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Why DICK'S SPORTING GOODS INC (NYSE:DKS) qualifies as a quality stock.

By Mill Chart

Last update: Aug 21, 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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Exploring Why NYSE:DKS Holds Appeal 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.
  • The Profit Quality (5-year) of DICK'S SPORTING GOODS INC stands at 109.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
  • The 5-year EBIT growth of DICK'S SPORTING GOODS INC has been remarkable, with 23.62% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
  • DICK'S SPORTING GOODS INC has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

What is the full fundamental picture of NYSE:DKS telling us.

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

DKS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 123 industry peers in the Specialty Retail industry. DKS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. DKS has a decent growth rate and is not valued too expensively.

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

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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