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Amer Sports, Inc. (AS)
NYSE:AS
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Amer Sports, Inc.
(NYSE:AS)
57Neutral
Positive Factors
Brand Performance
Arc’teryx brand shows continued outsized growth, particularly in footwear and women's segments.
Sales Growth
Management's guidance suggests sales growth and operating margin expansion towards the upper end of expectations.
Negative Factors
Financial Estimates
Incremental FX headwinds are affecting the financial estimates for the future.
Amer Sports, Inc. (AS) vs. S&P 500 (SPY)
Market Cap
$13.99B
Dividend YieldN/A
Average Volume (3M)3.61M
Price to Earnings (P/E)179.1
Beta (1Y)1.33
Revenue Growth13.96%
EPS Growth86.60%
CountryUS
Employees11,400
SectorGeneral
Sector StrengthN/A
IndustryHotels, Lodging & Leisure
Share Statistics
EPS (TTM)0.14
Shares Outstanding553,631,200
10 Day Avg. Volume4,766,323
30 Day Avg. Volume3,613,327
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)5.53
Price to Cash Flow (P/CF)11.90
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$33.64Price Target Upside24.96% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
Amer Sports, Inc. Business Overview & Revenue Model
Company DescriptionAmer Sports, Inc. is a global sporting goods company that specializes in the design, manufacture, and distribution of sports equipment, apparel, and footwear. The company operates across several sectors, including outdoor sports, ball sports, and fitness, offering a diverse range of products under well-known brands such as Salomon, Arc'teryx, Wilson, Suunto, and Atomic. With a focus on innovation and performance, Amer Sports caters to both professional athletes and recreational enthusiasts, providing high-quality gear that enhances the sporting experience.
How the Company Makes MoneyAmer Sports, Inc. generates revenue through the sale of its sporting goods products across various categories. The company operates a multi-channel distribution strategy, selling products through retail stores, online platforms, and wholesale partnerships with sporting goods retailers worldwide. Key revenue streams include outdoor gear and apparel, ball sports equipment, and fitness products. Strategic partnerships and sponsorships further enhance the company's market presence and brand recognition, contributing to its earnings. Additionally, Amer Sports invests in research and development to innovate new products, maintaining its competitive edge in the global sports market.
Amer Sports, Inc. Financial Statement Overview
Summary
Amer Sports, Inc. has shown strong revenue growth and improved gross profit margins, but profitability is hindered by thin net margins. While debt reduction has strengthened the balance sheet, cash flow inconsistencies, with zero free cash flow in 2024, pose liquidity risks.Income Statement
Amer Sports, Inc. showed strong revenue growth, increasing from $2.14 billion in 2020 to $5.18 billion in 2024. Gross profit margin improved, reflecting efficient cost management. However, net profit margins are thin, with a net income of $72.6 million in 2024, indicating potential profitability issues. Despite positive EBIT and EBITDA margins, the net profit margin remains a concern.75
Positive
Balance Sheet
The company has substantially reduced its debt levels from $6.99 billion in 2020 to $1.48 billion in 2024, improving its financial stability. However, the debt-to-equity ratio is still a concern, and stockholders' equity was negative until 2023, pointing to past financial difficulties. The current equity ratio is strong, suggesting improved financial health.50
Neutral
Cash Flow
Free cash flow has been inconsistent, with zero reported in 2024 despite previous positive figures. Operating cash flow was positive in earlier years but is currently at zero, indicating potential issues in cash generation from operations. The lack of free cash flow growth and cash flow ratios highlights potential cash management challenges.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 5.18B | 4.37B | 3.38B | 2.59B | 2.15B | Gross Profit |
| 2.87B | 2.28B | 1.68B | 1.27B | 1.01B | EBIT |
| 470.80M | 302.50M | 229.79M | 151.44M | 121.93M | EBITDA |
| 643.37M | 521.10M | 414.66M | 381.60M | 342.70M | Net Income Common Stockholders |
| 72.60M | -208.60M | -235.21M | -204.99M | -208.07M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 345.40M | 483.40M | 376.67M | 498.33M | 389.50M | Total Assets |
| 8.71B | 8.37B | 7.40B | 6.99B | 8.62B | Total Debt |
| 1.48B | 6.66B | 5.84B | 5.54B | 6.99B | Net Debt |
| 1.14B | 6.18B | 5.47B | 5.04B | 6.60B | Total Liabilities |
| 3.54B | 8.53B | 7.47B | 6.96B | 8.78B | Stockholders Equity |
| 5.16B | -160.20M | -69.24M | 33.42M | -152.90M |
| Cash Flow | Free Cash Flow | |||
| 0.00 | 47.20M | -201.15M | 143.06M | 167.64M | Operating Cash Flow |
| 0.00 | 199.00M | -87.25M | 226.74M | 261.32M | Investing Cash Flow |
| 0.00 | -154.80M | -112.85M | 249.92M | -93.60M | Financing Cash Flow |
| 0.00 | 35.00M | 77.17M | -312.78M | -145.00M |
Amer Sports, Inc. Technical Analysis
Negative
26.92
Price Trends
29.96
Negative
26.05
Negative
19.89
Positive
Market Momentum
-0.75
Positive
33.43
Neutral
21.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AS, the sentiment is Negative. The current price of 26.92 is below the 20-day moving average (MA) of 29.35, below the 50-day MA of 29.96, and above the 200-day MA of 19.89, indicating a neutral trend. The MACD of -0.75 indicates Positive momentum. The RSI at 33.43 is Neutral, neither overbought nor oversold. The STOCH value of 21.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AS.
Amer Sports, Inc. Risk Analysis
Amer Sports, Inc. disclosed 69 risk factors in its most recent earnings report. Amer Sports, Inc. reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Amer Sports, Inc. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $18.38B | 19.66 | 39.80% | ― | 19.40% | 32.70% | |
72 Outperform | $113.01B | 24.28 | 34.67% | 1.92% | -4.77% | -5.99% | |
71 Outperform | $4.72B | 22.08 | 12.01% | 1.42% | -3.35% | -6.09% | |
58 Neutral | $6.78B | ― | -16.13% | 1.88% | -8.42% | 57.91% | |
57 Neutral | $13.99B | 179.15 | 2.90% | ― | 13.96% | 86.60% | |
55 Neutral | $4.94B | -12.70 | -22.85% | 4.19% | 34.55% | -59.69% | |
52 Neutral | $2.98B | ― | -6.12% | ― | -7.47% | -131.70% |
* General Sector Average
Performance Comparison
AS
Amer Sports, Inc.
25.60
9.64
60.40%
COLM
Columbia Sportswear
85.24
6.30
7.98%
DECK
Deckers Outdoor
120.53
-31.98
-20.97%
NKE
Nike
76.40
-21.94
-22.31%
UA
Under Armour
6.65
-1.14
-14.63%
VFC
VF
17.33
2.07
13.56%
Amer Sports, Inc. Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: -5.87% | Next Earnings Date: May 27, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook for Amer Sports, driven by strong sales growth, margin expansion, and effective debt reduction. However, challenges remain in specific segments like Winter Sports Equipment and potential tariff impacts.Highlights
Record Sales and Margin Expansion
Amer Sports achieved record sales with 23% growth in Q4 and an 18% growth for the year, reaching $5.2 billion. The adjusted operating margin expanded by more than 300 basis points in Q4 and 130 basis points for the year to 11.1%, setting new records for the company.
Strong Performance Across Key Brands
Arc’teryx achieved over $2 billion in sales in 2024 with a 29% omni-comp growth in Q4. Salomon sneakers surpassed $1 billion in sales in 2024, and Wilson returned to the number one U.S. market share in Performance Racquets.
Growth in Greater China and APAC
Greater China and APAC delivered strong growth with 54% and 52% increases respectively in Q4. The company opened numerous new stores in these regions, contributing significantly to the revenue.
Significant Cash Flow and Debt Reduction
Amer Sports generated $425 million in operating cash flow for 2024 and reduced net debt to $600 million by year-end, significantly lowering its leverage.
Lowlights
Challenges in Winter Sports Equipment
Winter Sports Equipment sales experienced softness due to poor snow conditions in Europe and rebasing in North America, leading to a flat growth outlook for 2025.
High Effective Tax Rate
The adjusted effective tax rate was 42% in Q4, which is relatively high, though the company aims to reduce it in the future.
Exposure to Potential Tariffs
The company faces potential impacts from new tariffs on imports from China, Vietnam, Canada, and Mexico, with Ball & Racquet segment being most susceptible.
Company Guidance
During the Amer Sports Fourth Quarter Fiscal Year 2024 Earnings Call, the company provided robust guidance for 2025, highlighting expected revenue growth and margin improvements. Amer Sports anticipates reported group revenue growth of 13% to 15% for the full year, with an adjusted gross margin between 56.5% and 57%. The adjusted operating profit margin is projected at 11.5% to 12%, with a focus on the low end due to macro uncertainties such as FX and tariffs. Specific growth expectations include approximately 20% for Technical Apparel, low-double digit growth for Outdoor Performance, and low to mid-single digit growth for Ball & Racquet. Additionally, the guidance for the first quarter includes a revenue growth range of 14% to 16%, an adjusted gross margin of 56.5% to 57%, and an adjusted operating profit margin of 11% to 11.5%. The company plans capital expenditures of around $300 million to support new store expansions and other investments.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.