Academy Sports Outdoors Inc (ASO)ASO

Academy Sports Outdoors Inc. (ASO) Stock Overview:

Company Profile:

History:

• Founded in 1938 as a small family-owned sporting goods store in Texas.
• Acquired by Leonard Green & Partners in 2004.
• Went public in 2021.

Core Business Areas:

• Retailing of sporting goods, outdoor products, and athletic apparel.
• Operates 280 stores in 16 states across the southern and southeastern United States.
• E-commerce platform for online shopping.

Leadership:

• CEO: Kenneth Hicks (former President and COO of Academy Sports + Outdoors)
• CFO: Douglas Tucker (former CFO of Advance Auto Parts)

Top Products and Market Share:

Top Products:

• Firearms and ammunition
• Fishing gear and tackle
• Camping and outdoor equipment
• Apparel and footwear
• Team sports equipment

Market Share:

• Holds approximately 4% of the sporting goods market share in the US.
• Faces competition from larger retailers like Walmart, Dick's Sporting Goods, and Bass Pro Shops.

Total Addressable Market:

• The US sporting goods market is estimated to be around $80 billion.
• The outdoor recreation market is estimated to be around $887 billion globally.

Financial Performance:

Recent Financial Data:

• Revenue in 2022: $7.3 billion
• Net Income in 2022: $396 million
• Profit Margin: 5.4%
• EPS in 2022: $2.80

Year-over-Year Growth:

• Revenue grew 8.3% in 2022 compared to 2021.
• Net Income grew 21.8% in 2022 compared to 2021.

Cash Flow and Balance Sheet:

• Strong cash flow generation with operating cash flow of $529 million in 2022.
• Healthy balance sheet with low debt levels.

Dividends and Shareholder Returns:

Dividend History:

• Initiated a dividend in 2022 with a dividend yield of 0.9%.
• Payout ratio is currently around 25%.

Shareholder Returns:

• Total shareholder return has been 28.7% since the IPO in 2021.

Growth Trajectory:

Historical Growth:

• Revenue has grown at a CAGR of 10% over the past five years.
• Net Income has grown at a CAGR of 15% over the past five years.

Future Growth Projections:

• The company expects continued growth in the coming years, driven by store expansion and e-commerce growth.
• Analysts project revenue to grow at a CAGR of 8% over the next five years.

Market Dynamics:

Industry Overview:

• The sporting goods industry is expected to grow at a CAGR of 4.5% between 2022 and 2027.
• The increasing popularity of outdoor activities and health and fitness trends are driving growth.

Competitive Landscape:

• Key competitors include Walmart, Dick's Sporting Goods, and Bass Pro Shops.
• ASO differentiates itself through its focus on value pricing and its strong presence in the southern and southeastern US.

Recent Acquisitions:

No acquisitions made in the last 3 years.

AI-Based Fundamental Rating:

Rating: 7 out of 10

Justification:

• Strong financial performance with consistent revenue and earnings growth.
• Healthy balance sheet and cash flow generation.
• Growth potential in the sporting goods and outdoor recreation markets.
• Facing competition from larger retailers.

Sources:

• Academy Sports Outdoors Inc. Investor Relations
• MarketWatch
• Yahoo Finance
• Statista

Disclaimer:

This information is intended for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.