • In the last couple of years the Gross Margin of ASO has grown nicely.

Exploring NASDAQ:ASO's Health

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:ASO, the assigned 8 reflects its health status:

  • ASO has an Altman-Z score of 3.55. This indicates that ASO is financially healthy and has little risk of bankruptcy at the moment.
  • ASO's Altman-Z score of 3.55 is fine compared to the rest of the industry. ASO outperforms 76.19% of its industry peers.
  • ASO has a debt to FCF ratio of 1.49. This is a very positive value and a sign of high solvency as it would only need 1.49 years to pay back of all of its debts.
  • ASO has a Debt to FCF ratio of 1.49. This is in the better half of the industry: ASO outperforms 76.19% of its industry peers.
  • A Debt/Equity ratio of 0.25 indicates that ASO is not too dependend on debt financing.
  • ASO has a better Debt to Equity ratio (0.25) than 61.90% of its industry peers.
  • Looking at the Current ratio, with a value of 1.87, ASO is in the better half of the industry, outperforming 74.60% of the companies in the same industry.
  • ASO does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Assessing Growth for NASDAQ:ASO

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:ASO boasts a 4 out of 10:

  • The Earnings Per Share has been growing by 94.62% on average over the past years. This is a very strong growth
  • Based on estimates for the next years, ASO will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.68% on average per year.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

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

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

After market: 53.28 0 (0%)

53.28

+0.24 (+0.45%)

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