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Big 5 Sporting Goods Corp. (BGFV)
NASDAQ:BGFV

Big 5 Sporting Goods (BGFV) AI Stock Analysis

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Big 5 Sporting Goods

(NASDAQ:BGFV)

Rating:51Neutral
Price Target:
$1.50
▲(5.63%Upside)
Big 5 Sporting Goods faces substantial financial and operational challenges, reflected in its low financial performance score. The potential for growth through the merger and some positive technical indicators offer a glimmer of hope. However, negative earnings and the risk of delisting weigh heavily on the stock's overall attractiveness.

Big 5 Sporting Goods (BGFV) vs. SPDR S&P 500 ETF (SPY)

Big 5 Sporting Goods Business Overview & Revenue Model

Company DescriptionBig 5 Sporting Goods (BGFV) is a leading retailer of sporting goods and outdoor equipment in the United States. Established in 1955, the company operates over 400 stores across the western United States, offering a wide range of products including athletic shoes, apparel, accessories, as well as equipment for sports, fitness, camping, hunting, fishing, and winter and summer recreation. Big 5 Sporting Goods caters to a diverse customer base, providing both well-known brand names and private label offerings.
How the Company Makes MoneyBig 5 Sporting Goods generates revenue primarily through the sale of sporting goods and outdoor equipment at its retail locations. The company's key revenue streams include the sale of branded athletic apparel, footwear, and various sporting equipment. Big 5 operates a network of physical retail stores, which are strategically located to serve customers conveniently. The company also enhances its revenue by maintaining competitive pricing and offering periodic promotions and discounts. Additionally, Big 5's earnings are influenced by seasonal demand, particularly during the back-to-school period and holiday season, which sees increased consumer spending. While Big 5 does not heavily rely on e-commerce, it supplements its physical store sales with online offerings to reach a broader audience.

Big 5 Sporting Goods Earnings Call Summary

Earnings Call Date:Apr 29, 2025
(Q1-2025)
|
% Change Since: 65.12%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Negative
The earnings call highlighted improved sales trends in March and strategic inventory management, but was overshadowed by significant revenue declines, increased net losses, and projected continued sales challenges due to macroeconomic conditions.
Q1-2025 Updates
Positive Updates
Positive March Sales Trend
March same-store sales were flat versus the prior year, a significant improvement from the double-digit declines earlier in the quarter, aided by late-season positive winter weather.
Strategic Inventory Management
Inventory increased by 6.5% year-over-year, reflecting earlier seasonal merchandise receipts, which helped mitigate near-term tariff impacts and better prepare for spring and summer sales.
Expense Management
Selling and administrative expenses decreased by $0.6 million compared to the prior year, primarily due to reductions in labor costs and credit card fees.
Negative Updates
Significant Revenue Decline
Net sales for the quarter were $175.6 million, down from $193.4 million in the prior year, with same-store sales down 7.8% due to macroeconomic and weather-related challenges.
Decreased Merchandise Margins
Merchandise margins decreased by 78 basis points compared to the prior year, due to product mix shifts and promotional efforts to attract value-conscious consumers.
Increased Net Loss
Net loss for the first quarter was $17.3 million, or $0.78 per basic share, compared to a net loss of $8.3 million, or $0.38 per basic share, in the previous year.
Negative EBITDA
EBITDA was negative $12 million for the first quarter, compared to negative EBITDA of $6.5 million in the first quarter of the previous year.
High Inventory Levels
Merchandise inventory at the end of the first quarter increased by 6.5% year-over-year, leading to higher cash use in operating activities.
Projected Continued Sales Decline
Second quarter same-store sales are expected to be down in the low to mid-single-digit range, with net loss per basic share projected in the range of $0.75 to $0.90.
Company Guidance
In the first quarter of fiscal 2025, Big 5 Sporting Goods reported net sales of $175.6 million, a decrease from $193.4 million in the previous year, with same-store sales down 7.8% compared to fiscal 2024. Notably, winter-related sales plummeted nearly 25% due to unfavorable weather conditions, particularly impacting apparel and footwear, which saw declines of 8.7% and 11.8%, respectively. The company's gross profit for the quarter was $54.3 million, with a gross margin of 30.9%, slightly down from 31.2% in the prior year. Net loss for the quarter was $17.3 million or $0.78 per basic share, worsened by a lack of income tax benefit due to a deferred tax asset valuation allowance. For the second quarter, Big 5 anticipates same-store sales to decline in the low to mid-single-digit range and projects a net loss per basic share between $0.75 and $0.90, influenced by persistent macroeconomic challenges and calendar shifts.

Big 5 Sporting Goods Financial Statement Overview

Summary
Big 5 Sporting Goods is struggling with declining revenues, negative profitability, high leverage, and negative cash flow. Strategic improvements are needed in cost management, revenue generation, and financial stability to reverse current trends.
Income Statement
45
Neutral
Big 5 Sporting Goods has faced challenges in maintaining profitability, as evidenced by negative net income and EBIT margins in the TTM (Trailing-Twelve-Months). Revenue has declined over recent periods, indicating a shrinking market presence. Gross profit margins have also decreased, which points to cost pressures or pricing challenges. The company needs to address declining sales and profitability to improve its financial health.
Balance Sheet
55
Neutral
The company's balance sheet reveals a relatively high debt-to-equity ratio, signaling potential leverage risks. However, stockholders' equity has decreased over recent periods, and the equity ratio has declined, which might impact financial stability. The company needs to manage its leverage and improve equity to strengthen its balance sheet.
Cash Flow
40
Negative
The cash flow statement highlights negative free cash flow in the TTM, driven by negative operating cash flow. The operating cash flow to net income ratio is unfavorable, indicating cash generation issues. The company needs to enhance its cash flow management to support operations and growth.
BreakdownTTMDec 2024Dec 2023Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue777.69M795.47M884.75M995.54M1.16B1.04B
Gross Profit228.43M234.50M285.84M341.21M435.83M349.17M
EBITDA-42.69M-36.44M8.18M49.99M136.02M76.27M
Net Income-78.04M-69.07M-7.08M26.13M102.39M55.94M
Balance Sheet
Total Assets628.31M609.37M644.68M708.79M753.95M699.99M
Cash, Cash Equivalents and Short-Term Investments3.95M5.42M9.20M25.57M97.42M64.65M
Total Debt307.67M299.14M277.25M295.47M290.99M296.12M
Total Liabilities469.37M433.75M400.27M440.01M486.64M467.36M
Stockholders Equity158.94M175.61M244.41M268.78M267.31M232.64M
Cash Flow
Free Cash Flow-45.66M-22.32M7.52M-41.63M104.66M141.40M
Operating Cash Flow-34.85M-11.37M18.54M-28.44M115.53M148.74M
Investing Cash Flow-9.78M-10.85M-10.96M-13.18M-10.62M-5.36M
Financing Cash Flow35.96M18.44M-23.94M-30.23M-72.15M-86.95M

Big 5 Sporting Goods Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.42
Price Trends
50DMA
1.19
Positive
100DMA
1.11
Positive
200DMA
1.45
Negative
Market Momentum
MACD
0.07
Negative
RSI
63.72
Neutral
STOCH
87.94
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BGFV, the sentiment is Positive. The current price of 1.42 is above the 20-day moving average (MA) of 1.29, above the 50-day MA of 1.19, and below the 200-day MA of 1.45, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 63.72 is Neutral, neither overbought nor oversold. The STOCH value of 87.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
DKDKS
78
Outperform
$16.57B14.7940.22%2.33%3.33%15.47%
73
Outperform
$766.78M31.1714.01%35.78%23.49%
ASASO
70
Neutral
$3.27B9.0620.14%1.06%-3.57%-17.43%
56
Neutral
HK$24.88B3.87-2.03%6.54%-0.32%-67.68%
55
Neutral
$141.78M-15.67%-4.92%-13.73%
51
Neutral
$32.35M-39.57%3.55%-8.85%-397.36%
48
Neutral
$44.74M-54.32%-14.49%-210.54%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BGFV
Big 5 Sporting Goods
1.42
-1.31
-47.99%
DKS
Dick's Sporting Goods
210.31
4.85
2.36%
LQDT
Liquidity Services
24.59
4.34
21.43%
PRTS
US Auto Parts Network
0.78
-0.42
-35.00%
SPWH
Sportsman's Warehouse
3.67
1.33
56.84%
ASO
Academy Sports and Outdoors
50.19
-3.47
-6.47%

Big 5 Sporting Goods Corporate Events

M&A TransactionsBusiness Operations and Strategy
Big 5 Sporting Goods Announces Merger Agreement
Positive
Jun 30, 2025

On June 29, 2025, Big 5 Sporting Goods Corporation entered into a merger agreement with Worldwide Sports Group Holdings LLC and its subsidiaries, where Big 5 will become a wholly owned subsidiary of the parent company. The merger, valued at approximately $112.7 million, offers Big 5 stockholders $1.45 per share in cash, representing a 36% premium over the company’s 60-day volume-weighted average price. The transaction, unanimously approved by Big 5’s Board, is expected to close in the second half of 2025, subject to stockholder approval and other conditions. Upon completion, Big 5 will become a private company, leveraging the financial resources of Capitol Hill Group and the retail expertise of Worldwide Golf to enhance its growth and competitive position in the sporting goods sector.

Executive/Board ChangesShareholder Meetings
Big 5 Sporting Goods Holds Annual Stockholder Meeting
Neutral
Jun 13, 2025

At the Annual Meeting, Big 5 Sporting Goods stockholders voted on several key proposals. They re-elected two Class B directors, Lily W. Chang and Van B. Honeycutt, to the Board of Directors until the 2028 annual meeting. Additionally, stockholders approved the executive compensation plan, ratified Deloitte & Touche LLP as the independent auditor for fiscal year 2025, and amended the 2019 Equity Incentive Plan.

Delistings and Listing ChangesRegulatory Filings and Compliance
Big 5 Sporting Goods Faces Nasdaq Non-Compliance Notice
Negative
May 16, 2025

On May 13, 2025, Big 5 Sporting Goods Corporation received a notice from Nasdaq indicating non-compliance with the $1.00 minimum bid price requirement for continued listing on The Nasdaq Global Market. The company has until November 10, 2025, to meet this requirement by maintaining a closing bid price of at least $1.00 per share for ten consecutive business days. Failure to comply could lead to delisting, although the company may apply for additional time by transferring to The Nasdaq Capital Market. Big 5 Sporting Goods is monitoring its stock price and exploring options to regain compliance, but there is no assurance of success.

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.Date of analysis: Jul 01, 2025