DICK'S SPORTING GOODS INC (DKS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DKS - US2533931026 - Common Stock
210.25 USD
0.01 (0%)
210.25 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. While DKS has a great profitability rating, there are some minor concerns on its financial health. DKS has a decent growth rate and is not valued too expensively.
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.
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.
Looking at the Return On Equity, with a value of 18.49%, DKS is in the better half of the industry, outperforming 79.67% of the companies in the same industry.
The Return On Invested Capital of DKS (8.85%) is better than 72.36% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DKS is above the industry average of 12.17%.
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 Profit Margin of 6.86%. This is amongst the best in the industry. DKS outperforms 81.30% of its industry peers.
In the last couple of years the Profit Margin of DKS has grown nicely.
Looking at the Operating Margin, with a value of 9.71%, DKS belongs to the top of the industry, outperforming 83.74% of the companies in the same industry.
In the last couple of years the Operating Margin of DKS has grown nicely.
DKS has a Gross Margin of 35.33%. This is comparable to the rest of the industry: DKS outperforms 44.72% of its industry peers.
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.
The number of shares outstanding for DKS has been reduced compared to 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 2.81. 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.
DKS has a Altman-Z score of 2.81. This is in the better half of the industry: DKS outperforms 62.60% of its industry peers.
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 comparable to the rest of the industry.
A Debt/Equity ratio of 0.35 indicates that DKS is not too dependend on debt financing.
DKS's Debt to Equity ratio of 0.35 is in line compared to the rest of the industry. DKS outperforms 56.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 21.52 | ||
| Altman-Z | 2.81 |
ROIC/WACC0.94
WACC9.37%
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 63.41% 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 Quick ratio of 0.37. This is in the lower half of the industry: DKS underperforms 65.85% 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.
The Earnings Per Share has been growing by 30.43% on average over the past years. This is a very strong growth
The Revenue has grown by 10.86% in the past year. This is quite good.
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.
The Revenue is expected to grow by 12.56% on average over the next years. This is quite good.
EPS Next Y-8.05%
EPS Next 2Y3.26%
EPS Next 3Y6.03%
EPS Next 5Y8.24%
Revenue Next Year29.14%
Revenue Next 2Y28.45%
Revenue Next 3Y19.46%
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
The Price/Earnings ratio is 15.00, which indicates a correct valuation of DKS.
78.86% of the companies in the same industry are more expensive than DKS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.57. DKS is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 14.05, the valuation of DKS can be described as correct.
Based on the Price/Forward Earnings ratio, DKS is valued a bit cheaper than 74.80% of the companies in the same industry.
DKS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15 | ||
| Fwd PE | 14.05 |
4.2 Price Multiples
DKS's Enterprise Value to EBITDA is on the same level as the industry average.
DKS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 213.04 | ||
| EV/EBITDA | 10.57 |
4.3 Compensation for Growth
The excellent profitability rating of DKS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.49
EPS Next 2Y3.26%
EPS Next 3Y6.03%
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 rather good when compared to the industry average which is at 1.98. DKS pays more dividend than 80.49% of the companies in the same industry.
DKS's Dividend Yield is comparable with the S&P500 average which is at 2.00.
| 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.
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
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 2Y3.26%
EPS Next 3Y6.03%
210.25
0.01 (0%)
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-0.18%
Market Cap18.86B
Revenue(TTM)14.88B
Net Income(TTM)1.02B
Analysts73.13
Price Target240.82 (14.54%)
Short Float %8.05%
Short Ratio3.75
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)-2.54%
PT rev (3m)-0.41%
EPS NQ rev (1m)-28.79%
EPS NQ rev (3m)-26.81%
EPS NY rev (1m)-11.48%
EPS NY rev (3m)-10.78%
Revenue NQ rev (1m)31.8%
Revenue NQ rev (3m)52.17%
Revenue NY rev (1m)13.55%
Revenue NY rev (3m)21.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15 | ||
| Fwd PE | 14.05 | ||
| P/S | 1.27 | ||
| P/FCF | 213.04 | ||
| P/OCF | 16.85 | ||
| P/B | 3.42 | ||
| P/tB | 4.69 | ||
| EV/EBITDA | 10.57 |
EPS(TTM)14.02
EY6.67%
EPS(NY)14.97
Fwd EY7.12%
FCF(TTM)0.99
FCFY0.47%
OCF(TTM)12.48
OCFY5.93%
SpS165.95
BVpS61.56
TBVpS44.87
PEG (NY)N/A
PEG (5Y)0.49
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 | 2.81 |
F-Score5
WACC9.37%
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-8.05%
EPS Next 2Y3.26%
EPS Next 3Y6.03%
EPS Next 5Y8.24%
Revenue 1Y (TTM)10.86%
Revenue growth 3Y3.02%
Revenue growth 5Y8.97%
Sales Q2Q%36.34%
Revenue Next Year29.14%
Revenue Next 2Y28.45%
Revenue Next 3Y19.46%
Revenue Next 5Y12.56%
EBIT growth 1Y-1.11%
EBIT growth 3Y-10.19%
EBIT growth 5Y27.74%
EBIT Next Year27.6%
EBIT Next 3Y18.49%
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 4 / 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 -8.05% in the next year.