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Why Quality Investors May Find DICK'S SPORTING GOODS INC (NYSE:DKS) Attractive.

By Mill Chart

Last update: Jul 17, 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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Why NYSE:DKS may be interesting for quality investors.

  • DICK'S SPORTING GOODS INC has shown strong performance in revenue growth over the past 5 years, with a 9.01% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
  • DICK'S SPORTING GOODS INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 21.09% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
  • DICK'S SPORTING GOODS INC maintains a healthy Debt/Free Cash Flow Ratio of 1.29, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
  • With a robust Profit Quality (5-year) ratio of 109.0%, DICK'S SPORTING GOODS INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
  • DICK'S SPORTING GOODS INC has experienced impressive EBIT growth over the past 5 years, with 23.62% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
  • 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.

Zooming in on the fundamentals.

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.

Overall DKS gets a fundamental rating of 7 out of 10. We evaluated DKS against 126 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 is not valued too expensively and it also shows a decent growth rate.

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

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. 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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