Academy Sports and Outdoors, Inc.
Academy Sports and Outdoors, Inc. (NASDAQ: ASO) is a full-service sports goods and outdoor recreation retailer in the United States. Across sporting and outdoor leisure activities, seasons, and experience levels, the Company offers items for customers of various ages, incomes, and goals. Outdoors, sports and recreation, apparel and footwear are among the four divisions that sell merchandise.
Key Highlights
- The company reported YoY growth of 19.05% in total revenue to USD 6.77 billion in FY21 (ended January 29, 2022) compared to USD 5.69 billion in FY20.
- ASO’s net income expanded to USD 671.38 million in FY21 from USD 308.76 million in FY20.
- As of January 29, 2022, the company had cash and cash equivalents of USD 486.00 million and total debt of USD 686.59 million.
- Significantly high ROE of 52.1% in FY21 vs. industry median of 29.4%.
- ASO’s net margin for FY21 was 9.9%, higher than the industry median of 6.6%.
- On March 16, 2022, ASO made a USD 500,000 commitment to St. Jude Children's Research Hospital. The two organisations collaborated to manufacture limited-edition holiday t-shirts. A part of the earnings from each shirt sold was donated to St. Jude.
- Stock is currently trading above its crucial short-term (50-day) and long-term (200-day) SMA support levels, a bullish indicator.
- Stock is currently trading close to mid-point of its 52-week range of USD 29.16 to USD 51.08.
Conclusion: Considering the company’s growth in topline, expansion of net income, technical indicators, and associated risks. We recommend a "Watch" rating on the stock at the closing price of USD 39.98, down 0.72%, as of April 18, 2022.
Technical Price Chart (April 18, 2022). Source: REFINITIV, Analysis by Kalkine Group
Technical Analysis Summary:
*Closing price as of April 18, 2022
Investors can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.
Technical Indicators Defined: -
Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.
Resistance: A level where-in the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Note 1: The reference data in this report has been partly sourced from REFINITIV.
Note 2: Investment decision should be made depending on the investors' appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the valuation has been achieved and subject to the factors discussed above.
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