Sportsman's Warehouse Holdings, Inc. (SPWH) 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.

Sportsman's Warehouse Holdings, Inc. (SPWH) Consumer Business Overview

Sportsman's Warehouse Holdings, Inc. operates as a specialty retailer in the consumer cyclical sector, providing outdoor sporting goods and services. With a focus on camping, fishing, and hunting products, the company serves outdoor enthusiasts through its network of 126 stores as of May 2022.

What Is the Investment Thesis for SPWH?

Sportsman's Warehouse Holdings, Inc. presents a mixed investment case. With a market capitalization of $45.5M, the company's small size may offer potential for growth, but also exposes it to volatility. The company's gross margin of 30.9% indicates a reasonable ability to control costs, but the negative profit margin of -4.1% raises concerns about profitability. Key catalysts include potential expansion into new markets and increased demand for outdoor recreational activities. However, risks include competition from larger retailers and fluctuations in consumer spending. Investors should closely monitor the company's ability to improve profitability and manage its inventory effectively.

Based on FMP financials and quantitative analysis

SPWH Key Highlights

• Operates 126 stores as of May 26, 2022, providing a broad retail footprint across the United States.
• Offers a gross margin of 30.9%, reflecting its ability to manage the cost of goods sold.
• Provides a diverse range of outdoor sporting goods, including camping, fishing, hunting, and apparel.
• Features private label brands such as Rustic Ridge and Killik, enhancing product differentiation.
• Maintained a beta of 0.46, indicating lower volatility compared to the broader market.

Who Are SPWH's Competitors?

SPWH 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 SPWH's Key Strengths?

• Established brand in the outdoor sporting goods market.
• Specialized product offerings for hunting and shooting.
• Network of physical stores across the United States.
• Offers in-store services, enhancing customer experience.

What Are SPWH's Weaknesses?

• Small market capitalization, increasing volatility.
• Negative profit margin, indicating profitability challenges.
• Limited international presence.
• Dependence on consumer discretionary spending.

What Could Drive SPWH Stock Higher?

• Potential expansion into new geographic markets.
• Increased demand for outdoor recreational activities.
• Launch of new private label product lines.
• Enhancement of e-commerce platform and digital marketing efforts.

What Are the Key Risks for SPWH?

• Financial-distress signal — its Altman Z-Score of 1.57 sits in the distress zone (elevated bankruptcy risk).
• Negative return on equity (-26.2%) — the business is not currently generating profit on shareholder capital.
• Competition from larger retailers with greater resources.
• Fluctuations in consumer spending due to economic conditions.
• Changes in regulations related to firearms and hunting.
• Supply chain disruptions affecting product availability.
• Negative profit margin impacting financial stability.

What Are the Growth Opportunities for SPWH?

• Expansion into Underserved Markets: Sportsman's Warehouse has the opportunity to expand its physical store presence in underserved markets across the United States. Identifying regions with a high interest in outdoor activities but limited access to specialized retailers could drive revenue growth. This expansion could target smaller towns and rural areas, capitalizing on the demand for hunting, fishing, and camping equipment. The timeline for this expansion could be phased over the next 3-5 years, with careful market analysis and site selection.
• Enhancement of E-Commerce Platform: Investing in and improving the company's e-commerce platform can significantly expand its reach and cater to a broader customer base. Enhancements could include improved site navigation, personalized product recommendations, and expanded online product offerings. This initiative could also integrate online and in-store experiences, such as online ordering with in-store pickup. The timeline for these enhancements could be implemented within the next 1-2 years, focusing on user experience and mobile optimization.
• Development of Private Label Brands: Expanding the company's private label brands, such as Rustic Ridge and Killik, can improve profit margins and differentiate Sportsman's Warehouse from competitors. Developing new private label products in high-demand categories, such as apparel and accessories, can attract customers seeking value and unique offerings. This strategy could involve partnerships with manufacturers to ensure quality and competitive pricing. The timeline for this development could be phased over the next 2-3 years, with a focus on market testing and customer feedback.
• Partnerships and Collaborations: Forming strategic partnerships with outdoor recreation organizations, hunting and fishing clubs, and conservation groups can enhance the company's brand image and drive customer loyalty. Collaborations could include sponsoring events, offering exclusive discounts to members, and co-creating content to promote outdoor activities and conservation efforts. These partnerships can also provide valuable insights into customer preferences and market trends. The timeline for establishing these partnerships could be initiated within the next year, focusing on organizations with a strong alignment with the company's values.
• Expansion of Service Offerings: Expanding the range of in-store services, such as archery technician services, fishing-reel line winding, and scope mounting, can attract customers and generate additional revenue. Adding new services, such as firearms training courses, hunting and fishing guide services, and equipment rental programs, can further enhance the customer experience and differentiate Sportsman's Warehouse from competitors. The timeline for expanding these services could be implemented over the next 2-3 years, focusing on training staff and acquiring necessary equipment.

What Opportunities Does SPWH Have?

• Expansion into underserved markets.
• Enhancement of e-commerce platform.
• Development of private label brands.
• Strategic partnerships with outdoor organizations.

What Threats Does SPWH Face?

• Competition from larger retailers like Dick's Sporting Goods.
• Fluctuations in consumer spending patterns.
• Changes in regulations related to firearms and hunting.
• Economic downturns affecting discretionary income.

What Are SPWH's Competitive Advantages?

• Established brand recognition in the outdoor sporting goods market.
• Specialized product offerings catering to niche segments like hunting and shooting.
• Network of physical stores providing a convenient shopping experience.
• Private label brands offering unique and value-driven products.

What Does SPWH Do?

Founded in 1986 and headquartered in West Jordan, Utah, Sportsman's Warehouse Holdings, Inc. has evolved into a prominent outdoor sporting goods retailer in the United States. The company operates through its subsidiaries, offering a comprehensive range of products catering to outdoor activities. Its product lines include camping gear such as backpacks, tents, and cooking equipment; apparel like camouflage and outerwear; fishing equipment including rods, reels, and lures; footwear ranging from hiking boots to waders; and hunting and shooting supplies such as firearms, ammunition, and archery items. Additionally, Sportsman's Warehouse provides optics, electronics, and accessories, including GPS devices and knives. The company also offers services such as archery technician services, fishing-reel line winding, and scope mounting. As of May 26, 2022, Sportsman's Warehouse operated 126 stores, providing a wide selection of private label brands like Rustic Ridge and Killik, alongside national brands, to serve outdoor enthusiasts across the country.

What Products and Services Does SPWH Offer?

• Retailer of outdoor sporting goods.
• Offers camping products like tents, sleeping bags, and cooking equipment.
• Provides apparel, including camouflage, jackets, and work wear.
• Sells fishing products such as rods, reels, and lures.
• Offers footwear, including hiking boots and waders.
• Supplies hunting and shooting products like firearms and ammunition.
• Provides optics, electronics, and accessories for outdoor activities.
• Offers services like archery technician services and fishing-reel line winding.

How Does SPWH Make Money?

• Retail sales of outdoor sporting goods through physical stores.
• E-commerce sales through its online platform.
• Revenue from in-store services such as equipment maintenance and repairs.
• Sales of private label brands, offering higher profit margins.

What Industry Does SPWH Operate In?

Sportsman's Warehouse operates within the specialty retail sector, which is influenced by consumer spending patterns and outdoor recreation trends. The industry is competitive, with major players like Bass Pro Shops and Cabela's, as well as smaller regional retailers. Market trends include increasing interest in outdoor activities, driven by health and wellness trends, and a growing demand for specialized outdoor gear. Sportsman's Warehouse differentiates itself through its focus on hunting and shooting sports, as well as its range of private label brands. The company's performance is closely tied to economic conditions and consumer confidence, as discretionary spending on outdoor recreation can fluctuate.

Who Are SPWH's Key Customers?

• Outdoor enthusiasts interested in camping, fishing, and hunting.
• Hobbyists and professionals seeking specialized sporting goods.
• Individuals looking for apparel and footwear for outdoor activities.
• Customers seeking in-store services such as equipment maintenance.

Sportsman's Warehouse Holdings, Inc. (SPWH) Valuation Context

Valued at $45.5M, SPWH is classified as a micro-cap stock. Relative to its peer group, SPWH's quantitative score of 44/100 is below the peer average of 57/100.

ROE -26%Key Financial Metrics

Return on equity for Sportsman's Warehouse Holdings, Inc. stands at -26.2%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -6.0%, showing how much profit it generates from its asset base. Its free cash flow yield is 28.7%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.18 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is -109.8%, the inverse of the P/E and a quick read on earnings relative to price.

F-Score 4/9Financial Health

Sportsman's Warehouse Holdings, Inc.'s Piotroski F-Score is 4/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 1.57 places it in the distress zone, a signal of elevated financial risk.

FY2027 estForward Outlook

Wall Street analysts project Sportsman's Warehouse Holdings, Inc. revenue of about $1.22B for fiscal 2027, with EPS near $-0.34.

SPWH Financials

SPWH Latest News

SPWH Analyst Consensus

SPWH MoonshotScore

SPWH Consumer Cyclical Stock FAQ

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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