Stock on Watch: Big 5 Sporting Goods Corp. (BGFV)

Company Profile:

Big 5 Sporting Goods Corporation operates as a sporting goods retailer in the western United States. The company offers athletic shoes, apparel, and accessories, as well as a selection of outdoor and athletic equipment for team sports, fitness, camping, hunting, fishing, tennis, golf, winter and summer recreation, and roller sports. It also provides private label items, such as shoes, apparel, binoculars, camping equipment, fishing supplies, and snow sport equipment. The company sells private label merchandise under its own trademarks comprising Golden Bear, Harsh, Pacifica, and Rugged Exposure; and licensed trademarks, including Beach Feet, Bearpaw, Body Glove, GoFit, Hi-Tec, Morrow, and The Realm. As of January 3, 2016, it operated 438 stores and an e-commerce platform under the Big 5 Sporting Goods name. Big 5 Sporting Goods Corporation was founded in 1955 and is headquartered in El Segundo, California.

Recent News:

Net sales for the fiscal 2015 fourth quarter increased to $275.0 million from net sales of $250.3 million for the fourth quarter of fiscal 2014. Same store sales increased 0.1% for the fourth quarter of fiscal 2015.

Net income for the fourth quarter of fiscal 2015 was $4.3 million, or $0.20 per diluted share, compared to net income for the fourth quarter of fiscal 2014 of $2.8 million, or $0.13 per diluted share.

The Company’s Board of Directors has approved a 25% increase in the Company’s quarterly cash dividend from the current rate of $0.10 per share to $0.125 per share, effective with the dividend payable on March 22, 2016 to stockholders of record as of March 8, 2016.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

BGFV’s strengths can be seen in its better efficiency. Technical indicators signal the bullish signs, as there is a bullish cross in Stochastic Oscillator. RSI is increasing to 47.70, which is in bull territory. The current P/E ratio indicates it is undervalued compared to the average P/E ratio of the industry and the sector. We rate Big 5 Sporting Goods Corp. (BGFV) a Strong BUY.