Academy Sports and Outdoors, Inc.
Academy Sports and Outdoors, Inc. Fundamental Analysis
Academy Sports and Outdoors, Inc. (ASO) shows moderate financial fundamentals with a PE ratio of 10.43, profit margin of 6.27%, and ROE of 18.44%. The company generates $6.0B in annual revenue with weak year-over-year growth of -3.67%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 45.8/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ASO's fundamental strength across five key dimensions:
Efficiency Score
WeakASO struggles to generate sufficient returns from assets.
Valuation Score
ModerateASO shows balanced valuation metrics.
Growth Score
WeakASO faces weak or negative growth trends.
Financial Health Score
ExcellentASO maintains a strong and stable balance sheet.
Profitability Score
ModerateASO maintains healthy but balanced margins.
Key Financial Metrics
Is ASO Expensive or Cheap?
P/E Ratio
ASO trades at 10.43 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ASO's PEG of 4.32 indicates potential overvaluation.
Price to Book
The market values Academy Sports and Outdoors, Inc. at 1.83 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.38 times EBITDA. This is generally considered low.
How Well Does ASO Make Money?
Net Profit Margin
For every $100 in sales, Academy Sports and Outdoors, Inc. keeps $6.27 as profit after all expenses.
Operating Margin
Core operations generate 8.26 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $18.44 in profit for every $100 of shareholder equity.
ROA
Academy Sports and Outdoors, Inc. generates $6.96 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Academy Sports and Outdoors, Inc. generates limited operating cash flow of $425.45M, signaling weaker underlying cash strength.
Free Cash Flow
Academy Sports and Outdoors, Inc. produces free cash flow of $191.11M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.87 in free cash annually.
FCF Yield
ASO converts 4.87% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.43
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.32
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.83
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.65
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.65
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.71
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How ASO Stacks Against Its Sector Peers
| Metric | ASO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.43 | 24.85 | Better (Cheaper) |
| ROE | 18.44% | 1165.00% | Weak |
| Net Margin | 6.27% | 752.00% | Weak |
| Debt/Equity | 0.65 | 0.76 | Neutral |
| Current Ratio | 1.71 | 9.23 | Neutral |
| ROA | 6.96% | 1280.00% | Weak |
ASO outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Academy Sports and Outdoors, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
55.74%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
341.92%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
153.91%
Industry Style: Cyclical, Growth, Discretionary
High Growth