Academy Sports and Outdoors: A Value Play Ready To Regain Momentum
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Academy Sports and Outdoors is planning to open 160-180 new stores over five years, aiming to leverage favorable demographics in high-growth markets. Despite negative same-store sales for 11 quarters, ASO has maintained positive free cash flow, with a TTM FCF yield of 11%. The company is expected to achieve low-single-digit same-store sales growth and mid-single-digit overall sales growth by fiscal year 2025.
January 28, 2025 | 6:15 am
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Academy Sports and Outdoors is expanding with plans to open 160-180 new stores over five years. Despite past negative same-store sales, ASO has maintained positive free cash flow, indicating operational efficiency. Expected sales growth could positively impact stock prices.
The aggressive expansion plan and consistent positive free cash flow suggest operational strength and potential for future growth. The expected sales growth, both same-store and overall, indicates a positive outlook for ASO's stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100