Big 5 Sporting Goods Stock Undervalued Compared to Competitors: Is it Finally Reaching its Bottom?
January 11, 2023
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BGFV Intrinsic Value – Big 5 Sporting ($NASDAQ:BGFV) Goods is one of the leading sporting goods companies in the United States. The company provides a wide variety of quality products, including apparel, footwear, and equipment, for a variety of sports activities. In fact, a popular index of sporting goods stocks has seen its value drop significantly over the past year, while Big 5’s stock has remained relatively stable. On the other hand, some investors are cautious about investing in Big 5 due to its lack of growth over the past few years. The company’s revenues have stayed relatively flat, and its profits have not been impressive.
Additionally, the company’s weak balance sheet and low cash flow could make it difficult for the company to turn things around in the near future. Investors should do their own research into the company and carefully consider whether or not investing in Big 5 stock is a wise decision.
Stock Price
So far the news has been mostly positive, as on Monday the stock opened at $9.2 and closed at the same price, up by 0.5% from its last closing price of $9.2. This indicates that the company may have finally reached its bottom and is now ready to start a new climb to success. Analysts suggest that the stock may be poised to move higher in the near future as the company is expected to benefit from the recent sports and fitness trend that has been taking hold in the United States. This trend includes increased participation in running and other sports activities, as well as an increased interest in health and wellness. All of these factors have the potential to provide a boost for Big 5 Sporting Goods’ stock price.
The company has also been making moves to grow its business and expand its reach by introducing new products, such as its recently launched online store. This move has been well received by consumers and could help to improve the company’s stock performance over time. Overall, Big 5 Sporting Goods appears to be in a good position to benefit from the current sports and fitness trend. With the right investments, the company could potentially be in for a profitable future. 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 |
| 1.03k | 44.31 | 4.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for BGFV. More…
| Operations | Investing | Financing |
| -9.58 | -12.41 | -57.57 |
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 |
| 735.28 | 463.34 | 12.26 |
Key Ratios Snapshot
Some of the financial key ratios for BGFV are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 1.0% | 98.7% | 5.6% |
| FCF Margin | ROE | ROA |
| -2.1% | 13.4% | 4.9% |
VI Analysis – BGFV Intrinsic Value Calculator
BIG 5 SPORTING GOODS’ fundamentals are a reflection of its long-term potential, as has been made simple to analyze with the help of VIS app. The intrinsic value of the company’s stock is estimated to be around $21.3, which has been calculated by VI Line. Currently, the stock is being traded at $9.2, which is undervalued by a whopping 57%. This presents an opportunity for investors to enter the market and take advantage of the current price. The company’s financials and position in the market have been thoroughly analyzed by VI app, and it has been found that BIG 5 SPORTING GOODS has a strong balance sheet and healthy cash flow. This is indicative of a strong business model that is likely to perform well in the future. Its product offerings are also well diversified, which will ensure that the company can remain competitive and grow its market share. Apart from its financials, BIG 5 SPORTING GOODS has also been evaluated on its customer service and product quality. It has been found that the company offers excellent customer service and produces high-quality products that are well-received by consumers. All these factors add up to make BIG 5 SPORTING GOODS an attractive investment option, given its current value. More…
VI Peers
In the world of sporting goods, there is intense competition among the big players. Big 5 Sporting Goods Corp competes against Dick’s Sporting Goods Inc, Hibbett Inc, and Academy Sports and Outdoors Inc, to name a few. Each company is fighting for market share, and each has its own strengths and weaknesses.
– Dick’s Sporting Goods Inc ($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 is a leading sporting goods retailer in the United States, offering a wide selection of quality products to consumers. Investing in the company can be a wise move, as it has been undervalued compared to its competitors in recent years. Financial analysts have been optimistic about the company’s prospects, citing strong financial performance and a focus on customer satisfaction. Furthermore, revenue growth has been steady in recent quarters, indicating that the company is well positioned to grow in the future.
