American Outdoor Brands AOUT Quarter & Best Deep Value Portfolio Ideas
Don't Miss These Articles - AOUT reported quarterly and full year results plus my favorite value stocks still
I did an article on American Outdoor Brands (AOUT) in September of 2024. I touched on the things I liked about the former Smith & Wesson spin off.
It was a good quarter with sales up 33% YoY and full year 2025 sales up 10%. I listened to the conference call. Some of the sales in the quarter was attributed to tariff front run.
Earnings loss this quarter narrowed considerably. Quarterly non-GAAP net income was $1.7 million, or $0.13 per diluted share vs non-GAAP net loss of $45,000, or $0.00 per diluted share YoY. Gross margin this quarter slipped 1% vs last quarter but they maintained full year gross margin.
• Full year ‘25 non-GAAP adjusted EBITDA was $17.7 Million, Up 81% Year over year YoY.
• Full year '25 non-GAAP net income was $0.76 per diluted share vs $0.32 per diluted share, for the prior year. That's 137% growth YoY.
They have zero long-term debt and they bought back 374,000 shares in the year at an average price of $10.11 per share. Growth was good for the year across the board.
• FY25 Outdoor Lifestyle Net Sales Up 16.2% YoY
• FY25 Shooting Sports Net Sales Up 3.8% YoY
• FY25 Traditional Channel Net Sales Up 18.1% YoY
• FY25 International Channel Net Sales Up 20.0% YoY
The only potential negative thing I got from the call was they said they are suspending guidance for next year due to tariffs. They said they have a good inventory position to run a few months without tariff impact. They say they are seeking other countries as suppliers to mitigate tariff impacts. They also emphasized they are focused on the long-term in all of their decision making.
Net tangible asset value is currently at $114 million. $23 million of that figure is in cash. The market cap is $132 million with the stock at $10.39 as of Fridays close. After my old September post when the stock was $9.00 a share it went to hit highs in early 2025 in the $17’s. So, we are far off the highs and to me in cheap stock territory here again so near NTAV. I still consider it a good hold in the deep value basket. More on that below.
Deep Value Portfolio
I put together a quick portfolio tracker for the deep value stocks I still believe are worthy of positions. This portfolio here in Google Sheets is best viewed on desktop and categorizes them by market cap. Where there are commas those should be decimals. This isn’t my actual portfolio and I just equal weighted the entries to give a picture of what the returns are like since my mentions of them here. I don’t necessarily think PDYN or JVA should have such a high weighting. It’s just an example.
It’s interesting that so many fall into the small-cap range vs micro and nano. I don’t put any consideration on market cap when I find and analyze them initially. I’m not opposed to even larger market caps. Cheap, high potential companies are just harder to find of course in the mid-cap range.
The portfolio linked is to share the ones that still have my approval as positions. The ones that had big runs and I thought were sells due to the large gains recently like Fulcrum (FULC) and Allied Gaming & Entertainment (AGAE) aren’t included and some of the old alternative energy names which are staying duds. Both the Fulcrum and Allied Gaming were actually below net cash when I found them and wrote them up here!
Full Disclosure: I have positions in all the stocks in the article and linked in the portfolio except for FULC and AGAE.