Sportsman's Warehouse (SPWH) AI Stock Analysis

• Market Cap: $56.57M
• Dividend Yield: N/A
• Average Volume (3M): 697.81K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.17
• 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: 1,416,236
• 30 Day Avg. Volume: 697,806
• 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: 12.32
• Enterprise Value/Revenue: 0.58
• Enterprise Value/Gross Profit: 1.85
• Enterprise Value/Ebitda: 29.72
• 1Y Price Target: $2.95
• Price Target Upside: 107.75% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): -0.4
• Revenue Forecast (FY): $1.22B

• Rating: 43 Neutral
• Price Target: $1.50 ▲(5.63% Upside)

The overall stock score reflects significant financial challenges, including high leverage and negative cash flows, compounded by bearish technical indicators. While the earnings call provided some positive insights into sales growth and strategic initiatives, the company's valuation remains unattractive due to a negative P/E ratio. The recent board appointment is a positive step but does not outweigh the broader financial and market challenges.

Positive Factors

Same-Store Sales Growth

Consistent same-store sales growth indicates strong customer retention and effective sales strategies, which can drive long-term revenue stability.

E-commerce Expansion

Growth in e-commerce reflects the company's adaptation to digital trends, enhancing its market reach and diversifying revenue streams.

Board Appointment

The addition of an experienced board member can strengthen strategic direction and governance, potentially improving operational efficiency.

Negative Factors

High Leverage

High leverage increases financial risk and limits flexibility, potentially impacting the company's ability to invest in growth opportunities.

Negative Cash Flows

Negative cash flows indicate potential liquidity issues, which can hinder the company's ability to sustain operations and invest in growth.

Increased SG&A Expenses

Rising SG&A expenses can pressure margins, reducing profitability and limiting resources available for strategic initiatives.

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

Sportsman's Warehouse is facing significant financial challenges, including declining revenue and profitability, high leverage, and negative cash flows. Despite maintaining a stable gross profit margin, the company's financial health is weakened by operational inefficiencies and increased reliance on debt.

Income Statement

Sportsman's Warehouse has experienced a significant decline in revenue over the past few years, with a TTM revenue growth rate of 0.43% following several periods of negative growth. The gross profit margin remains relatively stable at around 31%, but the net profit margin has turned negative, indicating profitability challenges. The EBIT and EBITDA margins have also deteriorated, reflecting operational inefficiencies.

Balance Sheet

The company's balance sheet shows increasing leverage, with a TTM debt-to-equity ratio of 2.75, up from 1.34 in 2023. This high leverage poses a risk, especially with negative return on equity (ROE) of -16.57%, indicating that the company is not generating sufficient returns on its equity base. The equity ratio has decreased, suggesting a higher reliance on debt financing.

Cash Flow

Cash flow analysis reveals a concerning trend, with negative operating and free cash flows in the TTM period. However, the free cash flow to net income ratio is positive at 1.49, suggesting some ability to cover net losses with free cash flow. The operating cash flow to net income ratio is negative, highlighting cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.21B	1.20B	1.29B	1.40B	1.51B	1.45B
Gross Profit	376.25M	370.47M	383.41M	460.24M	490.30M	476.45M
EBITDA	23.45M	21.65M	13.67M	89.84M	203.38M	172.10M
Net Income	-37.42M	-33.06M	-29.00M	40.52M	108.47M	91.38M
Balance Sheet
Total Assets	948.85M	852.10M	886.21M	858.96M	840.58M	660.82M
Cash, Cash Equivalents and Short-Term Investments	1.80M	2.83M	3.14M	2.39M	57.02M	65.53M
Total Debt	550.61M	455.27M	481.74M	393.45M	343.20M	277.75M
Total Liabilities	739.97M	616.40M	621.65M	565.85M	526.41M	456.16M
Stockholders Equity	208.89M	235.70M	264.56M	293.11M	314.17M	204.66M
Cash Flow
Free Cash Flow	-54.57M	19.59M	-27.63M	-16.72M	-75.08M	219.06M
Operating Cash Flow	-36.52M	34.15M	52.27M	46.79M	-21.63M	238.82M
Investing Cash Flow	-18.02M	-14.48M	-79.89M	-60.59M	-53.45M	-26.23M
Financing Cash Flow	53.78M	-19.98M	28.38M	-40.84M	66.57M	-148.75M

Sportsman's Warehouse Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 1.42 is below the 20-day moving average (MA) of 1.88, below the 50-day MA of 2.25, and below the 200-day MA of 2.45, indicating a bearish trend. The MACD of -0.22 indicates Positive momentum. The RSI at 28.97 is Positive, neither overbought nor oversold. The STOCH value of 0.60 is Positive, 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
ASO	75 Outperform	$3.58B	9.81	18.34%	0.93%	-0.65%	-10.35%
BWMX	73 Outperform	$541.84M	10.35	79.76%	8.07%	-7.03%	1.04%
DKS	71 Outperform	$18.89B	16.88	23.79%	2.33%	10.86%	-11.63%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
FLWS	51 Neutral	$294.78M	-1.32	-67.22%	―	-8.07%	-2206.16%
BNED	50 Neutral	$294.91M	―	―	―	1.38%	63.65%
SPWH	43 Neutral	$56.57M	-1.46	-16.36%	―	-1.05%	-10.28%

Sportsman's Warehouse Corporate Events

Michael Tucci Joins Sportsman’s Warehouse Board

On September 5, 2025, Steven R. Becker resigned from the Board of Directors of Sportsman’s Warehouse Holdings, Inc., where he served as Chairperson of the Compensation Committee and a member of the Nominating and Governance Committee. His resignation was not due to any disagreements with the company. Subsequently, on September 11, 2025, Michael Tucci was appointed as an independent director to fill the vacancy. Tucci, with over 30 years of experience in retail, including leadership roles at Rebel Capital, Rag & Bone, Coach, The Gap, and Macy’s, will serve as Chairperson of the Compensation Committee and a member of the Nominating and Governance Committee. His appointment is expected to strengthen the company’s position in the specialty retail industry and contribute to its growth and shareholder value.