Academy Sports & Outdoors, Inc. (ASO) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Carvana Co.

Lithia Motors, Inc.

Asbury Automotive Group, Inc.

Group 1 Automotive, Inc.

BJ's Wholesale Club Holdings, Inc.

Murphy USA, Inc.

Academy Sports & Outdoors, Inc.

Dick's Sporting Goods, Inc.

AutoNation, Inc.

Wayfair, Inc.

Why is Academy Sports & Outdoors, Inc. ?

High Management Efficiency with a high ROCE of 35.63%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.39 times

Healthy long term growth as Operating profit has grown by an annual rate 10.61%

Flat results in Jul 25

OPERATING CASH FLOW(Y) Lowest at USD 467.42 MM
NET PROFIT(9M) At USD 305.15 MM has Grown at -21.51%
ROCE(HY) Lowest at 18.42%

With ROCE of 23.26%, it has a attractive valuation with a 1.38 Enterprise value to Capital Employed

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -5.81%, its profits have fallen by -19.5%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -5.81% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Academy Sports & Outdoors, Inc. should be less than 10%
Overall Portfolio exposure to Retailing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Academy Sports & Outdoors, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Academy Sports & Outdoors, Inc.

-1.34%

-0.25

51.38%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.58%

EBIT Growth (5y)

10.61%

EBIT to Interest (avg)

15.00

Debt to EBITDA (avg)

0.39

Net Debt to Equity (avg)

0.17

Sales to Capital Employed (avg)

2.40

Tax Ratio

22.94%

Dividend Payout Ratio

7.68%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

35.63%

ROE (avg)

32.24%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.44

EV to EBIT

5.95

EV to EBITDA

4.88

EV to Capital Employed

1.38

EV to Sales

0.54

PEG Ratio

Dividend Yield

121.64%

ROCE (Latest)

23.26%

ROE (Latest)

20.90%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 7.02%

DIVIDEND PER SHARE(HY)

Highest at USD 373.3

RAW MATERIAL COST(Y)

Fallen by -5.57% (YoY

-8What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 467.42 MM

NET PROFIT(9M)

At USD 305.15 MM has Grown at -21.51%

ROCE(HY)

Lowest at 18.42%

CASH AND EQV(HY)

Lowest at USD 585.96 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.71 times

Here's what is working for Academy Sports & Outdoors, Inc.

Dividend per share

Highest at USD 373.3 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 7.02% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -5.57% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 31.02 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Academy Sports & Outdoors, Inc.

Net Profit

At USD 305.15 MM has Grown at -21.51%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD 467.42 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Cash and Eqv

Lowest at USD 585.96 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 2.71 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio