Big 5 Sporting Goods (BGFV) AI Stock Analysis

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Big 5 Sporting Goods

(NASDAQ:BGFV)

Rating:52Neutral

Price Target:

$1.00

▼(-16.67%Downside)

Big 5 Sporting Goods faces significant financial struggles, with declining revenues and high leverage affecting its financial performance. Technical analysis shows some stabilization, but the bearish trend persists. The high dividend yield is offset by profitability concerns. Negative corporate events, including a Nasdaq non-compliance notice, further contribute to the risk profile.

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

Market Cap

$27.43M

Dividend Yield39.58%

Average Volume (3M)421.97K

Price to Earnings (P/E)―

Beta (1Y)1.15

Revenue Growth-8.85%

EPS Growth-397.36%

CountryUS

Employees2,100

SectorConsumer Cyclical

Sector Strength58

IndustrySpecialty Retail

Share Statistics

EPS (TTM)-0.78

Shares Outstanding22,855,062

10 Day Avg. Volume166,892

30 Day Avg. Volume421,968

Financial Highlights & Ratios

PEG Ratio-0.10

Price to Book (P/B)0.71

Price to Sales (P/S)0.00

P/FCF Ratio-4.59

Enterprise Value/Market Cap16.81

Enterprise Value/Revenue0.14

Enterprise Value/Gross Profit2.02

Enterprise Value/Ebitda-3.63

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 (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: 39.53%|

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

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

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

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.

TTM	Dec 2024	Dec 2023	Mar 2023	Mar 2022	Mar 2021
Breakdown
Income Statement		Total Revenue
777.69M	795.47M	884.75M	995.54M	1.16B	1.04B
	Gross Profit
228.43M	234.50M	285.84M	341.21M	435.83M	349.17M
	EBIT
-61.02M	-55.57M	-10.73M	15.04M	136.02M	57.45M
	EBITDA
-42.69M	-36.44M	8.18M	49.99M	136.02M	76.27M
	Net Income Common Stockholders
-78.04M	-69.07M	-7.08M	26.13M	102.39M	55.94M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.95M	5.42M	9.20M	25.57M	97.42M	64.65M
	Total Assets
628.31M	609.37M	644.68M	708.79M	753.95M	699.99M
	Total Debt
307.67M	299.14M	277.25M	295.47M	290.99M	296.12M
	Net Debt
303.73M	293.72M	268.05M	269.91M	193.57M	231.46M
	Total Liabilities
469.37M	433.75M	400.27M	440.01M	486.64M	467.36M
	Stockholders Equity
158.94M	175.61M	244.41M	268.78M	267.31M	232.64M
Cash Flow		Free Cash Flow
-45.66M	-22.32M	7.52M	-41.63M	104.66M	141.40M
	Operating Cash Flow
-34.85M	-11.37M	18.54M	-28.44M	115.53M	148.74M
	Investing Cash Flow
-9.78M	-10.85M	-10.96M	-13.18M	-10.62M	-5.36M
	Financing Cash Flow
35.96M	18.44M	-23.94M	-30.23M	-72.15M	-86.95M

Big 5 Sporting Goods Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price1.20

Price Trends

50DMA

1.04

Positive

100DMA

1.15

Positive

200DMA

1.51

Negative

Market Momentum

MACD

0.05

Positive

RSI

52.55

Neutral

STOCH

36.67

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 1.2 is below the 20-day moving average (MA) of 1.21, above the 50-day MA of 1.04, and below the 200-day MA of 1.51, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 52.55 is Neutral, neither overbought nor oversold. The STOCH value of 36.67 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 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 (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DKS	77 Outperform	$14.15B	12.63	40.22%	2.74%	3.33%	15.47%
ASO	75 Outperform	$2.90B	8.02	20.14%	1.19%	-3.57%	-17.43%
LQDT	74 Outperform	$730.56M	29.67	14.01%	―	35.78%	23.49%
Sector *	62 Neutral	$6.82B	11.05	2.80%	4.32%	2.67%	-24.92%
SPWH	57 Neutral	$159.40M	―	-15.67%	―	-4.92%	-13.73%
BGFV	52 Neutral	$27.43M	―	-39.57%	39.58%	-8.85%	-397.36%
PRTS	48 Neutral	$47.11M	―	-54.32%	―	-14.49%	-210.54%

* Consumer Cyclical Sector Average

Performance Comparison

BGFV

Big 5 Sporting Goods

1.20

-1.84

-60.53%

DKS

Dick's Sporting Goods

176.74

-43.87

-19.89%

LQDT

Liquidity Services

23.40

4.39

23.09%

PRTS

CarParts.com Inc

0.80

-0.39

-32.77%

SPWH

Sportsman's Warehouse

4.16

1.47

54.65%

ASO

Academy Sports and Outdoors

43.55

-9.78

-18.34%

Big 5 Sporting Goods Corporate Events

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.