📊 ASO Key Takeaways
Is Academy Sports & Outdoors, Inc. (ASO) a Good Investment?
Academy Sports generates positive operating cash flow and maintains reasonable leverage, but fundamentals reveal a capital-intensive retail business with severely depressed returns on equity (2.5%) and assets (1.0%), indicating inefficient capital deployment. Critical liquidity concern with a quick ratio of 0.36x suggests reliance on inventory turnover; monitoring is essential before upgrade consideration.
Academy Sports & Outdoors shows solid core fundamentals with healthy profitability, positive free cash flow, and a conservative balance sheet supported by low leverage and adequate liquidity. However, earnings are declining modestly, free cash flow conversion is not especially strong for a retailer, and the extreme reported revenue growth figure appears low-quality or distorted, which reduces confidence in the growth profile.
Academy Sports & Outdoors, Inc. Key Strengths (ASO)
- Strong free cash flow generation of $121.7M with 8.4% FCF margin demonstrates operational efficiency in cash conversion
- Reasonable operating margin of 5.2% within retail norms with 33.2% gross margin indicating pricing power or inventory management
- Conservative debt-to-equity ratio of 0.23x provides balance sheet flexibility without excessive leverage risk
- Positive net income and operating income show the core business remains profitable
- Solid profitability with 34.8% gross margin, 8.5% operating margin, and 6.2% net margin
- Healthy balance sheet with low debt-to-equity of 0.22x and meaningful cash reserves of $330.32M
- Positive operating cash flow and free cash flow, with strong returns on equity and assets
ASO Stock Risks: Academy Sports & Outdoors, Inc. Investment Risks
- Dangerously low quick ratio of 0.36x signals acute liquidity stress; heavy working capital dependence on inventory conversion poses risk during demand disruption
- Severely depressed returns on equity (2.5%) and assets (1.0%) indicate capital is not generating adequate shareholder value; returns trail risk-free Treasury yields
- Suspicious year-over-year revenue growth of 16,815.7% suggests data quality issues, recent structural change, or IPO timing effects that obscure true operational performance trends
- Retail sector structural headwinds including e-commerce pressure and margin compression not fully evident in current snapshot
- Net income and diluted EPS are declining year over year, indicating softer earnings momentum
- Low quick ratio of 0.44x suggests heavy dependence on inventory turnover for near-term liquidity
- Reported revenue growth appears distorted, making growth quality and trend interpretation less reliable
Key Metrics to Watch
- Quick ratio and working capital management trends—must improve above 0.50x to reduce liquidity risk
- Return on equity trajectory—any sustained improvement above 5% would indicate better capital efficiency
- Normalized revenue growth once baseline stabilizes—current YoY figure is not actionable for trend analysis
- Operating cash flow sustainability as percentage of revenue—currently 11.5%, monitor for deterioration
- Comparable sales or normalized revenue growth
- Free cash flow generation and operating margin trend
Academy Sports & Outdoors, Inc. (ASO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Academy Sports & Outdoors, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
ASO Profit Margin, ROE & Profitability Analysis
ASO vs Consumer Sector: How Academy Sports & Outdoors, Inc. Compares
How Academy Sports & Outdoors, Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Academy Sports & Outdoors, Inc. Stock Overvalued? ASO Valuation Analysis 2026
Based on fundamental analysis, Academy Sports & Outdoors, Inc. has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Academy Sports & Outdoors, Inc. Balance Sheet: ASO Debt, Cash & Liquidity
ASO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Academy Sports & Outdoors, Inc.'s revenue has remained relatively flat over the 5-year period, with a 9% decline. The most recent EPS of $6.70 reflects profitable operations.
ASO Revenue Growth, EPS Growth & YoY Performance
ASO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.4B | $46.1M | $0.68 |
| Q3 2025 | $1.3B | $46.1M | $0.92 |
| Q2 2025 | $1.5B | $46.1M | $1.85 |
| Q1 2025 | $1.4B | $46.1M | $0.68 |
| Q3 2024 | $1.3B | $65.8M | $0.92 |
| Q2 2024 | $1.5B | $76.5M | $1.95 |
| Q1 2024 | $1.4B | $76.5M | $1.01 |
| Q3 2023 | $1.4B | $94.0M | $1.31 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Academy Sports & Outdoors, Inc. Dividends, Buybacks & Capital Allocation
ASO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Academy Sports & Outdoors, Inc. (CIK: 0001817358)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ASO
What is the AI rating for ASO?
Academy Sports & Outdoors, Inc. (ASO) has a Combined AI Grade of B from Claude (B) and ChatGPT (B) with 69% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ASO's key strengths?
Claude: Strong free cash flow generation of $121.7M with 8.4% FCF margin demonstrates operational efficiency in cash conversion. Reasonable operating margin of 5.2% within retail norms with 33.2% gross margin indicating pricing power or inventory management. ChatGPT: Solid profitability with 34.8% gross margin, 8.5% operating margin, and 6.2% net margin. Healthy balance sheet with low debt-to-equity of 0.22x and meaningful cash reserves of $330.32M.
What are the risks of investing in ASO?
Claude: Dangerously low quick ratio of 0.36x signals acute liquidity stress; heavy working capital dependence on inventory conversion poses risk during demand disruption. Severely depressed returns on equity (2.5%) and assets (1.0%) indicate capital is not generating adequate shareholder value; returns trail risk-free Treasury yields. ChatGPT: Net income and diluted EPS are declining year over year, indicating softer earnings momentum. Low quick ratio of 0.44x suggests heavy dependence on inventory turnover for near-term liquidity.
What is ASO's revenue and growth?
Academy Sports & Outdoors, Inc. reported revenue of $1.4B.
Does ASO pay dividends?
Academy Sports & Outdoors, Inc. pays dividends, with $9.6M distributed to shareholders in the trailing twelve months.
Where can I find ASO SEC filings?
Official SEC filings for Academy Sports & Outdoors, Inc. (CIK: 0001817358) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ASO's EPS?
Academy Sports & Outdoors, Inc. has a diluted EPS of $0.80.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is ASO's fundamental grade?
Based on our AI fundamental analysis in June 2026, Academy Sports & Outdoors, Inc. has a B grade with 69% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is ASO stock overvalued or undervalued?
Valuation metrics for ASO: ROE of 2.5% (sector avg: 18%), net margin of 3.7% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
What is ASO's AI grade for 2026?
Our dual AI analysis gives Academy Sports & Outdoors, Inc. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ASO's free cash flow?
Academy Sports & Outdoors, Inc.'s operating cash flow is $160.6M, with capital expenditures of $38.9M. FCF margin is 8.4%.
How does ASO compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 3.7% (avg: 8%), ROE 2.5% (avg: 18%), current ratio 1.68 (avg: 1.5).