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Big 5 Sporting Goods Corp. (BGFV)
NASDAQ:BGFV
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Big 5 Sporting Goods
(NASDAQ:BGFV)
39Underperform
Big 5 Sporting Goods (BGFV) vs. S&P 500 (SPY)
Market Cap
$22.01M
Dividend Yield48.97%
Average Volume (3M)158.53K
Price to Earnings (P/E)―
Beta (1Y)0.61
Revenue Growth-10.09%
EPS Growth-867.80%
CountryUS
Employees2,100
SectorConsumer Cyclical
Sector Strength50
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-3.14
Shares Outstanding22,687,586
10 Day Avg. Volume103,934
30 Day Avg. Volume158,534
Financial Highlights & Ratios
PEG RatioN/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 Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Big 5 Sporting Goods Business Overview & Revenue Model
Company DescriptionBig 5 Sporting Goods Corporation (BGFV) is a leading sporting goods retailer in the United States, specializing in providing a comprehensive range of athletic equipment, apparel, and footwear. The company operates a chain of retail stores primarily located in the western United States, offering products for sports enthusiasts and outdoor adventurers. Big 5 Sporting Goods caters to a wide array of activities, including team sports, fitness, camping, hunting, fishing, and winter and summer recreation.
How the Company Makes MoneyBig 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.40
Negative
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.45
Neutral
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.30
Negative
| 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
Negative
0.97
Price Trends
1.30
Negative
1.53
Negative
1.88
Negative
Market Momentum
-0.09
Negative
30.02
Neutral
54.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BGFV, the sentiment is Negative. The current price of 0.97 is below the 20-day moving average (MA) of 1.00, below the 50-day MA of 1.30, and below the 200-day MA of 1.88, indicating a bearish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 30.02 is Neutral, neither overbought nor oversold. The STOCH value of 54.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BGFV.
Big 5 Sporting Goods Risk Analysis
Big 5 Sporting Goods disclosed 33 risk factors in its most recent earnings report. Big 5 Sporting Goods 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 0 New Risks
Big 5 Sporting Goods Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $16.13B | 14.37 | 40.08% | 2.18% | 5.67% | 21.00% | |
70 Outperform | $4.03B | 19.99 | 26.30% | 1.28% | 3.15% | 15.44% | |
69 Neutral | $3.09B | 8.04 | 21.14% | 0.95% | -3.67% | -14.66% | |
63 Neutral | $4.17B | 19.73 | 12.01% | 1.59% | -3.35% | -6.09% | |
61 Neutral | $38.34M | ― | -12.82% | ― | -5.34% | -257.70% | |
59 Neutral | $12.26B | 11.12 | -0.55% | 3.78% | 1.42% | -20.63% | |
39 Underperform | $22.01M | ― | -32.89% | 48.97% | -10.09% | -867.80% |
* Consumer Cyclical Sector Average
Performance Comparison
BGFV
Big 5 Sporting Goods
0.97
-2.56
-72.52%
COLM
Columbia Sportswear
75.30
-4.57
-5.72%
DKS
Dick's Sporting Goods
201.97
-15.28
-7.03%
GOLF
Acushnet Holdings
67.32
1.16
1.75%
SPWH
Sportsman's Warehouse
1.01
-2.08
-67.31%
ASO
Academy Sports and Outdoors
46.07
-20.15
-30.43%
Big 5 Sporting Goods Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: -29.20% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Negative
The earnings call highlighted effective inventory and expense management and an extended credit agreement, but these positives were overshadowed by significant declines in net sales, increased net losses, and challenges in winter product sales. The lowlights indicate ongoing macroeconomic challenges affecting performance.Highlights
Inventory Management Success
The company successfully reduced inventory by 5.6% year-over-year, reflecting efforts to align inventory levels with sales and maintain flexibility for opportunistic buying.
Expense Management
Selling and administrative expenses were reduced by $1 million compared to the prior year, aided by lower labor costs and a $0.9 million insurance settlement gain.
Extended Credit Agreement
The company amended and extended its $150 million credit agreement with Bank of America, providing financial flexibility until December 2029.
Lowlights
Decrease in Net Sales
Net sales for the fourth quarter were $181.6 million, down from $196.3 million in the prior year, with same-store sales declining by 6.1%.
Net Loss Increase
Net loss for the fourth quarter of fiscal 2024 was $20.9 million compared to a net loss of $8.9 million in the same quarter last year.
Gross Profit Margin Decline
Gross profit margin decreased from 30.2% in the fourth quarter of the prior year to 28.2% in the fourth quarter of fiscal 2024.
Challenges in Winter Product Sales
Winter-related product sales were soft due to unfavorable weather conditions, impacting sales in the southern tier of stores.
Negative Adjusted EBITDA
Adjusted EBITDA was negative $16.4 million in the fourth quarter, worsening from a negative $8.7 million in the prior year.
Company Guidance
During the Big 5 Sporting Goods Fourth Quarter 2024 Earnings Results Conference Call, guidance for the first quarter of fiscal 2025 was provided, highlighting the expectation of continued macroeconomic challenges impacting consumer spending. The company anticipates same-store sales to decline in the mid to high single-digit range compared to the first quarter of 2024. The expected net loss per basic share for the first quarter of 2025 is projected to be between $0.75 and $0.85, which assumes no tax benefit for the period, contrasting with a net loss of $0.38 per basic share in the same quarter of the previous year. This guidance reflects the ongoing strategic focus on optimizing store operations and managing inventory levels in response to economic conditions.Big 5 Sporting Goods Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Big 5 Sporting Goods Secures Amended Loan Agreement
Positive
Dec 23, 2024
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.