BGFV  Big 5 Sporting Goods Corporati...

Exchange

NASDAQ

Sector

Consumer Services

Industry

Other Specialty Stores

Market Cap.

290.70M

Vuru Grade

53.58/100

Current Price

$13.50
+0.15 (+1.12%)

Growth Price

$11.60
Overvalued by 14.09%

Stability Price

$58.99
Undervalued by 336.94%

Company Metrics

  • P/E 21.77
  • P/S 0.28
  • P/B 1.44
  • EPS 0.62
  • Cash ROIC 3.23%
  • Cash Ratio 0.04
  • Dividend 0.6 / 4.36%
  • Avg. Vol. 611,555.00
  • Shares 21.53M
  • Market Cap. 290.70M

Company Description

Big 5 Sporting Goods Corporation, together with its subsidiaries, operates as a sporting goods retailer in the western United States. The company offers athletic shoes, apparel, and accessories, as well as a selection of outdoor and athletic equipment for team sports, fitness, camping, hunting, fishing, tennis, golf, snowboarding, and roller sports. It also provides various private label merchandi... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Big 5 Sporting Goods (BGFV) Enters Oversold Territory February 16, 2017
Zacks.com - Feb 16, 2017
Big 5 Sporting Goods Corporation (BGFV - Free Report) has been on a bit of a cold streak lately, but there might be light at the end of the tunnel for this overlooked stock.
Big 5 Sporting (BGFV) Q4 Earnings: Disappointment in Store?
Zacks.com - Feb 23, 2017
Sporting goods retailer, Big 5 Sporting Goods Corporation (BGFV - Free Report) is all set to report fourth-quarter 2016 results, after the closing bell on Feb 28, 2017.
Big 5 Sporting Goods Corporation to Report Fiscal 2016 Fourth Quarter and Full ... - Yahoo Finance
Big 5 Sporting Goods Corporation (BGFV) Moves Lower on Volume Spike for ... - Equities.com
Why Big 5 Sporting Goods Corporation Stock Surged 14% Last Month
Motley Fool - Nov 5, 2016
Shares of Big 5 Sporting Goods Corp. (NASDAQ:BGFV) were getting a standing ovation in October, climbing 14% according to data from S&P Global Market Intelligence.
Big 5 Sporting Goods Corporation Announces Fiscal 2016 Third Quarter Results - GlobeNewswire (press release)
Big 5 Sporting (BGFV) Stock Up on Q3 Earnings & Sales Beat - Zacks.com
Why Big 5 Sporting Goods Corp. Stock Popped Today
Motley Fool - Oct 6, 2016
More specifically, Duetsche Bank analyst Mike Baker increased his rating on the sporting goods retailer to "buy" from "hold," and simultaneously increased his 2017 per-share price target on Big 5 to $16.50 from $10. To justify his bullish stance, Baker ...
Why Big 5 Sporting Goods Corporation Stock Popped 24.8% in November
Motley Fool - Dec 9, 2016
Shares of Big 5 Sporting Goods Corporation (NASDAQ:BGFV) rose 24.8% in November, according to data from S&P Global Market Intelligence, after the sporting-goods retailer announced strong third-quarter 2016 results.
Forward View breaks down Big 5 Sporting Goods
Seeking Alpha - Jan 19, 2017
Forward View's Nathan Yates reiterates a Buy rating and $18 price target on Big 5 Sporting Goods (NASDAQ:BGFV) after taking in the retailer's pre-announcement release.
First Week of October 20th Options Trading For Big 5 Sporting Goods
TheStreet.com - Feb 22, 2017
Investors in Big 5 Sporting Goods Corp ( BGFV) saw new options become available this week, for the October 20th expiration.
Big 5's Q4 Comp Changes Nothing
Seeking Alpha - Jan 23, 2017
Retailer Big 5 Sporting Goods (NASDAQ:BGFV) was able to capture positive momentum from bankruptcies throughout the space to drive positive same-store sales growth for the second consecutive quarter.
Forward View Analysts Give Big 5 Sporting Goods Corp. (BGFV) a $18.00 Price Target - The Cerbat Gem
FY2016 EPS Estimates for Big 5 Sporting Goods Corp. (BGFV) Increased by Analyst - Sports Perspectives
Big 5: Next Domino To Fall In Sporting Goods
Seeking Alpha - May 30, 2016
Unfortunately, I believe Big 5 Sporting Goods (NASDAQ:BGFV) will be among the next firms to be rationalized. Though it serves a niche market and has some sales protection, thanks to its reliance on weapons, an inferior product mix, higher minimum wages ...
Big 5 Sporting Goods' (BGFV) CEO Steve Miller on Q3 2016 Results - Earnings ...
Seeking Alpha - Nov 1, 2016
Good day, ladies and gentlemen. Welcome to the Big 5 Sporting Goods Third Quarter 2016 Earnings Results Call. Today's call is being recorded.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for BGFV to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate BGFV's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$13.50 Current Price

$11.60 Growth Price (DCF)

Overvalued by 14.09%


Growth Rate Assumed by Market: 13.06%


Future Free Cash Flow Growth Rate: -1.6%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$58.99 Stability Price (EPV)

Undervalued by 336.94%


Discount Rate: 15.0%

$4.54 NCA Price

Overvalued by 66.35%

$17.77 Book Price

Undervalued by 31.64%


Poor Cash Return on Invested Capital over the past 5 years

BGFV has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

BGFV has only created $3.23 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20112012201320142015
Free Cash Flow -10.77M 26.70M 4.25M 5.97M 15.08M
divided by
Invested Capital 247.41M 237.06M 256.17M 280.11M 276.99M
Cash ROIC -4.35% 11.26% 1.66% 2.13% 5.44%

Poor Return on Equity over the past 5 years

BGFV has shown an inability to deliver strong results for shareholders. This could be due to poor management, BGFV operating in a highly competitive industry, or having a weak business in general.

BGFV has only generated $9.30 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income 11.67M 14.92M 27.95M 14.88M 15.30M
divided by
Stockholders' Equity 156.59M 164.42M 190.77M 195.00M 198.83M
Return on Equity 7.45% 9.07% 14.65% 7.63% 7.69%

Excellent Business Performance over the past 10 years

BGFV has been able to maintain profitability in good times and bad. This could mean BGFV has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

BGFV has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Free Cash Flow 26.00M 3.90M 19.06M 48.32M 14.24M -10.77M 26.70M 4.25M 5.97M 15.08M

Weak Balance Sheet

BGFV's financial position is not ideal. The key is to check whether BGFV is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Cash 5.15M 9.74M 9.06M 5.77M 5.62M 4.90M 7.64M 9.40M 11.50M 7.12M
Current Assets 262.61M 294.44M 275.17M 267.48M 291.87M 298.67M 311.97M 345.01M 357.65M 344.03M
Total Assets 364.10M 403.92M 388.36M 366.12M 392.36M 394.06M 406.66M 441.89M 455.58M 445.03M
Current Liabilities 161.06M 164.48M 145.88M 146.94M 161.14M 141.76M 161.96M 176.32M 163.97M 160.92M
Total Liabilities 263.64M 294.77M 276.56M 234.26M 241.63M 237.47M 242.24M 251.12M 260.57M 246.20M
Stockholder' Equity 100.46M 109.16M 111.80M 131.86M 150.73M 156.59M 164.42M 190.77M 195.00M 198.83M
Current Ratio 1.63 1.79 1.89 1.82 1.81 2.11 1.93 1.96 2.18 2.14
TL-to-TA 0.72 0.73 0.71 0.64 0.62 0.60 0.60 0.57 0.57 0.55

Consistent Reinvestment of Profits over the past 10 years

BGFV has consistently retained profits. This may put BGFV in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, BGFV can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Retained Earnings 14.13M 34.14M 40.23M 57.74M 73.95M 79.04M 87.46M 106.57M 112.52M 119.00M
Retained Earnings Growth - 141.66% 17.85% 43.51% 28.08% 6.88% 10.66% 21.84% 5.59% 5.76%

Highly Competitive Industry over the past 10 years

It's likely that BGFV is in an industry with low barriers to entry, spurring high competition. If Gross Margins are at least satisfactory, it's likely BGFV invests heavily in R&D and Sales, General & Administrative expenses.

Only $2.17 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income 30.84M 28.09M 13.90M 21.81M 20.56M 11.67M 14.92M 27.95M 14.88M 15.30M
divided by
Revenue 876.81M 898.29M 864.65M 895.54M 896.81M 902.13M 940.49M 993.32M 977.86M 1.03B
Net Profit Margin 3.52% 3.13% 1.61% 2.44% 2.29% 1.29% 1.59% 2.81% 1.52% 1.49%

Inconsistent Gross Profit Margins over the past 10 years

BGFV has good gross profit margins, however inconsistency of these margins is a cause for concern. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$39.83 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Gross Profit 310.92M 309.14M 285.49M 297.75M 297.71M 902.13M 302.77M 328.74M 313.45M 324.96M
divided by
Revenue 876.81M 898.29M 864.65M 895.54M 896.81M 902.13M 940.49M 993.32M 977.86M 1.03B
Gross Margin 35.46% 34.41% 33.02% 33.25% 33.20% 100.00% 32.19% 33.09% 32.05% 31.58%

High Capital Intensity over the past 10 years

BGFV spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

96.58% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Capital Expenditure 16.47M 20.77M 20.45M 5.76M 15.63M 12.99M 12.90M 22.04M 22.57M 24.57M
divided by
Net Income 30.84M 28.09M 13.90M 21.81M 20.56M 11.67M 14.92M 27.95M 14.88M 15.30M
Capital Expenditure Ratio 53.42% 73.93% 147.06% 26.43% 76.00% 111.28% 86.50% 78.85% 151.69% 160.60%

Very Strong Dividend History over the past 10 years

BGFV has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests BGFV is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Dividend Paid 7.72M 8.08M 7.78M 4.30M 4.33M 6.53M 6.47M 8.79M 8.89M 8.81M
divided by
Shares Outstanding 22.80M 22.56M 21.62M 21.66M 21.89M 21.87M 21.62M 22.08M 22.13M 21.93M
Dividend Paid Per Share 0.34 0.36 0.36 0.20 0.20 0.30 0.30 0.40 0.40 0.40
Price at Year End 21.22 12.60 4.58 16.66 15.15 10.44 12.57 18.98 14.85 10.22
Dividend Yield 1.60% 2.84% 7.86% 1.19% 1.30% 2.86% 2.38% 2.10% 2.70% 3.93%

History of Stock Buybacks over the past 10 years

BGFV has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Shares Outstanding 22.80M 22.56M 21.62M 21.66M 21.89M 21.87M 21.62M 22.08M 22.13M 21.93M
Stock Bought Back - 1.05% 4.35% -0.18% -1.06% 0.10% 1.17% -2.11% -0.23% 0.94%
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