Academy Sports & Outdoors, Inc.ASO · Nasdaq

Why the market may be pricing it low

• The market views Academy as exposed to single-region risk, with stores concentrated in 21 southern states.

  Regional focus primarily in the southern United States with a growing presence in some of the fastest-growing Metropolitan Statistical AreasBusiness

• The company itself flags tariffs and trade policy shifts as threats to consumer spending and merchandise margin, weighing on the outlook.

  existing and potential tariffs, and other shifting trade policies, which have impacted consumer spending and could adversely affect our ability to grow sales and merchandise marginMD&A

What could close the gap

• Expanding stores into fast-growing metro areas could break the Southern-concentration narrative and prompt a re-rating.

  a growing presence in some of the fastest-growing Metropolitan Statistical AreasBusiness

• An 8-K in May 2026 disclosing a material agreement, its termination, and a new debt obligation (Item 1.01, 1.02, 2.03) could signal a shift in capital policy.

  2026-05-14 Item 1.01,1.02,2.03,7.01,9.018-K filings

How a buyer could still lose (value trap)

• Sales and profit are already declining; if this continues rather than reversing, the earnings base behind the 'cheap' multiple itself shrinks.

  Based on the figures below

• With debt of $494M against cash of $298M, continued earnings deterioration would erode the company's financial cushion.

  Based on the figures below

Financial quality (Piotroski F-score)

• ✓Profitable (ROA > 0)
• ✓Positive operating cash flow
• ✗ROA up on last year
• ✓Cash flow exceeds net profit
• ✓Leverage down on last year
• ✓Current ratio up on last year
• ✓No new shares issued
• ✓Gross margin up on last year
• ✓Asset turnover up on last year

Scored out of the checks with data, scaled to 9. Compares the latest year with the year before.

Figures

Sales

$6.2bn

Operating profit

$592m

Net profit

$396m

Operating cash flow

$548m

Cash

$298m

Debt

$494m

Equity

$2.2bn

Latest twelve months to 2026-08-01; F-score for the fiscal year to 2026-01-31