Big 5 Sporting Goods Corp (NASDAQ:BGFV)

CAPS Rating: 2 out of 5

The Company is a sporting goods retailer, which provides a full line of products that includes athletic shoes, apparel and accessories, and outdoor and athletic equipment for sports.

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Member Avatar kurtdabear (32.02) Submitted: 5/20/2014 10:56:59 AM : Outperform Start Price: $11.40 BGFV Score: -3.52

BGFV appears undervalued, has relatively little debt and pays a decent dividend. It's price has fallen recently on unfavorable quarterly comparisons as a result of lower sales of guns and ammo this year, but seems to have little downside. Also, a lot of its competition is either privately held or in financial difficulty.

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Member Avatar AnsgarJohn (99.22) Submitted: 5/9/2014 4:26:28 PM : Outperform Start Price: $11.83 BGFV Score: -7.20

Graham screen

Detailed Analysis   Guru Score: 86%   Find Other Stocks that Pass This Guru

SECTOR: [PASS]

BGFV is neither a technology nor financial Company, and therefore this methodology is applicable.

SALES: [PASS]

The investor must select companies of "adequate size". This includes companies with annual sales greater than $340 million. BGFV's sales of $978.3 million, based on trailing 12 month sales, pass this test.

CURRENT RATIO: [PASS]

The current ratio must be greater than or equal to 2. Companies that meet this criterion are typically financially secure and defensive. BGFV's current ratio of 2.17 passes the test.

LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: [PASS]

For industrial companies, long-term debt must not exceed net current assets (current assets minus current liabilities). Companies that meet this criterion display one of the attributes of a financially secure organization. The long-term debt for BGFV is $55.7 million, while the net current assets are $180.4 million. BGFV passes this test.

LONG-TERM EPS GROWTH: [FAIL]

Companies must increase their EPS by at least 30% over a ten-year period and EPS must not have been negative for any year within the last 5 years. Companies with this type of growth tend to be financially secure and have proven themselves over time. BGFV's EPS growth over that period of -80.7% fails the EPS growth test.

P/E RATIO: [PASS]

The Price/Earnings (P/E) ratio, based on the greater of the current PE or the PE using average earnings over the last 3 fiscal years, must be "moderate", which this methodology states is not greater than 15. Stocks with moderate P/Es are more defensive by nature. BGFV's P/E of 14.40 (using the 3 year PE) passes this test.

PRICE/BOOK RATIO: [PASS]

The Price/Book ratio must also be reasonable. That is, the Price/Book multiplied by P/E cannot be greater than 22. BGFV's Price/Book ratio is 1.41, while the P/E is 14.40. BGFV passes the Price/Book test.

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Member Avatar TSIF (99.96) Submitted: 5/2/2014 7:26:25 PM : Outperform Start Price: $12.10 BGFV Score: -9.45

I'm not a big fan of retail, and I've down thumbed Big 5 Sporting Goods Corp in the past, but I've also snapped up a few retail plays that the market tossed out hard when bad news timed with their already temporary bad mood.

Big 5 Sporting Goods was "low" on YoY comparison of earnings and a weak Q2 forecast.
Part of the blame for the low comps was, drum roll please...weather. The other part was a difficult YoY comp due to high gun and ammo sales in Q1, 2013....a common theme due to gun regulation concerns in 2013 that spurred buying.

Most retail needs to compete with internet, Amazon, etc. I think sporting goods is one of the better in-store plays since many items are big, and items are the sort that get a lot of touchy/feely comparisons. Also, if you get ready to go on an outing and someone didn't return, broke, or an item went obsolete, (happens a lot in camping), you may not have time to mail order.

0.40 (yearly) Dividend, halfway into a $20M stock buyback. Closed 4 stores, 425 open. Guiding down due to Easter shift to Q2, store closings, investment in ecommerce, etc. 12 States, (southern). Good comps against Dick's and Cabela's.

May not get much traction if Q2 is on the low end of guidance. Overall, looks like a decent long term retail play. 52 Week low. As with most retailers, needs to watch inventory, accounts payable, and receivables.

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Member Avatar SBUX (< 20) Submitted: 5/7/2013 12:42:01 AM : Outperform Start Price: $19.62 BGFV Score: -63.08

Moving to higher margin product line as economy recovers.

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Member Avatar USALand (34.90) Submitted: 6/7/2012 10:44:02 PM : Underperform Start Price: $6.52 BGFV Score: -27.10

I go to Dick's

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Member Avatar teknologic (< 20) Submitted: 4/1/2011 4:40:40 PM : Outperform Start Price: $12.33 BGFV Score: -58.57

1x - 4/1

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Member Avatar withoutlimits (82.26) Submitted: 5/1/2009 3:03:31 PM : Underperform Start Price: $9.64 BGFV Score: +108.34

So, after the quarterly earnings being so bad, why did they go up so much?

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Member Avatar BlazeRaze (< 20) Submitted: 3/18/2009 7:20:03 AM : Outperform Start Price: $5.69 BGFV Score: -55.54

The company has low overhead, quick turn around, & few stores that are always having incrediable sales. As a matter a fact, the store I visited last week, was hiring. like the Motley Fools always say's, " pick what you know ".

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Member Avatar tombear3 (< 20) Submitted: 10/27/2007 1:06:16 AM : Outperform Start Price: $13.44 BGFV Score: -48.65

The company has a solid platform and continues to grow every year

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Member Avatar mander5392 (28.02) Submitted: 7/6/2007 9:14:03 AM : Underperform Start Price: $20.74 BGFV Score: +80.90

Consumer discretionary stocks will fall when the economy slows down.

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Member Avatar MYPETEYS (77.65) Submitted: 4/28/2007 2:33:32 AM : Underperform Start Price: $21.27 BGFV Score: +85.39

TOO MUCH COMPETITION WITH BETTER OFFERINGS.

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Member Avatar Motssov (42.09) Submitted: 1/30/2007 11:59:50 AM : Outperform Start Price: $19.62 BGFV Score: -88.37

Good prices and selection for the size of the stores. They seem to lease less expensive space and stock it well, closer to neighborhoods for quick runs or on the way to the game, mountains, camping without the long lines of the big box sporting goods retailers.

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Member Avatar danceeagle (< 20) Submitted: 1/10/2007 7:06:38 PM : Outperform Start Price: $19.79 BGFV Score: -89.90

Solid Managed Company. Did well over 06 Xmas I think. Target should be about 29-30 due to earnings hitting about $2 with a 15 PE in 2007. A keeper beyond one year as long as they keep current exec management.

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Member Avatar NetscribeRetail (95.71) Submitted: 1/8/2007 7:18:16 AM : Outperform Start Price: $19.68 BGFV Score: -90.37

Big Things Expected from Big 5!!!

Big 5 Sporting Goods operates as a sporting goods retailer offering 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 in-line skating. The company operates 334 stores across 10 U.S states.

The $19 billion US athletic sport shoe market is the world’s largest and constitutes 47% of the global market. Footwear market is expected to increase 10.2% in value by 2008 and Athletic footwear comprises 35% of the total footwear purchases. This denotes a good picture for the company, which derives over 30% of its revenues from athletic and sport footwear. The third quarter performance of the company has been good with about 8% rise in the top-line and positive same-store sales across all their lines of business. Impressively, same-store sales, have been positive since past 43 consecutive quarters. On the expansion front, they have opened 10 stores in this fiscal and expect to increase its store base by roughly 6% annually, by opening 9 new stores in the next quarter. The company has maximum stores in California with further plans to explore opportunities there.

Additionally, the company earns the best returns on equity in the industry. Driven by the results, management expects over 7% rise in full year net earnings. Furthermore, management has been able to reduce its debt level despite store openings and dividend payouts. Also, company has achieved consistent revenue growth over the years. In future, company expects to enhance their operating efficiencies from the Californian distribution centre. In the light of all these facts, the stock price is expected to surge.

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Member Avatar PelagicBrewer (< 20) Submitted: 8/25/2006 8:52:12 PM : Outperform Start Price: $16.63 BGFV Score: -93.11

Proven model with plenty of expansion opportunities; LBO candidate

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