Academy Sports and Outdoors, Inc. (ASO) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Academy Sports and Outdoors, Inc. (ASO) Consumer Business Overview

Academy Sports and Outdoors is a specialty retailer focused on sporting goods and outdoor recreation, operating across 16 states with a significant online presence. The company differentiates itself through a diverse product range, private label brands, and a focus on value, catering to both casual and enthusiast customers.

What Is the Investment Thesis for ASO?

Academy Sports and Outdoors presents a compelling investment case based on its strong market position and growth potential. With a P/E ratio of 8.4 and a profit margin of 6.2%, the company demonstrates solid profitability. The company's free cash flow stands at $0.06 billion. Key growth catalysts include expansion into new markets and continued growth of its e-commerce platform. However, investors may want to evaluate potential risks such as competition from other sporting goods retailers and fluctuations in consumer spending. The company's beta of 1.21 indicates higher volatility compared to the market.

Based on FMP financials and quantitative analysis

ASO Key Highlights

• Market capitalization of $3.00B, reflecting substantial investor interest in the sporting goods retail sector.
• P/E ratio of 8.4, suggesting the company is potentially undervalued compared to its earnings.
• Profit margin of 6.2%, indicating efficient cost management and pricing strategies.
• Gross margin of 34.8%, showcasing the company's ability to maintain profitability across its product lines.
• Dividend yield of 0.99%, providing a modest income stream for investors.

Who Are ASO's Competitors?

ASO is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are ASO's Key Strengths?

• Wide range of product offerings.
• Established retail presence.
• Strong brand recognition.
• Private label brands.

What Are ASO's Weaknesses?

• Limited geographic presence compared to national retailers.
• Dependence on consumer spending habits.
• Exposure to seasonal fluctuations in demand.
• Competition from online retailers.

What Could Drive ASO Stock Higher?

• Expansion into new geographic markets, increasing the company's customer base and revenue potential.
• Continued growth of the e-commerce platform, driven by increased online shopping trends.
• Development and promotion of private label brands, improving margins and customer loyalty.
• Implementation of a robust customer loyalty program to increase customer retention and repeat purchases.

What Are the Key Risks for ASO?

• Increased competition from online retailers, impacting market share and profitability.
• Fluctuations in consumer spending, affecting sales and revenue.
• Changes in consumer preferences, requiring adaptation of product offerings and marketing strategies.
• Economic downturns, reducing consumer discretionary spending and impacting sales.

What Are the Growth Opportunities for ASO?

• Expansion into New Geographic Markets: Academy Sports and Outdoors has the opportunity to expand its physical store presence into new geographic markets within the United States. By strategically selecting locations with favorable demographics and a strong interest in outdoor activities, the company can increase its customer base and drive revenue growth. The US sporting goods market is estimated to be worth over $80 billion, providing ample opportunity for expansion. Timeline: Ongoing.
• Enhancement of E-Commerce Platform: Investing in and enhancing its e-commerce platform can significantly boost Academy's sales. With the increasing trend of online shopping, a user-friendly and feature-rich website can attract more customers and drive online revenue. This includes improving website navigation, offering personalized recommendations, and streamlining the checkout process. The e-commerce market is projected to grow by 10% annually, representing a substantial growth opportunity. Timeline: Ongoing.
• Development of Private Label Brands: Expanding and promoting its private label brands such as Magellan Outdoors and BCG can improve margins and build customer loyalty. These brands offer value-driven alternatives to national brands, attracting price-sensitive customers. By focusing on quality and design, Academy can establish these brands as trusted options. The private label market is growing at a rate of 5% annually. Timeline: Ongoing.
• Strategic Partnerships and Collaborations: Collaborating with complementary businesses, such as fitness studios or outdoor adventure companies, can create cross-promotional opportunities and attract new customers. These partnerships can enhance Academy's brand image and provide unique experiences for its customers. The partnership marketing sector is expanding rapidly, with many companies seeing increased customer engagement. Timeline: Upcoming.
• Focus on Customer Loyalty Programs: Implementing a robust customer loyalty program can increase customer retention and drive repeat purchases. By offering exclusive discounts, early access to sales, and personalized offers, Academy can incentivize customers to remain loyal to the brand. Loyalty programs can increase customer lifetime value by 25%. Timeline: Upcoming.

What Opportunities Does ASO Have?

• Expansion into new geographic markets.
• Enhancement of e-commerce platform.
• Development of private label brands.
• Strategic partnerships and collaborations.

What Threats Does ASO Face?

• Increased competition from online retailers.
• Fluctuations in consumer spending.
• Changes in consumer preferences.
• Economic downturns.

What Are ASO's Competitive Advantages?

• Established brand recognition in the sporting goods retail sector.
• Extensive network of retail locations across 16 states.
• Private label brands offering value-driven alternatives.
• Strong relationships with key suppliers.

What Does ASO Do?

Founded in 1938, Academy Sports and Outdoors began as a family-owned tire shop in Texas. Over the decades, it evolved into a leading sporting goods and outdoor recreational products retailer. The company offers a wide array of products, including coolers and drinkware, camping gear, fishing equipment, firearms, team sports equipment, fitness accessories, and outdoor furniture. Academy also provides a variety of apparel and footwear for men, women, and children, encompassing athletic, outdoor, and casual styles. The company operates 260 retail locations in 16 contiguous states as of June 14, 2022, and supplements its brick-and-mortar presence with online sales through academy.com. Academy Sports and Outdoors distinguishes itself through its private label brands such as Magellan Outdoors and BCG, offering customers value-driven alternatives. Headquartered in Katy, Texas, Academy Sports and Outdoors continues to focus on providing a broad assortment of products and a compelling shopping experience for its customers.

What Products and Services Does ASO Offer?

• Retail sporting goods and outdoor recreational products.
• Sell coolers, camping equipment, and accessories.
• Offer fishing equipment, including rods, reels, and baits.
• Provide firearms, ammunition, and hunting equipment.
• Sell team sports equipment for baseball, football, basketball, and soccer.
• Offer fitness equipment and accessories.
• Provide outdoor apparel and footwear for men, women, and children.
• Operate retail locations and an e-commerce website.

How Does ASO Make Money?

• Sells a wide range of sporting goods and outdoor recreational products through retail stores and online.
• Generates revenue through the sale of products under its own brands and national brands.
• Focuses on providing a value-driven shopping experience for its customers.

What Industry Does ASO Operate In?

Academy Sports and Outdoors operates within the competitive specialty retail sector, which is influenced by consumer spending habits and outdoor recreation trends. The sporting goods market is experiencing growth, driven by increased participation in fitness activities and outdoor pursuits. Academy competes with other major retailers such as VSCO: Victoria's Secret & Co. and AAP: Advance Auto Parts, Inc., as well as smaller specialty stores and online retailers. The company's focus on value and a broad product assortment positions it to capture a significant share of the market.

Who Are ASO's Key Customers?

• Sports enthusiasts
• Outdoor recreationalists
• Casual shoppers looking for athletic apparel and footwear
• Families seeking sporting goods and outdoor equipment

Net buyingInsider Activity

Over the past six months, Academy Sports and Outdoors, Inc. insiders filed 15 SEC Form 4 transactions — 3 sales and 12 purchases. On net that is roughly 38K shares acquired (about $74K) — insiders putting money in tends to read as conviction.

Quarterly Financial Performance: Academy Sports and Outdoors, Inc.

Revenue for Academy Sports and Outdoors, Inc. came in at $1.44B during Q2 2026, a 16.1% contraction versus the preceding quarter. The company recorded net income of $52.7M, with diluted EPS of $0.80. Quarter-over-quarter revenue has been mixed, typical for a mid-cap company operating in Consumer Cyclical. Across the four most recent quarters, ASO averaged $1.42 in diluted EPS.

ASO Valuation & Market Position

With a $3.00B market cap, Academy Sports and Outdoors, Inc. sits in the mid-cap segment of the market. Relative to its peer group, ASO's quantitative score of 73/100 is above the peer average of 57/100.

ROE 18%Key Financial Metrics

Return on equity for Academy Sports and Outdoors, Inc. stands at 18.0%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 7.0%, showing how much profit it generates from its asset base. ASO trades at a trailing price-to-earnings ratio of 8.38, below the Consumer Cyclical sector average of ~37x. Its free cash flow yield is 7.4%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.68 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 11.9%, the inverse of the P/E and a quick read on earnings relative to price.

F-Score 7/9Financial Health

Academy Sports and Outdoors, Inc.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 2.63 places it in the grey zone, a middle ground that warrants monitoring.

FY2027 estForward Outlook

Wall Street analysts project Academy Sports and Outdoors, Inc. revenue of about $6.32B for fiscal 2027, with EPS near $6.47. The estimate reflects 12 contributing analysts.

Company Profile

Academy Sports and Outdoors, Inc. operates in the Specialty Retail industry within the Consumer Cyclical sector. It is headquartered in Katy, US. The company is led by CEO Steven Paul Lawrence. ASO has traded publicly since 2020.

ASO Financials

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ASO Analyst Consensus

ASO MoonshotScore

Latest Academy Sports and Outdoors, Inc. Analysis

What Investors Ask About Academy Sports and Outdoors, Inc. (ASO) — Consumer Cyclical

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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