BGFV Intrinsic Stock Value – BIG 5 SPORTING GOODS Reports Q2 Earnings for FY2023, Ending June 30 2023
August 7, 2023
🌥️Earnings Overview
BIG 5 SPORTING GOODS ($NASDAQ:BGFV) reported their financial results for the second quarter of FY2023, ending June 30 2023, on August 1 2023. Total revenue for the quarter was USD 223.6 million, a decrease of 11.9% compared to the same period last year. Additionally, the company recorded a net income of USD -0.28 million, as opposed to 8.93 million in the same quarter of the previous year.
Market Price
The stock opened at $9.5 and closed at $9.4, down 2.2% from the prior closing price of $9.6. They also reported an increase in same store sales, as the company leveraged the shift in consumer’s shopping habits from brick-and-mortar stores to online. Overall, BIG 5 SPORTING GOODS is optimistic about its future prospects and growth opportunities, particularly as more people are participating in sports and outdoor activities due to the pandemic.
This is in line with the company’s strategy to enhance its digital capabilities to provide an omni-channel experience for customers. With their continued focus on improving consumer satisfaction, BIG 5 SPORTING GOODS is confident that they will continue to generate solid returns for their shareholders in the upcoming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for BGFV. More…
| Total Revenues | Net Income | Net Margin |
| 948.26 | 8.01 | 0.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for BGFV. More…
| Operations | Investing | Financing |
| 7.38 | -12.4 | -25.7 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for BGFV. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 705.55 | 447.13 | 11.54 |
Key Ratios Snapshot
Some of the financial key ratios for BGFV are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -0.3% | -20.4% | 1.1% |
| FCF Margin | ROE | ROA |
| -0.5% | 2.4% | 0.9% |
Analysis – BGFV Intrinsic Stock Value
At GoodWhale, we recently conducted an analysis of BIG 5 SPORTING GOODS’s financials. Our proprietary Valuation Line indicated that the intrinsic value of BIG 5 SPORTING GOODS share is approximately $13.8. However, at the moment, BIG 5 SPORTING GOODS stock is traded at $9.4—meaning it is undervalued by 31.8%. In other words, this presents a great opportunity for investors looking to buy a high-quality stock at a discounted price. More…
Peers
In the world of sporting goods, there is intense competition among the big players. Big 5 Sporting Goods Corp competes against Dick’s Sporting Goods Inc, Hibbett Inc, and Academy Sports and Outdoors Inc, to name a few. Each company is fighting for market share, and each has its own strengths and weaknesses.
– Dick’s Sporting Goods Inc ($NYSE:DKS)
Dicks Sporting Goods Inc is an American sporting goods retailer headquartered in Coraopolis, Pennsylvania. The company was founded in 1948 by Richard “Dick” Stack. The company operates more than 850 stores in 47 states and employs over 27,000 people.
The company’s market cap is 8.73B as of 2022 and its ROE is 48.91%. The company is a leading retailer of sporting goods and related apparel and equipment. The company’s product categories include team sports, fitness, hunting, fishing, golf, and more. The company also operates e-commerce businesses under the Dick’s Sporting Goods and Field & Stream brands.
– Hibbett Inc ($NASDAQ:HIBB)
Hibbett Sports, Inc. is a publicly traded company with a market capitalization of $750.08 million as of March 2022. The company operates Hibbett Sports and City Gear retail stores in small to mid-sized markets across the United States. Hibbett Sports offers a wide range of sporting goods products, including footwear, apparel, equipment, and accessories. The company’s City Gear stores offer an urban streetwear lifestyle products and services. Hibbett Sports reported a return on equity of 27.86% for the fiscal year ended January 31, 2022.
Hibbett Sports is a leading provider of sporting goods products and services in small to mid-sized markets across the United States. The company operates Hibbett Sports and City Gear retail stores. Hibbett Sports offers a wide range of sporting goods products, including footwear, apparel, equipment, and accessories. The company’s City Gear stores offer an urban streetwear lifestyle products and services. Hibbett Sports reported a return on equity of 27.86% for the fiscal year ended January 31, 2022.
– Academy Sports and Outdoors Inc ($NASDAQ:ASO)
Academy Sports and Outdoors Inc is an American sporting goods retailer with over 250 stores across the United States. The company offers a wide variety of sporting goods and outdoor products, making it a one-stop shop for athletes and enthusiasts alike. Academy Sports and Outdoors Inc has a market cap of 3.56B as of 2022, a Return on Equity of 36.08%. The company’s strong financials and commitment to customer satisfaction have made it a force to be reckoned with in the sporting goods industry.
Summary
Big 5 Sporting Goods reported a decrease in total revenue for their second fiscal quarter of 2023, with year-over-year figures down 11.9% to 223.6 million. Net income also experienced a dramatic decline, dropping from 8.93 million to just -0.28 million. Investors should view this news with caution, as the company may be facing a significant financial challenge in the near future.
However, a closer look at Big 5’s financials might reveal some potential opportunities if a proper strategy is implemented. Investors should consider carefully before investing in this company.
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