Investment Thesis
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.
ASO Strengths
- 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
ASO 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
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
ASO Financial Metrics
ASO Profitability Ratios
ASO Balance Sheet & Liquidity
ASO 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 Growth Metrics (YoY)
ASO Quarterly 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.
ASO Capital Allocation
ASO SEC Filings
Access official SEC EDGAR filings for Academy Sports & Outdoors, Inc. (CIK: 0001817358)