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Amer Sports, Inc. (AS)
:AS
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Amer Sports, Inc.
(NYSE:AS)
Rating:81Outperform
Price Target:
$42.00
▲(10.01%Upside)
Positive Factors
Market Cap and Growth Potential
AS achieved a $20B market cap, indicating its potential for long-term growth with high quality sales and best in class management.
Sales and Earnings Performance
AS reported 1Q EPS of $0.27, beating consensus estimates due to better sales and margins across all brands.
Negative Factors
Brand Momentum
The sustainability of the Salomon brand's momentum is questionable, raising concerns about consistency across segments versus guidance.
Geopolitical Concerns
Concerns exist regarding the potential deterioration of Chinese consumer markets, especially following a recent slowdown in retail sales.
Amer Sports, Inc. (AS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$20.70B
Dividend YieldN/A
Average Volume (3M)3.53M
Price to Earnings (P/E)100.5
Beta (1Y)1.05
Revenue Growth21.21%
EPS GrowthN/A
CountryUS
Employees13,400
SectorGeneral
Sector StrengthN/A
IndustryLeisure
Share Statistics
EPS (TTM)0.27
Shares Outstanding553,845,340
10 Day Avg. Volume2,821,309
30 Day Avg. Volume3,532,110
Financial Highlights & Ratios
PEG Ratio0.67
Price to Book (P/B)4.24
Price to Sales (P/S)0.00
P/FCF Ratio91.15
Enterprise Value/Market Cap1.11
Enterprise Value/Revenue1.17
Enterprise Value/Gross Profit7.48
Enterprise Value/Ebitda11.29
Forecast
1Y Price Target
$42.50Price Target Upside11.31% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
Amer Sports, Inc. Business Overview & Revenue Model
Company DescriptionAmer Sports, Inc. is a global sporting goods company that specializes in the design, manufacture, and distribution of sports equipment, apparel, and footwear. The company operates in various sectors, including outdoor, ball sports, and fitness. It owns a portfolio of internationally recognized brands such as Salomon, Arc'teryx, Wilson, Atomic, and Suunto, catering to a diverse range of consumers from professional athletes to recreational enthusiasts.
How the Company Makes MoneyAmer 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. Earnings Call Summary
Earnings Call Date:May 20, 2025
(Q1-2025)
| % Change Since: 21.63%|
Next Earnings Date:Aug 19, 2025
Earnings Call Sentiment Positive
The earnings call depicted a strong positive sentiment with significant sales growth, margin expansion, and strong brand performance, particularly in Technical Apparel and Outdoor Performance. The challenges were mainly related to macroeconomic factors like U.S. tariffs and specific market segments like Nordic equipment.Q1-2025 Updates
Positive Updates
Strong Sales and Margin Growth
Amer Sports delivered 23% sales growth or 26% ex-currency, with an adjusted operating margin expansion of nearly 500 basis points.
Technical Apparel and Outdoor Performance Segment Success
The performance was led by strong growth and profitability in Technical Apparel and Outdoor Performance, with Arc'teryx delivering a 28% increase in revenues and Salomon experiencing accelerating momentum globally.
Arc'teryx Direct-to-Consumer Channel Growth
Arc'teryx achieved a plus 19% omni-comp in Q1, driven by strong performance in both stores and online.
Salomon Sneakers' Global Impact
Salomon sneakers surpassed US$1 billion in sales in 2024, with significant growth potential in the US$180 billion global sneaker market.
Ball & Racquet Growth
The Ball & Racquet segment experienced 12% growth, driven by strength in sportswear, racquet sports, and golf.
Strong Performance in Greater China
Amer Sports saw 49% growth in Asia Pacific and 43% growth in Greater China in Q1, driven by the premium sports and outdoor market.
Negative Updates
Macro Uncertainty Related to U.S. Tariffs
Despite strong performance, there is macro uncertainty related to U.S. tariffs, which poses potential challenges.
Challenges in Winter Sports Equipment
The Nordic or cross country market remains more challenged, although significant inventory was moved at reasonable discounts.
Company Guidance
During the Amer Sports First Quarter Fiscal 2025 Earnings Conference Call, the management team provided guidance for the second quarter and full fiscal year. For the full year 2025, they raised their revenue growth expectations from 13%-15% to 15%-17%, anticipating a 150 basis point drag from unfavorable FX impact. The adjusted gross margin is expected to remain between 56.5% and 57%, with an adjusted operating margin of 11.5% to 12%. They also provided segment-specific guidance: Technical Apparel revenue growth was increased from approximately 20% to 20%-22%, Outdoor Performance from low double digits to mid-teens, and Ball & Racquet from low to mid-single digits to mid-single digits. The adjusted diluted EPS was raised to $0.67-$0.72 from $0.64-$0.69. For the second quarter, they expect reported revenue growth of 16%-18%, an adjusted gross margin of 57%-58%, and an adjusted operating profit between 3% and 4%, with an adjusted diluted EPS of $0.00 to $0.02. The management cited strong brand momentum, particularly in Arc'teryx and Salomon, and confidence in their ability to manage tariff impacts as key drivers for this optimistic outlook.Amer Sports, Inc. Financial Statement Overview
Summary
Amer Sports, Inc. presents a strong financial position with significant revenue and profit growth, efficient operations, and sound financial management. The company's balance sheet is stable with low leverage and high equity, while its cash flow indicates strong cash generation and management.Income Statement
Amer Sports, Inc. shows strong growth in revenue, with a Revenue Growth Rate of 5.25% in TTM compared to the previous year. The Gross Profit Margin is robust at 56.26% TTM, indicating efficient production. However, the Net Profit Margin, though improved, remains modest at 3.71% TTM. The EBIT Margin and EBITDA Margin are healthy at 10.56% and 11.65% TTM, respectively, reflecting operational efficiency.78
Positive
Balance Sheet
The Balance Sheet of Amer Sports, Inc. demonstrates stability with a Debt-to-Equity Ratio of 0.29 TTM, showcasing prudent leverage. Return on Equity is strong at 3.87% TTM, indicating efficient use of capital. The Equity Ratio of 61.18% TTM highlights a solid financial structure, with a significant portion of assets financed by equity.85
Very Positive
Cash Flow
Amer Sports, Inc. exhibits a robust Free Cash Flow Growth Rate of 75.41%, indicating strong cash generation capabilities. The Operating Cash Flow to Net Income Ratio of 2.33 TTM demonstrates excellent cash conversion efficiency. The Free Cash Flow to Net Income Ratio stands at 1.19 TTM, suggesting effective cash management.82
Very Positive
| 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 |
| EBITDA | 653.80M | 521.10M | 414.66M | 381.60M | 342.70M |
| Net Income | 72.60M | -208.60M | -235.21M | -204.99M | -208.07M |
Balance Sheet | |||||
| Total Assets | 8.34B | 8.37B | 7.40B | 6.99B | 8.62B |
| Cash, Cash Equivalents and Short-Term Investments | 345.40M | 483.40M | 376.67M | 498.33M | 389.50M |
| Total Debt | 1.48B | 6.66B | 5.84B | 5.54B | 6.99B |
| 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
Neutral
38.18
Price Trends
36.70
Positive
31.30
Positive
28.26
Positive
Market Momentum
0.59
Positive
47.64
Neutral
28.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AS, the sentiment is Neutral. The current price of 38.18 is below the 20-day moving average (MA) of 38.37, above the 50-day MA of 36.70, and above the 200-day MA of 28.26, indicating a neutral trend. The MACD of 0.59 indicates Positive momentum. The RSI at 47.64 is Neutral, neither overbought nor oversold. The STOCH value of 28.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AS.
Amer Sports, Inc. Risk Analysis
Amer Sports, Inc. disclosed 70 risk factors in its most recent earnings report. Amer Sports, Inc. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
Summary of Risk Factors Q4, 2024
Amer Sports, Inc. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $20.70B | 100.51 | 4.38% | ― | 21.21% | ― | |
79 Outperform | $4.75B | 22.44 | 27.15% | 1.35% | 2.07% | 24.87% | |
75 Outperform | $2.90B | 17.28 | 25.01% | ― | 8.38% | 3.69% | |
62 Neutral | $316.32M | ― | -9.70% | 4.29% | -7.28% | -924.86% | |
56 Neutral | $5.80B | 21.14 | -28.61% | 4.89% | 10.78% | -34.04% | |
53 Neutral | $1.70B | ― | -46.00% | ― | -1.74% | -2020.38% | |
25 Underperform | $20.53M | ― | -124.69% | ― | -45.46% | 96.89% |
* General Sector Average
Performance Comparison
AS
Amer Sports, Inc.
37.37
26.53
244.74%
MODG
Topgolf Callaway Brands
9.65
-5.90
-37.94%
GOLF
Acushnet Holdings
82.50
15.05
22.31%
JOUT
Johnson Outdoors
32.70
-4.67
-12.50%
YETI
Yeti Holdings
37.83
1.26
3.45%
YYAI
Connexa Sports Technologies
1.41
-10.63
-88.29%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.