In a market where value is scarce, ACADEMY SPORTS & OUTDOORS IN (NASDAQ:ASO) offers a refreshing opportunity with its solid fundamentals.

ACADEMY SPORTS & OUTDOORS IN (NASDAQ:ASO) was identified as a decent value stock by our stock screener. ASO scores well on profitability, solvency and liquidity. At the same time it seems to be priced very reasonably. We'll explore this a bit deeper below.

Evaluating Valuation: ASO

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. ASO boasts a 8 out of 10:

• Based on the Price/Earnings ratio of 6.32, the valuation of ASO can be described as very cheap.
• 94.21% of the companies in the same industry are more expensive than ASO, based on the Price/Earnings ratio.
• The average S&P500 Price/Earnings ratio is at 28.78. ASO is valued rather cheaply when compared to this.
• A Price/Forward Earnings ratio of 6.30 indicates a rather cheap valuation of ASO.
• 93.39% of the companies in the same industry are more expensive than ASO, based on the Price/Forward Earnings ratio.
• ASO is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.32, which is the current average of the S&P500 Index.
• Based on the Enterprise Value to EBITDA ratio, ASO is valued cheaper than 84.30% of the companies in the same industry.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of ASO indicates a rather cheap valuation: ASO is cheaper than 85.95% of the companies listed in the same industry.
• The excellent profitability rating of ASO may justify a higher PE ratio.

Exploring ASO's Profitability

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 ASO, the assigned 8 is a significant indicator of profitability:

• With a decent Return On Assets value of 8.54%, ASO is doing good in the industry, outperforming 79.34% of the companies in the same industry.
• The Return On Equity of ASO (20.88%) is better than 80.17% of its industry peers.
• ASO has a better Return On Invested Capital (10.67%) than 73.55% of its industry peers.
• ASO has a better Profit Margin (7.05%) than 83.47% 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 9.08%, ASO belongs to the top of the industry, outperforming 82.64% of the companies in the same industry.
• ASO's Operating Margin has improved in the last couple of years.
• ASO's Gross Margin has improved in the last couple of years.

Understanding 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 ASO, the assigned 6 for health provides valuable insights:

• The Altman-Z score of ASO (2.79) is better than 64.46% of its industry peers.
• ASO has a debt to FCF ratio of 1.48. This is a very positive value and a sign of high solvency as it would only need 1.48 years to pay back of all of its debts.
• Looking at the Debt to FCF ratio, with a value of 1.48, ASO is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
• A Debt/Equity ratio of 0.24 indicates that ASO is not too dependend on debt financing.
• Looking at the Debt to Equity ratio, with a value of 0.24, ASO is in the better half of the industry, outperforming 60.33% of the companies in the same industry.
• The Current ratio of ASO (1.78) is better than 75.21% of its industry peers.

Growth Analysis for ASO

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. ASO has earned a 4 for growth:

• ASO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 33.32% yearly.
• 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.

More Decent Value stocks can be found in our Decent Value screener.

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

Keep in mind

This article should in no way be interpreted as advice. 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.