Big 5 Sporting Goods (BGFV) AI Stock Analysis

• Market Cap: $20.44M
• Dividend Yield: 55.64%
• Average Volume (3M): 139.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.54
• Revenue Growth: -10.09%
• EPS Growth: -867.80%
• Country: US
• Employees: 2,100
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Specialty Retail
• EPS (TTM): -3.14
• Shares Outstanding: 22,687,586
• 10 Day Avg. Volume: 137,176
• 30 Day Avg. Volume: 139,883
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.03
• Price to Cash Flow (P/CF): -0.30
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Big 5 Sporting Goods is currently facing significant financial and operational challenges. Declining revenues, increased leverage, and negative cash flows highlight critical areas of concern. Technical indicators further support a bearish outlook, while valuation metrics suggest caution due to ongoing losses and a high dividend yield. The earnings call underscored these difficulties, with guidance indicating continued challenges. Overall, the stock score reflects these substantial risks.

Big 5 Sporting Goods Business Overview & Revenue Model

Company Description

Big 5 Sporting Goods Corporation operates as a sporting goods retailer in the western United States. The company's products include athletic shoes, apparel, and accessories. It also offers a selection of outdoor and athletic equipment for team sports, fitness, camping, hunting, fishing, tennis, golf, and winter and summer recreation, as well as home recreation. The company also provides private label items, such as shoes, apparel, camping equipment, fishing supplies, and snow sport equipment. It sells private label merchandise under its own trademarks comprising Golden Bear, Harsh, Pacifica, and Rugged Exposure. As of May 03, 2022, the company operated 431 stores. It also operates an e-commerce platform under the Big 5 Sporting Goods name. The company was founded in 1955 and is headquartered in El Segundo, California.

How the Company Makes Money

Big 5 Sporting Goods makes money primarily through the sale of its diverse range of sporting goods and outdoor products via its retail stores. Its revenue model is centered on direct sales to consumers, with income generated from the vast selection of branded and private-label merchandise it offers. The company operates numerous brick-and-mortar locations, where it leverages its extensive product assortment and competitive pricing to attract customers. Additionally, Big 5 strategically manages its inventory and store operations to maximize sales and profitability. While the company may also engage in marketing partnerships or promotions to boost sales, its core revenue stream remains the sale of sporting goods and related products.

Big 5 Sporting Goods Financial Statement Overview

Summary

Big 5 Sporting Goods is experiencing significant financial challenges. The income statement reveals declining revenues and profitability, with a net loss and negative margins. The balance sheet shows increased leverage and reduced equity, while the cash flow statement highlights negative free cash flow and operating cash flow inefficiencies. Overall, the financial health of the company is concerning.

Income Statement

The income statement reveals a challenging trajectory for Big 5 Sporting Goods. The company has suffered a decline in total revenue, dropping from $1,161,820,000 in 2022 to $795,468,000 in 2024, which indicates a negative revenue growth rate. Moreover, the net profit margin has turned negative, with a net loss of $69,072,000 in 2024. The gross profit margin has also decreased, reflecting decreased profitability. The EBIT and EBITDA margins are negative, highlighting operational challenges.

Balance Sheet

The balance sheet of Big 5 Sporting Goods shows a concerning increase in the debt-to-equity ratio, indicating higher financial leverage and risk. The stockholders' equity has decreased from $267,309,000 in 2022 to $175,611,000 in 2024, while total debt has risen slightly to $299,138,000. The equity ratio has also decreased, pointing to a weakened financial position. However, the company maintains a stable level of total assets, which provides some stability.

Cash Flow

The cash flow statement highlights significant issues in cash flow management. Free cash flow has turned negative, driven by negative operating cash flow and increased capital expenditures. The Free Cash Flow to Net Income Ratio is concerning as both metrics are negative, and the Operating Cash Flow to Net Income Ratio is not favorable, indicating inefficiencies in converting income into cash.

Breakdown
Dec 2024	Dec 2023	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
795.47M	884.75M	995.54M	1.16B	1.04B
	Gross Profit
234.50M	285.84M	341.21M	435.83M	349.17M
	EBIT
-55.57M	-10.73M	15.04M	136.02M	57.45M
	EBITDA
-55.57M	8.18M	49.99M	136.02M	76.27M
	Net Income Common Stockholders
-69.07M	-7.08M	26.13M	102.39M	55.94M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.42M	9.20M	25.57M	97.42M	64.65M
	Total Assets
609.37M	644.68M	708.79M	753.95M	699.99M
	Total Debt
299.14M	277.25M	295.47M	290.99M	296.12M
	Net Debt
293.72M	268.05M	269.91M	193.57M	231.46M
	Total Liabilities
433.75M	400.27M	440.01M	486.64M	467.36M
	Stockholders Equity
175.61M	244.41M	268.78M	267.31M	232.64M
Cash Flow		Free Cash Flow
-22.32M	7.52M	-41.63M	104.66M	141.40M
	Operating Cash Flow
-11.37M	18.54M	-28.44M	115.53M	148.74M
	Investing Cash Flow
-10.85M	-10.96M	-13.18M	-10.62M	-5.36M
	Financing Cash Flow
18.44M	-23.94M	-30.23M	-72.15M	-86.95M

Big 5 Sporting Goods Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BGFV, the sentiment is Neutral. The current price of 0.9 is above the 20-day moving average (MA) of 0.88, below the 50-day MA of 1.04, and below the 200-day MA of 1.68, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 47.14 is Neutral, neither overbought nor oversold. The STOCH value of 57.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BGFV.

Big 5 Sporting Goods Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DKS	78 Outperform	$14.99B	13.49	40.08%	2.38%	3.53%	13.86%
LQDT	74 Outperform	$984.57M	42.10	13.48%	―	32.16%	27.32%
ASO	66 Neutral	$2.54B	6.64	21.14%	1.21%	-3.67%	-14.66%
Sector *	60 Neutral	$6.85B	11.57	3.09%	4.18%	2.37%	-21.38%
SPWH	56 Neutral	$63.56M	―	-13.22%	―	-7.02%	-13.44%
PRTS	52 Neutral	$57.48M	―	-41.01%	―	-12.86%	-386.01%
BGFV	40 Underperform	$20.44M	―	-32.89%	55.64%	-10.09%	-867.80%

Big 5 Sporting Goods Corporate Events

Big 5 Sporting Goods Secures Amended Loan Agreement

Big 5 Sporting Goods Corporation has entered into a First Amended and Restated Loan Agreement with Bank of America, securing a five-year revolving credit facility with up to $150 million in committed availability, potentially increasing to $200 million. This agreement is expected to provide the company with financial flexibility to navigate the current retail environment and maintain long-term operational stability, with implications for stakeholders including interest rate terms tied to SOFR and a commitment to financial covenants.