DICK'S SPORTING GOODS INC (DKS) Stock Fundamental Analysis
NYSE:DKS - New York Stock Exchange, Inc. - US2533931026 - Common Stock - Currency: USD
Taking everything into account, DKS scores 7 out of 10 in our fundamental rating. DKS was compared to 121 industry peers in the Specialty Retail industry. Both the health and profitability get an excellent rating, making DKS a very profitable company, without any liquidiy or solvency issues. DKS has a decent growth rate and is not valued too expensively. With these ratings, DKS could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
DKS had positive earnings in the past year.
DKS had a positive operating cash flow in the past year.
Each year in the past 5 years DKS has been profitable.
Each year in the past 5 years DKS had a positive operating cash flow.
1.2 Ratios
DKS has a better Return On Assets (11.14%) than 85.12% of its industry peers.
DKS has a better Return On Equity (36.44%) than 87.60% of its industry peers.
DKS has a Return On Invested Capital of 15.59%. This is amongst the best in the industry. DKS outperforms 83.47% of its industry peers.
DKS had an Average Return On Invested Capital over the past 3 years of 16.29%. This is in line with the industry average of 14.45%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.14% | ||
| ROE | 36.44% | ||
| ROIC | 15.59% |
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's Profit Margin of 8.67% is amongst the best of the industry. DKS outperforms 87.60% of its industry peers.
DKS's Profit Margin has improved in the last couple of years.
DKS's Operating Margin of 10.96% is amongst the best of the industry. DKS outperforms 84.30% of its industry peers.
DKS's Operating Margin has improved in the last couple of years.
The Gross Margin of DKS (35.90%) is comparable to the rest of the industry.
DKS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.96% | ||
| PM (TTM) | 8.67% | ||
| GM | 35.9% |
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
DKS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for DKS has been reduced compared to 1 year ago.
The number of shares outstanding for DKS has been reduced compared to 5 years ago.
Compared to 1 year ago, DKS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.10 indicates that DKS is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.10, DKS belongs to the best of the industry, outperforming 85.95% of the companies in the same industry.
The Debt to FCF ratio of DKS is 2.91, which is a good value as it means it would take DKS, 2.91 years of fcf income to pay off all of its debts.
DKS has a better Debt to FCF ratio (2.91) than 71.07% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that DKS is not too dependend on debt financing.
The Debt to Equity ratio of DKS (0.46) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.91 | ||
| Altman-Z | 4.1 |
ROIC/WACC1.77
WACC8.83%
2.3 Liquidity
A Current Ratio of 1.76 indicates that DKS should not have too much problems paying its short term obligations.
DKS has a Current ratio of 1.76. This is in the better half of the industry: DKS outperforms 74.38% of its industry peers.
A Quick Ratio of 0.67 indicates that DKS may have some problems paying its short term obligations.
DKS's Quick ratio of 0.67 is fine compared to the rest of the industry. DKS outperforms 61.98% of its industry peers.
The current and quick ratio evaluation for DKS is rather negative, while it does have 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 | 1.76 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.67% over the past year.
The Earnings Per Share has been growing by 30.43% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 3.53% in the past year.
Measured over the past years, DKS shows a quite strong growth in Revenue. The Revenue has been growing by 8.96% on average per year.
EPS 1Y (TTM)8.67%
EPS 3Y-3.66%
EPS 5Y30.43%
EPS Q2Q%-5.97%
Revenue 1Y (TTM)3.53%
Revenue growth 3Y3.03%
Revenue growth 5Y8.96%
Sales Q2Q%0.45%
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 6.94% on average per year.
Based on estimates for the next years, DKS will show a small growth in Revenue. The Revenue will grow by 4.69% on average per year.
EPS Next Y3.33%
EPS Next 2Y5.36%
EPS Next 3Y5.96%
EPS Next 5Y6.94%
Revenue Next Year3.99%
Revenue Next 2Y4.05%
Revenue Next 3Y4.21%
Revenue Next 5Y4.69%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.22, which indicates a correct valuation of DKS.
Based on the Price/Earnings ratio, DKS is valued a bit cheaper than 76.03% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, DKS is valued rather cheaply.
With a Price/Forward Earnings ratio of 12.79, DKS is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DKS indicates a somewhat cheap valuation: DKS is cheaper than 71.07% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.08. DKS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.22 | ||
| Fwd PE | 12.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DKS is valued a bit cheaper than the industry average as 61.16% of the companies are valued more expensively.
DKS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.1 | ||
| EV/EBITDA | 7.8 |
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)3.97
PEG (5Y)0.43
EPS Next 2Y5.36%
EPS Next 3Y5.96%
5. Dividend
5.1 Amount
DKS has a Yearly Dividend Yield of 2.61%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.57, DKS pays a better dividend. On top of this DKS pays more dividend than 83.47% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.52, DKS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
5.2 History
The dividend of DKS is nicely growing with an annual growth rate of 32.35%!
DKS has paid a dividend for at least 10 years, which is a reliable track record.
DKS has decreased its dividend recently.
Dividend Growth(5Y)32.35%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
DKS pays out 31.04% of its income as dividend. This is a sustainable payout ratio.
DKS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP31.04%
EPS Next 2Y5.36%
EPS Next 3Y5.96%
185.54
+4.89 (+2.71%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners96.16%
Inst Owner Change0.19%
Ins Owners3.19%
Ins Owner Change0.59%
Market Cap14.82B
Analysts73.94
Price Target240.92 (29.85%)
Short Float %7.61%
Short Ratio3.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
Yearly Dividend4.5
Dividend Growth(5Y)32.35%
DP31.04%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.54%
Min EPS beat(2)1.45%
Max EPS beat(2)1.62%
EPS beat(4)4
Avg EPS beat(4)6.66%
Min EPS beat(4)1.45%
Max EPS beat(4)12.95%
EPS beat(8)7
Avg EPS beat(8)4.38%
EPS beat(12)11
Avg EPS beat(12)5.67%
EPS beat(16)15
Avg EPS beat(16)28.07%
Revenue beat(2)2
Avg Revenue beat(2)1.02%
Min Revenue beat(2)0.07%
Max Revenue beat(2)1.98%
Revenue beat(4)4
Avg Revenue beat(4)0.97%
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)1.83%
Revenue beat(16)15
Avg Revenue beat(16)4.83%
PT rev (1m)0.02%
PT rev (3m)-0.78%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)-4.54%
EPS NY rev (1m)-3.2%
EPS NY rev (3m)-2.9%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)-0.57%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.22 | ||
| Fwd PE | 12.79 | ||
| P/S | 1.1 | ||
| P/FCF | 29.1 | ||
| P/OCF | 11.3 | ||
| P/B | 4.63 | ||
| P/tB | 5.12 | ||
| EV/EBITDA | 7.8 |
EPS(TTM)14.04
EY7.57%
EPS(NY)14.51
Fwd EY7.82%
FCF(TTM)6.38
FCFY3.44%
OCF(TTM)16.43
OCFY8.85%
SpS168.33
BVpS40.05
TBVpS36.24
PEG (NY)3.97
PEG (5Y)0.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.14% | ||
| ROE | 36.44% | ||
| ROCE | 19.98% | ||
| ROIC | 15.59% | ||
| ROICexc | 20.22% | ||
| ROICexgc | 21.37% | ||
| OM | 10.96% | ||
| PM (TTM) | 8.67% | ||
| GM | 35.9% | ||
| FCFM | 3.79% |
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-Score6
Asset Turnover1.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.91 | ||
| Debt/EBITDA | 0.79 | ||
| Cap/Depr | 200.44% | ||
| Cap/Sales | 5.97% | ||
| Interest Coverage | 29.08 | ||
| Cash Conversion | 69.99% | ||
| Profit Quality | 43.7% | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 4.1 |
F-Score6
WACC8.83%
ROIC/WACC1.77
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)8.67%
EPS 3Y-3.66%
EPS 5Y30.43%
EPS Q2Q%-5.97%
EPS Next Y3.33%
EPS Next 2Y5.36%
EPS Next 3Y5.96%
EPS Next 5Y6.94%
Revenue 1Y (TTM)3.53%
Revenue growth 3Y3.03%
Revenue growth 5Y8.96%
Sales Q2Q%0.45%
Revenue Next Year3.99%
Revenue Next 2Y4.05%
Revenue Next 3Y4.21%
Revenue Next 5Y4.69%
EBIT growth 1Y14.74%
EBIT growth 3Y-10.19%
EBIT growth 5Y27.76%
EBIT Next Year32.17%
EBIT Next 3Y14.1%
EBIT Next 5Y11.17%
FCF growth 1Y-45.82%
FCF growth 3Y-26.99%
FCF growth 5Y22.17%
OCF growth 1Y-14.11%
OCF growth 3Y-6.73%
OCF growth 5Y26.52%