DICK'S SPORTING GOODS INC (DKS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DKS - US2533931026 - Common Stock
197.97 USD
-1.01 (-0.51%)
197.97 USD
0 (0%)
DKS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 123 industry peers in the Specialty Retail industry. DKS has an excellent profitability rating, but 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.
Each year in the past 5 years DKS had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.86%, DKS is in the better half of the industry, outperforming 73.98% of the companies in the same industry.
DKS's Return On Equity of 18.49% is fine compared to the rest of the industry. DKS outperforms 79.67% of its industry peers.
DKS has a Return On Invested Capital of 8.85%. This is in the better half of the industry: DKS outperforms 72.36% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DKS is above the industry average of 12.14%.
The 3 year average ROIC (16.29%) for DKS is well above the current ROIC(8.85%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.86% | ||
| ROE | 18.49% | ||
| ROIC | 8.85% |
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
DKS has a better Profit Margin (6.86%) than 81.30% of its industry peers.
DKS's Profit Margin has improved in the last couple of years.
The Operating Margin of DKS (9.71%) is better than 83.74% of its industry peers.
DKS's Operating Margin has improved in the last couple of years.
DKS has a Gross Margin (35.33%) 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 | 9.71% | ||
| PM (TTM) | 6.86% | ||
| GM | 35.33% |
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.
DKS has less shares outstanding than it did 1 year ago.
DKS has less shares outstanding than it did 5 years ago.
DKS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.75 indicates that DKS is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.75, DKS is in the better half of the industry, outperforming 61.79% of the companies in the same industry.
The Debt to FCF ratio of DKS is 21.52, which is on the high side as it means it would take DKS, 21.52 years of fcf income to pay off all of its debts.
DKS has a Debt to FCF ratio (21.52) which is in line with its industry peers.
DKS has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
DKS's Debt to Equity ratio of 0.35 is in line compared to the rest of the industry. DKS outperforms 57.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 21.52 | ||
| Altman-Z | 2.75 |
ROIC/WACC0.94
WACC9.39%
2.3 Liquidity
DKS has a Current Ratio of 1.57. This is a normal value and indicates that DKS is financially healthy and should not expect problems in meeting its short term obligations.
DKS's Current ratio of 1.57 is fine compared to the rest of the industry. DKS outperforms 63.41% of its industry peers.
A Quick Ratio of 0.37 indicates that DKS may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.37, DKS is doing worse than 63.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
DKS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.72%.
Measured over the past years, DKS shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.43% on average per year.
DKS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.86%.
The Revenue has been growing by 8.97% on average over the past years. This is quite good.
EPS 1Y (TTM)-1.72%
EPS 3Y-3.66%
EPS 5Y30.43%
EPS Q2Q%1.09%
Revenue 1Y (TTM)10.86%
Revenue growth 3Y3.02%
Revenue growth 5Y8.97%
Sales Q2Q%36.34%
3.2 Future
The Earnings Per Share is expected to grow by 8.24% on average over the next years. This is quite good.
DKS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.56% yearly.
EPS Next Y-8.57%
EPS Next 2Y3.16%
EPS Next 3Y6.1%
EPS Next 5Y8.24%
Revenue Next Year30.86%
Revenue Next 2Y28.52%
Revenue Next 3Y19.39%
Revenue Next 5Y12.56%
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
DKS is valuated correctly with a Price/Earnings ratio of 14.12.
DKS's Price/Earnings ratio is a bit cheaper when compared to the industry. DKS is cheaper than 79.67% of the companies in the same industry.
When comparing the Price/Earnings ratio of DKS to the average of the S&P500 Index (26.51), we can say DKS is valued slightly cheaper.
The Price/Forward Earnings ratio is 13.25, which indicates a correct valuation of DKS.
75.61% of the companies in the same industry are more expensive than DKS, based on the Price/Forward Earnings ratio.
DKS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.12 | ||
| Fwd PE | 13.25 |
4.2 Price Multiples
60.98% of the companies in the same industry are more expensive than DKS, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DKS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 200.6 | ||
| EV/EBITDA | 9.99 |
4.3 Compensation for Growth
DKS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.46
EPS Next 2Y3.16%
EPS Next 3Y6.1%
5. Dividend
5.1 Amount
DKS has a Yearly Dividend Yield of 2.31%. Purely for dividend investing, there may be better candidates out there.
DKS's Dividend Yield is a higher than the industry average which is at 2.01.
Compared to an average S&P500 Dividend Yield of 2.00, DKS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
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
DKS pays out 38.61% 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.
DP38.61%
EPS Next 2Y3.16%
EPS Next 3Y6.1%
197.97
-1.01 (-0.51%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners97.48%
Inst Owner Change16.89%
Ins Owners2.88%
Ins Owner Change-0.17%
Market Cap17.75B
Revenue(TTM)14.88B
Net Income(TTM)1.02B
Analysts73.13
Price Target240.82 (21.64%)
Short Float %9.75%
Short Ratio4.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
Yearly Dividend4.5
Dividend Growth(5Y)32.36%
DP38.61%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.91%
Min EPS beat(2)0.36%
Max EPS beat(2)1.47%
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)5.23%
EPS beat(12)10
Avg EPS beat(12)3.11%
EPS beat(16)14
Avg EPS beat(16)4.67%
Revenue beat(2)1
Avg Revenue beat(2)7.23%
Min Revenue beat(2)-0.45%
Max Revenue beat(2)14.91%
Revenue beat(4)3
Avg Revenue beat(4)4.22%
Min Revenue beat(4)-0.45%
Max Revenue beat(4)14.91%
Revenue beat(8)7
Avg Revenue beat(8)2.49%
Revenue beat(12)10
Avg Revenue beat(12)2.03%
Revenue beat(16)14
Avg Revenue beat(16)2.33%
PT rev (1m)-2.52%
PT rev (3m)-0.39%
EPS NQ rev (1m)-28.79%
EPS NQ rev (3m)-26.81%
EPS NY rev (1m)-11.98%
EPS NY rev (3m)-11.69%
Revenue NQ rev (1m)31.8%
Revenue NQ rev (3m)52.17%
Revenue NY rev (1m)15.06%
Revenue NY rev (3m)23.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.12 | ||
| Fwd PE | 13.25 | ||
| P/S | 1.19 | ||
| P/FCF | 200.6 | ||
| P/OCF | 15.87 | ||
| P/B | 3.22 | ||
| P/tB | 4.41 | ||
| EV/EBITDA | 9.99 |
EPS(TTM)14.02
EY7.08%
EPS(NY)14.94
Fwd EY7.55%
FCF(TTM)0.99
FCFY0.5%
OCF(TTM)12.48
OCFY6.3%
SpS165.95
BVpS61.56
TBVpS44.87
PEG (NY)N/A
PEG (5Y)0.46
Graham Number139.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.86% | ||
| ROE | 18.49% | ||
| ROCE | 11.33% | ||
| ROIC | 8.85% | ||
| ROICexc | 9.45% | ||
| ROICexgc | 10.81% | ||
| OM | 9.71% | ||
| PM (TTM) | 6.86% | ||
| GM | 35.33% | ||
| FCFM | 0.59% |
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-Score5
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 21.52 | ||
| Debt/EBITDA | 1.01 | ||
| Cap/Depr | 233.32% | ||
| Cap/Sales | 6.92% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 59.3% | ||
| Profit Quality | 8.67% | ||
| Current Ratio | 1.57 | ||
| Quick Ratio | 0.37 | ||
| Altman-Z | 2.75 |
F-Score5
WACC9.39%
ROIC/WACC0.94
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)-1.72%
EPS 3Y-3.66%
EPS 5Y30.43%
EPS Q2Q%1.09%
EPS Next Y-8.57%
EPS Next 2Y3.16%
EPS Next 3Y6.1%
EPS Next 5Y8.24%
Revenue 1Y (TTM)10.86%
Revenue growth 3Y3.02%
Revenue growth 5Y8.97%
Sales Q2Q%36.34%
Revenue Next Year30.86%
Revenue Next 2Y28.52%
Revenue Next 3Y19.39%
Revenue Next 5Y12.56%
EBIT growth 1Y-1.11%
EBIT growth 3Y-10.19%
EBIT growth 5Y27.74%
EBIT Next Year29.15%
EBIT Next 3Y18.93%
EBIT Next 5Y15.12%
FCF growth 1Y-92.32%
FCF growth 3Y-26.99%
FCF growth 5Y22.17%
OCF growth 1Y-32.23%
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 6 / 10 to DKS.
What is the valuation status of DICK'S SPORTING GOODS INC (DKS) stock?
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.
How financially healthy is DICK'S SPORTING GOODS INC?
The financial health rating of DICK'S SPORTING GOODS INC (DKS) is 5 / 10.
What is the earnings growth outlook for DICK'S SPORTING GOODS INC?
The Earnings per Share (EPS) of DICK'S SPORTING GOODS INC (DKS) is expected to decline by -8.57% in the next year.