📊 ASO Key Takeaways
Is Academy Sports & Outdoors, Inc. (ASO) a Good Investment?
Academy Sports exhibits solid operational execution with strong revenue growth, healthy profitability margins, and positive free cash flow generation. However, the extraordinary 16815.7% revenue growth suggests a data anomaly or significant one-time event requiring clarification, and modest net income decline combined with thin 6.2% net margins present concerns about earnings sustainability.
Academy Sports & Outdoors shows solid core fundamentals with healthy profitability, positive free cash flow, and a conservative balance sheet supported by low leverage and adequate liquidity. However, earnings are declining modestly, free cash flow conversion is not especially strong for a retailer, and the extreme reported revenue growth figure appears low-quality or distorted, which reduces confidence in the growth profile.
Academy Sports & Outdoors, Inc. Key Strengths (ASO)
- Strong free cash flow generation of $222.1M with 3.7% FCF margin demonstrates operational efficiency
- Solid profitability with 8.5% operating margin and 6.2% net margin in retail sector
- Healthy balance sheet with conservative 0.22x debt-to-equity ratio and $330.3M cash position
- Acceptable liquidity with 1.89x current ratio supporting operational needs
- Positive ROE of 17.4% and ROA of 7.1% indicate effective capital utilization
- Solid profitability with 34.8% gross margin, 8.5% operating margin, and 6.2% net margin
- Healthy balance sheet with low debt-to-equity of 0.22x and meaningful cash reserves of $330.32M
- Positive operating cash flow and free cash flow, with strong returns on equity and assets
ASO Stock Risks: Academy Sports & Outdoors, Inc. Investment Risks
- Exceptional 16815.7% revenue growth appears anomalous and likely represents restatement, acquisition, or accounting adjustment rather than organic growth, creating uncertainty around normalized performance
- Net income declined 10% year-over-year despite massive revenue increase, suggesting margin compression and operational challenges
- Thin 6.2% net margin leaves minimal buffer for operational disruptions in competitive retail environment
- Quick ratio of 0.44x indicates potential working capital constraints and inventory-heavy asset base typical of retail sector
- Long-term debt of $480.8M and missing interest coverage data obscure debt service capacity
- Net income and diluted EPS are declining year over year, indicating softer earnings momentum
- Low quick ratio of 0.44x suggests heavy dependence on inventory turnover for near-term liquidity
- Reported revenue growth appears distorted, making growth quality and trend interpretation less reliable
Key Metrics to Watch
- Normalized revenue growth rate excluding apparent one-time adjustment to understand true organic performance
- Trend in gross and net margins to assess pricing power and cost control
- Free cash flow sustainability and capital allocation priorities
- Debt service coverage ratio and interest expense trends
- Inventory turnover and working capital management
- Comparable sales or normalized revenue growth
- Free cash flow generation and operating margin trend
Academy Sports & Outdoors, Inc. (ASO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 3.7% FCF margin may limit capital allocation flexibility.
ASO Profit Margin, ROE & Profitability Analysis
ASO vs Consumer Sector: How Academy Sports & Outdoors, Inc. Compares
How Academy Sports & Outdoors, Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Academy Sports & Outdoors, Inc. Stock Overvalued? ASO Valuation Analysis 2026
Based on fundamental analysis, Academy Sports & Outdoors, Inc. has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Academy Sports & Outdoors, Inc. Balance Sheet: ASO Debt, Cash & Liquidity
ASO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Academy Sports & Outdoors, Inc.'s revenue has remained relatively flat over the 5-year period, with a 9% decline. The most recent EPS of $6.70 reflects profitable operations.
ASO Revenue Growth, EPS Growth & YoY Performance
ASO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.3B | $46.1M | $0.92 |
| Q2 2025 | $1.5B | $46.1M | $1.85 |
| Q1 2025 | $1.4B | $46.1M | $0.68 |
| Q3 2024 | $1.3B | $65.8M | $0.92 |
| Q2 2024 | $1.5B | $76.5M | $1.95 |
| Q1 2024 | $1.4B | $76.5M | $1.01 |
| Q3 2023 | $1.4B | $94.0M | $1.31 |
| Q2 2023 | $1.6B | $94.0M | $2.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Academy Sports & Outdoors, Inc. Dividends, Buybacks & Capital Allocation
ASO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Academy Sports & Outdoors, Inc. (CIK: 0001817358)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ASO
What is the AI rating for ASO?
Academy Sports & Outdoors, Inc. (ASO) has a Combined AI Grade of B from Claude (B) and ChatGPT (B) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ASO's key strengths?
Claude: Strong free cash flow generation of $222.1M with 3.7% FCF margin demonstrates operational efficiency. Solid profitability with 8.5% operating margin and 6.2% net margin in retail sector. ChatGPT: Solid profitability with 34.8% gross margin, 8.5% operating margin, and 6.2% net margin. Healthy balance sheet with low debt-to-equity of 0.22x and meaningful cash reserves of $330.32M.
What are the risks of investing in ASO?
Claude: Exceptional 16815.7% revenue growth appears anomalous and likely represents restatement, acquisition, or accounting adjustment rather than organic growth, creating uncertainty around normalized performance. Net income declined 10% year-over-year despite massive revenue increase, suggesting margin compression and operational challenges. ChatGPT: Net income and diluted EPS are declining year over year, indicating softer earnings momentum. Low quick ratio of 0.44x suggests heavy dependence on inventory turnover for near-term liquidity.
What is ASO's revenue and growth?
Academy Sports & Outdoors, Inc. reported revenue of $6.1B.
Does ASO pay dividends?
Academy Sports & Outdoors, Inc. pays dividends, with $34.7M distributed to shareholders in the trailing twelve months.
Where can I find ASO SEC filings?
Official SEC filings for Academy Sports & Outdoors, Inc. (CIK: 0001817358) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ASO's EPS?
Academy Sports & Outdoors, Inc. has a diluted EPS of $5.54.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is ASO's fundamental grade?
Based on our AI fundamental analysis in June 2026, Academy Sports & Outdoors, Inc. has a B grade with 70% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is ASO stock overvalued or undervalued?
Valuation metrics for ASO: ROE of 17.4% (sector avg: 18%), net margin of 6.2% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
What is ASO's AI grade for 2026?
Our dual AI analysis gives Academy Sports & Outdoors, Inc. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ASO's free cash flow?
Academy Sports & Outdoors, Inc.'s operating cash flow is $434.8M, with capital expenditures of $212.7M. FCF margin is 3.7%.
How does ASO compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 6.2% (avg: 8%), ROE 17.4% (avg: 18%), current ratio 1.89 (avg: 1.5).