DICK'S SPORTING GOODS INC (DKS) Stock Fundamental Analysis
NYSE:DKS - New York Stock Exchange, Inc. - US2533931026 - Common Stock - Currency: USD
Overall DKS gets a fundamental rating of 7 out of 10. We evaluated DKS against 120 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 correct valuation and a medium 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.
In the past year DKS had a positive cash flow from operations.
Each year in the past 5 years DKS has been profitable.
DKS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.12%, DKS belongs to the top of the industry, outperforming 86.32% of the companies in the same industry.
DKS has a Return On Equity of 37.92%. This is amongst the best in the industry. DKS outperforms 86.32% of its industry peers.
With an excellent Return On Invested Capital value of 15.63%, DKS belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DKS is significantly above the industry average of 12.28%.
| 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
Looking at the Profit Margin, with a value of 8.65%, DKS belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
In the last couple of years the Profit Margin of DKS has grown nicely.
Looking at the Operating Margin, with a value of 10.88%, DKS belongs to the top of the industry, outperforming 85.47% of the companies in the same industry.
DKS's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 35.74%, DKS is in line with its industry, outperforming 48.72% of the companies in the same industry.
DKS's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so DKS is creating value.
DKS has less shares outstanding than it did 1 year ago.
DKS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for DKS has been reduced compared to a year ago.
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 85.47% 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.
With a decent Debt to FCF ratio value of 2.12, DKS is doing good in the industry, outperforming 73.50% of the companies in the same industry.
DKS has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.48, DKS perfoms like the industry average, outperforming 47.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.12 | ||
| Altman-Z | 4.37 |
ROIC/WACC1.54
WACC10.14%
2.3 Liquidity
A Current Ratio of 1.72 indicates that DKS should not have too much problems paying its short term obligations.
DKS has a Current ratio of 1.72. This is in the better half of the industry: DKS outperforms 73.50% 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.
DKS has a Quick ratio of 0.56. This is comparable to the rest of the industry: DKS outperforms 57.27% of its industry peers.
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
The Earnings Per Share has grown by an nice 18.92% over the past year.
DKS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.79% yearly.
Looking at the last year, DKS shows a small growth in Revenue. The Revenue has grown by 5.67% in the last year.
Measured over the past years, DKS shows a quite strong growth in Revenue. The Revenue has been growing by 9.01% on average per year.
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 7.71% yearly.
DKS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.75% yearly.
EPS Next Y8.45%
EPS Next 2Y7.69%
EPS Next 3Y7.41%
EPS Next 5Y7.71%
Revenue Next Year3.31%
Revenue Next 2Y3.78%
Revenue Next 3Y3.87%
Revenue Next 5Y3.75%
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 15.74 indicates a correct valuation of DKS.
Based on the Price/Earnings ratio, DKS is valued a bit cheaper than the industry average as 72.65% of the companies are valued more expensively.
DKS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 30.30.
The Price/Forward Earnings ratio is 14.99, which indicates a correct valuation of DKS.
Based on the Price/Forward Earnings ratio, DKS is valued a bit cheaper than the industry average as 69.23% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.06. DKS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.74 | ||
| Fwd PE | 14.99 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as DKS.
65.81% of the companies in the same industry are more expensive than DKS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.17 | ||
| EV/EBITDA | 10.08 |
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)1.86
PEG (5Y)0.5
EPS Next 2Y7.69%
EPS Next 3Y7.41%
5. Dividend
5.1 Amount
DKS has a Yearly Dividend Yield of 1.81%.
Compared to an average industry Dividend Yield of 4.03, DKS pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.29, DKS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
5.2 History
On average, the dividend of DKS grows each year by 36.64%, which is quite nice.
DKS has been paying a dividend for at least 10 years, so it has 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
DKS pays out 30.45% 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.
DP30.45%
EPS Next 2Y7.69%
EPS Next 3Y7.41%
224.64
-6.86 (-2.96%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners93.56%
Inst Owner Change18.7%
Ins Owners3.23%
Ins Owner Change-0.12%
Market Cap18.30B
Analysts73.33
Price Target245.88 (9.46%)
Short Float %8.26%
Short Ratio4.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
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)1.26%
PT rev (3m)0.71%
EPS NQ rev (1m)-0.56%
EPS NQ rev (3m)-5.86%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)-0.15%
Revenue NQ rev (1m)0.53%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.74 | ||
| Fwd PE | 14.99 | ||
| P/S | 1.36 | ||
| P/FCF | 26.17 | ||
| P/OCF | 12.68 | ||
| P/B | 5.97 | ||
| P/tB | 6.63 | ||
| EV/EBITDA | 10.08 |
EPS(TTM)14.27
EY6.35%
EPS(NY)14.98
Fwd EY6.67%
FCF(TTM)8.59
FCFY3.82%
OCF(TTM)17.71
OCFY7.88%
SpS164.79
BVpS37.6
TBVpS33.89
PEG (NY)1.86
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 | 4.37 |
F-Score8
WACC10.14%
ROIC/WACC1.54
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 Y8.45%
EPS Next 2Y7.69%
EPS Next 3Y7.41%
EPS Next 5Y7.71%
Revenue 1Y (TTM)5.67%
Revenue growth 3Y10.65%
Revenue growth 5Y9.01%
Sales Q2Q%0.48%
Revenue Next Year3.31%
Revenue Next 2Y3.78%
Revenue Next 3Y3.87%
Revenue Next 5Y3.75%
EBIT growth 1Y19.65%
EBIT growth 3Y20.13%
EBIT growth 5Y23.62%
EBIT Next Year39.81%
EBIT Next 3Y15.85%
EBIT Next 5Y11.3%
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%