BGFV  Big 5 Sporting Goods Corporati...

Exchange

NASDAQ

Sector

Consumer Services

Industry

Other Specialty Stores

Market Cap.

304.42M

Vuru Grade

58.79/100

Current Price

$14.00
+0.30 (+2.19%)

Growth Price

$27.46
Undervalued by 96.14%

Stability Price

$25.00
Undervalued by 78.55%

Company Metrics

  • P/E 13.25
  • P/S 0.29
  • P/B 1.44
  • EPS 1.06
  • Cash ROIC 9.10%
  • Cash Ratio 0.04
  • Dividend 0.60 / 4.29 %
  • Avg. Vol. 623,958.00
  • Shares 21.74M
  • Market Cap. 304.42M

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

Will Big 5 Sporting Goods (BGFV) Make a Suitable Value Pick?
Zacks.com - 22 hours ago
Right now, Big 5 Sporting Goods has a P/S ratio of about 0.30. This is lower than the S&P 500 average, which comes in at 2.66 right now.
Why to Keeping Eye on Big 5 Sporting Goods Corporation (BGFV), Boyd Gaming ... - StockNewsJournal
Big 5 Sporting Goods Corporation (BGFV) Ex-Dividend Date Scheduled for May 30 ...
Nasdaq - May 26, 2017
Big 5 Sporting Goods Corporation ( BGFV ) will begin trading ex-dividend on May 30, 2017. A cash dividend payment of $0.15 per share is scheduled to be paid on June 15, 2017.
CIT Group Inc. (NYSE:CIT), Big 5 Sporting Goods Corporation (NASDAQ:BGFV) - AppsforPCdaily
Q4 2018 EPS Estimates for Big 5 Sporting Goods Co. Decreased by Forward View ... - Chaffey Breeze
BRIEF-Big 5 Sporting Goods Corp Q1 earnings per share $0.24
Reuters - May 2, 2017
NEW DELHI, May 14 India has not sent an official delegation to attend the "Belt and Road Forum" in Beijing and instead criticised China's global initiative, warning of an "unsustainable debt burden" for countries involved.
Big 5 Sporting Goods Corporation Announces Fiscal 2017 First Quarter Results
GlobeNewswire (press release) - May 2, 2017
EL SEGUNDO, Calif., May 02, 2017 (GLOBE NEWSWIRE) -- Big 5 Sporting Goods Corporation (NASDAQ:BGFV) (the “Company”), a leading sporting goods retailer, today reported financial results for the fiscal 2017 first quarter ended April 2, 2017.
Big 5 Sporting (BGFV) Tops Q1 Earnings & Sales, Stock Up - Zacks.com
Between The Numbers: Big 5 Sporting Goods Corporation (BGFV), Nobilis Health ... - USA Commerce Daily
Zacks.com featured highlights: Big 5 Sporting Goods, Kelly Services, SORL Auto ...
Nasdaq - May 22, 2017
Big 5 Sporting Goods Corporation (NASDAQ: BGFV - Free Report ) is a leading sporting goods retailer in the western U.S., operating stores under the name Big 5 Sporting Goods.
Zacks.com featured highlights: Big 5 Sporting Goods, Commercial Vehicle Group ...
Nasdaq - May 11, 2017
Big 5 Sporting Goods Corporation (NASDAQ: BGFV - Free Report ) is a leading sporting goods retailer in Western U.S. This Zacks Rank #1 (Strong Buy) company has an impressive record with respect to earnings, having surpassed the Zacks Consensus ...
In Good Financial Health? – Five Below, Inc. (FIVE), Big 5 Sporting Goods ...
USA Commerce Daily - 17 hours ago
Shares of Five Below, Inc. (NASDAQ:FIVE) are making a strong comeback as they have jumped 50.24% since bottoming out at $35.03 on Nov. 04, 2016.
Big 5 Sporting Goods (BGFV) Reaches $13.83 After 3.00% Up Move; Jvl Advisors ...
Key Gazette - May 25, 2017
On Friday, May 5 DUNBAR JENNIFER HOLDEN sold $44,430 worth of Big 5 Sporting Goods Corporation (NASDAQ:BGFV) or 3,000 shares.
Big 5 Sporting Goods Corporation (BGFV) Moves Higher on Volume Spike for May 25 - Equities.com
Big 5 Sporting Goods Co. (BGFV) to Post Q3 2017 Earnings of $0.45 Per Share ... - The Cerbat Gem
Big 5 Sporting Goods Corporation (NasdaqGS:BGFV) MF Rank in the Spotlight
Ozark Times - 17 hours ago
The formula uses ROIC and earnings yield ratios to find quality, undervalued stocks. In general, companies with the lowest combined rank may be the higher quality picks.
Technical Investor Update on Shares of Big 5 Sporting Goods Corp (BGFV)
Baldwin Journal - 9 hours ago
Big 5 Sporting Goods Corp (BGFV)'s Williams Percent Range or 14 day Williams %R is sitting at -39.88. Typically, if the value heads above -20, the stock may be considered to be overbought.
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.

$14.00 Current Price

$27.46 Growth Price (DCF)

Undervalued by 96.14%


Growth Rate Assumed by Market: -39.55%


Future Free Cash Flow Growth Rate: 0.6%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$25.00 Stability Price (EPV)

Undervalued by 78.55%


Discount Rate: 15.0%

$4.41 NCA Price

Overvalued by 68.48%

$15.87 Book Price

Undervalued by 13.38%


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 $9.10 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow 26.70M 4.25M 5.97M 15.08M 59.56M
divided by
Invested Capital 237.06M 256.17M 280.11M 276.99M 238.16M
Cash ROIC 11.26% 1.66% 2.13% 5.44% 25.01%

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 $9.46 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 14.92M 27.95M 14.88M 15.30M 16.89M
divided by
Stockholders' Equity 164.42M 190.77M 195.00M 198.83M 205.04M
Return on Equity 9.07% 14.65% 7.63% 7.69% 8.24%

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
2007200820092010201120122013201420152016
Free Cash Flow 3.90M 19.06M 48.32M 14.24M -10.77M 26.70M 4.25M 5.97M 15.08M 59.56M

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
2007200820092010201120122013201420152016
Cash 9.74M 9.06M 5.77M 5.62M 4.90M 7.64M 9.40M 11.50M 7.12M 7.90M
Current Assets 294.44M 275.17M 267.48M 291.87M 298.67M 311.97M 345.01M 357.65M 344.03M 324.50M
Total Assets 403.92M 388.36M 366.12M 392.36M 394.06M 406.66M 441.89M 455.58M 445.03M 433.58M
Current Liabilities 164.48M 145.88M 146.94M 161.14M 141.76M 161.96M 176.32M 163.97M 160.92M 187.53M
Total Liabilities 294.77M 276.56M 234.26M 241.63M 237.47M 242.24M 251.12M 260.57M 246.20M 228.54M
Stockholder' Equity 109.16M 111.80M 131.86M 150.73M 156.59M 164.42M 190.77M 195.00M 198.83M 205.04M
Current Ratio 1.79 1.89 1.82 1.81 2.11 1.93 1.96 2.18 2.14 1.73
TL-to-TA 0.73 0.71 0.64 0.62 0.60 0.60 0.57 0.57 0.55 0.53

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
2007200820092010201120122013201420152016
Retained Earnings 34.14M 40.23M 57.74M 73.95M 79.04M 87.46M 106.57M 112.52M 119.00M 124.36M
Retained Earnings Growth - 17.85% 43.51% 28.08% 6.88% 10.66% 21.84% 5.59% 5.76% 4.51%

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 $1.98 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income 28.09M 13.90M 21.81M 20.56M 11.67M 14.92M 27.95M 14.88M 15.30M 16.89M
divided by
Revenue 898.29M 864.65M 895.54M 896.81M 902.13M 940.49M 993.32M 977.86M 1.03B 1.02B
Net Profit Margin 3.13% 1.61% 2.44% 2.29% 1.29% 1.59% 2.81% 1.52% 1.49% 1.65%

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.

$39.46 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
2007200820092010201120122013201420152016
Gross Profit 309.14M 285.49M 297.75M 297.71M 902.13M 302.77M 328.74M 313.45M 324.96M 324.46M
divided by
Revenue 898.29M 864.65M 895.54M 896.81M 902.13M 940.49M 993.32M 977.86M 1.03B 1.02B
Gross Margin 34.41% 33.02% 33.25% 33.20% 100.00% 32.19% 33.09% 32.05% 31.58% 31.77%

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.

99.59% 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
2007200820092010201120122013201420152016
Capital Expenditure 20.77M 20.45M 5.76M 15.63M 12.99M 12.90M 22.04M 22.57M 24.57M 14.11M
divided by
Net Income 28.09M 13.90M 21.81M 20.56M 11.67M 14.92M 27.95M 14.88M 15.30M 16.89M
Capital Expenditure Ratio 73.93% 147.06% 26.43% 76.00% 111.28% 86.50% 78.85% 151.69% 160.60% 83.55%

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
2007200820092010201120122013201420152016
Dividend Paid 8.08M 7.78M 4.30M 4.33M 6.53M 6.47M 8.79M 8.89M 8.81M 11.48M
divided by
Shares Outstanding 22.56M 21.62M 21.66M 21.89M 21.87M 21.62M 22.08M 22.13M 21.93M 21.82M
Dividend Paid Per Share 0.36 0.36 0.20 0.20 0.30 0.30 0.40 0.40 0.40 0.53
Price at Year End 12.60 4.58 16.66 15.15 10.44 12.57 18.98 14.85 10.22 17.35
Dividend Yield 2.84% 7.86% 1.19% 1.30% 2.86% 2.38% 2.10% 2.70% 3.93% 3.03%

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
2007200820092010201120122013201420152016
Shares Outstanding 22.56M 21.62M 21.66M 21.89M 21.87M 21.62M 22.08M 22.13M 21.93M 21.82M
Stock Bought Back - 4.35% -0.18% -1.06% 0.10% 1.17% -2.11% -0.23% 0.94% 0.51%
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