One-glance verdict
Undervalued
$67.26 our estimate vs market $45.40
Wall Street consensus: $60.05 (-10.7% 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
$45.40
52-week range
$41.29 - $62.45
Market cap
$2.82B
Balance sheet
Watch
14.14x Strong cushion
Net debt $1.61B. 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 1.5% last year.
- Reward Returns 18.8% on equity, ahead of 60% of its peers.
- Risk Net debt grew 9.1% over 3 years.
- Risk Operating margin compressed from 13.2% to 5.2% over 3 years.
What this company does
Academy Sports and Outdoors, Inc.
Academy Sports and Outdoors is a large retail store that sells everything for sports and outdoor activities, from fishing rods and camping tents to soccer balls and athletic shoes. The company makes money by selling a wide variety of these items, including its own exclusive brands, which can help improve its profit margins (the percentage of a sale that is actual profit). This broad selection is important because it attracts many different types of customers, from serious hunters to families looking for backyard fun.
How the company got here
Academy Sports + Outdoors started in 1938 as a family-owned tire shop in San Antonio, Texas. It soon began selling military surplus items and gradually shifted its focus to sports and outdoor gear. For over 70 years, it was run by the Gochman family, expanding across Texas and into neighboring states. A major turning point came in 2011 when it was acquired by the investment firm KKR, which helped the company grow and launch its online store. The company went public in 2020, meaning its shares became available for anyone to buy on the stock market.
What it actually does
Academy is a retail store, much like a Target or Walmart, but it focuses specifically on sporting goods and outdoor recreation equipment. You can walk into one of their large stores and find everything from fishing rods and hunting gear to basketballs and athletic shoes. They sell well-known national brands like Nike and Under Armour, but also have their own private brands, which are products they create and sell exclusively in their stores. The company operates hundreds of stores, mostly in the South, Southeast, and Midwest, and also sells its products online.
Outdoors
This is the company's largest category, making up about a third of its sales. It includes everything you would need for activities like camping, fishing, and hunting. Customers buy items like tents, coolers, fishing rods, firearms, and ammunition from this department. This segment is a key differentiator for Academy, setting it apart from some other general sporting goods stores.
Apparel
Making up over a quarter of the company's sales, this department sells clothing for sports and outdoor activities. This includes everything from athletic wear and licensed team jerseys to outdoor-specific clothing like camouflage and work apparel. They offer clothes for men, women, and children from popular national brands as well as their own private labels.
Sports & Recreation
This segment, which accounts for just over a fifth of sales, covers equipment for a wide variety of activities. Shoppers can find gear for team sports like baseball, soccer, and basketball, as well as items for fitness and general recreation like bikes, patio furniture, and grills. It's the part of the store that caters to families and individuals looking for items to support their hobbies and active lifestyles.
Footwear
This is the smallest of the four main categories, representing just under a fifth of total sales. It includes a broad range of shoes for different needs, such as running shoes, cleats for sports, hiking boots, and casual everyday shoes. Like their apparel section, they sell well-known brands alongside their own exclusive footwear lines.
What management is betting on now
The company's main focus for growth is opening new stores, aiming to add over a hundred new locations over the next five years. They are also working to improve their online shopping experience and grow e-commerce (online sales) to make up a larger piece of their business. Another key strategy is to increase the sales of their own private brands, like Magellan Outdoors and BCG, because these products generally bring in a higher profit margin (the amount of profit made on each sale). Finally, they are using customer data to make sure they stock the right products for the specific neighborhoods their stores are in, a practice known as localized merchandising.
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 Q3
$50.15M
FY2025 Q4
$34.45M
FY2026 Q1
$76.45M
FY2026 Q2
$106.64M
FY2026 Q3
$21.83M
FY2026 Q4
$-13.56M
FY2027 Q2
$121.70M
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
Revenue
$1.55B
Net income
$142.59M
Diluted EPS
1.95
Operating cash flow
$91.35M
Free cash flow
$50.15M
Fetching…
Sources
Is it cheap or expensive?
Fair value $67.26 vs current price $45.40
Wall Street consensus is the average analyst price target: $60.05 (-10.7% lower than our fair-value estimate).
Our most-likely fair value is $67.26 a share — about 48.2% above today's price of $45.40, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $1.6B. Interest coverage 14.1x.
Net debt
$1.61B
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 2 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 $1.95B Interest coverage 14.14x This is the baseline the peer rows are being compared against.
Total debt $7.79B Interest coverage 20.68x +46% vs ASO Carries about 1.5x more debt cushion than ASO.
Total debt $504.44M Interest coverage -1.02x -100% vs ASO This peer has almost no interest-payment cushion compared with ASO.
Total debt $4.09B Interest coverage 0.90x -94% vs ASO Carries about 15.7x less debt cushion than ASO.
Total debt $773.48M Interest coverage 195.90x +1,285% vs ASO Carries about 13.9x more debt cushion than ASO.
What you should know
The case for and against ASO
3 Rewards
3 Risks
Rewards
-
Revenue grew 1.5% last year.
-
Returns 18.8% on equity, ahead of 60% of its peers.
-
Free cash flow was positive in 6/10 years.
Risks
-
Net debt grew 9.1% over 3 years.
-
Operating margin compressed from 13.2% to 5.2% over 3 years.
-
Insider ownership is only 1.5% (peer median: 3.6%).
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)
8.27x
Forward P/E
6.49x
P/B
1.36x
P/S
0.46x
EV/EBITDA
7.08x
PEG ratio
0.58x
Profitability
How much profit each dollar creates
Gross margin
34.6%
Operating margin
5.2%
Net margin
6.2%
ROE
18.8%
ROA
5.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.92x
Current ratio
1.68x
Quick ratio
0.28x
Total debt
$1.95B
Total cash
$337.81M
Growth
How the business has been compounding
Revenue TTM
$6.14B
Revenue 5Y CAGR
-2.8%
EPS TTM
5.49
EPS 5Y CAGR
-9.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$437.93M
Free CF TTM
$222.13M
FCF margin
3.6%
Dividend
Shareholder payout
Yield
1.3%
Payout ratio
9.5%
Last ex-div date
2026-06-18