ACADEMY SPORTS & OUTDOORS IN (ASO)
US00402L1070 - Common Stock
We assign a fundamental rating of 7 out of 10 to ASO. ASO was compared to 123 industry peers in the Specialty Retail industry. ASO has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ASO may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make ASO suitable for value investing!
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.
Each year in the past 5 years ASO had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.00%, ASO belongs to the top of the industry, outperforming 84.30% of the companies in the same industry.
With a decent Return On Equity value of 24.95%, ASO is doing good in the industry, outperforming 78.51% of the companies in the same industry.
ASO has a better Return On Invested Capital (12.97%) than 82.64% of its industry peers.
ASO had an Average Return On Invested Capital over the past 3 years of 17.55%. This is significantly above the industry average of 12.30%.
The last Return On Invested Capital (12.97%) for ASO is well below the 3 year average (17.55%), which needs to be investigated, but indicates that ASO had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10% | ||
| ROE | 24.95% | ||
| ROIC | 12.97% |
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
The Profit Margin of ASO (7.98%) is better than 85.95% of its industry peers.
ASO's Profit Margin has improved in the last couple of years.
ASO has a Operating Margin of 10.37%. This is amongst the best in the industry. ASO outperforms 85.12% of its industry peers.
ASO's Operating Margin has improved in the last couple of years.
ASO's Gross Margin of 34.30% is in line compared to the rest of the industry. ASO outperforms 45.45% of its industry peers.
In the last couple of years the Gross Margin of ASO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.37% | ||
| PM (TTM) | 7.98% | ||
| GM | 34.3% |
OM growth 3Y14.2%
OM growth 5Y32.2%
PM growth 3Y15.8%
PM growth 5Y79.9%
GM growth 3Y3.98%
GM growth 5Y3.68%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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.
Compared to 1 year ago, ASO has an improved debt to assets ratio.
2.2 Solvency
ASO has an Altman-Z score of 3.16. This indicates that ASO is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.16, ASO is doing good in the industry, outperforming 66.12% of the companies in the same industry.
ASO has a debt to FCF ratio of 1.18. This is a very positive value and a sign of high solvency as it would only need 1.18 years to pay back of all of its debts.
ASO has a Debt to FCF ratio of 1.18. This is in the better half of the industry: ASO outperforms 76.86% of its industry peers.
A Debt/Equity ratio of 0.25 indicates that ASO is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.25, ASO perfoms like the industry average, outperforming 57.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.18 | ||
| Altman-Z | 3.16 |
ROIC/WACC1.39
WACC9.34%
2.3 Liquidity
A Current Ratio of 1.66 indicates that ASO should not have too much problems paying its short term obligations.
ASO has a better Current ratio (1.66) than 68.59% of its industry peers.
ASO has a Quick Ratio of 1.66. This is a bad value and indicates that ASO is not financially healthy enough and could expect problems in meeting its short term obligations.
ASO has a worse Quick ratio (0.41) than 60.33% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
The earnings per share for ASO have decreased by -5.90% 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
Looking at the last year, ASO shows a decrease in Revenue. The Revenue has decreased by -1.63% in the last year.
Measured over the past years, ASO shows a small growth in Revenue. The Revenue has been growing by 5.18% on average per year.
EPS 1Y (TTM)-5.9%
EPS 3Y25.51%
EPS 5Y94.62%
EPS Q2Q%-2.87%
Revenue 1Y (TTM)-1.63%
Revenue growth 3Y2.68%
Revenue growth 5Y5.18%
Sales Q2Q%-2.15%
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-5.65%
EPS Next 2Y1.74%
EPS Next 3Y6.04%
EPS Next 5Y10.51%
Revenue Next Year-2.43%
Revenue Next 2Y1.67%
Revenue Next 3Y4.21%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.19, which indicates a very decent valuation of ASO.
92.56% 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 31.71. ASO is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 7.59, the valuation of ASO can be described as very cheap.
Based on the Price/Forward Earnings ratio, ASO is valued cheaper than 92.56% of the companies in the same industry.
ASO is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.81, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.19 | ||
| Fwd PE | 7.59 |
4.2 Price Multiples
87.60% of the companies in the same industry are more expensive than ASO, based on the Enterprise Value to EBITDA ratio.
85.95% of the companies in the same industry are more expensive than ASO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.38 | ||
| EV/EBITDA | 5.48 |
4.3 Compensation for Growth
The excellent profitability rating of ASO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.09
EPS Next 2Y1.74%
EPS Next 3Y6.04%
5. Dividend
5.1 Amount
ASO has a yearly dividend return of 0.76%, which is pretty low.
Compared to an average industry Dividend Yield of 2.92, ASO pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.76, ASO pays less dividend than the S&P500 average, which is at 2.18.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
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
5.3 Sustainability
6.06% of the earnings are spent on dividend by ASO. This is a low number and sustainable payout ratio.
DP6.06%
EPS Next 2Y1.74%
EPS Next 3Y6.04%
ACADEMY SPORTS & OUTDOORS IN
NASDAQ:ASO (10/21/2024, 2:14:01 PM)
54.84
-1.25 (-2.23%)
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 Cap3.86B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
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)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.19 | ||
| Fwd PE | 7.59 | ||
| 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)0.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10% | ||
| ROE | 24.95% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.37% | ||
| PM (TTM) | 7.98% | ||
| GM | 34.3% | ||
| 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 Turnover1.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.66 | ||
| 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)-5.9%
EPS 3Y25.51%
EPS 5Y
EPS Q2Q%
EPS Next Y-5.65%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.63%
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