Academy Sports and Outdoors (ASO) AI Stock Analysis

• Market Cap: $3.59B
• Dividend Yield: 0.93%
• Average Volume (3M): 1.86M
• Price to Earnings (P/E): 10.1
• Beta (1Y): 1.35
• Revenue Growth: -2.20%
• EPS Growth: -17.95%
• Country: US
• Employees: 9,900
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 1.94
• Shares Outstanding: 66,625,430
• 10 Day Avg. Volume: 2,086,702
• 30 Day Avg. Volume: 1,863,699
• PEG Ratio: -0.60
• Price to Book (P/B): 1.86
• Price to Sales (P/S): 0.63
• P/FCF Ratio: 11.36
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: 0.82
• Enterprise Value/Gross Profit: 2.40
• Enterprise Value/Ebitda: 7.62
• 1Y Price Target: $55.73
• Price Target Upside: 3.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 73 Outperform
• Price Target: $56.00 ▲(3.99% Upside)

Academy Sports and Outdoors receives a strong overall score driven by solid financial performance and attractive valuation. The positive sentiment from the earnings call, highlighting sales growth and strategic initiatives, further supports the stock's potential. However, technical indicators suggest a neutral trend, and challenges such as increased expenses and consumer traffic declines warrant attention.

Positive Factors

E-Commerce Expansion

The significant growth in e-commerce reflects a successful adaptation to consumer trends, providing a durable revenue stream and expanding market reach.

Market Share Gains

Gaining market share in core categories indicates competitive strength and enhances long-term positioning in the specialty retail sector.

Improved Inventory Management

Enhanced inventory management through RFID technology boosts operational efficiency, reducing costs and improving customer satisfaction.

Negative Factors

SG&A Expenses Increase

Rising SG&A expenses can pressure margins and reduce profitability, potentially impacting long-term financial health if not managed effectively.

Lower Income Consumer Traffic Decline

Decreased traffic from lower-income consumers may signal challenges in maintaining sales growth, affecting revenue stability over time.

Challenges in Seasonal Categories

Weather-related challenges in seasonal categories can lead to inventory issues and sales volatility, impacting revenue predictability.

Academy Sports and Outdoors Business Overview & Revenue Model

Company Description

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 accessories, camping equipment, sunglasses, backpacks, and sports bags; marine equipment and fishing rods, reels, baits, and equipment; firearms, ammunition, archery and archery equipment, camouflage apparel, waders, shooting accessories, optics, airguns, and hunting equipment; team sports equipment, including baseball, football, basketball, soccer, golf, racket sports, and volleyball; fitness equipment and accessories, and nutrition supplies; and patio furniture, outdoor cooking, wheeled goods, trampolines, playsets, watersports, and pet equipment, as well as electronics products, watches, consumables, batteries, etc. It also offers outdoor apparel, seasonal apparel, denim, work apparel, graphic t-shirts, and accessories; boys and girls outdoor and athletic apparel; sporting apparel and apparel for fitness; professional and collegiate team licensed apparel and accessories; casual shoes and slippers, work and western boots, youth footwear, socks, and hunting and seasonal footwear; and boys and girls athletic footwear, running shoes, athletic lifestyle and training shoes, team and specialty sports footwear, and slides. The company sells its products under the Academy Sports + Outdoors, Magellan Outdoors, BCG, O'rageous, Outdoor Gourmet, and Freely brand names. As of June 14, 2022, it operated 260 retail locations in 16 contiguous states. The company also sells merchandise to customers through the academy.com website. Academy Sports and Outdoors, Inc. was founded in 1938 and is headquartered in Katy, Texas.

How the Company Makes Money

Academy Sports and Outdoors generates revenue primarily through the sale of sporting goods, outdoor gear, and related merchandise in its retail stores and online platform. The company operates on a traditional retail model, where it purchases inventory from manufacturers and suppliers at wholesale prices and sells it at a markup. Key revenue streams include sales of athletic apparel, footwear, equipment for sports like basketball, soccer, and baseball, as well as outdoor products for camping, fishing, and hunting. Additionally, ASO benefits from seasonal sales and promotions, as well as private label products that enhance margins. The company also engages in strategic partnerships with brands to offer exclusive products, further driving sales. E-commerce sales have grown significantly, providing an additional channel for revenue generation, especially during peak shopping seasons. Overall, a combination of a diverse product offering, effective supply chain management, and a strong customer engagement strategy contributes to Academy Sports and Outdoors' earnings.

Academy Sports and Outdoors Financial Statement Overview

Summary

Academy Sports and Outdoors demonstrates solid financial health with strong profitability margins and a balanced capital structure. While revenue growth has been inconsistent, the company maintains efficient operations and cash flow management. The moderate leverage and stable equity position provide a solid foundation for future growth, although attention to improving cash flow efficiency could enhance financial flexibility.

Income Statement

Academy Sports and Outdoors shows a strong gross profit margin of 34.03% TTM, indicating efficient cost management. However, the net profit margin has slightly decreased to 6.55% TTM from 7.05% in the previous annual report, reflecting some pressure on net earnings. Revenue growth has been volatile, with a recent TTM growth of 0.86% following a decline in the previous periods. The EBIT and EBITDA margins remain healthy at 9.12% and 11.14% TTM, respectively, suggesting solid operational performance.

Balance Sheet

The company's debt-to-equity ratio is 0.94 TTM, which is a moderate level of leverage and has improved from previous years, indicating a more balanced capital structure. Return on equity is robust at 19.74% TTM, though it has decreased from 20.88% in the last annual report, suggesting slightly reduced profitability on equity. The equity ratio stands at 39.34% TTM, reflecting a stable financial position with a reasonable proportion of equity financing.

Cash Flow

Operating cash flow to net income ratio is 0.38 TTM, which is lower than the previous annual report, indicating reduced cash generation efficiency. Free cash flow growth is positive at 10.72% TTM, showing improvement from the prior period. The free cash flow to net income ratio is 0.55 TTM, suggesting that a significant portion of net income is being converted into free cash flow, although this has decreased from previous levels.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.97B	5.93B	6.16B	6.40B	6.77B	5.69B
Gross Profit	2.03B	2.01B	2.11B	2.21B	2.35B	1.73B
EBITDA	639.75M	693.17M	820.14M	971.51M	1.00B	534.95M
Net Income	370.91M	418.45M	519.19M	628.00M	671.38M	308.76M
Balance Sheet
Total Assets	5.28B	4.90B	4.68B	4.60B	4.58B	4.38B
Cash, Cash Equivalents and Short-Term Investments	300.86M	288.93M	347.92M	337.14M	486.00M	377.60M
Total Debt	1.36B	1.79B	1.70B	1.77B	1.85B	2.02B
Total Liabilities	3.20B	2.90B	2.72B	2.97B	3.12B	3.27B
Stockholders Equity	2.08B	2.00B	1.95B	1.63B	1.47B	1.11B
Cash Flow
Free Cash Flow	295.50M	328.49M	327.49M	443.20M	597.25M	970.33M
Operating Cash Flow	473.11M	528.08M	535.78M	552.00M	673.26M	1.01B
Investing Cash Flow	-220.28M	-186.12M	-206.14M	-108.81M	-76.02M	-33.14M
Financing Cash Flow	-276.53M	-400.95M	-318.87M	-592.05M	-488.85M	-750.23M

Academy Sports and Outdoors Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 53.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASO, the sentiment is Positive. The current price of 53.85 is above the 20-day moving average (MA) of 48.84, above the 50-day MA of 50.89, and above the 200-day MA of 48.29, indicating a bullish trend. The MACD of 0.46 indicates Negative momentum. The RSI at 64.07 is Neutral, neither overbought nor oversold. The STOCH value of 96.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ASO.

Academy Sports and Outdoors Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DKS	82 Outperform	$20.75B	16.15	37.37%	2.05%	2.70%	4.58%
WSM	76 Outperform	$24.29B	21.92	51.75%	1.23%	3.28%	9.29%
ASO	73 Outperform	$3.59B	10.09	18.42%	0.93%	-2.20%	-17.95%
BBY	71 Outperform	$16.15B	21.18	26.72%	4.93%	-2.21%	-37.30%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SPWH	48 Neutral	$110.68M	―	-16.56%	―	-2.92%	-8.22%
BGFV	46 Neutral	$33.00M	―	-51.44%	3.55%	-8.04%	-263.28%

Academy Sports and Outdoors Corporate Events

Academy Sports Reports Q2 2025 Financial Results

On September 2, 2025, Academy Sports and Outdoors announced its financial results for the second quarter ending August 2, 2025, reporting a 3.3% increase in net sales and a 0.2% rise in comparable sales. The company opened three new stores and maintained its high-end guidance range while raising the low end. Despite a decrease in net income and earnings per share compared to the previous year, Academy remains confident in its strategic initiatives and expects continued growth. The company has implemented various strategies to mitigate the impact of tariffs, ensuring its ability to deliver value to customers.

Academy Sports Reports Q1 2025 Financial Results

On June 10, 2025, Academy Sports and Outdoors reported its financial results for the first quarter of fiscal 2025, ending May 3, 2025. The company experienced a 0.9% decline in net sales and a 3.7% drop in comparable sales, although eCommerce sales grew by 10.2%. Academy opened five new stores and launched the Jordan Brand, contributing to sequential monthly improvements despite economic challenges. The company revised its annual sales guidance to account for potential inflationary impacts, while continuing to focus on tariff mitigation and market share growth through its value-oriented strategy. The company returned $108 million to shareholders and plans to open 20 to 25 new stores in fiscal 2025.

Academy Sports Approves Governance Changes at Annual Meeting

On June 5, 2025, Academy Sports and Outdoors, Inc. held its 2025 Annual Meeting where stockholders approved significant amendments to the company’s governance structure. These included removing supermajority voting requirements, declassifying the board for annual director elections starting in 2026, and adding a provision to exculpate certain officers from liability under specific circumstances. Additionally, the stockholders elected three Class II directors, ratified Deloitte & Touche LLP as the independent auditor, and approved executive compensation for fiscal year 2024. Monique Picou was appointed to the Nominating and Governance Committee of the Board.