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. While ASO belongs to the best of the industry regarding profitability, 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. This makes ASO very considerable for value investing!


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

ASO had positive earnings in the past year.
In the past year ASO had a positive cash flow from operations.
Each year in the past 5 years ASO has been profitable.
ASO had a positive operating cash flow in each of the past 5 years.
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's Return On Assets of 8.54% is fine compared to the rest of the industry. ASO outperforms 79.34% of its industry peers.
ASO has a better Return On Equity (20.88%) than 79.34% of its industry peers.
ASO's Return On Invested Capital of 10.67% is fine compared to the rest of the industry. ASO outperforms 73.55% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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

The Profit Margin of ASO (7.05%) is better than 83.47% of its industry peers.
In the last couple of years the Profit Margin of ASO has grown nicely.
The Operating Margin of ASO (9.08%) is better than 82.64% of its industry peers.
ASO's Operating Margin has improved in the last couple of years.
The Gross Margin of ASO (33.90%) 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

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ASO is creating some value.
Compared to 1 year ago, ASO has less shares outstanding
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

ASO has an Altman-Z score of 2.80. This is not the best score and indicates that ASO is in the grey zone with still only limited risk for bankruptcy at the moment.
ASO's Altman-Z score of 2.80 is fine compared to the rest of the industry. ASO outperforms 64.46% of its industry peers.
The Debt to FCF ratio of ASO is 1.48, which is an excellent value as it means it would take ASO, only 1.48 years of fcf income to pay off 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 73.55% of the companies in the same industry.
ASO has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
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.
Industry RankSector Rank
Debt/Equity 0.24
Debt/FCF 1.48
Altman-Z 2.8
ROIC/WACC1.13
WACC9.48%
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's Current ratio of 1.78 is fine compared to the rest of the industry. ASO outperforms 75.21% of its industry peers.
ASO has a Quick Ratio of 1.78. This is a bad value and indicates that ASO is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of ASO (0.42) is worse than 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.
The Earnings Per Share has been growing by 33.32% on average over the past years. This is a very strong growth
ASO shows a decrease in Revenue. In the last year, the revenue decreased by -3.67%.
The Revenue has been growing slightly by 4.20% on average over the past years.
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

ASO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.17% yearly.
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.
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.
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

The Price/Earnings ratio is 7.54, which indicates a rather cheap valuation of ASO.
ASO's Price/Earnings ratio is rather cheap when compared to the industry. ASO is cheaper than 93.39% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.21, ASO is valued rather cheaply.
ASO is valuated cheaply with a Price/Forward Earnings ratio of 7.51.
Based on the Price/Forward Earnings ratio, ASO is valued cheaper than 92.56% of the companies in the same industry.
ASO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.44.
Industry RankSector Rank
PE 7.54
Fwd PE 7.51
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 85.12% of the companies in the same industry.
ASO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ASO is cheaper than 85.95% of the companies in the same industry.
Industry RankSector Rank
P/FCF 9.26
EV/EBITDA 4.27
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.
ASO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)25.62
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%. Purely for dividend investing, there may be better candidates out there.
The stock price of ASO dropped by -22.28% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 5.34, ASO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, ASO's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.14%

5.2 History

ASO has paid a dividend for less than 5 years, so there is no long track record yet.
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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