DICK'S SPORTING GOODS INC (DKS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DKS - US2533931026 - Common Stock
198.98 USD
-3.16 (-1.56%)
199.769 USD
+0.79 (+0.4%)
Overall DKS gets a fundamental rating of 6 out of 10. We evaluated DKS against 123 industry peers in the Specialty Retail industry. While DKS has a great profitability rating, there are some minor concerns on its financial health. DKS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
DKS had positive earnings in the past year.
DKS had a positive operating cash flow in the past year.
DKS had positive earnings in each of the past 5 years.
Each year in the past 5 years DKS had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 5.86%, DKS is doing good in the industry, outperforming 73.98% of the companies in the same industry.
With a decent Return On Equity value of 18.49%, DKS is doing good in the industry, outperforming 79.67% of the companies in the same industry.
DKS has a better Return On Invested Capital (8.85%) than 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 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 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.
DKS's Operating Margin of 9.71% is amongst the best of the industry. DKS outperforms 83.74% of its industry peers.
DKS's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 35.33%, DKS is in line with its industry, outperforming 44.72% 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 | 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DKS is still 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.
The debt/assets ratio for DKS has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.77 indicates that DKS is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.77, DKS is doing good in the industry, outperforming 61.79% of the companies in the same industry.
DKS has a debt to FCF ratio of 21.52. This is a negative value and a sign of low solvency as DKS would need 21.52 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 21.52, DKS is in line with its industry, outperforming 48.78% of the companies in the same industry.
DKS has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.35, DKS is in line with its industry, outperforming 56.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 21.52 | ||
| Altman-Z | 2.77 |
ROIC/WACC0.94
WACC9.38%
2.3 Liquidity
A Current Ratio of 1.57 indicates that DKS should not have too much problems paying its short term obligations.
DKS has a better Current ratio (1.57) than 62.60% of its industry peers.
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 worse Quick ratio (0.37) than 64.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
The earnings per share for DKS have decreased by -1.72% in the last year.
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%.
DKS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.97% yearly.
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
Based on estimates for the next years, DKS will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.24% on average per year.
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.
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 14.19.
DKS's Price/Earnings ratio is a bit cheaper when compared to the industry. DKS is cheaper than 78.86% of the companies in the same industry.
When comparing the Price/Earnings ratio of DKS to the average of the S&P500 Index (26.77), we can say DKS is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 13.32, the valuation of DKS can be described as correct.
Based on the Price/Forward Earnings ratio, DKS is valued a bit cheaper than 75.61% of the companies in the same industry.
DKS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.19 | ||
| Fwd PE | 13.32 |
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 | 201.62 | ||
| EV/EBITDA | 10.18 |
4.3 Compensation for Growth
DKS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.47
EPS Next 2Y3.16%
EPS Next 3Y6.1%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.31%, DKS has a reasonable but not impressive dividend return.
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
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.
The dividend of DKS decreased 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.
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%
198.98
-3.16 (-1.56%)
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 Cap17.84B
Revenue(TTM)14.88B
Net Income(TTM)1.02B
Analysts73.13
Price Target240.82 (21.03%)
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-Date
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 | 14.19 | ||
| Fwd PE | 13.32 | ||
| P/S | 1.2 | ||
| P/FCF | 201.62 | ||
| P/OCF | 15.95 | ||
| P/B | 3.23 | ||
| P/tB | 4.43 | ||
| EV/EBITDA | 10.18 |
EPS(TTM)14.02
EY7.05%
EPS(NY)14.94
Fwd EY7.51%
FCF(TTM)0.99
FCFY0.5%
OCF(TTM)12.48
OCFY6.27%
SpS165.95
BVpS61.56
TBVpS44.87
PEG (NY)N/A
PEG (5Y)0.47
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 | 2.77 |
F-Score5
WACC9.38%
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.
Can you provide the valuation status for DICK'S SPORTING GOODS INC?
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.
Can you provide the financial health for DKS stock?
The financial health rating of DICK'S SPORTING GOODS INC (DKS) is 5 / 10.
What is the expected EPS growth for DICK'S SPORTING GOODS INC (DKS) stock?
The Earnings per Share (EPS) of DICK'S SPORTING GOODS INC (DKS) is expected to decline by -8.57% in the next year.