Academy Sports and Outdoors Inc. Common Stock (ASO)

FairStock Score: 65/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for understandable businesses selling at a discount to intrinsic value. Academy Sports is a specialty retailer of sporting goods and outdoor gear, with $6.1B in revenue in FY2025 ended 2026-01-31 and $376.8M net income. That is a decent margin, but the trend gives pause: FY2024 net income was $418.4M, and FY2023 was $519.2M. So earnings have shrunk even as revenue has been roughly flat, which signals pricing and cost pressure. Still, fiscal Q2 2026 ended 2026-08-01 showed $1.6B revenue, $137.9M net income, and $2.17 diluted EPS, up from $125.4M and $1.85 in fiscal Q2 2025. That is a hopeful bounce. The balance sheet has D/E of 0.90, not fortress-like, but Piotroski 8/9 and TTM free cash flow of $330.8M provide comfort. ROCE of 6.68% is only modest, while ROE of 18.61% is helped by leverage. At $54.90 on 2026-10-13, FairStock calculations show a P/E of 9.21, P/B of 1.56, EV/EBITDA of 7.61, and FCF yield of 9.8%. The Graham Number is $68.63, implying a margin of safety near 20%. Lynch's rules label it a slow grower, with 4.1% annual profit growth and 1.2% revenue growth over five years. That is not a compounding machine, but a cheap, cash-generative retailer can still reward patient investors if margins stabilize. I would watch store productivity, debt, and whether the Q2 profit rebound persists.

In plain English: Academy Sports and Outdoors sells sports gear, camping, fishing, and hunting products in U.S. stores. The company is profitable and produces cash, but its profits have fallen over the past few years and growth is slow. At the recent price, the shares look reasonably cheap compared with its profits and net assets, though the business carries some risk.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-08-01) · fiscal Q1 2026 10-Q (period ended 2026-05-02) · fiscal Q3 2025 10-Q (period ended 2025-11-01) · fiscal Q2 2025 10-Q (period ended 2025-08-02) · FY2025 10-K (period ended 2026-01-31) · FY2024 10-K (period ended 2025-02-01) · FY2023 10-K (period ended 2024-02-03)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer