DICK'S SPORTING GOODS INC (DKS)
US2533931026 - Common Stock
Taking everything into account, DKS scores 7 out of 10 in our fundamental rating. DKS was compared to 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 correct valuation and a medium growth rate. These ratings could make DKS a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year DKS was profitable.
DKS had a positive operating cash flow in the past year.
In the past 5 years DKS has always been profitable.
DKS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DKS has a Return On Assets of 11.42%. This is amongst the best in the industry. DKS outperforms 87.60% of its industry peers.
DKS has a Return On Equity of 38.81%. This is amongst the best in the industry. DKS outperforms 86.78% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.97%, DKS belongs to the top of the industry, outperforming 85.95% of the companies in the same industry.
DKS had an Average Return On Invested Capital over the past 3 years of 19.29%. This is significantly above the industry average of 12.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.42% | ||
| ROE | 38.81% | ||
| ROIC | 15.97% |
ROA(3y)13.22%
ROA(5y)10.19%
ROE(3y)51.21%
ROE(5y)38.69%
ROIC(3y)19.29%
ROIC(5y)15.25%
1.3 Margins
DKS's Profit Margin of 8.46% is amongst the best of the industry. DKS outperforms 88.43% of its industry peers.
DKS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 10.80%, DKS belongs to the top of the industry, outperforming 85.95% of the companies in the same industry.
In the last couple of years the Operating Margin of DKS has grown nicely.
DKS has a Gross Margin (35.54%) which is in line with its industry peers.
DKS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.8% | ||
| PM (TTM) | 8.46% | ||
| GM | 35.54% |
OM growth 3Y8.56%
OM growth 5Y13.41%
PM growth 3Y13.38%
PM growth 5Y16.27%
GM growth 3Y3.13%
GM growth 5Y3.86%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), DKS is creating 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 4.34. This indicates that DKS is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.34, DKS belongs to the best of the industry, outperforming 84.30% of the companies in the same industry.
DKS has a debt to FCF ratio of 1.98. This is a very positive value and a sign of high solvency as it would only need 1.98 years to pay back of all of its debts.
The Debt to FCF ratio of DKS (1.98) is better than 74.38% of its industry peers.
DKS has a Debt/Equity ratio of 0.51. This is a neutral value indicating DKS is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.51, DKS perfoms like the industry average, outperforming 49.59% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for DKS, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 1.98 | ||
| Altman-Z | 4.34 |
ROIC/WACC1.71
WACC9.33%
2.3 Liquidity
DKS has a Current Ratio of 1.77. This is a normal value and indicates that DKS is financially healthy and should not expect problems in meeting its short term obligations.
DKS has a Current ratio of 1.77. This is in the better half of the industry: DKS outperforms 72.73% of its industry peers.
A Quick Ratio of 0.69 indicates that DKS may have some problems paying its short term obligations.
With a decent Quick ratio value of 0.69, DKS is doing good in the industry, outperforming 60.33% of the companies in the same industry.
DKS does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.30% over the past year.
DKS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.79% yearly.
DKS shows a small growth in Revenue. In the last year, the Revenue has grown by 6.25%.
The Revenue has been growing by 9.01% on average over the past years. This is quite good.
EPS 1Y (TTM)22.3%
EPS 3Y26.72%
EPS 5Y31.79%
EPS Q2Q%54.96%
Revenue 1Y (TTM)6.25%
Revenue growth 3Y10.65%
Revenue growth 5Y9.01%
Sales Q2Q%7.75%
3.2 Future
DKS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.81% yearly.
Based on estimates for the next years, DKS will show a small growth in Revenue. The Revenue will grow by 3.71% on average per year.
EPS Next Y8.61%
EPS Next 2Y7.65%
EPS Next 3Y7.29%
EPS Next 5Y6.81%
Revenue Next Year2.72%
Revenue Next 2Y3.56%
Revenue Next 3Y3.95%
Revenue Next 5Y3.71%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.91, DKS is valued correctly.
DKS's Price/Earnings ratio is a bit cheaper when compared to the industry. DKS is cheaper than 78.51% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.53, DKS is valued rather cheaply.
DKS is valuated correctly with a Price/Forward Earnings ratio of 13.35.
72.73% of the companies in the same industry are more expensive than DKS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.40. DKS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.91 | ||
| Fwd PE | 13.35 |
4.2 Price Multiples
DKS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DKS is cheaper than 66.94% of the companies in the same industry.
DKS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DKS is cheaper than 66.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.73 | ||
| EV/EBITDA | 8.55 |
4.3 Compensation for Growth
DKS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of DKS may justify a higher PE ratio.
PEG (NY)1.62
PEG (5Y)0.44
EPS Next 2Y7.65%
EPS Next 3Y7.29%
5. Dividend
5.1 Amount
DKS has a Yearly Dividend Yield of 2.21%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.08, DKS pays a better dividend. On top of this DKS pays more dividend than 85.95% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.22, DKS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
5.2 History
The dividend of DKS is nicely growing with an annual growth rate of 36.64%!
DKS has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of DKS decreased recently.
Dividend Growth(5Y)36.64%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
DKS pays out 30.41% 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.
DP30.41%
EPS Next 2Y7.65%
EPS Next 3Y7.29%
DICK'S SPORTING GOODS INC
NYSE:DKS (11/18/2024, 12:02:35 PM)
199.915
+1.66 (+0.84%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap16.28B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
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Surprises & Revisions
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EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.91 | ||
| Fwd PE | 13.35 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.62
PEG (5Y)0.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.42% | ||
| ROE | 38.81% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.8% | ||
| PM (TTM) | 8.46% | ||
| GM | 35.54% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.77 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)22.3%
EPS 3Y26.72%
EPS 5Y
EPS Q2Q%
EPS Next Y8.61%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.25%
Revenue growth 3Y10.65%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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FCF growth 3Y
FCF growth 5Y
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