American Outdoor Brands AOUT Recent Quarter
Catching Up on AOUT and the Current Valuation
Before I jump into American Outdoor Brands (AOUT) most recent quarter I would like welcome you new followers and subscribers. I’d like to take this opportunity to define my purpose of this Substack and what you can expect.
My goal here is to share with you the best deep value stocks that I can find as they emerge. The focus will always be on fundamentals. I use technical analysis for timing. Due to the nature of deep value stocks, there are times where there just aren’t that many to look at. Stocks trading so cheaply they are near or below their liquidation value often are not worth an analysis. I only put my favorite ones here. So, sometimes there will be periods of time where I don’t have a new one. To fill the gaps, I may share new major industry themes with a lot of potential as I see them come about. I watch the U.S. equity market closely and see new industry themes as they are developing.
In April of this year, I shared the rare earth mining industry opportunity here with the link to my article on my website here. These stocks have had incredible runs. MP Materials, since then, has gotten United States Dept. of Defense funding of $1.5 billion in a partnership. United States Antimony (UAMY) as one example, is up 834% since my article.
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American Outdoor Brands (AOUT) Q1 2026
I originally did a write-up on AOUT here last year when the stock was $9.00 and net tangible asset value was $8.00 per share. It went on shortly after to run 88% to $17’s. I want to look at it again here as the stock is down.
Q1 2026 sales were $29.7 million down -28.7%, vs $41.6 million last year.
They showed a 46% gross margin this last quarter which is a good one for them. Gross margins have been from 44% to 46% the past few years.
Net loss per share was -$0.26.
New products were about 29% of sales during the first quarter. Management emphasized sales were down due to unusual pull-forward purchasing by retailers previously. We can assume this was just due to the tariff situation.
In the conference call they said, “growth brands like Caldwell, BUBBA, BOG, Grilla, and MEAT! Your Maker are performing well. Other brands, like cutlery and tools, are performing better than their peers, although a bit weaker overall.”
As a result of the tariff related sales situation, management suspended 2026 guidance. They said it was prudent given the circumstances. The market reacted by punishing the stock significantly. It is still falling. Management is still buying back stock — they repurchased $2.5 million in Q1.
It’s not uncharacteristic for this company to have negative sales quarters. I don’t see anything troubling about the company’s long-term future prospects. They have no long-term debt and the same great brands. Some of the brands are in the image up there. Their products cater to affluent consumers or super enthusiasts who value premium products.
We Are In Deep Value Territory
The current market cap of the company is $100 mil with the stock at $7.91 and net tangible asset value is $106.3 mil or $8.40 a share. Around $7.00 has been the floor for the stock price since 2022. I see a possibility the stock goes lower from here making it even more attractive.
I think this is the kind of company that deserves a higher valuation than sub NTAV. I will continue tracking it to see if a momentum switch occurs soon. The lower below NTAV it goes, I see it as a an even better long-term value.
Disclosure: I’m long AOUT shares