DICK'S SPORTING GOODS INC (DKS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DKS - US2533931026 - Common Stock
216.19 USD
-0.47 (-0.22%)
216.19 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to DKS. DKS was compared to 122 industry peers in the Specialty Retail industry. DKS scores excellent on profitability, 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.
DKS had positive earnings in each of the past 5 years.
In the past 5 years DKS always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 5.86%, DKS is doing good in the industry, outperforming 73.77% of the companies in the same industry.
Looking at the Return On Equity, with a value of 18.49%, DKS is in the better half of the industry, outperforming 79.51% of the companies in the same industry.
DKS has a Return On Invested Capital of 8.85%. This is in the better half of the industry: DKS outperforms 72.13% 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 last Return On Invested Capital (8.85%) for DKS is well below the 3 year average (16.29%), which needs to be investigated, but indicates that DKS had better years and this may not be a problem.
| 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's Profit Margin of 6.86% is amongst the best of the industry. DKS outperforms 81.15% of its industry peers.
DKS's Profit Margin has improved in the last couple of years.
DKS has a Operating Margin of 9.71%. This is amongst the best in the industry. DKS outperforms 83.61% 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.
In the last couple of years the Gross Margin of DKS has grown nicely.
| 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.
Compared to 1 year ago, DKS has an improved debt to assets ratio.
2.2 Solvency
DKS has an Altman-Z score of 2.84. This is not the best score and indicates that DKS is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.84, DKS is in the better half of the industry, outperforming 61.48% 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.
The Debt to FCF ratio of DKS (21.52) is comparable to the rest of the industry.
DKS has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.35, DKS perfoms like the industry average, outperforming 58.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 21.52 | ||
| Altman-Z | 2.84 |
ROIC/WACC0.93
WACC9.56%
2.3 Liquidity
A Current Ratio of 1.57 indicates that DKS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.57, DKS is in the better half of the industry, outperforming 63.11% of the companies in the same industry.
DKS has a Quick Ratio of 1.57. 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 0.37. This is in the lower half of the industry: DKS underperforms 63.11% of its industry peers.
| 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%.
The Earnings Per Share has been growing by 30.43% on average over the past years. This is a very strong growth
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.
Based on estimates for the next years, DKS will show a quite strong growth in Revenue. The Revenue will grow by 12.56% on average per year.
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
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
DKS is valuated correctly with a Price/Earnings ratio of 15.42.
Based on the Price/Earnings ratio, DKS is valued a bit cheaper than the industry average as 78.69% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of DKS to the average of the S&P500 Index (27.19), we can say DKS is valued slightly cheaper.
DKS is valuated correctly with a Price/Forward Earnings ratio of 14.47.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DKS indicates a somewhat cheap valuation: DKS is cheaper than 75.41% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.88. DKS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.42 | ||
| Fwd PE | 14.47 |
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 60.66% of the companies listed in the same industry.
DKS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 219.06 | ||
| EV/EBITDA | 10.87 |
4.3 Compensation for Growth
The excellent profitability rating of DKS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.51
EPS Next 2Y3.16%
EPS Next 3Y6.1%
5. Dividend
5.1 Amount
DKS has a Yearly Dividend Yield of 2.45%.
DKS's Dividend Yield is a higher than the industry average which is at 2.20.
DKS's Dividend Yield is a higher than the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
5.2 History
The dividend of DKS is nicely growing with an annual growth rate of 32.36%!
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
38.61% 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.
DP38.61%
EPS Next 2Y3.16%
EPS Next 3Y6.1%
216.19
-0.47 (-0.22%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners97.15%
Inst Owner Change0%
Ins Owners2.86%
Ins Owner Change-0.16%
Market Cap19.39B
Revenue(TTM)14.88B
Net Income(TTM)1.02B
Analysts73.13
Price Target240.82 (11.39%)
Short Float %9.75%
Short Ratio4.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
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)-2.61%
EPS NQ rev (1m)0.58%
EPS NQ rev (3m)-27.24%
EPS NY rev (1m)-0.56%
EPS NY rev (3m)-11.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)45.18%
Revenue NY rev (1m)1.33%
Revenue NY rev (3m)19.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.42 | ||
| Fwd PE | 14.47 | ||
| P/S | 1.3 | ||
| P/FCF | 219.06 | ||
| P/OCF | 17.33 | ||
| P/B | 3.51 | ||
| P/tB | 4.82 | ||
| EV/EBITDA | 10.87 |
EPS(TTM)14.02
EY6.49%
EPS(NY)14.94
Fwd EY6.91%
FCF(TTM)0.99
FCFY0.46%
OCF(TTM)12.48
OCFY5.77%
SpS165.95
BVpS61.56
TBVpS44.87
PEG (NY)N/A
PEG (5Y)0.51
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 | 2.84 |
F-Score5
WACC9.56%
ROIC/WACC0.93
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.