Big 5 Sporting Goods Corporation (BGFV) offers investors an opportunity to profit from a now debt-free retailer that is trading well under book and at an enormous discount to peers.
The company seems to be finding a winning niche based on an opportunistic discount model similar to stores like TJ Maxx (TJX). Those merchandise changes are driving higher margins. At the same time, cost saving measures driven by necessity during the pandemic have dramatically reduced costs. The result is a debt free retail business trading below book value, and showing enormous improvements in