One-glance verdict
Overvalued
$-4.99 our estimate vs market $1.05
Wall Street consensus: $2.92 (-158.4% lower than our fair-value estimate)
121% below our estimate, beyond the bull case
Fundamentals snapshot
Sportsman's Warehouse Holdings, Inc.
SPWH · NMS · Consumer Cyclical · Specialty Retail
Current price
$1.05
52-week range
$1.05 - $2.87
Market cap
$41.10M
Balance sheet
Distressed
-1.02x Concerning
Net debt $507.22M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
3 Risks
2 rewards · 3 risks
- Reward Revenue grew 0.7% last year.
- Reward Free cash flow was positive in 5/10 years.
- Risk Return on equity was -25.8% last year — the company lost money on shareholders' equity.
- Risk Net debt grew 8.7% over 3 years.
What this company does
Sportsman's Warehouse Holdings, Inc.
Sportsman's Warehouse sells outdoor gear for activities like camping, fishing, and hunting, making money from selling these products both in stores and online. They also offer services like fishing line winding and scope mounting, which contribute to their overall sales. Understanding how well they sell these items helps us see if their profits are growing or shrinking.
How the company got here
Sportsman's Warehouse was founded in 1986 by Bill Hayes, starting as a single store focused on outdoor enthusiasts. The company expanded throughout the Western United States in the late 1990s and early 2000s, building a reputation for its wide selection of specialized gear. It faced challenges and ownership changes, including emerging from Chapter 11 bankruptcy protection in 2009. The company has since continued to expand its retail footprint and now operates across 29 states.
What it actually does
Sportsman's Warehouse is a retailer that sells a variety of outdoor sporting goods. They offer products for hunting, shooting, fishing, camping, and other outdoor recreational activities. This includes apparel, footwear, and gear designed to help customers enjoy their time outdoors. The company operates both physical stores and an e-commerce platform to reach its customers.
Hunting and Shooting
This part of the business focuses on products for hunters and sport shooters. It includes items like firearms, ammunition, archery equipment, and accessories such as blinds and tree stands. The company also offers related services like scope mounting and bore sighting, and even issues hunting and fishing licenses in some locations. This segment is a key driver of the company's performance, with management highlighting strong results in this area.
Fishing
This segment caters to anglers and offers a wide range of fishing gear. Products include fishing rods, reels, lines, lures, bait, and tackle, as well as small boats and flotation devices. The company also provides services like fishing reel line winding. Fishing is identified as one of the core pursuits that contribute to the company's success.
Camping
This area of the business provides equipment for camping and other outdoor adventures. It features items such as tents, sleeping bags, camp essentials, coolers, and outdoor cooking equipment. Customers can also find related gear like backpacks and canoes/kayaks. This category supports the company's mission to equip customers for various outdoor activities.
Apparel and Footwear
Sportsman's Warehouse offers a selection of clothing and shoes designed for outdoor activities and work. This includes items like jackets, outerwear, hats, sportswear, and technical gear, as well as workwear. For footwear, they provide hiking boots, work boots, socks, sport sandals, and technical shoes. This category complements the specialized gear by providing functional and durable clothing options for different outdoor pursuits.
What management is betting on now
Management is focused on a strategy that emphasizes localized merchandising and targeted marketing to meet the specific needs of different regions. They are also prioritizing inventory precision to improve product turnaround and overall efficiency, aiming to operate with lower average inventory levels. The company is looking to expand its offerings in personal protection products and grow larger customer baskets. A key goal is to generate positive free cash flow, reduce debt, and strengthen the company's financial position.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q4
$-6.16M
FY2026 Q1
$49.57M
FY2026 Q2
$-64.05M
FY2026 Q3
$-33.93M
FY2026 Q4
$8.74M
FY2027 Q2
$-59.61M
FY2027 Q3
$-15.53M
Revenue
$295.58M
Net income
$-4.43M
Diluted EPS
-0.11
Operating cash flow
$-12.07M
Free cash flow
$-15.53M
Fetching…
Sources
Revenue
$256.08M
Net income
$-21.85M
Diluted EPS
-0.56
Operating cash flow
$-55.37M
Free cash flow
$-59.61M
Fetching…
Sources
Revenue
$331.32M
Net income
$8.00K
Diluted EPS
0.00
Operating cash flow
$16.30M
Free cash flow
$8.74M
Fetching…
Sources
Revenue
$293.90M
Net income
$-7.08M
Diluted EPS
-0.18
Operating cash flow
$-26.57M
Free cash flow
$-33.93M
Fetching…
Sources
Revenue
$249.10M
Net income
$-21.25M
Diluted EPS
-0.56
Operating cash flow
$-60.23M
Free cash flow
$-64.05M
Fetching…
Sources
Revenue
$340.40M
Net income
$-9.45M
Diluted EPS
-0.24
Operating cash flow
$52.82M
Free cash flow
$49.57M
Fetching…
Sources
Revenue
$324.26M
Net income
$364.00K
Diluted EPS
0.01
Operating cash flow
$-2.54M
Free cash flow
$-6.16M
Fetching…
Sources
Is it cheap or expensive?
Fair value $-4.99 vs current price $1.05
Wall Street consensus is the average analyst price target: $2.92 (-158.4% lower than our fair-value estimate).
Our most-likely fair value is $-4.99 a share — about 575.5% below today's price of $1.05, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Distressed
Net debt $507.2M. Interest coverage -1.0x.
Net debt
$507.22M
Interest coverage
-1.02x
Sportsman's Warehouse Holdings, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker 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.
Distressed
Worse cushion
Baseline
Better cushion
SPWH
BASELINE
Sportsman's Warehouse Holdings, Inc.
Total debt $509.20M Interest coverage -1.02x This is the baseline the peer rows are being compared against.
Total debt $1.97B Interest coverage 14.14x This peer still has a real interest-payment cushion, while SPWH does not.
Total debt $32.01M Interest coverage -7.32x Neither company has much profit cushion over interest right now.
What you should know
The case for and against SPWH
2 Rewards
3 Risks
Rewards
-
Revenue grew 0.7% last year.
-
Free cash flow was positive in 5/10 years.
Risks
-
Return on equity was -25.8% last year — the company lost money on shareholders' equity.
-
Net debt grew 8.7% over 3 years.
-
Operating margin compressed from 4.7% to -0.3% over 3 years.
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)
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Forward P/E
-3.71x
P/B
0.25x
P/S
0.03x
EV/EBITDA
21.62x
PEG ratio
0.88x
Profitability
How much profit each dollar creates
Gross margin
30.9%
Operating margin
-0.3%
Net margin
-3.9%
ROE
-25.8%
ROA
-0.8%
Health
Liquidity and balance-sheet strength
Debt / equity
3.11x
Current ratio
1.17x
Quick ratio
0.01x
Total debt
$509.20M
Total cash
$1.98M
Growth
How the business has been compounding
Revenue TTM
$1.22B
Revenue 5Y CAGR
-4.5%
EPS TTM
-1.24
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$50.68M
Free CF TTM
$8.88M
FCF margin
0.7%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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