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.
A Deep Dive into DICK'S SPORTING GOODS INC's Quality Metrics.
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 20.18% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
With a favorable Debt/Free Cash Flow Ratio of 1.29, DICK'S SPORTING GOODS INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
DICK'S SPORTING GOODS INC exhibits impressive Profit Quality (5-year) with a 123.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
DICK'S SPORTING GOODS INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 24.35%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
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
Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.
DKS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 127 industry peers in the Specialty Retail industry. DKS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. DKS has a valuation in line with the averages, but on the other hand it scores bad on growth.
More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.
Keep in mind
This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.