DICK'S SPORTING GOODS INC (DKS) Stock Fundamental Analysis
NYSE:DKS - New York Stock Exchange, Inc. - US2533931026 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to DKS. DKS was compared to 121 industry peers in the Specialty Retail industry. While DKS has a great profitability rating, there are some minor concerns on its financial health. DKS is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year DKS was profitable.
In the past year DKS had a positive cash flow from operations.
Each year in the past 5 years DKS has been profitable.
DKS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 11.06%, DKS belongs to the best of the industry, outperforming 85.95% of the companies in the same industry.
Looking at the Return On Equity, with a value of 37.82%, DKS belongs to the top of the industry, outperforming 90.08% of the companies in the same industry.
DKS's Return On Invested Capital of 16.09% is amongst the best of the industry. DKS outperforms 86.78% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DKS is above the industry average of 13.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.06% | ||
| ROE | 37.82% | ||
| ROIC | 16.09% |
ROA(3y)11.33%
ROA(5y)11.53%
ROE(3y)39.24%
ROE(5y)42.54%
ROIC(3y)16.29%
ROIC(5y)17.01%
1.3 Margins
DKS has a Profit Margin of 8.49%. This is amongst the best in the industry. DKS outperforms 86.78% of its industry peers.
In the last couple of years the Profit Margin of DKS has grown nicely.
DKS's Operating Margin of 11.10% is amongst the best of the industry. DKS outperforms 85.95% of its industry peers.
DKS's Operating Margin has improved in the last couple of years.
DKS has a Gross Margin (36.00%) 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 | 11.1% | ||
| PM (TTM) | 8.49% | ||
| GM | 36% |
OM growth 3Y-12.83%
OM growth 5Y17.25%
PM growth 3Y-11.16%
PM growth 5Y20.63%
GM growth 3Y-2.16%
GM growth 5Y4.22%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DKS is still creating some value.
DKS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, DKS has less shares outstanding
DKS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.28 indicates that DKS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.28, DKS belongs to the top of the industry, outperforming 84.30% of the companies in the same industry.
The Debt to FCF ratio of DKS is 4.26, which is a neutral value as it means it would take DKS, 4.26 years of fcf income to pay off all of its debts.
DKS has a Debt to FCF ratio of 4.26. This is in the better half of the industry: DKS outperforms 69.42% of its industry peers.
A Debt/Equity ratio of 0.49 indicates that DKS is not too dependend on debt financing.
DKS has a Debt to Equity ratio (0.49) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 4.26 | ||
| Altman-Z | 4.28 |
ROIC/WACC1.74
WACC9.24%
2.3 Liquidity
DKS has a Current Ratio of 1.62. 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 better Current ratio (1.62) than 69.42% of its industry peers.
A Quick Ratio of 0.47 indicates that DKS may have some problems paying its short term obligations.
DKS has a Quick ratio of 0.47. This is comparable to the rest of the industry: DKS outperforms 47.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.08% over the past year.
DKS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.43% yearly.
Looking at the last year, DKS shows a small growth in Revenue. The Revenue has grown by 3.33% in the last year.
DKS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.96% yearly.
EPS 1Y (TTM)9.08%
EPS 3Y-3.66%
EPS 5Y30.43%
EPS Q2Q%-1.7%
Revenue 1Y (TTM)3.33%
Revenue growth 3Y3.03%
Revenue growth 5Y8.96%
Sales Q2Q%5.18%
3.2 Future
Based on estimates for the next years, DKS will show a small growth in Earnings Per Share. The EPS will grow by 6.03% on average per year.
Based on estimates for the next years, DKS will show a small growth in Revenue. The Revenue will grow by 4.06% on average per year.
EPS Next Y3.19%
EPS Next 2Y5.05%
EPS Next 3Y5.52%
EPS Next 5Y6.03%
Revenue Next Year4.39%
Revenue Next 2Y4.22%
Revenue Next 3Y4.3%
Revenue Next 5Y4.06%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 15.02, DKS is valued correctly.
Based on the Price/Earnings ratio, DKS is valued a bit cheaper than 77.69% of the companies in the same industry.
When comparing the Price/Earnings ratio of DKS to the average of the S&P500 Index (27.30), we can say DKS is valued slightly cheaper.
A Price/Forward Earnings ratio of 13.55 indicates a correct valuation of DKS.
Based on the Price/Forward Earnings ratio, DKS is valued a bit cheaper than 70.25% of the companies in the same industry.
DKS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.02 | ||
| Fwd PE | 13.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DKS is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as DKS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.25 | ||
| EV/EBITDA | 9.2 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DKS does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of DKS may justify a higher PE ratio.
PEG (NY)4.71
PEG (5Y)0.49
EPS Next 2Y5.05%
EPS Next 3Y5.52%
5. Dividend
5.1 Amount
DKS has a Yearly Dividend Yield of 2.35%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.99, DKS pays a better dividend. On top of this DKS pays more dividend than 84.30% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, DKS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
5.2 History
On average, the dividend of DKS grows each year by 32.35%, which is quite nice.
DKS has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of DKS decreased in the last 3 years.
Dividend Growth(5Y)32.35%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
31.82% of the earnings are spent on dividend by DKS. This is a low number and sustainable payout ratio.
DKS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP31.82%
EPS Next 2Y5.05%
EPS Next 3Y5.52%
209.99
-4.64 (-2.16%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners97.32%
Inst Owner Change-0.01%
Ins Owners3.4%
Ins Owner Change0.74%
Market Cap16.81B
Analysts70.97
Price Target212.34 (1.12%)
Short Float %8.23%
Short Ratio2.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
Yearly Dividend4.5
Dividend Growth(5Y)32.35%
DP31.82%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.67%
Min EPS beat(2)-0.29%
Max EPS beat(2)1.62%
EPS beat(4)3
Avg EPS beat(4)3.93%
Min EPS beat(4)-0.29%
Max EPS beat(4)12.95%
EPS beat(8)6
Avg EPS beat(8)3.63%
EPS beat(12)10
Avg EPS beat(12)4.48%
EPS beat(16)14
Avg EPS beat(16)13.3%
Revenue beat(2)2
Avg Revenue beat(2)1.21%
Min Revenue beat(2)0.43%
Max Revenue beat(2)1.98%
Revenue beat(4)4
Avg Revenue beat(4)0.63%
Min Revenue beat(4)0.05%
Max Revenue beat(4)1.98%
Revenue beat(8)7
Avg Revenue beat(8)0.79%
Revenue beat(12)11
Avg Revenue beat(12)1.61%
Revenue beat(16)15
Avg Revenue beat(16)2.84%
PT rev (1m)0.03%
PT rev (3m)-11.86%
EPS NQ rev (1m)-0.18%
EPS NQ rev (3m)-1.16%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.06%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.02 | ||
| Fwd PE | 13.55 | ||
| P/S | 1.24 | ||
| P/FCF | 48.25 | ||
| P/OCF | 13.36 | ||
| P/B | 5.51 | ||
| P/tB | 6.12 | ||
| EV/EBITDA | 9.2 |
EPS(TTM)13.98
EY6.66%
EPS(NY)15.49
Fwd EY7.38%
FCF(TTM)4.35
FCFY2.07%
OCF(TTM)15.72
OCFY7.48%
SpS169.88
BVpS38.13
TBVpS34.33
PEG (NY)4.71
PEG (5Y)0.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.06% | ||
| ROE | 37.82% | ||
| ROCE | 20.61% | ||
| ROIC | 16.09% | ||
| ROICexc | 18.74% | ||
| ROICexgc | 19.69% | ||
| OM | 11.1% | ||
| PM (TTM) | 8.49% | ||
| GM | 36% | ||
| FCFM | 2.56% |
ROA(3y)11.33%
ROA(5y)11.53%
ROE(3y)39.24%
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%
ROICexcg growth 3Y-23.31%
ROICexcg growth 5Y21.23%
ROICexc growth 3Y-22.29%
ROICexc growth 5Y21.82%
OM growth 3Y-12.83%
OM growth 5Y17.25%
PM growth 3Y-11.16%
PM growth 5Y20.63%
GM growth 3Y-2.16%
GM growth 5Y4.22%
F-Score7
Asset Turnover1.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 4.26 | ||
| Debt/EBITDA | 0.77 | ||
| Cap/Depr | 223.64% | ||
| Cap/Sales | 6.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.66% | ||
| Profit Quality | 30.18% | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 0.47 | ||
| Altman-Z | 4.28 |
F-Score7
WACC9.24%
ROIC/WACC1.74
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)104.76%
High Growth Momentum
Growth
EPS 1Y (TTM)9.08%
EPS 3Y-3.66%
EPS 5Y30.43%
EPS Q2Q%-1.7%
EPS Next Y3.19%
EPS Next 2Y5.05%
EPS Next 3Y5.52%
EPS Next 5Y6.03%
Revenue 1Y (TTM)3.33%
Revenue growth 3Y3.03%
Revenue growth 5Y8.96%
Sales Q2Q%5.18%
Revenue Next Year4.39%
Revenue Next 2Y4.22%
Revenue Next 3Y4.3%
Revenue Next 5Y4.06%
EBIT growth 1Y17.02%
EBIT growth 3Y-10.19%
EBIT growth 5Y27.76%
EBIT Next Year31.5%
EBIT Next 3Y13.78%
EBIT Next 5Y10%
FCF growth 1Y-37.68%
FCF growth 3Y-26.99%
FCF growth 5Y22.17%
OCF growth 1Y34.74%
OCF growth 3Y-6.73%
OCF growth 5Y26.52%