Big 5 Sporting Goods Corporation (BGFV) Company Bio
Big 5 Sporting Goods is a leading sporting goods retailer in the western United States. Big 5's product mix includes athletic shoes, apparel and accessories, as well as a broad selection of outdoor and athletic equipment for team sports, fitness, camping, hunting, fishing, tennis, golf, winter and summer recreation and roller sports. The company was founded in 1955 and is based in El Segundo, California.
BGFV Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for BIG 5 SPORTING GOODS Corp. To summarize, we found that BIG 5 SPORTING GOODS Corp ranked in the 94th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 2876.83%. The most interesting components of our discounted cash flow analysis for BIG 5 SPORTING GOODS Corp ended up being:
47% of the company's capital comes from equity, which is greater than only 18.14% of stocks in our cash flow based forecasting set.
BIG 5 SPORTING GOODS Corp's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 0.82% of tickers in our DCF set.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than just 0% of stocks in its sector (Consumer Cyclical).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as BGFV, try SPWH, LAD, MHO, SIG, and FRGI.
Big 5 Sporting Goods Corp. stock rallied 3.6% in Wednesday premarket trading after the company said fourth-quarter profit is expected to exceed expectations. The retailer is expecting earnings per share in the range of 90 cents to 93 cents, ahead of the FactSet consensus for 57 cents. Sales are expected to be $290.5 billion, in line with the FactSet consensus. And estimated same-store sales growth of 10.5% is expected to beat the FactSet consensus for a 5% increase. Fiscal fourth quarter 2020 included 14 weeks versus 13 weeks in 2019. For the full year, Big 5 now expects EPS in the range of $2.53 to $2.56, ahead of the FactSet consensus for $2.20. The company ended the fiscal year with no borrowings under its credit facility and $64.7 million in cash. Big 5 stock has skyrocketed 316% o...
* Fourth Quarter Same Store Sales Increased 10.5% * Fourth Quarter EPS Expected in the Range of $0.90 to $0.93, Exceeding High End of Prior Guidance Range * Fiscal 2020 Full Year EPS Expected in the Range of $2.53 to $2.56 EL SEGUNDO, Calif., Jan. 13, 2021 (GLOBE NEWSWIRE) -- Big 5 Sporting Goods Corporation (Nasdaq: BGFV) (the “Company,” “we,” “our,” “us,” “Big 5”), a leading sporting goods retailer, today reported sales results for the fiscal 2020 fourth quarter and full year ended January 3, 2021.For the 14-week fiscal 2020 fourth quarter, net sales were $290.5 million compared to net sales of $244.1 million for the 13-week fourth quarter of fiscal 2019. Same store sales increased 10.5% for the fourth quarter of fiscal 2020. The Company’s merchandise margins increased by approxima...
Understanding Value Stocks A value stock is traditionally defined in terms of how investors in the marketplace are valuing that company's future growth prospects. Low P/E multiples are good base indicators that the company is undervalued and can most likely be labelled as a value stock.The following stocks are considered to be notable value stocks in the consumer cyclical sector: 1. Qurate Retail (NASDAQ:QRTEA) - P/E: 6.59 2. Meritage Homes (NYSE:MTH) - P/E: 8.46 3. Century Communities (NYSE:CCS) - P/E: 8.48 4. Meritor (NYSE:MTOR) - P/E: 8.49 5. Big 5 Sporting Goods (NASDAQ:BGFV) - P/E: 6.16This quarter, Qurate Retail experienced an increase in earnings per share, which was 0.54 in Q2 and is now 0.57. Qurate Retail does not have a dividend yield, which investors should be aware of...