Daily Stock Analysis: Big 5 Sporting Goods Corp

By Fredrik Arnold
Monday, June 27, 2022 4:00 AM EDT

Big 5 Sporting Goods Corp. Known by the ticker symbol (BGFV), The Corporation is a small-cap specialty retailer operating in the consumer cyclical business sector. This is my first report on Big 5 Sporting Goods Corp for my Viital portfolio, I did slot it as the 27th  member of my Vista (the sixth) portfolio.

Image: Big 5 Sporting Goods

Big 5 Sporting Goods Corp is a specialty retailer company that is principally engaged in the sale of sporting goods in the western United States. Its product mix includes athletic shoes, apparel, and accessories, as well as a broad selection of outdoor and athletic equipment for team sports, fitness, camping, hunting, fishing, tennis, golf, winter and summer recreation and roller sports.

The company operates solely as a sporting goods retailer, which includes both retail stores and an e-commerce platform. The company operates a distribution center located in Riverside, California, that services all of its stores and e-commerce platform.

As of May 3, 2022, the company operated 431 stores plus an e-commerce platform under the Big 5 Sporting Goods name.

The company was founded in 1955 and is headquartered in El Segundo, California.

Three key data points gauge any dividend equity or fund such as Big 5 Sporting Goods Corp.

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

BGFV Price

Big 5’s ’s price per share was $12.04 as of Friday's market close. One year ago its price was $25.65. Therefore, Big 5’s share price fell 13.61 or about 53% in the past year.

If Big 5’s stock trades in the range of $10.00 to $24.00 this next year, its recent $12.04 share price might rise by $7.96 to reach $20.00 by June 27, 2023. My $7.96 upside estimate is $3.00 under the one year price estimate from one analyst.

BGFV Dividends

Big 5’s most recently declared quarterly dividend of $0.25 was paid June 15, 2022 to shareholders on record as of May 31st.

BGFV has paid variable quarterly dividends since December 2004.  The current dividend equates to a $1.00 annual payout delivering  8.31% in annual yield per yesterday’s $12.04 share price.

BGFV Returns

Adding the $1.00 BGFV annual dividend to my estimated one-year price upside estimate of $7.96 shows a $8.96 potential gross gain, per share, to be reduced by any costs to trade BGFV shares.

At yesterday's $12.04 closing price per share, a little under $1000 would buy 83 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.12 per share.

Subtract that maybe $0.12 brokerage cost from my estimated $8.96 gross gain estimate per share results in a net gain of $8.84 X 83 shares = $733.72 for a 73.37% net gain including an 8.31% forward looking annual dividend yield.

So it is that Big 5 Sporting Goods Corp shows a possible 73.37% net gain including a 8.31% forward-looking dividend yield.

Over the next year at this time our $1000 investment in Big 5 Sporting Goods Corp shares could generate $83.10 in cash dividends. Of course, a single share of BGFV stock bought at yesterday's $12.04 price is almost seven times less than the dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this a good time to pick up BGFV shares based on their forward looking dividends for the year 2022. The forthcoming annual dividend from $1K invested is 6.9 times greater than yesterday’s single share price. Consider yourself alerted. It's a sign.

All of the estimates above are speculation based on the past history of Big 5 Sporting Goods Corp. Only time and money invested in this stock will determine its market value.

Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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