Sportsman's Warehouse (SPWH) AI Stock Analysis

• Market Cap: $45.41M
• Dividend Yield: N/A
• Average Volume (3M): 337.96K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.24
• Revenue Growth: -1.05%
• EPS Growth: -10.28%
• Country: US
• Employees: 2,050
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.08
• Shares Outstanding: 38,481,094
• 10 Day Avg. Volume: 408,177
• 30 Day Avg. Volume: 337,963
• PEG Ratio: -0.18
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.06
• P/FCF Ratio: 3.94
• Enterprise Value/Market Cap: 13.13
• Enterprise Value/Revenue: 0.49
• Enterprise Value/Gross Profit: 1.60
• Enterprise Value/Ebitda: 23.66
• 1Y Price Target: $2.95
• Price Target Upside: 150.00% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): -0.49
• Revenue Forecast (FY): $1.21B

• Rating: 44 Neutral
• Price Target: $1.00 ▼(-15.25% Downside)
• Action: Reiterated Date: 02/19/26
• Date: Action: Reiterated 02/19/26

The score is held down primarily by weak financial performance (ongoing losses, negative operating/free cash flow, and higher leverage) and bearish technical trend signals (below major moving averages with negative MACD). Offsetting this somewhat, the latest earnings call indicates operational progress (positive comps, improved gross margin, inventory reduction, and debt paydown), but the challenged Q4 outlook and higher SG&A limit near-term confidence.

Positive Factors

Revenue Recovery

A 58.5% TTM revenue rebound signals restored demand in core outdoor categories and meaningful top-line momentum. If sustained, higher sales provide scale to absorb fixed costs, improve gross profit dollars, fund strategic initiatives and accelerate recovery to sustainable profitability over the next several quarters.

Improving Gross Margin

A 100 bps margin improvement reflects better product mix and lower freight, showing operational leverage potential. Sustained margin expansion reduces the sales level required for profitability, enhances cash generation capacity and supports deleveraging efforts if the company maintains current sourcing and mix discipline.

Debt Paydown & Inventory Efficiency

Debt reduction and lower inventory demonstrate active working-capital and balance-sheet management. Reduced inventory cuts carrying costs and markdown risk; debt paydown lowers interest exposure. Together these actions improve liquidity headroom and the path to positive free cash flow if operating trends remain stable.

Negative Factors

Negative Cash Flow & Losses

Persistent negative operating and free cash flow alongside a TTM net loss erodes financial flexibility and forces reliance on financing or asset sales. Continued cash burn limits the company’s ability to reinvest in stores, digital initiatives, or inventory, raising medium-term liquidity and execution risks until cash generation turns positive.

High Leverage

Elevated leverage (debt-to-equity ~2.64x) increases interest and refinancing risk while reducing strategic flexibility. With declining equity and volatile earnings, high debt amplifies downside in weaker seasonal periods and constrains capital allocation choices, making deleveraging or sustained margin improvement essential for solvency resilience.

Elevated SG&A & Promotional Pressure

Rising SG&A as a percent of sales undermines operating leverage and compresses margins, especially when paired with increased promotions and a tougher consumer backdrop. Higher expense base may be needed for growth, but until sales mix and volume sustainably improve, SG&A pressure will hinder margin recovery and cash flow restoration.

Sportsman's Warehouse Business Overview & Revenue Model

Company Description

Sportsman's Warehouse Holdings, Inc., together with its subsidiaries, operates as an outdoor sporting goods retailer in the United States. It offers camping products, such as backpacks, camp essentials, canoes and kayaks, coolers, outdoor cooking equipment, sleeping bags, tents, and tools; and apparel products, including camouflage, jackets, hats, outerwear, sportswear, technical gear, and work wear. The company also provides fishing products comprising bait, electronics, fishing rods, flotation items, fly fishing products, lines, lures, reels, tackles, and small boats; and foot wear products consisting of hiking and work boots, socks, sport sandals, technical footwear, trial and casual shoes, and waders. In addition, it offers hunting and shooting products, such as ammunition, archery items, ATV accessories, blinds and tree stands, decoys, firearms, firearms safety and storage products, reloading equipment, and shooting gear products; and optics, electronics, and accessories, including gift items, GPS devices, knives, lighting, optics, and two-way radios. Further, the company's stores provide archery technician services, fishing-reel line winding, bore sighting and scope mounting, and cleaning services, as well as issues hunting and fishing licenses. Additionally, it offers various private label and special make-up offerings under the Rustic Ridge, Killik, Vital Impact, Yukon Gold, Lost Creek, and Sportsman's Warehouse brands. As of May 26, 2022, the company operated through 126 stores. Sportsman's Warehouse Holdings, Inc. was founded in 1986 and is headquartered in West Jordan, Utah.

How the Company Makes Money

The company generates revenue primarily through the sale of outdoor sporting goods, including firearms, fishing equipment, and camping gear. Its revenue model includes both in-store sales and e-commerce transactions, allowing it to reach a broader audience. Key revenue streams consist of product sales, with a focus on high-margin items such as apparel and specialized equipment. Additionally, Sportsman's Warehouse may benefit from partnerships with manufacturers for exclusive product lines, promotional events, and loyalty programs that encourage repeat purchases. Seasonal promotions and sales events also play a crucial role in driving revenue, particularly during peak outdoor activity seasons.

Sportsman's Warehouse Financial Statement Overview

Summary

Despite a strong TTM revenue rebound (+58.5%), profitability and cash generation remain weak (TTM net loss of $37.1M, negative operating profit, operating cash flow -$17.7M and free cash flow -$39.7M). Leverage has increased (debt-to-equity 2.64x) with declining equity, keeping balance-sheet and liquidity risk elevated until margins and cash flow recover.

Income Statement

TTM (Trailing-Twelve-Months) revenue rebounded strongly (+58.5%), but profitability remains weak: net loss of $37.1M with a -3.1% net margin and negative operating profit. Margins have compressed materially versus 2021–2022 (when the company produced solid profits), and results have deteriorated from profitability in 2023 to losses in 2024, 2025, and TTM—suggesting the top-line recovery has not yet translated into earnings power.

Balance Sheet

Leverage has increased meaningfully, with total debt rising to $553.1M in TTM (from $455.3M in FY2025) while equity declined to $209.5M, pushing debt-to-equity up to 2.64x. Returns on equity are negative in TTM and the last two annual periods, reflecting ongoing losses and reduced balance-sheet flexibility; the main positive is that the company still maintains positive equity and a sizable asset base.

Cash Flow

Cash generation weakened sharply in TTM (Trailing-Twelve-Months), with operating cash flow at -$17.7M and free cash flow at -$39.7M, reversing the positive cash flow seen in FY2025. Free cash flow also declined versus the prior period (negative growth), increasing reliance on financing and elevating liquidity risk if weak operating performance persists, despite prior-year evidence that cash flow can recover in better conditions.

Breakdown	TTM	Jan 2025	Jan 2024	Jan 2023	Jan 2022	Jan 2021
Income Statement
Total Revenue	1.21B	1.20B	1.29B	1.40B	1.51B	1.45B
Gross Profit	372.27M	370.47M	383.41M	460.24M	490.30M	476.45M
EBITDA	25.20M	21.65M	13.67M	89.84M	203.38M	172.10M
Net Income	-37.05M	-33.06M	-29.00M	40.52M	108.47M	91.38M
Balance Sheet
Total Assets	913.87M	852.10M	886.21M	858.96M	840.58M	660.82M
Cash, Cash Equivalents and Short-Term Investments	2.25M	2.83M	3.14M	2.39M	57.02M	65.53M
Total Debt	553.09M	455.27M	481.74M	393.45M	343.20M	277.75M
Total Liabilities	704.35M	616.40M	621.65M	565.85M	526.41M	456.16M
Stockholders Equity	209.52M	235.70M	264.56M	293.11M	314.17M	204.66M
Cash Flow
Free Cash Flow	-39.67M	19.59M	-27.63M	-16.72M	-75.08M	219.06M
Operating Cash Flow	-17.68M	34.15M	52.27M	46.79M	-21.63M	238.82M
Investing Cash Flow	-21.96M	-14.48M	-79.89M	-60.59M	-53.45M	-26.23M
Financing Cash Flow	39.22M	-19.98M	28.38M	-40.84M	66.57M	-148.75M

Sportsman's Warehouse Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPWH, the sentiment is Negative. The current price of 1.18 is below the 20-day moving average (MA) of 1.27, below the 50-day MA of 1.36, and below the 200-day MA of 2.44, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 36.73 is Neutral, neither overbought nor oversold. The STOCH value of 37.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SPWH.

Sportsman's Warehouse Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BWMX	71 Outperform	$618.34M	11.81	79.73%	8.47%	-7.03%	1.04%
DKS	71 Outperform	$18.32B	16.37	23.79%	2.33%	10.86%	-11.63%
ASO	67 Neutral	$4.01B	10.99	18.34%	1.04%	-0.65%	-10.35%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
FLWS	50 Neutral	$222.95M	-1.04	-67.22%	―	-8.07%	-2206.16%
BNED	49 Neutral	$296.65M	-32.77	-3.86%	―	1.38%	63.65%
SPWH	44 Neutral	$45.41M	―	-16.36%	―	-1.05%	-10.28%