ASO

Academy Sports and Outdoors, Inc.

Consumer


Presented:10/06/2020
Price:$13.04
Cap:$1.17B
Current Price:$54.90
Cap:$3.86B

Presented

Date10/06/2020
Price$13.04
Market Cap$1.17B
Ent ValueN/A
P/E RatioN/A
Book ValueN/A
Div Yield0%
Shares O/S88.10M
Ave Daily Vol3,909,280
Short IntN/A

Current

Price$54.90
Market Cap$3.86B
Academy Sports and Outdoors, Inc., through its subsidiaries, operates as a sporting goods and outdoor recreational products retailer in the United States. The company sells a range of sporting and outdoor recreation products, including sporting equipment, apparel, footwear, camping gear, patio furniture, outdoor cooking equipment, and hunting and fishing gears primarily under the Academy Sports + Outdoors, Magellan Outdoors, BCG, O'rageous, and Outdoor Gourmet brand names. As of August 1, 2020, it operated 259 Academy Sports + Outdoors retail locations in 16 states and three distribution centers located in Katy, Texas, Twiggs County, Georgia, and Cookeville, Tennessee. The company also sells merchandise to customers via academy.com website. Academy Sports and Outdoors, Inc. was founded in 1938 and is based in Katy, Texas.

Publicly traded companies mentioned herein: Academy Sports & Outdoors Inc (ASO), Alphabet Inc (GOOG, GOOGL), Dick’s Sporting Goods Inc (DKS), Foot Locker Inc (FL), KKR & Co Inc (KKR), NIKE Inc (NKE)

Highlights 

The presenter is long shares of Academy Sports & Outdoors Inc (ASO), the Texas-based sporting goods and outdoor recreational products retailer. He sees upside to comps and margins on the back of ongoing turnaround efforts, as well as macroeconomic and social dynamics. These positive catalysts could help close the valuation gap between ASO (~4.5x forward EBITDA and ~8x forward earnings) and DKS (~6x forward EBITDA and ~15x forward earnings). His EBITDA estimate for next year is higher than the Street’s, and a 5.5x multiple yields a price target of ~$20 per share. 

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Idea Discussion

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