Amer Sports, Inc. (AS) AI Stock Analysis

• Market Cap: $20.96B
• Dividend Yield: N/A
• Average Volume (3M): 5.13M
• Price to Earnings (P/E): 101.8
• Beta (1Y): 1.03
• Revenue Growth: 21.21%
• EPS Growth: N/A
• Country: US
• Employees: 13,400
• Sector: General
• Sector Strength: N/A
• Industry: Leisure
• EPS (TTM): 0.27
• Shares Outstanding: 553,845,340
• 10 Day Avg. Volume: 5,749,240
• 30 Day Avg. Volume: 5,127,190
• PEG Ratio: 3.02
• Price to Book (P/B): -40.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 138.97
• Enterprise Value/Market Cap: 0.63
• Enterprise Value/Revenue: 0.72
• Enterprise Value/Gross Profit: 4.69
• Enterprise Value/Ebitda: 6.40
• 1Y Price Target: $42.00
• Price Target Upside: 11.49% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 58 Neutral
• Price Target: $38.00 ▲(0.88%Upside)

Amer Sports has demonstrated strong revenue growth and improved financial health by reducing debt. However, profitability challenges with thin net margins and cash flow inconsistencies remain significant risks. The stock shows strong technical momentum, but high valuation metrics and overbought technical indicators suggest caution. Positive outlook from the earnings call supports the score, but macroeconomic risks require careful consideration.

Positive Factors

Earnings Guidance

AS raised its FY25 EPS guidance, with adjusted EPS now expected higher than prior estimates and consensus.

Revenue Growth

Revenue grew 23%, well above consensus at 16%, driven by strong sales momentum across Technical Apparel and Outdoor Performance.

Negative Factors

Brand Consistency

The sustainability of the Salomon brand's momentum is questionable, raising concerns about consistency across segments versus guidance.

Market Concerns

Concerns exist regarding the potential deterioration of Chinese consumer markets, especially following a recent slowdown in retail sales, which is crucial for Amer Sports' growth and margin story.

Amer Sports, Inc. Business Overview & Revenue Model

Company Description

Amer Sports, Inc. designs, manufactures, markets, distributes, and sells sports equipment, apparel, footwear, and accessories in Europe, the Middle East, Africa, the Americas, China, and the Asia Pacific. The company operates through three segments: Technical Apparel, Outdoor Performance, and Ball & Racquet Sports. The Technical Apparel segment offers outdoor apparel, footwear, and accessories under the Arc'teryx and Peak Performance brands. The Outdoor Performance segment provides outdoor apparel, footwear, accessories, and winter sports equipment under the Salomon, Atomic, Armada, and ENVE brands. The Ball & Racquet Sports segment offers sports equipment, apparel, and accessories under the Wilson, DeMarini, Louisville Slugger, EvoShield, and ATEC brands. The company also provides climbing gears, hiking and running footwear, skiing and snowboarding gears, functional athletic apparel, and lifestyle footwear, as well as sporting equipment for tennis, baseball, American football, basketball, golf, and various other professional and recreational sports. It sells its products through its retail stores, general sporting goods retailers, specialty stores, independently operated partner stores, and distributors, as well as its e-commerce websites, and retailer-owned and third-party e-commerce websites. The company was formerly known as Amer Sports Management Holding (Cayman) Limited and changed its name to Amer Sports, Inc. in August 2023. Amer Sports, Inc. was founded in 1950 and is based in Helsinki, Finland.

How the Company Makes Money

Amer Sports, Inc. generates revenue primarily through the sale of its branded sports equipment, apparel, and footwear. The company sells its products through multiple channels, including wholesale to retail partners, direct-to-consumer via e-commerce platforms, and brick-and-mortar stores. Key revenue streams include the outdoor segment, which features brands like Salomon and Arc'teryx, the ball sports segment led by Wilson, and the fitness segment including products from Precor. Significant partnerships, such as endorsements and collaborations with athletes and sports teams, also bolster its market presence and drive sales. Additionally, Amer Sports invests in R&D to innovate and improve product offerings, thus enhancing its competitive edge in the sporting goods industry.

Amer Sports, Inc. Financial Statement Overview

Summary

Amer Sports, Inc. showed strong revenue growth and improved gross profit margins but continues to face challenges with thin net profit margins and inconsistent cash flow. The reduction in debt levels is a positive sign, but the debt-to-equity ratio remains a concern.

Income Statement

Amer Sports, Inc. showed strong revenue growth, increasing from $2.14 billion in 2020 to $5.18 billion in 2024. Gross profit margin improved, reflecting efficient cost management. However, net profit margins are thin, with a net income of $72.6 million in 2024, indicating potential profitability issues. Despite positive EBIT and EBITDA margins, the net profit margin remains a concern.

Balance Sheet

The company has substantially reduced its debt levels from $6.99 billion in 2020 to $1.48 billion in 2024, improving its financial stability. However, the debt-to-equity ratio is still a concern, and stockholders' equity was negative until 2023, pointing to past financial difficulties. The current equity ratio is strong, suggesting improved financial health.

Cash Flow

Free cash flow has been inconsistent, with zero reported in 2024 despite previous positive figures. Operating cash flow was positive in earlier years but is currently at zero, indicating potential issues in cash generation from operations. The lack of free cash flow growth and cash flow ratios highlights potential cash management challenges.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.18B	4.37B	3.38B	2.59B	2.15B
	Gross Profit
2.87B	2.28B	1.68B	1.27B	1.01B
	EBIT
470.80M	302.50M	229.79M	151.44M	121.93M
	EBITDA
665.80M	521.10M	414.66M	381.60M	342.70M
	Net Income Common Stockholders
72.60M	-208.60M	-235.21M	-204.99M	-208.07M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
345.40M	483.40M	376.67M	498.33M	389.50M
	Total Assets
8.34B	8.37B	7.40B	6.99B	8.62B
	Total Debt
1.48B	6.66B	5.84B	5.54B	6.99B
	Net Debt
1.14B	6.18B	5.47B	5.04B	6.60B
	Total Liabilities
3.33B	8.53B	7.47B	6.96B	8.78B
	Stockholders Equity
5.00B	-160.20M	-69.24M	33.42M	-152.90M
Cash Flow		Free Cash Flow
136.70M	47.20M	-201.15M	143.06M	167.64M
	Operating Cash Flow
424.70M	199.00M	-87.25M	226.74M	261.32M
	Investing Cash Flow
-268.30M	-154.80M	-112.85M	249.92M	-93.60M
	Financing Cash Flow
-266.00M	35.00M	77.17M	-312.78M	-145.00M

Amer Sports, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 37.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AS, the sentiment is Positive. The current price of 37.67 is above the 20-day moving average (MA) of 35.81, above the 50-day MA of 28.97, and above the 200-day MA of 24.99, indicating a bullish trend. The MACD of 2.54 indicates Positive momentum. The RSI at 72.47 is Negative, neither overbought nor oversold. The STOCH value of 68.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AS.

Amer Sports, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GOLF	81 Outperform	$4.18B	19.74	27.15%	1.24%	2.07%	24.87%
YETI	76 Outperform	$2.69B	15.67	25.01%	―	8.38%	3.69%
JOUT	60 Neutral	$297.31M	―	-9.70%	4.61%	-7.28%	-924.86%
AS	58 Neutral	$20.96B	101.78	4.38%	―	21.21%	―
Sector *	57 Neutral	$4.90B	18.99	-16.90%	5.26%	13.61%	-24.47%
MODG	54 Neutral	$1.41B	―	-46.00%	―	-1.74%	-2020.38%
YYAI	25 Underperform	$12.66M	―	-124.69%	―	-45.46%	96.89%