Should you consider DICK'S SPORTING GOODS INC (NYSE:DKS) for quality investing?

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 9.01% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• The ROIC excluding cash and goodwill of DICK'S SPORTING GOODS INC stands at 20.66%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• DICK'S SPORTING GOODS INC maintains a healthy Debt/Free Cash Flow Ratio of 2.12, 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 favorable Profit Quality (5-year) ratio of 109.0%, 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.
• 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 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.

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

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

Overall DKS gets a fundamental rating of 7 out of 10. We evaluated DKS against 119 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 is not valued too expensively and it also shows a decent growth rate. These ratings could make DKS a good candidate for quality investing.

Check the latest full fundamental report of DKS for a complete fundamental analysis.

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.