Last Updated: 14 Nov 2024
Executive Summary
Sportsmans, a leading outdoor sporting goods retailer in the US, is currently trading at $2.2. Despite facing challenges in the recent quarter, the company's fundamentals remain solid, with a strong revenue base and a healthy balance sheet. Analysts have a mixed outlook on the stock, with some recommending a hold and others suggesting a buy.
Company Overview
Sportsmans Warehouse Holdings, Inc. (SPWH) is a publicly traded company headquartered in West Jordan, Utah. The company operates a chain of retail stores across the US, offering a wide range of outdoor sporting goods, including hunting, fishing, camping, and hiking equipment. Sportsmans has a strong brand presence and a loyal customer base.
Fundamental Analysis
Revenue: Sportsmans' revenue for the latest 12 months (TTM) was $1.24 billion, a 0.067% decrease year-over-year.
Earnings: The company reported a net loss of $9.1 million in the most recent quarter, resulting in a diluted EPS of -$0.91.
Profitability: Sportsmans' gross profit margin is 39.4%, while its operating margin is -1.22%.
Balance Sheet: The company has a strong balance sheet with $163.65 million in EBITDA and $87.81 million in market capitalization.
Technical Analysis
Trend: Sportsmans' stock price has been trending downwards in recent months.
Support and Resistance: The stock has strong support at $1.81 and resistance at $2.90.
Moving Averages: The 50-day moving average is $2.711, and the 200-day moving average is $2.924.
Momentum: The relative strength index (RSI) is currently at 35, indicating that the stock is oversold.
Short Term Outlook
In the short term, Sportsmans' stock price is likely to remain volatile. The company's recent earnings report was disappointing, and the overall market sentiment is bearish. However, the stock is oversold and may experience a bounce back in the coming weeks.
Long Term Outlook
In the long term, Sportsmans' prospects are more positive. The company has a strong brand, a loyal customer base, and a solid financial foundation. The outdoor sporting goods market is expected to grow in the coming years, and Sportsmans is well-positioned to capitalize on this growth.
Analyst Recommendations
Analysts have a mixed outlook on Sportsmans' stock. Two analysts recommend a buy, three recommend a hold, and none recommend a sell. The average analyst target price is $2.90, which represents a potential upside of 32% from the current price.
