1. Is the company undervalued?

*Please note long term operating leases are being excluded in the calculation of Enterprise Value here *

$HIBB is trading around the same valuation as many of its retail contemporaries. However the business is by no means a melting ice cube, with stores in only 36 states and plenty of room to expand. Additionally $HIBB is underearning relative to what management is guiding for, which makes the single digit earnings multiple a bit of a headscratcher. However $HIBB is challenged with macro-economic concerns and there’s reason to believe that the business will deteriorate meaningfully. With that said the stock is cheap, growing its earnings power, and returning capital back to shareholders.

Link to full write-up here: