DICK'S SPORTING GOODS INC (DKS) Stock Fundamental Analysis
NYSE:DKS - New York Stock Exchange, Inc. - US2533931026 - Common Stock
We assign a fundamental rating of 7 out of 10 to DKS. DKS was compared to 119 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 has a correct valuation and a medium growth rate. 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.
In the past year DKS had a positive cash flow from operations.
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
With an excellent Return On Assets value of 11.12%, DKS belongs to the best of the industry, outperforming 86.21% of the companies in the same industry.
With an excellent Return On Equity value of 37.92%, DKS belongs to the best of the industry, outperforming 86.21% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 15.63%, DKS belongs to the top of the industry, outperforming 84.48% of the companies in the same industry.
DKS had an Average Return On Invested Capital over the past 3 years of 19.29%. This is significantly above the industry average of 12.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.12% | ||
| ROE | 37.92% | ||
| ROIC | 15.63% |
ROA(3y)13.22%
ROA(5y)10.19%
ROE(3y)51.21%
ROE(5y)38.69%
ROIC(3y)19.29%
ROIC(5y)15.25%
1.3 Margins
DKS has a better Profit Margin (8.65%) than 88.79% of its industry peers.
In the last couple of years the Profit Margin of DKS has grown nicely.
With an excellent Operating Margin value of 10.88%, DKS belongs to the best of the industry, outperforming 85.34% of the companies in the same industry.
In the last couple of years the Operating Margin of DKS has grown nicely.
With a Gross Margin value of 35.74%, DKS perfoms like the industry average, outperforming 47.41% of the companies in the same industry.
In the last couple of years the Gross Margin of DKS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.88% | ||
| PM (TTM) | 8.65% | ||
| GM | 35.74% |
OM growth 3Y8.56%
OM growth 5Y13.41%
PM growth 3Y13.38%
PM growth 5Y16.27%
GM growth 3Y3.13%
GM growth 5Y3.86%
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.
Compared to 1 year ago, DKS has less shares outstanding
The number of shares outstanding for DKS has been reduced compared to 5 years ago.
The debt/assets ratio for DKS has been reduced compared to a year ago.
2.2 Solvency
DKS has an Altman-Z score of 4.35. This indicates that DKS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of DKS (4.35) is better than 83.62% of its industry peers.
DKS has a debt to FCF ratio of 2.12. This is a good value and a sign of high solvency as DKS would need 2.12 years to pay back of all of its debts.
DKS has a Debt to FCF ratio of 2.12. This is in the better half of the industry: DKS outperforms 75.86% of its industry peers.
A Debt/Equity ratio of 0.48 indicates that DKS is not too dependend on debt financing.
The Debt to Equity ratio of DKS (0.48) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.12 | ||
| Altman-Z | 4.35 |
ROIC/WACC1.56
WACC10.01%
2.3 Liquidity
DKS has a Current Ratio of 1.72. 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 (1.72) than 74.14% of its industry peers.
DKS has a Quick Ratio of 1.72. 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 (0.56) is comparable to the rest of the 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 | 1.72 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
DKS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.92%, which is quite good.
The Earnings Per Share has been growing by 31.79% 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 5.67%.
DKS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.01% yearly.
EPS 1Y (TTM)18.92%
EPS 3Y26.72%
EPS 5Y31.79%
EPS Q2Q%-3.51%
Revenue 1Y (TTM)5.67%
Revenue growth 3Y10.65%
Revenue growth 5Y9.01%
Sales Q2Q%0.48%
3.2 Future
DKS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.56% yearly.
The Revenue is expected to grow by 3.73% on average over the next years.
EPS Next Y8.64%
EPS Next 2Y7.54%
EPS Next 3Y7.39%
EPS Next 5Y7.56%
Revenue Next Year3.31%
Revenue Next 2Y3.76%
Revenue Next 3Y3.82%
Revenue Next 5Y3.73%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
DKS is valuated correctly with a Price/Earnings ratio of 15.98.
DKS's Price/Earnings ratio is a bit cheaper when compared to the industry. DKS is cheaper than 71.55% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.94. DKS is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 15.26 indicates a correct valuation of DKS.
Based on the Price/Forward Earnings ratio, DKS is valued a bit cheaper than 71.55% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.11. DKS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.98 | ||
| Fwd PE | 15.26 |
4.2 Price Multiples
61.21% of the companies in the same industry are more expensive than DKS, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, DKS is valued a bit cheaper than 67.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.56 | ||
| EV/EBITDA | 9.93 |
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)1.85
PEG (5Y)0.5
EPS Next 2Y7.54%
EPS Next 3Y7.39%
5. Dividend
5.1 Amount
DKS has a Yearly Dividend Yield of 1.94%. Purely for dividend investing, there may be better candidates out there.
DKS's Dividend Yield is rather good when compared to the industry average which is at 3.27. DKS pays more dividend than 81.03% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, DKS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
5.2 History
On average, the dividend of DKS grows each year by 36.64%, which is quite nice.
DKS has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of DKS decreased recently.
Dividend Growth(5Y)36.64%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
30.45% 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.
DP30.45%
EPS Next 2Y7.54%
EPS Next 3Y7.39%
DICK'S SPORTING GOODS INC
NYSE:DKS (1/17/2025, 8:04:00 PM)
After market: 228.03 0 (0%)228.03
+0.9 (+0.4%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners93.56%
Inst Owner Change-0.48%
Ins Owners3.23%
Ins Owner Change-0.12%
Market Cap18.58B
Analysts73.33
Price Target242.82 (6.49%)
Short Float %9.28%
Short Ratio4.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
Yearly Dividend4.32
Dividend Growth(5Y)36.64%
DP30.45%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.2%
Min EPS beat(2)1.45%
Max EPS beat(2)12.95%
EPS beat(4)4
Avg EPS beat(4)9.68%
Min EPS beat(4)1.45%
Max EPS beat(4)13.69%
EPS beat(8)7
Avg EPS beat(8)4.27%
EPS beat(12)11
Avg EPS beat(12)5.96%
EPS beat(16)15
Avg EPS beat(16)28.3%
Revenue beat(2)2
Avg Revenue beat(2)0.06%
Min Revenue beat(2)0.05%
Max Revenue beat(2)0.07%
Revenue beat(4)4
Avg Revenue beat(4)0.75%
Min Revenue beat(4)0.05%
Max Revenue beat(4)1.8%
Revenue beat(8)7
Avg Revenue beat(8)0.94%
Revenue beat(12)11
Avg Revenue beat(12)1.7%
Revenue beat(16)15
Avg Revenue beat(16)4.75%
PT rev (1m)0.02%
PT rev (3m)-0.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.32%
EPS NY rev (1m)0%
EPS NY rev (3m)0.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.47%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.98 | ||
| Fwd PE | 15.26 | ||
| P/S | 1.38 | ||
| P/FCF | 26.56 | ||
| P/OCF | 12.87 | ||
| P/B | 6.06 | ||
| P/tB | 6.73 | ||
| EV/EBITDA | 9.93 |
EPS(TTM)14.27
EY6.26%
EPS(NY)14.94
Fwd EY6.55%
FCF(TTM)8.59
FCFY3.77%
OCF(TTM)17.71
OCFY7.77%
SpS164.79
BVpS37.6
TBVpS33.89
PEG (NY)1.85
PEG (5Y)0.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.12% | ||
| ROE | 37.92% | ||
| ROCE | 20.2% | ||
| ROIC | 15.63% | ||
| ROICexc | 19.58% | ||
| ROICexgc | 20.66% | ||
| OM | 10.88% | ||
| PM (TTM) | 8.65% | ||
| GM | 35.74% | ||
| FCFM | 5.21% |
ROA(3y)13.22%
ROA(5y)10.19%
ROE(3y)51.21%
ROE(5y)38.69%
ROIC(3y)19.29%
ROIC(5y)15.25%
ROICexc(3y)29.73%
ROICexc(5y)22.57%
ROICexgc(3y)32.25%
ROICexgc(5y)24.54%
ROCE(3y)24.92%
ROCE(5y)19.71%
ROICexcg growth 3Y7.68%
ROICexcg growth 5Y7.23%
ROICexc growth 3Y8.9%
ROICexc growth 5Y9.28%
OM growth 3Y8.56%
OM growth 5Y13.41%
PM growth 3Y13.38%
PM growth 5Y16.27%
GM growth 3Y3.13%
GM growth 5Y3.86%
F-Score8
Asset Turnover1.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.12 | ||
| Debt/EBITDA | 0.79 | ||
| Cap/Depr | 180.05% | ||
| Cap/Sales | 5.54% | ||
| Interest Coverage | 27.74 | ||
| Cash Conversion | 76.99% | ||
| Profit Quality | 60.21% | ||
| Current Ratio | 1.72 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 4.35 |
F-Score8
WACC10.01%
ROIC/WACC1.56
Cap/Depr(3y)114.77%
Cap/Depr(5y)98.69%
Cap/Sales(3y)3.33%
Cap/Sales(5y)2.96%
Profit Quality(3y)76.46%
Profit Quality(5y)108.62%
High Growth Momentum
Growth
EPS 1Y (TTM)18.92%
EPS 3Y26.72%
EPS 5Y31.79%
EPS Q2Q%-3.51%
EPS Next Y8.64%
EPS Next 2Y7.54%
EPS Next 3Y7.39%
EPS Next 5Y7.56%
Revenue 1Y (TTM)5.67%
Revenue growth 3Y10.65%
Revenue growth 5Y9.01%
Sales Q2Q%0.48%
Revenue Next Year3.31%
Revenue Next 2Y3.76%
Revenue Next 3Y3.82%
Revenue Next 5Y3.73%
EBIT growth 1Y19.65%
EBIT growth 3Y20.13%
EBIT growth 5Y23.62%
EBIT Next Year39.44%
EBIT Next 3Y15.68%
EBIT Next 5Y11.04%
FCF growth 1Y137.62%
FCF growth 3Y-10.9%
FCF growth 5Y12.8%
OCF growth 1Y123.42%
OCF growth 3Y-0.55%
OCF growth 5Y16.46%