Retail is hard and evolving with Amazon putting every retailer on watch with its size, scale, and customer friendly policies. Yet, it’s had to think that as long as our economy is consumer driven, there is a lot of space for many retailers to do well. Hibbett sells sporting goods. It’s done a great job for over 70 years.
In the last ten, the company produced net earnings over $547 million in the last decade. The current market cap is $284 million. It has $75 million in cash and just $3.3 million in debt. Hibbett does a good job keeping its CapEx below net income, and is still producing a pretty healthy profit.
As long as Hibbett can marry online with in store, there is still room for it to grow. Right now, the stock looks mis-priced and with any positive earnings coupled with a multiple expansion, could lead to a double.