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Research: Academy Sports and Outdoors

ASO IPO’d on Friday. It was below their target of $15-$17. I bought it under $13. Sports retailers are still doing quite well. BGFV has finally moved. ASO is not as cheap as BGFV but it is more comparable to DKS and HIBB – it is a better business. You can make legit arguments that BGFV does not turn over inventory as fast, that it has no online presence, and that SSS have been much worse than the competition. With ASO they compare favorably to DKS and HIBB, and the FCF they generated in H1 was really good. I imagine they generate almost all of the $760mm of FCF in Q220. Another quarter that is even close to as good would be a signifcant percentage of the market cap and close to enough to pay down the rest of the debt. A couple of charts to demonstrate the comps. I’ll post up some notes on it later.

2 Comments Post a comment
  1. Einar Royo Bjelke #

    great job!!!, your blog is really great, i already folllowed some of your ideas.
    I am learning alot from your blog.
    How did you get SSS value of ASO, i was not able to find it.

    Thanks in advance

    October 8, 2020
    • Table on Page 18 of the 424B4 filing on Oct 2nd has the SSS for a number of periods.

      October 8, 2020

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