As part of our ongoing series here at The Acquirer’s Multiple, we provide this feature article titled ‘Stock in Focus‘ where we focus on one of the stocks from our Stock Screeners.
One of the cheapest stocks in our Stock Screeners is:
Vista Outdoor Inc (VSTO)
Vista Outdoor Inc designs, develops, and manufactures outdoor sports and recreation products, and is domiciled in the United States. The company organizes itself into two segments: Shooting sports and Outdoor products. Shooting sports, which contributes the largest proportion of company revenue, includes ammunition, long guns, and related equipment under brands such as Federal Premium, Blackhawk, and Hoppe’s. Outdoor products include archery and hunting accessories, eyewear, golf products, hydration products, and stand-up paddle boards under brands including CamelBak and Bushnell. The company derives the vast majority of revenue domestically.
A quick look at the share price history (below) over the past twelve months shows that the price is down 32%. Here’s why the company is undervalued.
Summary
Market Cap: $1.567 Billion
Enterprise Value: $2.302 Billion
Operating Earnings
Operating Earnings: $646 Million
Acquirer’s Multiple
Acquirer’s Multiple: 3.56
Free Cash Flow (TTM)
Free Cash Flow: $275 Million
FCF/EV Yield
FCF/EV Yield: 17.5%
Shareholder Yield:
Shareholder Yield: 7.19%
Other Indicators
Piotroski F-Score: 6
Altman Z-Score: 3.33
ROA (5 Year Avge%): 26.35
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