DICK'S SPORTING GOODS INC (DKS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DKS - US2533931026 - Common Stock
208.45 USD
+5.84 (+2.88%)
210 USD
+1.55 (+0.74%)
We assign a fundamental rating of 7 out of 10 to DKS. DKS was compared to 123 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.
1. Profitability
1.1 Basic Checks
In the past year DKS was profitable.
DKS had a positive operating cash flow in the past year.
DKS had positive earnings in each of the past 5 years.
DKS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of DKS (10.98%) is better than 86.89% of its industry peers.
DKS has a better Return On Equity (34.98%) than 87.70% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.18%, DKS belongs to the top of the industry, outperforming 86.07% of the companies in the same industry.
DKS had an Average Return On Invested Capital over the past 3 years of 16.29%. This is above the industry average of 11.69%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.98% | ||
| ROE | 34.98% | ||
| ROIC | 15.18% |
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
With an excellent Profit Margin value of 8.52%, DKS belongs to the best of the industry, outperforming 85.25% of the companies in the same industry.
In the last couple of years the Profit Margin of DKS has grown nicely.
DKS has a better Operating Margin (10.89%) than 84.43% of its industry peers.
DKS's Operating Margin has improved in the last couple of years.
DKS has a Gross Margin (36.10%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of DKS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.89% | ||
| PM (TTM) | 8.52% | ||
| GM | 36.1% |
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) 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.
The number of shares outstanding for DKS has been reduced compared to 5 years ago.
DKS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.37 indicates that DKS is not in any danger for bankruptcy at the moment.
DKS's Altman-Z score of 4.37 is amongst the best of the industry. DKS outperforms 86.07% of its industry peers.
The Debt to FCF ratio of DKS is 3.19, which is a good value as it means it would take DKS, 3.19 years of fcf income to pay off all of its debts.
DKS has a better Debt to FCF ratio (3.19) than 72.13% of its industry peers.
DKS has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.44, DKS is in line with its industry, outperforming 54.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 3.19 | ||
| Altman-Z | 4.37 |
ROIC/WACC1.69
WACC8.97%
2.3 Liquidity
A Current Ratio of 1.70 indicates that DKS should not have too much problems paying its short term obligations.
DKS has a Current ratio of 1.70. This is in the better half of the industry: DKS outperforms 72.95% of its industry peers.
A Quick Ratio of 0.55 indicates that DKS may have some problems paying its short term obligations.
With a Quick ratio value of 0.55, DKS perfoms like the industry average, outperforming 53.28% 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 | 1.7 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
The earnings per share for DKS have decreased by -2.62% in the last year.
The Earnings Per Share has been growing by 30.43% on average over the past years. This is a very strong growth
DKS shows a small growth in Revenue. In the last year, the Revenue has grown by 2.70%.
Measured over the past years, DKS shows a quite strong growth in Revenue. The Revenue has been growing by 8.97% on average per year.
EPS 1Y (TTM)-2.62%
EPS 3Y-3.66%
EPS 5Y30.43%
EPS Q2Q%0.23%
Revenue 1Y (TTM)2.7%
Revenue growth 3Y3.02%
Revenue growth 5Y8.97%
Sales Q2Q%4.98%
3.2 Future
DKS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.95% yearly.
The Revenue is expected to grow by 13.01% on average over the next years. This is quite good.
EPS Next Y3.88%
EPS Next 2Y5.05%
EPS Next 3Y7.41%
EPS Next 5Y7.95%
Revenue Next Year13.73%
Revenue Next 2Y10.75%
Revenue Next 3Y18.78%
Revenue Next 5Y13.01%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.90, which indicates a correct valuation of DKS.
Compared to the rest of the industry, the Price/Earnings ratio of DKS indicates a somewhat cheap valuation: DKS is cheaper than 76.23% of the companies listed in the same industry.
DKS is valuated rather cheaply when we compare the Price/Earnings ratio to 25.45, which is the current average of the S&P500 Index.
DKS is valuated correctly with a Price/Forward Earnings ratio of 13.45.
Based on the Price/Forward Earnings ratio, DKS is valued a bit cheaper than the industry average as 68.85% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.46, DKS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.9 | ||
| Fwd PE | 13.45 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as DKS.
DKS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.22 | ||
| EV/EBITDA | 9.63 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of DKS may justify a higher PE ratio.
PEG (NY)3.84
PEG (5Y)0.49
EPS Next 2Y5.05%
EPS Next 3Y7.41%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.39%, DKS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.07, DKS pays a better dividend. On top of this DKS pays more dividend than 80.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, DKS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
5.2 History
On average, the dividend of DKS grows each year by 32.36%, which is quite nice.
DKS has paid a dividend for at least 10 years, which is a reliable track record.
DKS has decreased its dividend in the last 3 years.
Dividend Growth(5Y)32.36%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
31.93% of the earnings are spent on dividend by DKS. This is a low number and sustainable payout ratio.
The dividend of DKS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP31.93%
EPS Next 2Y5.05%
EPS Next 3Y7.41%
208.45
+5.84 (+2.88%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners84.01%
Inst Owner Change16.75%
Ins Owners2.88%
Ins Owner Change-0.07%
Market Cap18.69B
Revenue(TTM)13.77B
Net Income(TTM)1.17B
Analysts73.94
Price Target247.05 (18.52%)
Short Float %7.11%
Short Ratio3.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
Yearly Dividend4.5
Dividend Growth(5Y)32.36%
DP31.93%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.04%
Min EPS beat(2)-0.29%
Max EPS beat(2)0.36%
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)7.01%
EPS beat(12)10
Avg EPS beat(12)4.36%
EPS beat(16)14
Avg EPS beat(16)8.35%
Revenue beat(2)1
Avg Revenue beat(2)-0.01%
Min Revenue beat(2)-0.45%
Max Revenue beat(2)0.43%
Revenue beat(4)3
Avg Revenue beat(4)0.51%
Min Revenue beat(4)-0.45%
Max Revenue beat(4)1.98%
Revenue beat(8)7
Avg Revenue beat(8)0.92%
Revenue beat(12)10
Avg Revenue beat(12)1.54%
Revenue beat(16)14
Avg Revenue beat(16)1.95%
PT rev (1m)-0.09%
PT rev (3m)12.61%
EPS NQ rev (1m)-0.67%
EPS NQ rev (3m)-3.98%
EPS NY rev (1m)0.33%
EPS NY rev (3m)0.8%
Revenue NQ rev (1m)3.26%
Revenue NQ rev (3m)11.63%
Revenue NY rev (1m)4.19%
Revenue NY rev (3m)8.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.9 | ||
| Fwd PE | 13.45 | ||
| P/S | 1.36 | ||
| P/FCF | 40.22 | ||
| P/OCF | 13.15 | ||
| P/B | 5.57 | ||
| P/tB | 6.13 | ||
| EV/EBITDA | 9.63 |
EPS(TTM)13.99
EY6.71%
EPS(NY)15.49
Fwd EY7.43%
FCF(TTM)5.18
FCFY2.49%
OCF(TTM)15.85
OCFY7.6%
SpS153.57
BVpS37.41
TBVpS34.02
PEG (NY)3.84
PEG (5Y)0.49
Graham Number108.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.98% | ||
| ROE | 34.98% | ||
| ROCE | 19.44% | ||
| ROIC | 15.18% | ||
| ROICexc | 18.06% | ||
| ROICexgc | 18.95% | ||
| OM | 10.89% | ||
| PM (TTM) | 8.52% | ||
| GM | 36.1% | ||
| FCFM | 3.37% |
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-Score6
Asset Turnover1.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 3.19 | ||
| Debt/EBITDA | 0.78 | ||
| Cap/Depr | 230.65% | ||
| Cap/Sales | 6.95% | ||
| Interest Coverage | 31.96 | ||
| Cash Conversion | 74.26% | ||
| Profit Quality | 39.61% | ||
| Current Ratio | 1.7 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 4.37 |
F-Score6
WACC8.97%
ROIC/WACC1.69
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)-2.62%
EPS 3Y-3.66%
EPS 5Y30.43%
EPS Q2Q%0.23%
EPS Next Y3.88%
EPS Next 2Y5.05%
EPS Next 3Y7.41%
EPS Next 5Y7.95%
Revenue 1Y (TTM)2.7%
Revenue growth 3Y3.02%
Revenue growth 5Y8.97%
Sales Q2Q%4.98%
Revenue Next Year13.73%
Revenue Next 2Y10.75%
Revenue Next 3Y18.78%
Revenue Next 5Y13.01%
EBIT growth 1Y3.54%
EBIT growth 3Y-10.19%
EBIT growth 5Y27.74%
EBIT Next Year33.92%
EBIT Next 3Y21.29%
EBIT Next 5Y15.59%
FCF growth 1Y-56.51%
FCF growth 3Y-26.99%
FCF growth 5Y22.17%
OCF growth 1Y-6.1%
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 7 / 10 to DKS.
Can you provide the valuation status for DICK'S SPORTING GOODS INC?
ChartMill assigns a valuation rating of 5 / 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 8 / 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 grow by 3.88% in the next year.