Amer Sports, Inc. (AS) AI Stock Analysis

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Amer Sports, Inc.

(NYSE:AS)

55Neutral

Amer Sports, Inc. scores moderately due to strong revenue growth and effective debt reduction. However, profitability remains a concern, compounded by cash flow challenges. The stock's technical indicators suggest a bearish trend, and its high P/E ratio points to overvaluation. Despite a positive earnings outlook, the company faces risks from high tax rates and tariff exposure.

Positive Factors

Brand Performance

Arc’teryx, Salomon, and Wilson will continue to gain share and deliver best-in-class growth.

Market Expansion

Management sees potential to build out 500 stores globally, including 200 doors in North America.

Profitability in China

China remains a region with a long runway of profitable growth, with Arc’teryx stores in China having higher margins compared to North America.

Negative Factors

Foreign Exchange Impact

Growth algo remains intact for FY25 though FX headwinds worsened, guiding to +13%-15% topline growth, led by Arc'teryx and DTC.

Pricing and Tariffs

The company is well positioned for tariffs given its limited US revenue exposure, pricing power of the brands, and potential leverage to negotiate with factories.

Amer Sports, Inc. (AS) vs. S&P 500 (SPY)

Market Cap

$12.27B

Dividend YieldN/A

Average Volume (3M)4.49M

Price to Earnings (P/E)156.8

Beta (1Y)1.03

Revenue Growth18.26%

EPS GrowthN/A

CountryUS

Employees13,400

SectorGeneral

Sector StrengthN/A

IndustryLeisure

Share Statistics

EPS (TTM)0.14

Shares Outstanding553,845,340

10 Day Avg. Volume5,298,106

30 Day Avg. Volume4,492,347

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)4.51

Price to Cash Flow (P/CF)12.90

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

$33.10

Price Target Upside52.82% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering10

Amer Sports, Inc. Business Overview & Revenue Model

Company DescriptionAmer Sports, Inc. designs, manufactures, markets, distributes, and sells sports equipment, apparel, footwear, and accessories in Europe, the Middle East, Africa, the Americas, China, and the Asia Pacific. The company operates through three segments: Technical Apparel, Outdoor Performance, and Ball & Racquet Sports. The Technical Apparel segment offers outdoor apparel, footwear, and accessories under the Arc'teryx and Peak Performance brands. The Outdoor Performance segment provides outdoor apparel, footwear, accessories, and winter sports equipment under the Salomon, Atomic, Armada, and ENVE brands. The Ball & Racquet Sports segment offers sports equipment, apparel, and accessories under the Wilson, DeMarini, Louisville Slugger, EvoShield, and ATEC brands. The company also provides climbing gears, hiking and running footwear, skiing and snowboarding gears, functional athletic apparel, and lifestyle footwear, as well as sporting equipment for tennis, baseball, American football, basketball, golf, and various other professional and recreational sports. It sells its products through its retail stores, general sporting goods retailers, specialty stores, independently operated partner stores, and distributors, as well as its e-commerce websites, and retailer-owned and third-party e-commerce websites. The company was formerly known as Amer Sports Management Holding (Cayman) Limited and changed its name to Amer Sports, Inc. in August 2023. Amer Sports, Inc. was founded in 1950 and is based in Helsinki, Finland.

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

Positive

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.

Balance Sheet

Neutral

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.

Cash Flow

Negative

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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
654.00M	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
136.70M	47.20M	-201.15M	143.06M	167.64M
	Operating Cash Flow
424.70M	199.00M	-87.25M	226.74M	261.32M
	Investing Cash Flow
-268.30M	-154.80M	-112.85M	249.92M	-93.60M
	Financing Cash Flow
-266.00M	35.00M	77.17M	-312.78M	-145.00M

Amer Sports, Inc. Technical Analysis

Technical Analysis Sentiment

Negative

Last Price21.66

Price Trends

50DMA

27.11

Negative

100DMA

27.97

Negative

200DMA

21.58

Positive

Market Momentum

MACD

-1.62

Positive

RSI

39.00

Neutral

STOCH

36.71

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 21.66 is below the 20-day moving average (MA) of 24.34, below the 50-day MA of 27.11, and above the 200-day MA of 21.58, indicating a neutral trend. The MACD of -1.62 indicates Positive momentum. The RSI at 39.00 is Neutral, neither overbought nor oversold. The STOCH value of 36.71 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 70 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
YETI	72 Outperform	$2.31B	13.55	24.01%	―	10.32%	6.05%
GOLF	64 Neutral	$3.58B	17.70	26.30%	1.47%	3.15%	15.44%
AS	55 Neutral	$12.27B	156.83	3.00%	―	18.26%	―
JOUT	55 Neutral	$224.00M	―	-9.70%	6.02%	-9.98%	-348.96%
Sector *	55 Neutral	$3.80B	-11.38	-15.29%	5.24%	19.55%	-44.95%
MODG	47 Neutral	$1.17B	―	-46.06%	―	-1.06%	-1641.55%
YYAI	25 Underperform	$10.22M	―	-124.69%	―	-45.46%	96.89%

* General Sector Average

Performance Comparison

Amer Sports, Inc.

22.25

8.11

57.36%

MODG

Topgolf Callaway Brands

6.56

-9.61

-59.43%

GOLF

Acushnet Holdings

61.65

-2.35

-3.67%

JOUT

Johnson Outdoors

22.96

-17.37

-43.07%

YETI

Yeti Holdings

28.05

-8.22

-22.66%

YYAI

Connexa Sports Technologies

0.77

-13.87

-94.74%

Amer Sports, Inc. Earnings Call Summary

Earnings Call Date: Feb 25, 2025 | % Change Since: -24.27% | 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.