DICK'S SPORTING GOODS INC (DKS) Stock Fundamental Analysis
USA - NYSE:DKS - US2533931026 - Common Stock
227.21 USD
+4.41 (+1.98%)
228 USD
+0.79 (+0.35%)
We assign a fundamental rating of 6 out of 10 to DKS. DKS was compared to 121 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.
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.
Each year in the past 5 years DKS had a positive operating cash flow.
1.2 Ratios
DKS's Return On Assets of 10.98% is amongst the best of the industry. DKS outperforms 86.78% of its industry peers.
DKS's Return On Equity of 34.98% is amongst the best of the industry. DKS outperforms 88.43% of its industry peers.
With an excellent Return On Invested Capital value of 15.18%, DKS belongs to the best of the industry, outperforming 85.12% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DKS is above the industry average of 12.16%.
| 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
The Profit Margin of DKS (8.52%) is better than 85.95% 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 10.89%, 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 (36.10%) which 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 | 10.89% | ||
| 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) 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.
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 4.51 indicates that DKS is not in any danger for bankruptcy at the moment.
DKS has a better Altman-Z score (4.51) than 84.30% of its industry peers.
DKS has a debt to FCF ratio of 3.19. This is a good value and a sign of high solvency as DKS would need 3.19 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.19, DKS is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
A Debt/Equity ratio of 0.44 indicates that DKS is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.44, DKS perfoms like the industry average, outperforming 53.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 3.19 | ||
| Altman-Z | 4.51 |
ROIC/WACC1.61
WACC9.42%
2.3 Liquidity
DKS has a Current Ratio of 1.70. 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 (1.70) than 75.21% of its industry peers.
DKS has a Quick Ratio of 1.70. This is a bad value and indicates that DKS is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of DKS (0.55) is comparable to the rest of the industry.
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 | 1.7 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
DKS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.62%.
DKS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.43% yearly.
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 5.86% yearly.
DKS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.74% yearly.
EPS Next Y3.07%
EPS Next 2Y4.81%
EPS Next 3Y5.73%
EPS Next 5Y5.86%
Revenue Next Year6.06%
Revenue Next 2Y4.22%
Revenue Next 3Y4.21%
Revenue Next 5Y2.74%
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
A Price/Earnings ratio of 16.24 indicates a correct valuation of DKS.
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.
The average S&P500 Price/Earnings ratio is at 27.20. DKS is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 14.73 indicates a correct valuation of DKS.
Based on the Price/Forward Earnings ratio, DKS is valued a bit cheaper than the industry average as 73.55% of the companies are valued more expensively.
DKS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.24 | ||
| Fwd PE | 14.73 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DKS indicates a somewhat cheap valuation: DKS is cheaper than 60.33% of the companies listed in the same industry.
DKS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.84 | ||
| EV/EBITDA | 10.57 |
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.
DKS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)5.3
PEG (5Y)0.53
EPS Next 2Y4.81%
EPS Next 3Y5.73%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.10%, DKS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.21, DKS pays a better dividend. On top of this DKS pays more dividend than 83.47% of the companies listed in the same industry.
DKS's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
5.2 History
The dividend of DKS is nicely growing with an annual growth rate of 32.36%!
DKS has been paying a dividend for at least 10 years, so it has 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 2Y4.81%
EPS Next 3Y5.73%
227.21
+4.41 (+1.98%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners97.12%
Inst Owner Change1.5%
Ins Owners3.39%
Ins Owner Change0.62%
Market Cap20.38B
Analysts72.67
Price Target241.76 (6.4%)
Short Float %10%
Short Ratio3.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
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)10.2%
PT rev (3m)13.89%
EPS NQ rev (1m)-2.35%
EPS NQ rev (3m)-2.18%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-0.12%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)1.43%
Revenue NY rev (3m)1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.24 | ||
| Fwd PE | 14.73 | ||
| P/S | 1.48 | ||
| P/FCF | 43.84 | ||
| P/OCF | 14.34 | ||
| P/B | 6.07 | ||
| P/tB | 6.68 | ||
| EV/EBITDA | 10.57 |
EPS(TTM)13.99
EY6.16%
EPS(NY)15.42
Fwd EY6.79%
FCF(TTM)5.18
FCFY2.28%
OCF(TTM)15.85
OCFY6.98%
SpS153.57
BVpS37.41
TBVpS34.02
PEG (NY)5.3
PEG (5Y)0.53
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%
ROICexcg growth 3Y-23.3%
ROICexcg 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 | 4.51 |
F-Score6
WACC9.42%
ROIC/WACC1.61
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 Y3.07%
EPS Next 2Y4.81%
EPS Next 3Y5.73%
EPS Next 5Y5.86%
Revenue 1Y (TTM)2.7%
Revenue growth 3Y3.02%
Revenue growth 5Y8.97%
Sales Q2Q%4.98%
Revenue Next Year6.06%
Revenue Next 2Y4.22%
Revenue Next 3Y4.21%
Revenue Next 5Y2.74%
EBIT growth 1Y3.54%
EBIT growth 3Y-10.19%
EBIT growth 5Y27.74%
EBIT Next Year32.84%
EBIT Next 3Y14.31%
EBIT Next 5Y13.07%
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%