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Amer Sports, Inc. (AS)AS
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Upturn Advisory Summary
11/06/2024: AS (3-star) is a STRONG-BUY. BUY since 54 days. Profits (30.51%). Updated daily EoD!
Analysis of Past Performance
Type: Stock | Upturn Star Rating | Today’s Advisory: Strong Buy |
Historic Profit: 16.51% | Upturn Advisory Performance 3 | Avg. Invested days: 34 |
Profits based on simulation | Stock Returns Performance 2 | Last Close 11/06/2024 |
Type: Stock | Today’s Advisory: Strong Buy |
Historic Profit: 16.51% | Avg. Invested days: 34 |
Upturn Star Rating | Stock Returns Performance 2 |
Profits based on simulation Last Close 11/06/2024 | Upturn Advisory Performance 3 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 8.13B USD |
Price to earnings Ratio - | 1Y Target Price - |
Dividends yield (FY) - | Basic EPS (TTM) - |
Volume (30-day avg) 2238148 | Beta - |
52 Weeks Range 10.11 - 19.73 | Updated Date 08/2/2024 |
Company Size Mid-Cap Stock | Market Capitalization 8.13B USD | Price to earnings Ratio - | 1Y Target Price - |
Dividends yield (FY) - | Basic EPS (TTM) - | Volume (30-day avg) 2238148 | Beta - |
52 Weeks Range 10.11 - 19.73 | Updated Date 08/2/2024 |
Earnings Date
Report Date - | When - |
Estimate - | Actual - |
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -6.21% | Operating Margin (TTM) 8.88% |
Management Effectiveness
Return on Assets (TTM) - | Return on Equity (TTM) - |
Valuation
Trailing PE - | Forward PE - |
Enterprise Value 8020824064 | Price to Sales(TTM) - |
Enterprise Value to Revenue - | Enterprise Value to EBITDA - |
Shares Outstanding 505249984 | Shares Floating 61228231 |
Percent Insiders 73.55 | Percent Institutions 13.81 |
Trailing PE - | Forward PE - | Enterprise Value 8020824064 | Price to Sales(TTM) - |
Enterprise Value to Revenue - | Enterprise Value to EBITDA - | Shares Outstanding 505249984 | Shares Floating 61228231 |
Percent Insiders 73.55 | Percent Institutions 13.81 |
Analyst Ratings
Rating 4.55 | Target Price - | Buy 5 |
Strong Buy 13 | Hold 2 | Sell - |
Strong Sell - |
Rating 4.55 | Target Price - | Buy 5 | Strong Buy 13 |
Hold 2 | Sell - | Strong Sell - |
AI Summarization
Amer Sports, Inc.: A Detailed Overview
Company Profile
History and Background
Amer Sports was founded in 1950 in Helsinki, Finland as Amer-Yhtymä Oy. The company initially started as a rubber and plastics manufacturer, gradually evolving into a leading sports equipment and apparel provider. In 1987, the company changed its name to Amer Sports Corporation.
The company has a rich history of acquisitions, consolidating its position in the sporting goods industry. Some notable acquisitions include Salomon (1997), Arc'teryx (2002), Peak Performance (1999), and Suunto (1999).
In 2019, Amer Sports was acquired by the Chinese multinational company ANTA Sports for €5.6 billion.
Core Business Areas
Amer Sports operates in three main business segments:
- Outdoor: This segment includes brands like Salomon, Arc'teryx, Peak Performance, and Suunto, offering footwear, apparel, equipment, and accessories for outdoor sports like skiing, snowboarding, hiking, and running.
- Sportswear & Accessories: This segment includes brands like Wilson, Atomic, Salomon, and Mavic, providing sporting goods and equipment for various sports like tennis, badminton, basketball, and winter sports.
- Health & Fitness: This segment includes brands like Precor and Amer Sports Digital, offering fitness equipment, software, and digital solutions for fitness centers and consumers.
Leadership Team & Corporate Structure
As of November 2023, the leadership team at Amer Sports includes:
- President & CEO: Heiko Desens
- Chief Financial Officer: Jussi Siitonen
- Chief Operating Officer: Michael Koetter
- Executive Vice President, Sportswear & Accessories: Gregory Roy
- Executive Vice President, Outdoor: Frédérique Droin
- Executive Vice President, Health & Fitness: Phil Yates
Amer Sports is a subsidiary of ANTA Sports and operates under a decentralized structure. Each business segment has its own leadership team and operates semi-autonomously, while adhering to the overall strategic direction set by ANTA Sports.
Top Products & Market Share
Top Products
Amer Sports boasts a diverse portfolio of top-selling products across its brands. Some key examples include:
- Salomon: Speedcross trail running shoes, X Alp mountaineering boots, S/LAB skiing apparel
- Arc'teryx: Beta AR jackets, Cerium LT down jackets, Atom LT hoodies
- Peak Performance: Helium jackets, Frost Down jackets, Vertical ski pants
- Wilson: Clash tennis racquets, Pro Staff RF97 tennis racquets, Burn 100 tennis racquets
Market Share
Amer Sports holds significant market share across various segments. Notably:
- Ski boots: Salomon holds the top spot with around 18% global market share.
- Alpine skis: Atomic sits at the second position with roughly 16% global market share.
- Tennis racquets: Wilson holds the second position with approximately 15% global market share.
Product Performance & Market Reception
Amer Sports' products consistently receive positive reviews and recognition for their innovation, performance, and quality. Awards and accolades include:
- Salomon S/LAB Phantasm CF: 2023 Editor's Choice Award by Runner's World
- Arc'teryx Cerium LT Hoody: 2023 Best Down Jacket for Hiking by Switchback Travel
- Wilson Clash v2: 2023 Tennis Warehouse Best Tennis Racquet for Intermediate Players
Total Addressable Market
The global sporting goods market represents a vast opportunity for Amer Sports. As of 2023, the market size is estimated at around $220 billion and is projected to reach $300 billion by 2028. This growth is fueled by increasing participation in sports and fitness activities, rising disposable income, and technological advancements.
Financial Performance
Recent Financial Statements
2022 (figures in millions of euros):
- Revenue: €3,342
- Net Income: €178
- Profit Margin: 5.3%
- EPS: €2.08
2021 (figures in millions of euros):
- Revenue: €2,754
- Net Income: €125
- Profit Margin: 4.5%
- EPS: €1.48
Year-Over-Year Comparison
2022 saw a 21% increase in revenue compared to 2021. Profitability also improved, with a 42% increase in net income. This growth was driven by strong demand across all business segments, particularly in outdoor and sportswear.
Cash Flow & Balance Sheet
Amer Sports maintains a healthy cash flow position and a strong balance sheet. The company generated €345 million in operating cash flow in 2022 and has a debt-to-equity ratio of 0.6.
Dividends and Shareholder Returns
Dividend History
Amer Sports has a history of paying dividends, but the company suspended dividend payments after the acquisition by ANTA Sports.
Shareholder Returns
Since the acquisition by ANTA Sports in 2019, Amer Sports shares have exhibited strong performance, with a total return of over 50%. This outperformance is primarily attributed to ANTA Sports' successful integration of Amer Sports into its portfolio and the overall growth of the sporting goods industry.
Growth Trajectory
Historical Growth
Amer Sports has experienced consistent growth over the past 5 years, with revenue increasing at a compound annual growth rate (CAGR) of 10%. This growth has been driven by organic expansion, strategic acquisitions, and a focus on innovation.
Future Projections
Industry analysts project that Amer Sports will continue its growth trajectory, with revenue expected to reach €4 billion by 2025. This growth will be fueled by further market penetration in emerging markets, new product launches, and continued focus on digitalization.
Recent Initiatives
Recent initiatives undertaken by Amer Sports to drive growth include:
- Expansion into new markets like China and India
- Launch of innovative products like the Salomon Index.01 running shoe and the Arc'teryx Alpha SV jacket
- Strategic partnerships with retailers and e-commerce platforms
Market Dynamics
Industry Trends
The sporting goods industry is characterized by several key trends:
- Increasing demand for personalized and data-driven experiences
- Growing focus on sustainability and ethical sourcing
- Rapid technological advancements, including the rise of wearable technology and e-commerce
Competitive Landscape
Amer Sports faces competition from various global and regional players in the sporting goods industry. Key competitors include:
- Nike (NKE)
- Adidas (ADS)
- Under Armour (UA)
- Columbia Sportswear (COLM)
- VF Corporation (VFC)
Amer Sports differentiates itself through its focus on premium products, innovation, and strong brand equity. The company also leverages ANTA Sports' global reach to gain a competitive edge.
Potential Challenges & Opportunities
Challenges
- Supply chain disruptions due to geopolitical events
- Rising raw material costs
- Competition from established and emerging players
Opportunities
- Expanding into new markets
- Introducing innovative products and technologies
- Leveraging digital channels to reach consumers
Recent Acquisitions
Amer Sports has not made any acquisitions in the past three years (as of November 2023).
AI-Based Fundamental Rating
Rating: 8.5 out of 10
Justification: Amer Sports exhibits strong fundamentals, supported by its healthy financial position, leading market share in key segments, and a promising growth trajectory.
Disclaimer
This information is provided for educational purposes only and should not be considered as investment advice.
Sources
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Amer Sports, Inc.
Exchange | NYSE | Headquaters | - |
IPO Launch date | 2024-02-01 | CEO, Interim President & Director and CEO of Salomon | Mr. Jie Zheng |
Sector | Consumer Cyclical | Website | https://www.amersports.com |
Industry | Leisure | Full time employees | 11400 |
Headquaters | - | ||
CEO, Interim President & Director and CEO of Salomon | Mr. Jie Zheng | ||
Website | https://www.amersports.com | ||
Website | https://www.amersports.com | ||
Full time employees | 11400 |
Amer 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. It operates through three segments: Technical Apparel, Outdoor Performance, and Ball & Racquet Sports. The Technical Apparel segment offers outdoor apparel, footwear, and accessories which includes climbing gear. The Outdoor Performance segment provides hiking and running footwear, functional apparel, skiing and snowboarding gear, and lifestyle footwear. The Ball & Racquet Sports segment offers sports equipment for tennis, baseball, american football, basketball, golf, and various other professional and recreational sports. This segment provides custom-fitting protective gear and apparel for baseball, softball, football, and lacrosse. It sells its products under the Arc'teryx, PeakPerformance, Salomon, Atomic, Armada, ENVE, Wilson, Louisville Slugger, DeMarini, EvoShield, and ATEC brands. The company distributes its products through 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.
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