Financial Analysis: Amer Sports (AS) vs. The Competition

Amer Sports (NYSE:AS) is one of 30 publicly-traded companies in the “Apparel, finished products from fabrics & similar materials” industry, but how does it contrast to its peers? We will compare Amer Sports to similar businesses based on the strength of its earnings, analyst recommendations, risk, profitability, institutional ownership, dividends and valuation.

Profitability

This table compares Amer Sports and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Amer Sports	-0.74%	3.15%	1.12%
Amer Sports Competitors	-17.25%	-108.05%	-19.89%

Insider & Institutional Ownership

40.3% of Amer Sports shares are held by institutional investors. Comparatively, 46.6% of shares of all “Apparel, finished products from fabrics & similar materials” companies are held by institutional investors. 22.0% of shares of all “Apparel, finished products from fabrics & similar materials” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for Amer Sports and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amer Sports	0	4	10	1	2.80
Amer Sports Competitors	384	1691	2380	72	2.47

Amer Sports presently has a consensus target price of $23.07, indicating a potential downside of 16.56%. As a group, “Apparel, finished products from fabrics & similar materials” companies have a potential upside of 2.68%. Given Amer Sports’ peers higher possible upside, analysts plainly believe Amer Sports has less favorable growth aspects than its peers.

Earnings and Valuation

This table compares Amer Sports and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Amer Sports	$4.37 billion	-$208.60 million	-197.49
Amer Sports Competitors	$2.23 billion	$143.17 million	-14.76

Amer Sports has higher revenue, but lower earnings than its peers. Amer Sports is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Amer Sports beats its peers on 7 of the 12 factors compared.

About Amer Sports

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.