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Examining the Quality Attributes of NYSE:DKS.

By Mill Chart

Last update: Feb 27, 2024

In this article we will dive into DICK'S SPORTING GOODS INC (NYSE:DKS) as a possible candidate for quality investing. Investors should always do their own research, but we noticed DICK'S SPORTING GOODS INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

What matters for quality investors.

  • The 5-year revenue growth of DICK'S SPORTING GOODS INC has been remarkable, with 7.56% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
  • DICK'S SPORTING GOODS INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 22.1% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
  • The Debt/Free Cash Flow Ratio of DICK'S SPORTING GOODS INC stands at 1.39, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
  • With a favorable Profit Quality (5-year) ratio of 123.0%, DICK'S SPORTING GOODS INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
  • DICK'S SPORTING GOODS INC has experienced impressive EBIT growth over the past 5 years, with 24.35% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
  • DICK'S SPORTING GOODS INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

Fundamental Analysis Observations

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

DKS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 128 industry peers in the Specialty Retail industry. DKS gets an excellent profitability rating and is at the same time showing great financial health properties. DKS has a valuation in line with the averages, but on the other hand it scores bad on growth.

For an up to date full fundamental analysis you can check the fundamental report of DKS

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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