Decent Value Stocks. Analyze the stocks with a good fundamental valuation, while still showing decent profitability, health and growth.


ACADEMY SPORTS & OUTDOORS IN

Nasdaq / Consumer Discretionary / Specialty Retail

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to ASO. ASO was compared to 121 industry peers in the Specialty Retail industry. ASO scores excellent on profitability, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on ASO. With these ratings, ASO could be worth investigating further for value investing!.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

In the past year ASO was profitable.
In the past year ASO had a positive cash flow from operations.
ASO had positive earnings in each of the past 5 years.
In the past 5 years ASO always reported a positive cash flow from operatings.
ASO Yearly Net Income VS EBIT VS OCF VS FCFASO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M 800M 1B

1.2 Ratios

ASO has a Return On Assets of 8.54%. This is in the better half of the industry: ASO outperforms 79.34% of its industry peers.
ASO has a Return On Equity of 20.88%. This is in the better half of the industry: ASO outperforms 79.34% of its industry peers.
With a decent Return On Invested Capital value of 10.67%, ASO is doing good in the industry, outperforming 73.55% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ASO is in line with the industry average of 13.04%.
Industry RankSector Rank
ROA 8.54%
ROE 20.88%
ROIC 10.67%
ROA(3y)11.1%
ROA(5y)11%
ROE(3y)28.67%
ROE(5y)31.91%
ROIC(3y)14.39%
ROIC(5y)14.77%
ASO Yearly ROA, ROE, ROICASO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

1.3 Margins

Looking at the Profit Margin, with a value of 7.05%, ASO belongs to the top of the industry, outperforming 83.47% of the companies in the same industry.
ASO's Profit Margin has improved in the last couple of years.
ASO's Operating Margin of 9.08% is amongst the best of the industry. ASO outperforms 82.64% of its industry peers.
ASO's Operating Margin has improved in the last couple of years.
ASO has a Gross Margin (33.90%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of ASO has grown nicely.
Industry RankSector Rank
OM 9.08%
PM (TTM) 7.05%
GM 33.9%
OM growth 3Y-12.18%
OM growth 5Y19.57%
PM growth 3Y-10.73%
PM growth 5Y23.2%
GM growth 3Y-0.79%
GM growth 5Y2.73%
ASO Yearly Profit, Operating, Gross MarginsASO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

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6

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ASO is still creating some value.
The number of shares outstanding for ASO has been reduced compared to 1 year ago.
ASO has less shares outstanding than it did 5 years ago.
ASO has a better debt/assets ratio than last year.
ASO Yearly Shares OutstandingASO Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M
ASO Yearly Total Debt VS Total AssetsASO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

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.
ASO has a Altman-Z score of 2.90. This is in the better half of the industry: ASO outperforms 65.29% 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.
ASO has a Debt to FCF ratio of 1.48. This is in the better half of the industry: ASO outperforms 73.55% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that ASO is not too dependend on debt financing.
The Debt to Equity ratio of ASO (0.24) is better than 60.33% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.24
Debt/FCF 1.48
Altman-Z 2.9
ROIC/WACC1.11
WACC9.64%
ASO Yearly LT Debt VS Equity VS FCFASO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B 2B

2.3 Liquidity

A Current Ratio of 1.78 indicates that ASO should not have too much problems paying its short term obligations.
ASO has a Current ratio of 1.78. This is in the better half of the industry: ASO outperforms 75.21% of its industry peers.
A Quick Ratio of 0.42 indicates that ASO may have some problems paying its short term obligations.
ASO's Quick ratio of 0.42 is on the low side compared to the rest of the industry. ASO is outperformed by 63.64% of its industry peers.
Industry RankSector Rank
Current Ratio 1.78
Quick Ratio 0.42
ASO Yearly Current Assets VS Current LiabilitesASO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

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4

3. Growth

3.1 Past

The earnings per share for ASO have decreased strongly by -13.32% in the last year.
Measured over the past years, ASO shows a very strong growth in Earnings Per Share. The EPS has been growing by 33.32% on average per year.
ASO shows a decrease in Revenue. In the last year, the revenue decreased by -3.67%.
Measured over the past years, ASO shows a small growth in Revenue. The Revenue has been growing by 4.20% on average per year.
EPS 1Y (TTM)-13.32%
EPS 3Y-7.28%
EPS 5Y33.32%
EPS Q2Q%-11.31%
Revenue 1Y (TTM)-3.67%
Revenue growth 3Y-4.32%
Revenue growth 5Y4.2%
Sales Q2Q%-6.57%

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 7.17% on average per year.
Based on estimates for the next years, ASO will show a small growth in Revenue. The Revenue will grow by 5.62% on average per year.
EPS Next Y0.29%
EPS Next 2Y5.6%
EPS Next 3Y8.11%
EPS Next 5Y7.17%
Revenue Next Year3.52%
Revenue Next 2Y5%
Revenue Next 3Y6.66%
Revenue Next 5Y5.62%

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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
ASO Yearly Revenue VS EstimatesASO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B
ASO Yearly EPS VS EstimatesASO Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8

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8

4. Valuation

4.1 Price/Earnings Ratio

ASO is valuated cheaply with a Price/Earnings ratio of 7.67.
Based on the Price/Earnings ratio, ASO is valued cheaper than 90.08% of the companies in the same industry.
ASO is valuated cheaply when we compare the Price/Earnings ratio to 24.95, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 7.65 indicates a rather cheap valuation of ASO.
Based on the Price/Forward Earnings ratio, ASO is valued cheaply inside the industry as 91.74% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 20.99. ASO is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 7.67
Fwd PE 7.65
ASO Price Earnings VS Forward Price EarningsASO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

ASO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ASO is cheaper than 83.47% 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 85.12% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 9.42
EV/EBITDA 5.01
ASO Per share dataASO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ASO does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of ASO may justify a higher PE ratio.
PEG (NY)26.08
PEG (5Y)0.23
EPS Next 2Y5.6%
EPS Next 3Y8.11%

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3

5. Dividend

5.1 Amount

ASO has a Yearly Dividend Yield of 1.14%.
ASO's Dividend Yield is a higher than the industry average which is at 5.35.
With a Dividend Yield of 1.14, ASO pays less dividend than the S&P500 average, which is at 2.41.
Industry RankSector Rank
Dividend Yield 1.14%

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
ASO Yearly Dividends per shareASO Yearly Dividends per shareYearly Dividends per share 2022 2023 2024 2025 0.1 0.2 0.3 0.4

5.3 Sustainability

7.52% of the earnings are spent on dividend by ASO. This is a low number and sustainable payout ratio.
DP7.52%
EPS Next 2Y5.6%
EPS Next 3Y8.11%
ASO Yearly Income VS Free CF VS DividendASO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M 800M
ASO Dividend Payout.ASO Dividend Payout, showing the Payout Ratio.ASO Dividend Payout.PayoutRetained Earnings

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