Academy Sports and Outdoors, Inc. (NASDAQ:ASO) Stock Has Shown Weakness Lately But Financials Look Strong: Should Prospective Shareholders Make The Leap?

Simply Wall St.10-30

With its stock down 12% over the past month, it is easy to disregard Academy Sports and Outdoors (NASDAQ:ASO). However, a closer look at its sound financials might cause you to think again. Given that...

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Given that...</p>\n\n<a href=\"https://finance.yahoo.com/news/academy-sports-outdoors-inc-nasdaq-122945046.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Academy Sports and Outdoors, Inc. 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(NASDAQ:ASO) Stock Has Shown Weakness Lately But Financials Look Strong: Should Prospective Shareholders Make The Leap?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-30 20:29 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/academy-sports-outdoors-inc-nasdaq-122945046.html><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>With its stock down 12% over the past month, it is easy to disregard Academy Sports and Outdoors (NASDAQ:ASO). However, a closer look at its sound financials might cause you to think again. Given that...</p>\n\n<a href=\"https://finance.yahoo.com/news/academy-sports-outdoors-inc-nasdaq-122945046.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4200","symbol_name":"专卖店","start_time":0,"source_url":"https://finance.yahoo.com/news/academy-sports-outdoors-inc-nasdaq-122945046.html","article_id":"2479702200","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/586eiHPvSTNDX.7t2BsuFw--~B/aD00MzI7dz0xMTk0O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/simply_wall_st__316/f93769003b780aae69f8c11146cdf5a4"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2479702200","pubTimestamp":1730291385,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"With its stock down 12% over the past month, it is easy to disregard Academy Sports and Outdoors . However, a closer look at its sound financials might cause you to think again. Given that fundamentals usually drive long-term market outcomes, the company is worth looking at. In this article, we decided to focus on Academy Sports and Outdoors'  ROE.ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In short, ROE shows the profit each dollar generates with respect to its shareholder investments.Check out our latest analysis for Academy Sports and Outdoors. Return on Equity = Net Profit  ÷ Shareholders' Equity. So, based on the above formula, the ROE for Academy Sports and Outdoors is:. Academy Sports and Outdoors' Earnings Growth And 25% ROE. Is Academy Sports and Outdoors Using Its Retained Earnings Effectively?In Academy Sports and Outdoors' case, its respectable earnings growth can prob","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4200":"专卖店","IE00B64PRP62.GBP":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (GBP) ACC","IE00B3QW5Z07.USD":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (USD) ACC","IE00BGHQF748.EUR":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (EUR) ACC","QID":"纳指两倍做空ETF","BK4112":"金融交易所和数据","BK4585":"ETF&股票定投概念","SQQQ":"纳指三倍做空ETF","QLD":"纳指两倍做多ETF","TQQQ":"纳指三倍做多ETF","BK4588":"碎股","LU2095319765.USD":"Natixis Thematics Subscription Economy R/A USD",".IXIC":"NASDAQ Composite","PSQ":"纳指反向ETF","LU2210150020.SGD":"Natixis Thematics Subscription Economy R/A SGD","LU2210149790.SGD":"Natixis Thematics Subscription Economy R/A SGD-H","ASO":"Academy Sports & Outdoors, Inc.","IE00BKPKM429.USD":"NEUBERGER BERMAN GLOBAL SUSTAINABLE EQUITY \"A\" (USD) ACC","BK4561":"索罗斯持仓","NDAQ":"纳斯达克OMX交易所"},"translate_title":"Academy Sports and Outdoors，Inc.（纳斯达克：ASO）的股票最近表现疲软，但财务状况看起来很强劲：潜在股东应该迈出这一步吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ASO":1,".IXIC":1,"NDAQ":1,"TQQQ":0.6,"SQQQ":0.6,"QLD":0.6,"QID":0.6,"PSQ":0.6,"NQmain":0.6,"MNQmain":0.6},"content_text":"With its stock down 12% over the past month, it is easy to disregard Academy Sports and Outdoors (NASDAQ:ASO). However, a closer look at its sound financials might cause you to think again. Given that fundamentals usually drive long-term market outcomes, the company is worth looking at. In this article, we decided to focus on Academy Sports and Outdoors'  ROE. \n ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In short, ROE shows the profit each dollar generates with respect to its shareholder investments. \n Check out our latest analysis for Academy Sports and Outdoors \n How Do You Calculate Return On Equity? \n ROE can be calculated by using the formula: \n Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity \nSo, based on the above formula, the ROE for Academy Sports and Outdoors is:\n25% = US$487m ÷ US$2.0b (Based on the trailing twelve months to August 2024).\n The 'return' is the amount earned after tax over the last twelve months. So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.25. \n What Is The Relationship Between ROE And Earnings Growth? \n Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Depending on how much of these profits the company reinvests or \"retains\", and how effectively it does so, we are then able to assess a company’s earnings growth potential. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics. \n Academy Sports and Outdoors' Earnings Growth And 25% ROE \n Firstly, we acknowledge that Academy Sports and Outdoors has a significantly high ROE. Secondly, even when compared to the industry average of 19% the company's ROE is quite impressive. This probably laid the groundwork for Academy Sports and Outdoors' moderate 18% net income growth seen over the past five years. \n As a next step, we compared Academy Sports and Outdoors' net income growth with the industry and found that the company has a similar growth figure when compared with the industry average growth rate of 18% in the same period. \n\n\n\n  NasdaqGS:ASO Past Earnings Growth October 30th 2024\n \n\n The basis for attaching value to a company is, to a great extent, tied to its earnings growth. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. Doing so will help them establish if the stock's future looks promising or ominous. Has the market priced in the future outlook for ASO? You can find out in our latest intrinsic value infographic research report.  \n Is Academy Sports and Outdoors Using Its Retained Earnings Effectively? \n In Academy Sports and Outdoors' case, its respectable earnings growth can probably be explained by its low three-year median payout ratio of 4.6% (or a retention ratio of 95%), which suggests that the company is investing most of its profits to grow its business. \n Additionally, Academy Sports and Outdoors has paid dividends over a period of three years which means that the company is pretty serious about sharing its profits with shareholders. Upon studying the latest analysts' consensus data, we found that the company's future payout ratio is expected to rise to 9.7% over the next three years. Consequently, the higher expected payout ratio explains the decline in the company's expected ROE (to 19%) over the same period. \n Conclusion \n In total, we are pretty happy with Academy Sports and Outdoors' performance. Particularly, we like that the company is reinvesting heavily into its business, and at a high rate of return. Unsurprisingly, this has led to an impressive earnings growth. That being so, a study of the latest analyst forecasts show that the company is expected to see a slowdown in its future earnings growth. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company. \nHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2479702200"}