Academy Sports and Outdoors, Inc. (ASO) AI Stock Analysis
ASO AI stock analysis summary
AI ResearchAcademy Sports and Outdoors, Inc. (ASO) is a sporting goods and outdoor recreation retailer with $6.19B in trailing twelve-month revenue. The company maintains an operating margin of 15.0% and generated $222.1M in free cash flow in FY2026. ASO shares trade at a trailing P/E of 9.8x, which is lower than the median of its US-listed Consumer Cyclical peers.
- Market cap
- $3.61B
- Revenue (TTM)
- $6.19B
- P/E
- 9.8x fwd 7.3x
- 1Y return
- 12.5% S&P 500 16.8%
- Avg. target
- $59.50 1.5% vs last close
Bull case
- Quarterly earnings rose 17.3% year-over-year in the period ended July 31, 2026.
- The stock trades at a forward P/E of 7.3x and a PEG ratio of 0.60, each below sector norms.
- Share buybacks reduced the company's share count by 32.3% over the past 5 years.
Bear case
- Annual net income declined from $671.4M in FY2022 to $376.8M in FY2026.
- Total debt of $1.97B exceeds cash and short-term investments of $298.2M, leaving net debt at $1.67B.
- Short interest is elevated, with short percent of float standing at 21.7%.
What Academy Sports and Outdoors does
Headquartered in Katy, Texas, Academy Sports and Outdoors, Inc. is a retailer specializing in sporting goods and outdoor recreation equipment across the United States. Established in 1938, the company offers camping equipment, coolers, marine supplies, fishing gear, firearms, ammunition, and archery supplies. It also sells fitness equipment, athletic team gear, patio furniture, outdoor cooking equipment, trampolines, watersports products, and pet items. Academy Sports and Outdoors sells products across physical retail stores and through its website, carrying private brands including Magellan Outdoors, BCG, O'rageous, Outdoor Gourmet, and Freely.
Growth and profitability
Academy Sports and Outdoors grew revenue 2.0% in FY2026 to $6.05B after three consecutive years of top-line declines, including a 5.6% drop in FY2023 and 3.7% declines in both FY2024 and FY2025. Annual net income decreased from $671.4M in FY2022 to $376.8M in FY2026, with net margin declining from 9.9% to 6.2%. Gross margin stood at 34.8% in FY2026 compared to 34.7% in FY2022. For the latest quarter ended July 31, 2026, quarterly revenue increased 3.0% year-over-year, while quarterly earnings grew 17.3%. Over the 5-year span from FY2021 to FY2026, revenue CAGR was 1.2%.
Balance sheet and cash flow
As of July 31, 2026, Academy Sports and Outdoors held $298.2M in cash and short-term investments against total debt of $1.97B, resulting in net debt of $1.67B. The company recorded shareholders' equity of $2.18B, a debt-to-equity ratio of 0.90, and a current ratio of 1.74. In FY2026, the business produced $434.8M in operating cash flow and deployed $212.7M toward capital expenditures. Capital returned to shareholders included $199.0M in share buybacks and $34.7M in dividends, contributing to a 32.3% reduction in share count over 5 years.
Valuation and performance
At $58.63, Academy Sports and Outdoors trades at a trailing P/E of 9.8x and a forward P/E of 7.3x, compared to the median of its US-listed Consumer Cyclical peers of 18.0x and 14.1x, respectively. Its enterprise value-to-EBITDA ratio is 7.0x, below the peer group median of 11.1x. Over the past year, ASO gained 12.5%, lagging the S&P 500 return of 16.8%. Over a 5-year period, ASO increased 50.9% compared to 83.0% for the S&P 500.
ASO dividend
Academy Sports and Outdoors offers a forward annual dividend of $0.60 per share, representing a 1.02% dividend yield and a payout ratio of 9.3%. The company distributes dividends quarterly and has paid dividends for 5 consecutive years. Its most recent ex-dividend date occurred on September 16, 2026.
What analysts expect
Wall Street analysts hold 9 Strong Buy ratings and 11 Hold ratings on ASO, with no Buy, Sell, or Strong Sell recommendations. The mean price target is $59.50, representing a 1.5% premium to the last closing price of $58.63. For the fiscal year ending January 31, 2027, consensus estimates project EPS of $6.66 on revenue of $6.32B. Academy Sports and Outdoors has exceeded EPS estimates in 3 of the last 4 quarters, and its next earnings report is scheduled for December 8, 2026.
Key risks and what to watch
- Annual revenue fell for three consecutive years before rising 2.0% in FY2026, exhibiting limited 5-year revenue CAGR of 1.2%.
- Free cash flow dropped from $597.2M in FY2022 to $222.1M in FY2026.
- Operating margin narrowed from 13.4% in FY2022 to 8.5% in FY2026.
- Short interest represents 21.7% of float, reflecting substantial negative sentiment among market participants.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this ASO AI stock analysis
This page is an AI-written research summary of Academy Sports and Outdoors, Inc. (ASO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: ASO income statement, ASO balance sheet, ASO key metrics, ASO analyst forecast, ASO chart. See the ASO stock overview for the latest quote and news.
ASO AI stock analysis FAQ
What is Academy Sports and Outdoors' dividend yield?
Academy Sports and Outdoors has a dividend yield of 1.02% based on an annual forward dividend of $0.60 per share. It distributes dividends quarterly with a payout ratio of 9.3%.
How does ASO's valuation compare to sector peers?
ASO has a trailing P/E of 9.8x and an EV-to-EBITDA ratio of 7.0x. These multiples are lower than the median of its US-listed Consumer Cyclical peers, which stand at 18.0x and 11.1x, respectively.
What is the consensus analyst target for ASO?
The mean analyst price target is $59.50, which is 1.5% above the closing price of $58.63 as of October 16, 2026. The stock has 9 Strong Buy and 11 Hold ratings.
When is Academy Sports and Outdoors' next earnings release?
The company's next earnings report is scheduled for December 8, 2026. Analysts project full-year EPS of $6.66 on revenue of $6.32B for the fiscal year ending January 31, 2027.