One-glance verdict
Undervalued
$87.46 our estimate vs market $58.63
Wall Street consensus: $59.50 (-32.0% lower than our fair-value estimate)
33% below our estimate, below the bear case
Fundamentals snapshot
Academy Sports and Outdoors, Inc.
ASO · NMS · Consumer Cyclical · Specialty Retail
Current price
$58.63
52-week range
$41.29 - $62.45
Market cap
$3.61B
Balance sheet
Watch
14.14x Strong cushion
Net debt $1.67B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 2.3% last year.
- Reward Returns 18.6% on equity, ahead of 66% of its peers.
- Risk Net debt grew 9.1% over 3 years.
- Risk Stock trades 8.6% above its 5-year average P/E.
What this company does
Academy Sports and Outdoors, Inc.
Academy Sports and Outdoors sells everything you need for sports and outdoor fun, from fishing gear and camping equipment to team sports essentials and apparel. Their money mostly comes from selling these kinds of products, and their operating margin (the percent of each sales dollar left after day-to-day business costs) is important for showing how well they manage those costs and make a profit. This matters because a healthy margin means they have more money left over to invest back into the business or return to shareholders.
How the company got here
Academy Sports and Outdoors started in 1938 as a tire shop in San Antonio, Texas, founded by Max Gochman. [2] Over time, it evolved into a seller of military surplus and eventually expanded its offerings to include sporting goods and outdoor equipment. [2, 3] The company grew steadily, with Arthur Gochman, Max's son, taking over and expanding the business, eventually changing the name to Academy Sports + Outdoors in 1995. [3] A significant turning point was the acquisition by Kohlberg Kravis Roberts (KKR) in 2011, which helped fuel further growth and professionalization. [1, 2] In 2020, Academy Sports + Outdoors became a publicly traded company, listing on the Nasdaq stock exchange. [2]
What it actually does
Academy Sports + Outdoors is a retailer that sells a wide variety of sporting goods, outdoor equipment, apparel, and footwear. [4, 7] They aim to provide a broad selection of products at competitive prices, catering to families and individuals interested in sports and outdoor activities. [7, 9] The company operates large-format stores, typically around 70,000 square feet, and also has an e-commerce presence. [4, 6] Academy focuses on a localized merchandising strategy, meaning the products offered in a specific store are tailored to the local market's interests, such as stocking more fishing gear in coastal areas. [4]
Outdoors
This segment is Academy's largest source of revenue, making up about 30% of sales. [4] It includes a wide range of products for outdoor enthusiasts, such as camping gear (coolers, equipment), fishing supplies (rods, reels, marine equipment), and hunting essentials (firearms, ammunition, archery equipment, optics). [1] This part of the business is important because it helps Academy stand out from some of its competitors who may focus more on traditional sports equipment. [1]
Apparel
The apparel division accounts for roughly 27% of Academy's sales. [4] This includes a variety of clothing for different activities, such as outdoor and seasonal wear, work apparel, athletic clothing, and fan gear for professional and college teams. [1] They offer both well-known national brands and their own private-label brands, providing options for various styles and price points. [1, 9]
Sports and Recreation
This segment brings in about 22% of the company's revenue. [4] It covers equipment for team sports like baseball, football, and basketball, as well as fitness equipment and accessories. [1] You'll also find recreational items such as patio furniture, outdoor cooking supplies, trampolines, and ride-on toys like bicycles and skateboards. [1]
Footwear
Making up approximately 20% of sales, the footwear division offers a comprehensive selection of shoes. [4] This includes athletic shoes for running and training, casual shoes, slippers, work boots, hunting footwear, and children's shoes. [1] They provide options for all ages and for various sports and everyday activities.
What management is betting on now
Academy's management is focused on growing the company by opening new stores and improving its online shopping experience (e-commerce). [8, 10] They are also working to make their existing stores more efficient and are investing in technology to enhance operations and customer service. [8, 13] A key part of their strategy is to continue offering a value-based assortment of products, combining popular national brands with their own exclusive brands, to ensure customers can find what they need for sports and outdoor activities regardless of their budget. [7, 9]
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q4
$34.45M
FY2026 Q1
$76.45M
FY2026 Q2
$106.64M
FY2026 Q3
$21.83M
FY2026 Q4
$-13.56M
FY2027 Q2
$121.70M
FY2027 Q3
$116.06M
Revenue
$1.65B
Net income
$137.90M
Diluted EPS
2.17
Operating cash flow
$188.42M
Free cash flow
$116.06M
Fetching…
Sources
Revenue
$1.44B
Net income
$52.70M
Diluted EPS
0.80
Operating cash flow
$160.61M
Free cash flow
$121.70M
Fetching…
Sources
Revenue
$1.38B
Net income
$71.56M
Diluted EPS
1.05
Operating cash flow
$49.02M
Free cash flow
$-13.56M
Fetching…
Sources
Revenue
$1.60B
Net income
$125.43M
Diluted EPS
1.85
Operating cash flow
$78.58M
Free cash flow
$21.83M
Fetching…
Sources
Revenue
$1.35B
Net income
$46.08M
Diluted EPS
0.68
Operating cash flow
$157.47M
Free cash flow
$106.64M
Fetching…
Sources
Revenue
$1.68B
Net income
$133.63M
Diluted EPS
1.89
Operating cash flow
$140.17M
Free cash flow
$76.45M
Fetching…
Sources
Revenue
$1.34B
Net income
$65.76M
Diluted EPS
0.92
Operating cash flow
$96.89M
Free cash flow
$34.45M
Fetching…
Sources
Is it cheap or expensive?
Fair value $87.46 vs current price $58.63
Wall Street consensus is the average analyst price target: $59.50 (-32.0% lower than our fair-value estimate).
Our most-likely fair value is $87.46 a share — about 49.2% above today's price of $58.63, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $1.7B. Interest coverage 14.1x.
Net debt
$1.67B
Interest coverage
14.14x
Academy Sports and Outdoors, Inc.'s profit covers its interest bill about 14.1 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Watch
Worse cushion
Baseline
Better cushion
ASO
BASELINE
Academy Sports and Outdoors, Inc.
Total debt $1.97B Interest coverage 14.14x This is the baseline the peer rows are being compared against.
Total debt $7.96B Interest coverage 20.68x +46% vs ASO Carries about 1.5x more debt cushion than ASO.
Total debt $509.20M Interest coverage -1.02x -100% vs ASO This peer has almost no interest-payment cushion compared with ASO.
What you should know
The case for and against ASO
3 Rewards
3 Risks
Rewards
-
Revenue grew 2.3% last year.
-
Returns 18.6% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 6/10 years.
Risks
-
Net debt grew 9.1% over 3 years.
-
Stock trades 8.6% above its 5-year average P/E.
-
Insider ownership is only 1.6% (peer median: 5.4%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
9.84x
Forward P/E
8.31x
P/B
1.67x
P/S
0.58x
EV/EBITDA
7.55x
PEG ratio
0.60x
Profitability
How much profit each dollar creates
Gross margin
35.8%
Operating margin
15.0%
Net margin
6.4%
ROE
18.6%
ROA
6.7%
Health
Liquidity and balance-sheet strength
Debt / equity
0.90x
Current ratio
1.74x
Quick ratio
0.27x
Total debt
$1.97B
Total cash
$298.21M
Growth
How the business has been compounding
Revenue TTM
$6.19B
Revenue 5Y CAGR
-2.8%
EPS TTM
5.96
EPS 5Y CAGR
-9.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$547.77M
Free CF TTM
$222.13M
FCF margin
3.6%
Dividend
Shareholder payout
Yield
1.0%
Payout ratio
9.4%
Last ex-div date
2026-09-16