Investor Insight: Sportsman's Warehouse Stock

by Rob Otman

Sportsman's Warehouse stock had a calm day in the market on Wednesday April 11. Shares moved 0.2% and closed the day at $4.9. They're now trading 29.9% below their 52-week high of $6.99.

With yesterday's slight gain, Sportsman's Warehouse now has a market cap of $209 million. That makes it a small cap company.

The business operates in the retail-sporting goods industry and employs 5,000 people. Its shares trade primarily on the NASDAQ stock exchange.

Sportsman's Warehouse has 42.62 million shares outstanding and 258,673 traded hands for the day. That's below the average 30-day volume of 720,644 shares.

Over the last five years, Sportsman's Warehouse's revenue is up by 107.13%. You can see this growth in annual revenue chart below...

Sportsman's Warehouse Stock Annual Revenue

In the last year alone, Sportsman's Warehouse's revenue has grown by 10.36%. That's a solid sign for Sportsman's Warehouse stock owners.

We like to invest in companies that grow their sales. A growing top line is a sign of a healthy business.

For now, Sportsman's Warehouse will continue to pull in revenue. So let's take a closer look at the company's total financial health. And the best way to do that is by looking at its balance sheet... Sportsman's Warehouse's cash comes in at $2 million and the company's debt is $193 million...

Sportsman's Warehouse Stock Cash vs. Debt

Sportsman's Warehouse's cash pile is smaller than its total debt. This is common for many companies. They can issue debt at a lower cost to take on new projects... but the debt to cash level is a bit high and is a concern for the business.

What is Sportsman's Warehouse Stock Worth?

Let's look at a few key ratios to determine the value of Sportsman's Warehouse stock…

Price-to-Earnings (P/E): This ratio comes in at 9.97 for Sportsman's Warehouse. That's a reasonable level. A high P/E ratio shows that investors are already expecting high earnings growth.

Price-to-Book (P/B): This ratio is a cornerstone for value investors. A lower number here indicates a better value play. And at 4.19, Sportsman's Warehouse looks reasonable… but P/B varies greatly based on the industry.

These two metrics are a great place to start when valuing a company... but your analysis should go much deeper...

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