| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 39.10 | 7 |
| Intrinsic value (DCF) | 47.79 | 30 |
| Graham-Dodd Method | 6.50 | -82 |
| Graham Formula | 3.78 | -90 |
Amer Sports, Inc. (NYSE: AS) is a global leader in the design, manufacturing, and distribution of high-performance sports equipment, apparel, footwear, and accessories. Headquartered in Helsinki, Finland, the company operates across three key segments: Technical Apparel (Arc'teryx, Peak Performance), Outdoor Performance (Salomon, Atomic, Armada, ENVE), and Ball & Racquet Sports (Wilson, DeMarini, Louisville Slugger). With a diversified portfolio catering to outdoor enthusiasts, professional athletes, and recreational sports participants, Amer Sports serves markets in Europe, the Americas, China, and the Asia-Pacific region. The company leverages a multi-channel distribution strategy, including e-commerce, specialty retailers, and branded stores, to drive growth in the competitive consumer cyclical sector. Founded in 1950, Amer Sports combines heritage brands with innovation, positioning itself as a key player in the $800B+ global sports equipment and apparel industry. Its recent NYSE listing underscores its ambition to expand in high-growth segments like technical outdoor gear and premium athletic equipment.
Amer Sports presents a compelling investment case with its strong brand portfolio, diversified revenue streams, and exposure to high-growth outdoor and performance sports markets. The company’s premium brands (Arc'teryx, Wilson) command pricing power, while its direct-to-consumer (DTC) expansion (24% of revenue) supports margin improvement. However, risks include high leverage (total debt $1.48B vs. cash $345M), cyclical consumer demand, and intense competition from Nike and VF Corporation. With a beta of 2.76, the stock is highly sensitive to market swings. Positive catalysts include Asia-Pacific growth (25% of sales) and innovation in sustainability-focused gear, but execution risks in integrating its multi-brand platform remain.
Amer Sports competes in the fragmented sports equipment and apparel industry by leveraging its portfolio of niche, performance-driven brands. Its competitive advantage lies in vertical specialization: Arc'teryx dominates technical alpine apparel, Wilson leads in racquet sports (75% market share in tennis), and Salomon is a top-3 ski brand. Unlike broad competitors like Nike, Amer Sports focuses on high-margin, technically advanced products with loyal enthusiast followings. However, its scale is limited compared to giants like Adidas ($25B revenue), and it lacks a dominant lifestyle brand. The company’s direct retail and e-commerce push (targeting 30% DTC by 2025) mitigates wholesale dependency but requires heavy capex. Supply chain localization (50% Asia production) aids cost control but exposes it to tariffs. Key challenges include competing with VF Corporation’s The North Face in outdoor apparel and lululemon’s athleisure crossover. Its R&D focus (4% of revenue) on sustainable materials and smart equipment could differentiate long-term.