ACADEMY SPORTS & OUTDOORS IN (ASO) Stock Fundamental Analysis
NASDAQ:ASO - Nasdaq - US00402L1070 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to ASO. ASO was compared to 122 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. ASO scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes ASO very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year ASO was profitable.
ASO had a positive operating cash flow in the past year.
Each year in the past 5 years ASO has been profitable.
In the past 5 years ASO always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.49%, ASO is in the better half of the industry, outperforming 78.69% of the companies in the same industry.
ASO has a Return On Equity of 19.93%. This is in the better half of the industry: ASO outperforms 78.69% of its industry peers.
ASO has a better Return On Invested Capital (10.07%) than 72.13% of its industry peers.
ASO had an Average Return On Invested Capital over the past 3 years of 14.39%. This is in line with the industry average of 12.95%.
The 3 year average ROIC (14.39%) for ASO is well above the current ROIC(10.07%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.49% | ||
| ROE | 19.93% | ||
| ROIC | 10.07% |
ROA(3y)11.1%
ROA(5y)11%
ROE(3y)28.67%
ROE(5y)31.91%
ROIC(3y)14.39%
ROIC(5y)14.77%
1.3 Margins
ASO's Profit Margin of 6.55% is amongst the best of the industry. ASO outperforms 82.79% of its industry peers.
ASO's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 8.54%, ASO belongs to the best of the industry, outperforming 81.15% of the companies in the same industry.
In the last couple of years the Operating Margin of ASO has grown nicely.
The Gross Margin of ASO (34.03%) is comparable to the rest of the industry.
ASO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.54% | ||
| PM (TTM) | 6.55% | ||
| GM | 34.03% |
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%
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.
The number of shares outstanding for ASO has been reduced compared to 1 year ago.
The number of shares outstanding for ASO has been reduced compared to 5 years ago.
ASO has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.71 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 2.71. This is in the better half of the industry: ASO outperforms 61.48% of its industry peers.
ASO has a debt to FCF ratio of 1.82. This is a very positive value and a sign of high solvency as it would only need 1.82 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.82, ASO is in the better half of the industry, outperforming 77.05% 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.
With a decent Debt to Equity ratio value of 0.25, ASO is doing good in the industry, outperforming 61.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.82 | ||
| Altman-Z | 2.71 |
ROIC/WACC1.05
WACC9.57%
2.3 Liquidity
A Current Ratio of 1.52 indicates that ASO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.52, ASO is in the better half of the industry, outperforming 63.11% of the companies in the same industry.
A Quick Ratio of 0.29 indicates that ASO may have some problems paying its short term obligations.
ASO's Quick ratio of 0.29 is on the low side compared to the rest of the industry. ASO is outperformed by 74.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
The earnings per share for ASO have decreased strongly by -15.24% 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 -3.57%.
ASO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.20% yearly.
EPS 1Y (TTM)-15.24%
EPS 3Y-7.28%
EPS 5Y33.32%
EPS Q2Q%-29.63%
Revenue 1Y (TTM)-3.57%
Revenue growth 3Y-4.32%
Revenue growth 5Y4.2%
Sales Q2Q%-0.94%
3.2 Future
The Earnings Per Share is expected to grow by 8.68% 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 6.21% yearly.
EPS Next Y-2.81%
EPS Next 2Y4.1%
EPS Next 3Y7.48%
EPS Next 5Y8.68%
Revenue Next Year2.82%
Revenue Next 2Y4.66%
Revenue Next 3Y6.19%
Revenue Next 5Y6.21%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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.
4. Valuation
4.1 Price/Earnings Ratio
ASO is valuated reasonably with a Price/Earnings ratio of 8.97.
Based on the Price/Earnings ratio, ASO is valued cheaper than 90.16% of the companies in the same industry.
ASO is valuated cheaply when we compare the Price/Earnings ratio to 27.51, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.84, the valuation of ASO can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ASO indicates a rather cheap valuation: ASO is cheaper than 91.80% of the companies listed 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 35.58.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.97 | ||
| Fwd PE | 7.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ASO is valued cheaper than 81.15% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ASO is valued cheaper than 80.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.8 | ||
| EV/EBITDA | 5.76 |
4.3 Compensation for Growth
ASO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.27
EPS Next 2Y4.1%
EPS Next 3Y7.48%
5. Dividend
5.1 Amount
With a yearly dividend of 0.93%, ASO is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.90, ASO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, ASO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
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 Years2
Div Non Decr Years2
5.3 Sustainability
8.25% of the earnings are spent on dividend by ASO. This is a low number and sustainable payout ratio.
DP8.25%
EPS Next 2Y4.1%
EPS Next 3Y7.48%
NASDAQ:ASO (7/15/2025, 3:49:04 PM)
51.4
+0.29 (+0.57%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners114.21%
Inst Owner Change0%
Ins Owners0.87%
Ins Owner Change4.42%
Market Cap3.42B
Analysts75.65
Price Target55.08 (7.16%)
Short Float %10.89%
Short Ratio4.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
Yearly Dividend0.44
Dividend Growth(5Y)N/A
DP8.25%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-5.05%
Min EPS beat(2)-16.03%
Max EPS beat(2)5.92%
EPS beat(4)1
Avg EPS beat(4)-8.96%
Min EPS beat(4)-24.9%
Max EPS beat(4)5.92%
EPS beat(8)2
Avg EPS beat(8)-7.91%
EPS beat(12)5
Avg EPS beat(12)-4.87%
EPS beat(16)9
Avg EPS beat(16)6.12%
Revenue beat(2)0
Avg Revenue beat(2)-1.69%
Min Revenue beat(2)-2.43%
Max Revenue beat(2)-0.95%
Revenue beat(4)0
Avg Revenue beat(4)-2.52%
Min Revenue beat(4)-4.12%
Max Revenue beat(4)-0.95%
Revenue beat(8)0
Avg Revenue beat(8)-2.24%
Revenue beat(12)0
Avg Revenue beat(12)-2.71%
Revenue beat(16)4
Avg Revenue beat(16)-1.09%
PT rev (1m)-2.96%
PT rev (3m)-8.9%
EPS NQ rev (1m)-0.22%
EPS NQ rev (3m)-0.33%
EPS NY rev (1m)-2.42%
EPS NY rev (3m)-3.95%
Revenue NQ rev (1m)-0.98%
Revenue NQ rev (3m)-1.22%
Revenue NY rev (1m)-0.68%
Revenue NY rev (3m)-1.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.97 | ||
| Fwd PE | 7.84 | ||
| P/S | 0.58 | ||
| P/FCF | 12.8 | ||
| P/OCF | 7.03 | ||
| P/B | 1.75 | ||
| P/tB | 6.75 | ||
| EV/EBITDA | 5.76 |
EPS(TTM)5.73
EY11.15%
EPS(NY)6.56
Fwd EY12.76%
FCF(TTM)4.01
FCFY7.81%
OCF(TTM)7.31
OCFY14.22%
SpS89.06
BVpS29.29
TBVpS7.61
PEG (NY)N/A
PEG (5Y)0.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.49% | ||
| ROE | 19.93% | ||
| ROCE | 12.9% | ||
| ROIC | 10.07% | ||
| ROICexc | 10.86% | ||
| ROICexgc | 18% | ||
| OM | 8.54% | ||
| PM (TTM) | 6.55% | ||
| GM | 34.03% | ||
| FCFM | 4.51% |
ROA(3y)11.1%
ROA(5y)11%
ROE(3y)28.67%
ROE(5y)31.91%
ROIC(3y)14.39%
ROIC(5y)14.77%
ROICexc(3y)15.79%
ROICexc(5y)16.55%
ROICexgc(3y)27.48%
ROICexgc(5y)30.41%
ROCE(3y)18.44%
ROCE(5y)18.93%
ROICexcg growth 3Y-25.62%
ROICexcg growth 5Y22.03%
ROICexc growth 3Y-21.55%
ROICexc growth 5Y23.06%
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%
F-Score5
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.82 | ||
| Debt/EBITDA | 0.77 | ||
| Cap/Depr | 183.46% | ||
| Cap/Sales | 3.7% | ||
| Interest Coverage | 14.24 | ||
| Cash Conversion | 77.75% | ||
| Profit Quality | 68.77% | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.29 | ||
| Altman-Z | 2.71 |
F-Score5
WACC9.57%
ROIC/WACC1.05
Cap/Depr(3y)153.11%
Cap/Depr(5y)114.13%
Cap/Sales(3y)2.82%
Cap/Sales(5y)2.06%
Profit Quality(3y)70.66%
Profit Quality(5y)123.03%
High Growth Momentum
Growth
EPS 1Y (TTM)-15.24%
EPS 3Y-7.28%
EPS 5Y33.32%
EPS Q2Q%-29.63%
EPS Next Y-2.81%
EPS Next 2Y4.1%
EPS Next 3Y7.48%
EPS Next 5Y8.68%
Revenue 1Y (TTM)-3.57%
Revenue growth 3Y-4.32%
Revenue growth 5Y4.2%
Sales Q2Q%-0.94%
Revenue Next Year2.82%
Revenue Next 2Y4.66%
Revenue Next 3Y6.19%
Revenue Next 5Y6.21%
EBIT growth 1Y-22.71%
EBIT growth 3Y-15.97%
EBIT growth 5Y24.59%
EBIT Next Year16.58%
EBIT Next 3Y10.22%
EBIT Next 5Y10.72%
FCF growth 1Y-28.83%
FCF growth 3Y-18.13%
FCF growth 5Y10.28%
OCF growth 1Y-4.17%
OCF growth 3Y-7.78%
OCF growth 5Y14.9%