Vista Outdoor Inc. designs, manufactures, and markets consumer products for outdoor sports and recreation markets in the United States and internationally. The company operates in two segments, Shooting Sports and Outdoor Products.
Business Growth For The Year Ended 2020-03-31
Vista Outdoor Inc does not report a substantial amount of sales growth, which is not valuable. With that, money managers will appreciate VSTO’s gross profit ratio of 20%. Last year, the company showed sales of $1755. 871 million.
VSTO reports EBITDA growth of 23%, and an EBITDA ratio of 5%. The EBITDA grows since the cost of revenue declined a -14%. Notice that general and administrative expenses declined a -19%. Moreover, operating income is another positive feature of VSTO. The company’s operating income grows at 205% y/y.
Balance Sheet As Of 2020-03-31
With an assets to liabilities ratio of more than 1x, VSTO’s balance sheet looks stable. In Q3, the total amount of assets was equal to $1528 million, with total liabilities of $870 million. The balance sheet shows deferred revenue of $15 million, which I appreciate. Deferred revenue represents a prepayment by VSTO’s clients that have yet to be delivered. Therefore, Vista Outdoor Inc receives cash in advance of it being earned. Additionally, Vista Outdoor Inc has positive working capital, which shareholders will like. It means that VSTO can cover its short-term liabilities when they come due.
VSTO’s short term debt is less significant than the company’s cash and cash equivalents. In my view, Vista Outdoor Inc may not have to worry about any liquidity risk. Additionally, the price to book value is below 1. 5x, which means that VSTO is undervalued. Vista Outdoor Inc has $1528 million in total assets, and $870 million in total liabilities. VSTO’s debt to equity ratio is below 2x. Hence, the debt level appears to be under control. Note that Vista Outdoor Inc reports cash and cash equivalents of $96 million, and net debt of $249 million. With regards to the EV/EBITDA, Vista Outdoor Inc trades at 8. I think that traders will most likely appreciate this low figure.
Quarterly Results For The Quarter Ended 2020-12-27
VSTO’s R&D expenses were equal to $5. 483 million, with selling and marketing expenses of $8. 8768 million. Additionally, VSTO is profitable, which is useful. Vista Outdoor Inc released positive quarterly EBITDA of $102. 606 million. With this in mind, either you buy shares or not, VSTO is a company to be followed carefully. VSTO also showed positive net income of $78. 879 million. In my opinion, when more investors get to know the financial statistics of VSTO, the stock demand will increase.
Valuation and Risks
Vista Outdoor Inc has a market capitalization of $1885 million. The enterprise value is equal to $834 million. With forward sales of $1755 million, VSTO sells at less than 2x forward sales. I think that traders will most likely believe that Vista Outdoor Inc is cheap. Institutional market participants TRUIST FINANCIAL CORP, Freedman Financial Associates, Inc. , and UBS ASSET MANAGEMENT AMERICAS are Vista Outdoor Inc investors.
The following VSTO’s insiders acquired or sold equity recently.VSTO’s traders will most likely study this information:
+In 2021-03-13, officer: VP,General Counsel & Secretary Ramsey Dylan Scott sold equity of VSTO.
+In 2021-03-13, officer: Chief Human Resources Officer Crandell Bradford E sold stock of VSTO.
+In 2021-03-13, officer: Chief Comms & IR Officer Reisdorf Kelly L sold equity of VSTO.
If you see an error, please contact the editor. We don’t own VSTO’s shares, and this is our opinion. We do not offer a recommendation to buy or sell any stock.