DICK'S SPORTING GOODS INC (DKS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DKS - US2533931026 - Common Stock
212.14 USD
+2.07 (+0.99%)
212.14 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to DKS. DKS was compared to 122 industry peers in the Specialty Retail industry. DKS has an excellent profitability rating, but there are some minor concerns on its financial health. DKS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
DKS had positive earnings in the past year.
In the past year DKS had a positive cash flow from operations.
Each year in the past 5 years DKS has been profitable.
In the past 5 years DKS always reported a positive cash flow from operatings.
1.2 Ratios
DKS has a better Return On Assets (5.86%) than 73.77% of its industry peers.
DKS's Return On Equity of 18.49% is fine compared to the rest of the industry. DKS outperforms 79.51% of its industry peers.
The Return On Invested Capital of DKS (8.85%) is better than 72.13% of its industry peers.
DKS had an Average Return On Invested Capital over the past 3 years of 16.29%. This is above the industry average of 12.16%.
The last Return On Invested Capital (8.85%) for DKS is well below the 3 year average (16.29%), which needs to be investigated, but indicates that DKS had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.86% | ||
| ROE | 18.49% | ||
| ROIC | 8.85% |
ROA(3y)11.33%
ROA(5y)11.53%
ROE(3y)39.25%
ROE(5y)42.54%
ROIC(3y)16.29%
ROIC(5y)17.01%
1.3 Margins
The Profit Margin of DKS (6.86%) is better than 81.15% of its industry peers.
DKS's Profit Margin has improved in the last couple of years.
DKS has a better Operating Margin (9.71%) than 82.79% of its industry peers.
DKS's Operating Margin has improved in the last couple of years.
DKS has a Gross Margin of 35.33%. This is comparable to the rest of the industry: DKS outperforms 45.90% of its industry peers.
In the last couple of years the Gross Margin of DKS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.71% | ||
| PM (TTM) | 6.86% | ||
| GM | 35.33% |
OM growth 3Y-12.82%
OM growth 5Y17.23%
PM growth 3Y-11.16%
PM growth 5Y20.59%
GM growth 3Y-2.16%
GM growth 5Y4.22%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DKS is creating some value.
The number of shares outstanding for DKS has been reduced compared to 1 year ago.
Compared to 5 years ago, DKS has less shares outstanding
Compared to 1 year ago, DKS has an improved debt to assets ratio.
2.2 Solvency
DKS has an Altman-Z score of 2.81. This is not the best score and indicates that DKS is in the grey zone with still only limited risk for bankruptcy at the moment.
DKS has a better Altman-Z score (2.81) than 63.93% of its industry peers.
DKS has a debt to FCF ratio of 21.52. This is a negative value and a sign of low solvency as DKS would need 21.52 years to pay back of all of its debts.
DKS has a Debt to FCF ratio (21.52) which is comparable to the rest of the industry.
DKS has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.35, DKS is in line with its industry, outperforming 57.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 21.52 | ||
| Altman-Z | 2.81 |
ROIC/WACC0.94
WACC9.37%
2.3 Liquidity
A Current Ratio of 1.57 indicates that DKS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.57, DKS is in the better half of the industry, outperforming 65.57% of the companies in the same industry.
A Quick Ratio of 0.37 indicates that DKS may have some problems paying its short term obligations.
DKS has a Quick ratio of 0.37. This is in the lower half of the industry: DKS underperforms 65.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
DKS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.72%.
The Earnings Per Share has been growing by 30.43% on average over the past years. This is a very strong growth
Looking at the last year, DKS shows a quite strong growth in Revenue. The Revenue has grown by 10.86% in the last year.
The Revenue has been growing by 8.97% on average over the past years. This is quite good.
EPS 1Y (TTM)-1.72%
EPS 3Y-3.66%
EPS 5Y30.43%
EPS Q2Q%1.09%
Revenue 1Y (TTM)10.86%
Revenue growth 3Y3.02%
Revenue growth 5Y8.97%
Sales Q2Q%36.34%
3.2 Future
Based on estimates for the next years, DKS will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.24% on average per year.
The Revenue is expected to grow by 12.56% on average over the next years. This is quite good.
EPS Next Y-8.05%
EPS Next 2Y3.26%
EPS Next 3Y6.03%
EPS Next 5Y8.24%
Revenue Next Year29.14%
Revenue Next 2Y28.45%
Revenue Next 3Y19.46%
Revenue Next 5Y12.56%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.13, which indicates a correct valuation of DKS.
DKS's Price/Earnings ratio is a bit cheaper when compared to the industry. DKS is cheaper than 77.87% of the companies in the same industry.
DKS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.38.
DKS is valuated correctly with a Price/Forward Earnings ratio of 14.17.
Based on the Price/Forward Earnings ratio, DKS is valued a bit cheaper than the industry average as 71.31% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.83, DKS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.13 | ||
| Fwd PE | 14.17 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as DKS.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DKS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 214.95 | ||
| EV/EBITDA | 10.56 |
4.3 Compensation for Growth
DKS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.5
EPS Next 2Y3.26%
EPS Next 3Y6.03%
5. Dividend
5.1 Amount
DKS has a Yearly Dividend Yield of 2.24%.
Compared to an average industry Dividend Yield of 1.84, DKS pays a better dividend. On top of this DKS pays more dividend than 81.97% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, DKS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
5.2 History
The dividend of DKS is nicely growing with an annual growth rate of 32.36%!
DKS has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of DKS decreased in the last 3 years.
Dividend Growth(5Y)32.36%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
DKS pays out 38.61% of its income as dividend. This is a sustainable payout ratio.
The dividend of DKS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP38.61%
EPS Next 2Y3.26%
EPS Next 3Y6.03%
212.14
+2.07 (+0.99%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners97.48%
Inst Owner Change16.89%
Ins Owners2.88%
Ins Owner Change-0.17%
Market Cap19.02B
Revenue(TTM)14.88B
Net Income(TTM)1.02B
Analysts73.13
Price Target240.77 (13.5%)
Short Float %8.05%
Short Ratio3.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
Yearly Dividend4.5
Dividend Growth(5Y)32.36%
DP38.61%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.91%
Min EPS beat(2)0.36%
Max EPS beat(2)1.47%
EPS beat(4)3
Avg EPS beat(4)0.79%
Min EPS beat(4)-0.29%
Max EPS beat(4)1.62%
EPS beat(8)7
Avg EPS beat(8)5.23%
EPS beat(12)10
Avg EPS beat(12)3.11%
EPS beat(16)14
Avg EPS beat(16)4.67%
Revenue beat(2)1
Avg Revenue beat(2)7.23%
Min Revenue beat(2)-0.45%
Max Revenue beat(2)14.91%
Revenue beat(4)3
Avg Revenue beat(4)4.22%
Min Revenue beat(4)-0.45%
Max Revenue beat(4)14.91%
Revenue beat(8)7
Avg Revenue beat(8)2.49%
Revenue beat(12)10
Avg Revenue beat(12)2.03%
Revenue beat(16)14
Avg Revenue beat(16)2.33%
PT rev (1m)-2.54%
PT rev (3m)-0.41%
EPS NQ rev (1m)-29.2%
EPS NQ rev (3m)-27.23%
EPS NY rev (1m)-11.48%
EPS NY rev (3m)-10.78%
Revenue NQ rev (1m)31.8%
Revenue NQ rev (3m)52.17%
Revenue NY rev (1m)13.55%
Revenue NY rev (3m)21.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.13 | ||
| Fwd PE | 14.17 | ||
| P/S | 1.28 | ||
| P/FCF | 214.95 | ||
| P/OCF | 17 | ||
| P/B | 3.45 | ||
| P/tB | 4.73 | ||
| EV/EBITDA | 10.56 |
EPS(TTM)14.02
EY6.61%
EPS(NY)14.97
Fwd EY7.06%
FCF(TTM)0.99
FCFY0.47%
OCF(TTM)12.48
OCFY5.88%
SpS165.95
BVpS61.56
TBVpS44.87
PEG (NY)N/A
PEG (5Y)0.5
Graham Number139.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.86% | ||
| ROE | 18.49% | ||
| ROCE | 11.33% | ||
| ROIC | 8.85% | ||
| ROICexc | 9.45% | ||
| ROICexgc | 10.81% | ||
| OM | 9.71% | ||
| PM (TTM) | 6.86% | ||
| GM | 35.33% | ||
| FCFM | 0.59% |
ROA(3y)11.33%
ROA(5y)11.53%
ROE(3y)39.25%
ROE(5y)42.54%
ROIC(3y)16.29%
ROIC(5y)17.01%
ROICexc(3y)22.36%
ROICexc(5y)25.3%
ROICexgc(3y)23.86%
ROICexgc(5y)27.4%
ROCE(3y)20.87%
ROCE(5y)21.8%
ROICexgc growth 3Y-23.3%
ROICexgc growth 5Y21.21%
ROICexc growth 3Y-22.28%
ROICexc growth 5Y21.8%
OM growth 3Y-12.82%
OM growth 5Y17.23%
PM growth 3Y-11.16%
PM growth 5Y20.59%
GM growth 3Y-2.16%
GM growth 5Y4.22%
F-Score5
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 21.52 | ||
| Debt/EBITDA | 1.01 | ||
| Cap/Depr | 233.32% | ||
| Cap/Sales | 6.92% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 59.3% | ||
| Profit Quality | 8.67% | ||
| Current Ratio | 1.57 | ||
| Quick Ratio | 0.37 | ||
| Altman-Z | 2.81 |
F-Score5
WACC9.37%
ROIC/WACC0.94
Cap/Depr(3y)149.72%
Cap/Depr(5y)122.69%
Cap/Sales(3y)4.48%
Cap/Sales(5y)3.66%
Profit Quality(3y)62.33%
Profit Quality(5y)104.74%
High Growth Momentum
Growth
EPS 1Y (TTM)-1.72%
EPS 3Y-3.66%
EPS 5Y30.43%
EPS Q2Q%1.09%
EPS Next Y-8.05%
EPS Next 2Y3.26%
EPS Next 3Y6.03%
EPS Next 5Y8.24%
Revenue 1Y (TTM)10.86%
Revenue growth 3Y3.02%
Revenue growth 5Y8.97%
Sales Q2Q%36.34%
Revenue Next Year29.14%
Revenue Next 2Y28.45%
Revenue Next 3Y19.46%
Revenue Next 5Y12.56%
EBIT growth 1Y-1.11%
EBIT growth 3Y-10.19%
EBIT growth 5Y27.74%
EBIT Next Year27.6%
EBIT Next 3Y18.49%
EBIT Next 5Y15.12%
FCF growth 1Y-92.32%
FCF growth 3Y-26.99%
FCF growth 5Y22.17%
OCF growth 1Y-32.23%
OCF growth 3Y-6.73%
OCF growth 5Y26.52%
DICK'S SPORTING GOODS INC / DKS FAQ
What is the fundamental rating for DKS stock?
ChartMill assigns a fundamental rating of 6 / 10 to DKS.
Can you provide the valuation status for DICK'S SPORTING GOODS INC?
ChartMill assigns a valuation rating of 4 / 10 to DICK'S SPORTING GOODS INC (DKS). This can be considered as Fairly Valued.
Can you provide the profitability details for DICK'S SPORTING GOODS INC?
DICK'S SPORTING GOODS INC (DKS) has a profitability rating of 8 / 10.
Can you provide the financial health for DKS stock?
The financial health rating of DICK'S SPORTING GOODS INC (DKS) is 5 / 10.
What is the expected EPS growth for DICK'S SPORTING GOODS INC (DKS) stock?
The Earnings per Share (EPS) of DICK'S SPORTING GOODS INC (DKS) is expected to decline by -8.05% in the next year.