NasdaqGS:ASO

Stock Analysis Report

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Academy Sports and Outdoors

Market Cap

US$3.8b

Last Updated

2021/06/12 11:49 UTC

Data Sources

Company Financials +

Executive Summary

Academy Sports and Outdoors, Inc., through its subsidiaries, operates as a sporting goods and outdoor recreational products retailer in the United States. More Details


Snowflake Analysis

Outstanding track record and undervalued.


Similar Companies

Share Price & News

How has Academy Sports and Outdoors's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ASO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: ASO's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

12.4%

ASO

0.7%

US Specialty Retail

0.7%

US Market


1 Year Return

n/a

ASO

76.2%

US Specialty Retail

44.2%

US Market

Return vs Industry: Insufficient data to determine how ASO performed against the US Specialty Retail industry.

Return vs Market: Insufficient data to determine how ASO performed against the US Market.


Shareholder returns

ASOIndustryMarket
7 Day12.4%0.7%0.7%
30 Day19.8%4.1%5.6%
90 Day62.3%2.0%5.0%
1 Yearn/a77.3%76.2%46.5%44.2%
3 Yearn/a85.6%78.7%60.2%50.3%
5 Yearn/a122.6%107.2%128.1%102.6%

Long-Term Price Volatility Vs. Market

How volatile is Academy Sports and Outdoors's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Academy Sports and Outdoors undervalued compared to its fair value and its price relative to the market?

43.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ASO ($41.71) is trading below our estimate of fair value ($73.79)

Significantly Below Fair Value: ASO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ASO is good value based on its PE Ratio (7x) compared to the US Specialty Retail industry average (15x).

PE vs Market: ASO is good value based on its PE Ratio (7x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: ASO is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: ASO is good value based on its PB Ratio (3x) compared to the US Specialty Retail industry average (3.4x).


Future Growth

How is Academy Sports and Outdoors forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

3.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ASO's forecast earnings growth (3.5% per year) is above the savings rate (2%).

Earnings vs Market: ASO's earnings (3.5% per year) are forecast to grow slower than the US market (15.5% per year).

High Growth Earnings: ASO's earnings are forecast to grow, but not significantly.

Revenue vs Market: ASO's revenue (4.1% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: ASO's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ASO's Return on Equity is forecast to be high in 3 years time (23%)


Past Performance

How has Academy Sports and Outdoors performed over the past 5 years?

59.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ASO has high quality earnings.

Growing Profit Margin: ASO's current net profit margins (8.1%) are higher than last year (1.7%).


Past Earnings Growth Analysis

Earnings Trend: ASO's earnings have grown significantly by 59.4% per year over the past 5 years.

Accelerating Growth: ASO's earnings growth over the past year (484.2%) exceeds its 5-year average (59.4% per year).

Earnings vs Industry: ASO earnings growth over the past year (484.2%) exceeded the Specialty Retail industry 122.1%.


Return on Equity

High ROE: ASO's Return on Equity (37.8%) is considered high.


Financial Health

How is Academy Sports and Outdoors's financial position?


Financial Position Analysis

Short Term Liabilities: ASO's short term assets ($1.7B) exceed its short term liabilities ($1.2B).

Long Term Liabilities: ASO's short term assets ($1.7B) do not cover its long term liabilities ($2.1B).


Debt to Equity History and Analysis

Debt Level: ASO's debt to equity ratio (59.7%) is considered high.

Reducing Debt: Insufficient data to determine if ASO's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: ASO's debt is well covered by operating cash flow (145.2%).

Interest Coverage: ASO's interest payments on its debt are well covered by EBIT (8.5x coverage).


Balance Sheet


Dividend

What is Academy Sports and Outdoors's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ASO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ASO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ASO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ASO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ASO's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Ken Hicks (68 yo)

3.08yrs

Tenure

US$15,441,951

Compensation

Mr. Kenneth C. Hicks, also known as Ken, serves as Chairman, President and Chief Executive Officer at Academy Sports and Outdoors, Inc. since May 2018. Mr. Hicks has been Member of the Board of Managers of...


CEO Compensation Analysis

Compensation vs Market: Ken's total compensation ($USD15.44M) is above average for companies of similar size in the US market ($USD5.21M).

Compensation vs Earnings: Insufficient data to compare Ken's compensation with company performance.


Leadership Team

Experienced Management: ASO's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: ASO's board of directors are not considered experienced ( 0.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: ASO only recently listed within the past 12 months.


Top Shareholders

Company Information

Academy Sports and Outdoors, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Academy Sports and Outdoors, Inc.
  • Ticker: ASO
  • Exchange: NasdaqGS
  • Founded: 1938
  • Industry: Specialty Stores
  • Sector: Retail
  • Market Cap: US$3.841b
  • Shares outstanding: 92.10m
  • Website: https://www.academy.com

Number of Employees


Location

  • Academy Sports and Outdoors, Inc.
  • 1800 North Mason Road
  • Katy
  • Texas
  • 77449
  • United States

Listings


Biography

Academy Sports and Outdoors, Inc., through its subsidiaries, operates as a sporting goods and outdoor recreational products retailer in the United States. The company sells coolers and drinkware, camping a...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/12 11:49
End of Day Share Price2021/06/11 00:00
Earnings2021/05/01
Annual Earnings2021/01/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.