ACADEMY SPORTS & OUTDOORS IN (ASO)

US00402L1070 - Common Stock

53.13  -1.03 (-1.9%)

After market: 53.59 +0.46 (+0.87%)

Fundamental Rating

7

Taking everything into account, ASO scores 7 out of 10 in our fundamental rating. ASO was compared to 126 industry peers in the Specialty Retail industry. ASO gets an excellent profitability rating and is at the same time showing great financial health properties. A decent growth rate in combination with a cheap valuation! Better keep an eye on ASO. These ratings could make ASO a good candidate for value investing.



9

1. Profitability

1.1 Basic Checks

ASO had positive earnings in the past year.
ASO had a positive operating cash flow in the past year.
ASO had positive earnings in each of the past 5 years.
ASO had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

ASO has a Return On Assets of 10.29%. This is amongst the best in the industry. ASO outperforms 84.00% of its industry peers.
The Return On Equity of ASO (26.33%) is better than 81.60% of its industry peers.
ASO has a Return On Invested Capital of 13.51%. This is amongst the best in the industry. ASO outperforms 80.80% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ASO is above the industry average of 13.88%.
The 3 year average ROIC (17.55%) for ASO is well above the current ROIC(13.51%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 10.29%
ROE 26.33%
ROIC 13.51%
ROA(3y)13.14%
ROA(5y)9.84%
ROE(3y)36.97%
ROE(5y)30.16%
ROIC(3y)17.55%
ROIC(5y)13.33%

1.3 Margins

ASO has a better Profit Margin (8.17%) than 84.80% of its industry peers.
ASO's Profit Margin has improved in the last couple of years.
The Operating Margin of ASO (10.65%) is better than 85.60% of its industry peers.
In the last couple of years the Operating Margin of ASO has grown nicely.
ASO's Gross Margin of 34.18% is in line compared to the rest of the industry. ASO outperforms 43.20% of its industry peers.
In the last couple of years the Gross Margin of ASO has grown nicely.
Industry RankSector Rank
OM 10.65%
PM (TTM) 8.17%
GM 34.18%
OM growth 3Y14.2%
OM growth 5Y32.2%
PM growth 3Y15.8%
PM growth 5Y79.9%
GM growth 3Y3.98%
GM growth 5Y3.68%

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ASO is creating value.
Compared to 1 year ago, ASO has less shares outstanding
ASO has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ASO has been reduced compared to a year ago.

2.2 Solvency

ASO has an Altman-Z score of 3.14. This indicates that ASO is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.14, ASO is doing good in the industry, outperforming 65.60% of the companies in the same industry.
ASO has a debt to FCF ratio of 1.01. This is a very positive value and a sign of high solvency as it would only need 1.01 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.01, ASO is in the better half of the industry, outperforming 79.20% of the companies in the same industry.
ASO has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
ASO has a Debt to Equity ratio of 0.25. This is comparable to the rest of the industry: ASO outperforms 60.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.25
Debt/FCF 1.01
Altman-Z 3.14
ROIC/WACC1.47
WACC9.2%

2.3 Liquidity

A Current Ratio of 1.62 indicates that ASO should not have too much problems paying its short term obligations.
ASO has a better Current ratio (1.62) than 63.20% of its industry peers.
A Quick Ratio of 0.41 indicates that ASO may have some problems paying its short term obligations.
ASO has a worse Quick ratio (0.41) than 60.80% of its industry peers.
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.
Industry RankSector Rank
Current Ratio 1.62
Quick Ratio 0.41

4

3. Growth

3.1 Past

The earnings per share for ASO have decreased by -7.78% in the last year.
The Earnings Per Share has been growing by 94.62% on average over the past years. This is a very strong growth
The Revenue has decreased by -2.71% in the past year.
ASO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.18% yearly.
EPS 1Y (TTM)-7.78%
EPS 3Y25.51%
EPS 5Y94.62%
EPS Q2Q%-16.92%
Revenue 1Y (TTM)-2.71%
Revenue growth 3Y2.68%
Revenue growth 5Y5.18%
Sales Q2Q%-1.4%

3.2 Future

The Earnings Per Share is expected to grow by 10.51% on average over the next years. This is quite good.
ASO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.14% yearly.
EPS Next Y-3.97%
EPS Next 2Y3.02%
EPS Next 3Y5.81%
EPS Next 5Y10.51%
Revenue Next Year0%
Revenue Next 2Y3.24%
Revenue Next 3Y5.3%
Revenue Next 5Y5.14%

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.

8

4. Valuation

4.1 Price/Earnings Ratio

ASO is valuated cheaply with a Price/Earnings ratio of 7.86.
Based on the Price/Earnings ratio, ASO is valued cheaply inside the industry as 94.40% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 29.15, ASO is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.17, the valuation of ASO can be described as very cheap.
Based on the Price/Forward Earnings ratio, ASO is valued cheaply inside the industry as 91.20% of the companies are valued more expensively.
ASO is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.65, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 7.86
Fwd PE 7.17

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ASO indicates a rather cheap valuation: ASO is cheaper than 86.40% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ASO is valued cheaper than 84.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 7.93
EV/EBITDA 5.23

4.3 Compensation for Growth

The excellent profitability rating of ASO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.08
EPS Next 2Y3.02%
EPS Next 3Y5.81%

3

5. Dividend

5.1 Amount

ASO has a yearly dividend return of 0.79%, which is pretty low.
Compared to an average industry Dividend Yield of 3.60, ASO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, ASO's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.79%

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

5.3 Sustainability

5.68% of the earnings are spent on dividend by ASO. This is a low number and sustainable payout ratio.
DP5.68%
EPS Next 2Y3.02%
EPS Next 3Y5.81%

ACADEMY SPORTS & OUTDOORS IN

NASDAQ:ASO (7/12/2024, 7:19:12 PM)

After market: 53.59 +0.46 (+0.87%)

53.13

-1.03 (-1.9%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.83B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 0.79%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 7.86
Fwd PE 7.17
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.08
Profitability
Industry RankSector Rank
ROA 10.29%
ROE 26.33%
ROCE
ROIC
ROICexc
ROICexgc
OM 10.65%
PM (TTM) 8.17%
GM 34.18%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.26
Health
Industry RankSector Rank
Debt/Equity 0.25
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.62
Quick Ratio 0.41
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-7.78%
EPS 3Y25.51%
EPS 5Y
EPS Q2Q%
EPS Next Y-3.97%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.71%
Revenue growth 3Y2.68%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y