Academy Sports and Outdoors (ASO) AI Stock Analysis

• Market Cap: $3.58B
• Dividend Yield: 0.97%
• Average Volume (3M): 1.72M
• Price to Earnings (P/E): 9.8
• Beta (1Y): 1.31
• Revenue Growth: -0.65%
• EPS Growth: -10.35%
• Country: US
• Employees: 9,900
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 1.14
• Shares Outstanding: 66,681,300
• 10 Day Avg. Volume: 2,139,110
• 30 Day Avg. Volume: 1,715,976
• PEG Ratio: -0.60
• Price to Book (P/B): 1.86
• Price to Sales (P/S): 0.63
• P/FCF Ratio: 11.36
• Enterprise Value/Market Cap: 1.35
• Enterprise Value/Revenue: 0.80
• Enterprise Value/Gross Profit: 2.34
• Enterprise Value/Ebitda: 7.48
• 1Y Price Target: $57.00
• Price Target Upside: 6.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 5.85
• Revenue Forecast (FY): $6.09B

• Rating: 75 Outperform
• Price Target: $60.00 ▲(11.73% Upside)

Academy Sports and Outdoors receives a strong overall score driven by its attractive valuation and solid financial performance. Positive technical indicators and strategic growth initiatives further bolster the outlook. However, challenges in comp sales and low-income consumer segments present risks that need to be monitored.

Positive Factors

E-Commerce Expansion

Sustained e-commerce growth indicates a successful digital strategy, enhancing revenue channels and market reach, crucial in the evolving retail landscape.

Board Expansion

Expanding the board with experienced directors strengthens strategic oversight and supports long-term growth initiatives, particularly in digital transformation.

Market Share Gains

Increasing market share in core categories demonstrates competitive strength and effective customer engagement, supporting sustained revenue growth.

Negative Factors

Revenue Growth Volatility

Inconsistent revenue growth can hinder long-term planning and investment, potentially affecting financial stability and market confidence.

SG&A Expenses Increase

Rising SG&A expenses can pressure profit margins, reducing financial flexibility and potentially impacting future profitability if not managed.

Lower Income Consumer Traffic Decline

Decreased traffic from lower-income consumers may signal challenges in maintaining broad market appeal, affecting sales in key segments.

Academy Sports and Outdoors Business Overview & Revenue Model

Company Description

Academy Sports and Outdoors (ASO) is a leading sports and outdoor recreational retailer in the United States, specializing in a wide range of products for sports, fitness, camping, fishing, hunting, and outdoor leisure activities. The company operates a chain of retail stores that offer apparel, footwear, equipment, and accessories designed for various recreational pursuits. Academy Sports and Outdoors is known for its competitive pricing, extensive product selection, and commitment to customer service, catering to outdoor enthusiasts, athletes, and families alike.

How the Company Makes Money

Academy Sports and Outdoors generates revenue primarily through the sale of sporting goods, outdoor gear, and related merchandise in its retail stores and online platform. The company operates on a traditional retail model, where it purchases inventory from manufacturers and suppliers at wholesale prices and sells it at a markup. Key revenue streams include sales of athletic apparel, footwear, equipment for sports like basketball, soccer, and baseball, as well as outdoor products for camping, fishing, and hunting. Additionally, ASO benefits from seasonal sales and promotions, as well as private label products that enhance margins. The company also engages in strategic partnerships with brands to offer exclusive products, further driving sales. E-commerce sales have grown significantly, providing an additional channel for revenue generation, especially during peak shopping seasons. Overall, a combination of a diverse product offering, effective supply chain management, and a strong customer engagement strategy contributes to Academy Sports and Outdoors' earnings.

Academy Sports and Outdoors Financial Statement Overview

Summary

Academy Sports and Outdoors demonstrates solid financial health with strong profitability margins and a balanced capital structure. While revenue growth has been inconsistent, the company maintains efficient operations and cash flow management. The moderate leverage and stable equity position provide a solid foundation for future growth, although attention to improving cash flow efficiency could enhance financial flexibility.

Income Statement

Academy Sports and Outdoors shows a strong gross profit margin of 34.03% TTM, indicating efficient cost management. However, the net profit margin has slightly decreased to 6.55% TTM from 7.05% in the previous annual report, reflecting some pressure on net earnings. Revenue growth has been volatile, with a recent TTM growth of 0.86% following a decline in the previous periods. The EBIT and EBITDA margins remain healthy at 9.12% and 11.14% TTM, respectively, suggesting solid operational performance.

Balance Sheet

The company's debt-to-equity ratio is 0.94 TTM, which is a moderate level of leverage and has improved from previous years, indicating a more balanced capital structure. Return on equity is robust at 19.74% TTM, though it has decreased from 20.88% in the last annual report, suggesting slightly reduced profitability on equity. The equity ratio stands at 39.34% TTM, reflecting a stable financial position with a reasonable proportion of equity financing.

Cash Flow

Operating cash flow to net income ratio is 0.38 TTM, which is lower than the previous annual report, indicating reduced cash generation efficiency. Free cash flow growth is positive at 10.72% TTM, showing improvement from the prior period. The free cash flow to net income ratio is 0.55 TTM, suggesting that a significant portion of net income is being converted into free cash flow, although this has decreased from previous levels.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.01B	5.93B	6.16B	6.40B	6.77B	5.69B
Gross Profit	2.07B	2.01B	2.11B	2.21B	2.35B	1.73B
EBITDA	646.45M	693.17M	820.14M	971.51M	1.00B	534.95M
Net Income	376.71M	418.45M	519.19M	628.00M	671.38M	308.76M
Balance Sheet
Total Assets	5.41B	4.90B	4.68B	4.60B	4.58B	4.38B
Cash, Cash Equivalents and Short-Term Investments	289.49M	288.93M	347.92M	337.14M	486.00M	377.60M
Total Debt	1.39B	1.79B	1.70B	1.77B	1.93B	2.10B
Total Liabilities	3.27B	2.90B	2.72B	2.97B	3.12B	3.27B
Stockholders Equity	2.15B	2.00B	1.95B	1.63B	1.47B	1.11B
Cash Flow
Free Cash Flow	253.59M	328.49M	327.49M	443.20M	597.25M	970.33M
Operating Cash Flow	425.24M	528.08M	535.78M	552.00M	673.26M	1.01B
Investing Cash Flow	-215.70M	-186.12M	-206.14M	-108.81M	-76.02M	-33.14M
Financing Cash Flow	-213.78M	-400.95M	-318.87M	-592.05M	-488.85M	-750.23M

Academy Sports and Outdoors Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 53.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASO, the sentiment is Positive. The current price of 53.7 is above the 20-day moving average (MA) of 50.86, above the 50-day MA of 48.88, and above the 200-day MA of 47.07, indicating a bullish trend. The MACD of 2.06 indicates Negative momentum. The RSI at 59.62 is Neutral, neither overbought nor oversold. The STOCH value of 68.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ASO.

Academy Sports and Outdoors Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ASO	75 Outperform	$3.58B	9.81	18.34%	0.97%	-0.65%	-10.35%
WSM	75 Outperform	$22.79B	20.99	56.92%	1.37%	5.10%	7.59%
DKS	71 Outperform	$19.09B	17.06	23.79%	2.29%	10.86%	-11.63%
BBY	62 Neutral	$15.05B	23.71	22.49%	5.29%	-0.95%	-48.28%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BGFV	46 Neutral	―	―	―	―	-8.04%	-263.28%
SPWH	43 Neutral	$53.49M	-1.43	-16.36%	―	-1.05%	-10.28%

Academy Sports and Outdoors Corporate Events

Academy Sports Reports Q3 2025 Financial Results

On December 9, 2025, Academy Sports and Outdoors reported its financial results for the third quarter of fiscal 2025, which ended on November 1, 2025. The company saw a 3% increase in net sales and a 22.2% rise in eCommerce sales, despite a slight decrease in comparable sales by 0.9%. Academy opened eleven new stores across ten states, bringing its total to 317 locations. The company also narrowed its sales and gross margin guidance, reflecting its strategic focus on growth amid economic uncertainties. The CEO highlighted the company’s strong start to the holiday season and record Black Friday sales, reinforcing its position as a value leader in the market.

Academy Sports Expands Board with New Appointments

On December 1, 2025, Academy Sports and Outdoors appointed Michael Dastugue, Shannon Hennessy, and Clay Johnson to its Board of Directors, expanding the board from ten to twelve members. This strategic move aims to enhance the company’s capabilities in digital transformation, artificial intelligence, accounting, finance, and real estate, aligning with its long-term growth strategies. The new directors bring extensive experience in retail operations, strategic planning, and technology, which is expected to strengthen Academy’s market position and support its growth initiatives.

Academy Sports Director Chris Turner Resigns

On September 14, 2025, Chris Turner, an independent Class I member of the Board of Directors of Academy Sports and Outdoors, Inc., announced his resignation effective September 16. His departure was not due to any disagreements with the company’s operations or policies, indicating a smooth transition without internal conflicts.