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Reasonable growth and debt and a high ROIC for DICK'S SPORTING GOODS INC (NYSE:DKS).

By Mill Chart

Last update: Jun 4, 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.


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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 9.01% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
  • DICK'S SPORTING GOODS INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 21.09% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
  • 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 demonstrates consistent Profit Quality over the past 5 years, with a strong 109.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
  • With a robust 5-year EBIT growth of 23.62%, DICK'S SPORTING GOODS INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
  • DICK'S SPORTING GOODS INC has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

Fundamental Analysis Observations

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

DKS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 125 industry peers in the Specialty Retail industry. Both the health and profitability get an excellent rating, making DKS a very profitable company, without any liquidiy or solvency issues. DKS has a correct valuation and a medium growth rate.

Our latest full fundamental report of DKS contains the most current fundamental analsysis.

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

This article should in no way be interpreted as advice. 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.

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