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Sportsman's Warehouse (SPWH)
NASDAQ:SPWH
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Sportsman's Warehouse
(NASDAQ:SPWH)
56Neutral
Positive Factors
Cost Management
The solid adj. EBITDA outlook reflects a turnaround effort on cost management, offering potential for gross margin upside.
Financial Performance
SPWH reported 4Q:F24 results that were above expectations, showcasing a strong financial performance.
Strategic Initiatives
The company's strategy to target value-conscious customers during the holiday season was successful in driving traffic and maintaining solid margins.
Negative Factors
Consumer Spending Environment
The consumer spending environment remains difficult with no significant signs of positive macro trends developing.
Market Trends
The balance sheet improved significantly, yet broader market trends remain challenging.
Sportsman's Warehouse (SPWH) vs. S&P 500 (SPY)
Market Cap
$63.56M
Dividend YieldN/A
Average Volume (3M)4.62M
Price to Earnings (P/E)―
Beta (1Y)-0.35
Revenue Growth-7.02%
EPS Growth-13.44%
CountryUS
Employees2,050
SectorConsumer Cyclical
Sector Strength63
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-0.88
Shares Outstanding38,287,426
10 Day Avg. Volume504,421
30 Day Avg. Volume4,624,286
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)-3.70
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 Target
$2.83Price Target Upside70.48% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Sportsman's Warehouse Business Overview & Revenue Model
Company DescriptionSportsman's Warehouse (SPWH) is a leading outdoor sporting goods retailer in the United States, specializing in providing a comprehensive range of products for outdoor enthusiasts. The company operates in sectors including hunting, shooting, fishing, camping, and outdoor sports, offering an extensive selection of equipment, apparel, and accessories. Sportsman's Warehouse caters to both casual hobbyists and serious adventurers, emphasizing high-quality products and knowledgeable customer service across its retail locations and online platform.
How the Company Makes MoneySportsman's Warehouse generates revenue primarily through the sale of outdoor sporting goods and equipment. Its key revenue streams include retail sales from its physical store locations and online sales through its e-commerce platform. The company offers a wide variety of products across multiple categories such as hunting, shooting, fishing, camping, and footwear, appealing to a diverse customer base of outdoor enthusiasts. Additionally, the company benefits from vendor partnerships and exclusive product offerings which enhance its competitive edge. Sales are driven by seasonal demand, promotional events, and the company's ability to maintain a diverse inventory that meets the needs of its customer base.
Sportsman's Warehouse Financial Statement Overview
Summary
Sportsman's Warehouse is facing financial challenges with declining revenues, shrinking profit margins, and increased leverage. However, cash flow management shows some resilience, necessitating strategic adjustments for improved financial health.Income Statement
The income statement reflects a challenging period for Sportsman's Warehouse. Over the past few years, there has been a clear downward trend in revenue, decreasing from $1.5 billion in 2022 to $1.2 billion in 2025. Gross profit margin has also decreased, and the net profit margin turned negative in 2025, indicating a struggle with profitability. EBIT and EBITDA margins have both deteriorated, reflecting operational challenges.45
Neutral
Balance Sheet
The balance sheet shows a moderate level of stability with a debt-to-equity ratio that increased over time, reaching approximately 1.83 in 2025, signifying increased leverage. Stockholders' equity has fallen, but the equity ratio remains reasonably stable. However, the return on equity (ROE) has turned negative, indicating inefficiencies in generating returns on shareholders' investments.55
Neutral
Cash Flow
Cash flow analysis reveals some positive aspects, like the improvement in free cash flow from negative to positive in 2025. Operating cash flow to net income ratio is favorable, suggesting effective cash generation from operations. However, free cash flow growth has been inconsistent, and there are ongoing challenges in maintaining a stable cash flow trajectory.60
Neutral
| Breakdown | ||||
| Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.20B | 1.29B | 1.40B | 1.51B | 1.45B | Gross Profit |
| 370.47M | 383.41M | 460.24M | 490.30M | 476.45M | EBIT |
| -18.24M | -25.34M | 58.06M | 90.62M | 122.75M | EBITDA |
| -18.24M | 13.67M | 89.84M | 203.38M | 172.10M | Net Income Common Stockholders |
| -33.06M | -29.00M | 40.52M | 108.47M | 91.38M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 2.83M | 3.14M | 2.39M | 57.02M | 65.53M | Total Assets |
| 852.10M | 886.21M | 858.96M | 840.58M | 660.82M | Total Debt |
| 431.20M | 481.74M | 393.45M | 343.20M | 264.31M | Net Debt |
| 428.37M | 478.60M | 391.06M | 286.19M | 198.78M | Total Liabilities |
| 616.40M | 621.65M | 565.85M | 526.41M | 456.16M | Stockholders Equity |
| 235.70M | 264.56M | 293.11M | 314.17M | 204.66M |
| Cash Flow | Free Cash Flow | |||
| 19.59M | -27.63M | -16.72M | -75.08M | 219.06M | Operating Cash Flow |
| 34.15M | 52.27M | 46.79M | -21.63M | 238.82M | Investing Cash Flow |
| -14.48M | -79.89M | -60.59M | -53.45M | -26.23M | Financing Cash Flow |
| -19.98M | 28.38M | -40.84M | 66.57M | -148.75M |
Sportsman's Warehouse Technical Analysis
Positive
1.66
Price Trends
1.38
Positive
1.82
Negative
2.14
Negative
Market Momentum
0.08
Negative
58.21
Neutral
68.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPWH, the sentiment is Positive. The current price of 1.66 is above the 20-day moving average (MA) of 1.47, above the 50-day MA of 1.38, and below the 200-day MA of 2.14, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 58.21 is Neutral, neither overbought nor oversold. The STOCH value of 68.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SPWH.
Sportsman's Warehouse Risk Analysis
Sportsman's Warehouse disclosed 30 risk factors in its most recent earnings report. Sportsman's Warehouse 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
Sportsman's Warehouse Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $14.99B | 13.49 | 40.08% | 2.38% | 3.53% | 13.86% | |
74 Outperform | $984.57M | 42.10 | 13.48% | ― | 32.16% | 27.32% | |
66 Neutral | $2.54B | 6.64 | 21.14% | 1.20% | -3.67% | -14.66% | |
60 Neutral | $4.91B | 19.34 | -39.97% | ― | 2.18% | 5.77% | |
60 Neutral | $6.86B | 11.61 | 3.16% | 4.15% | 2.41% | -21.45% | |
56 Neutral | $63.56M | ― | -13.22% | ― | -7.02% | -13.44% | |
40 Underperform | $20.44M | ― | -32.89% | 52.71% | -10.09% | -867.80% |
* Consumer Cyclical Sector Average
Performance Comparison
SPWH
Sportsman's Warehouse
1.66
-1.64
-49.70%
BGFV
Big 5 Sporting Goods
0.90
-2.70
-75.00%
DKS
Dick's Sporting Goods
187.77
-13.58
-6.74%
LQDT
Liquidity Services
31.72
14.08
79.82%
ETSY
Etsy
45.86
-23.02
-33.42%
ASO
Academy Sports and Outdoors
38.21
-22.04
-36.58%
Sportsman's Warehouse Earnings Call Summary
Earnings Call Date: Apr 1, 2025 | % Change Since: 72.92% | Next Earnings Date: Jun 3, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view with significant improvements in profitability, e-commerce growth, and fishing department performance, but also faced challenges such as a decline in net sales, trade-down in firearms, and increased SG&A expenses.Highlights
Improved Financial Performance
Q4 adjusted EBITDA of $15 million versus $5 million in Q4 of last year, representing a nearly 300% increase. Net debt reduced by $27 million and liquidity increased by $40 million compared to the end of last year.
E-commerce Growth
E-commerce sales comped positive, up double digits in the quarter, contributing to higher traffic and transactions.
Strong Performance in Fishing Department
Fishing sales were up 10.3% on a 13-week comparable basis, driven by improvements in in-stock levels and SKU rationalization.
Positive Trends in Firearms Sales
Outpaced adjusted NICS data with firearm unit sales increasing mid-single digits in Q4 despite an industry decline.
Lowlights
Decline in Net Sales
Net sales for the fourth quarter were $340.4 million compared to $370.4 million in the prior year, which included a 53rd week, with same-store sales decreasing 0.5%.
Continued Trade-Down in Firearms
Lower sales dollars from firearms due to consumer trade-down to more affordable options, affecting the category's sales dollars.
SG&A Expense Increase
SG&A expense increased to 29.4% of net sales compared to 29% in the fourth quarter of the prior year.
Company Guidance
During the Sportsman's Warehouse Fourth Quarter and Full Year 2024 Earnings Conference Call, key guidance metrics were highlighted, demonstrating the company's transformation progress and future strategies. For Q4, comparable sales decreased by 0.5%, a notable improvement from the 12.8% decline in the previous year, while adjusted EBITDA rose significantly to $15 million from $5 million. The company successfully reduced net debt by $27 million and improved liquidity by $40 million, ending the fiscal year with $131 million. Looking ahead to 2025, the company aims for same-store sales growth, improved gross margins, and further debt reduction. They plan to focus on core business areas, such as hunting and fishing solutions, which have shown robust potential, and personal protection, which currently represents 25% of total sales. Other strategic initiatives include enhancing local product offerings and strengthening brand awareness. The company forecasts fiscal 2025 net sales to range from a decline of 1% to an increase of 3.5%, with adjusted EBITDA expected between $33 million and $45 million. Capital expenditures are projected to be between $20 million and $25 million, primarily for technology investments.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.